LSE Q3 revenue up 48 percent as capital markets recover
LONDON (Reuters) - The London Stock Exchange (LSE) posted a 48 percent rise in third-quarter income, thanks to in part to strong growth in capital markets, where the number of new equity and debt issues nearly doubled.
The LSE said on Thursday income for the three months through December rose to 308.9 million pounds ($512.3 million) from 208.9 million the previous year. The figure includes a 6.9 million pound gain from the sale of shares in a non-core asset.
Revenue across all the exchange's business divisions - capital markets, post trade, information services and technology - was higher, with a 21 percent gain in capital markets a particular bright spot.
The company said it expects this division to benefit from further capital raising in the fourth quarter. Trading in both UK and Italian cash equities and Italian derivatives was running ahead of the same period last year, it added.
The bourse's post-trade division, excluding LCH.Clearnet, the clearing house in which the LSE acquired a majority stake in May, saw revenue increase by 14 percent.
Income at LCH.Clearnet was 3 percent higher on a pro-forma basis. Barclays analyst Daniel Garrod said in a note to clients LCH.Clearnet's revenue of 61.2 million pounds was a modest disappointment, but was optimistic that greater clearing members could produce growth in 2014.
LSE Chief Executive Xavier Rolet said: Significant focus remains on the integration of LCH.Clearnet, with a number of detailed programmes underway to achieve the widespread benefits of the transaction." (Reporting by Clare Hutchison)
