LSE shares soar as acquisition boosts revenues

Elizabeth Fournier
SHARES in the London Stock Exchange (LSE) topped the FTSE 100 yesterday, rising more than seven per cent after first-quarter revenues at the group beat expectations.

Revenues in the three months to the end of June were £249.7m – 39 per cent higher than a year ago when they came in at £179m, and comfortably topping estimates of around £233m.

Chief executive Xavier Rolet said an increase in firms listing on the exchange and the amount of money they raised has boosted revenues, sending turnover at its capital markets division up by 11 per cent.

Yesterday’s figures are the first to include historic revenues from clearing house LCH.Clearnet, in which Rolet snapped up a 58 per cent stake in March.

First quarter revenue at LCH.Clearnet rose by 17 per cent according to historical figures provided by the LSE, with analysts expecting further growth as the exchange seeks to diversify away from revenue streams that are reliant on volatile market sentiment.

Stripping out the contribution from LCH.Clearnet, and allowing for currency fluctuations, group revenues rose by eight per cent.

LSE also said that it would be looking for a new chief exec of the clearing house unit after Ian Axe, who led LCH.Clearnet through the acquisition, announced plans to step down.

The former Barclays executive will stay on until a replacement is named to ensure an orderly transition.

Shares in the exchange, which have risen by more than a third so far this year, closed up 7.43 per cent at 1,590p.