London Stock Exchange spies money in data

LONDON Stock Exchange Group now makes more money from data services than from its core capital markets business, according to year-end results released yesterday.

Revenue from the group’s information business grew 40 per cent to £306.3m over the twelve months to the end of March, driven by the acquisition of the FTSE business which calculates indices for exchanges around the world.

By contrast income from the capital markets division – which includes the iconic London Stock Exchange itself – fell by a tenth to £267.5m.

The company’s decision to diversify away from equity markets, which have been hit by falling trade volumes following the financial crisis, appears to have paid off, with total revenues rising seven per cent to £726.4m.

Profits fell three per cent but chief executive Xavier Rolet said he was pleased with the “initiatives we have undertaken to become more efficient and diversify our business”.

Earlier this month the LSE acquired London clearing house LCH.Clearnet in an attempt to increase revenues from post-trade services.

The company, which joined the FTSE 100 this year, saw its share price jump as analysts rushed to praise the turnaround plan

“We believe the company is being exceptionally run especially given the challenging market backdrop,” said analyst Peter Lenardos of RBC Capital Markets.