LSE hits revenue target thanks to FTSE boost

City A.M. Reporter
The London Stock Exchange shrugged off weak trading in its main capital markets business to hit quarterly growth forecasts, driven largely by the addition of the FTSE index unit acquired last year.

The British exchange said on Wednesday revenue rose 10 per cent to £209.5m in the three months to end-June, in line with a forecast for £210.3m.

The higher revenue hike was largely down to the inclusion of an estimated £35m from the FTSE index business the exchange bought in December.

"We have seen a strong contribution from FTSE, which continues to demonstrate good growth," chief executive Xavier Rolet said.

Revenue from the LSE's information services business, which now includes FTSE, increased 68 per cent to £75.3m.

This wiped out falls in the LSE's markets business, which was off 15 per cent at £67.5m, and post-trade services, which fell 12 per cent to £22.8m.

The LSE's technology unit grew 14 per cent to £12.1m, while the net interest income drawn from cash deposits with Italian banks, the fastest-growing LSE revenue stream in recent quarters, rose 10 percent to £28.5m.

"Notwithstanding continuing market and economic uncertainties, the group remains well positioned and will continue to focus on delivering benefits from recent transactions and its more diversified range of products and services," Rolet said.