London Stock Exchange Group (LSE)


London Stock Exchange Group Plc Reports Revenue Up 8%

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The shares of London Stock Exchange (LSE:LSE) slipped 8p to 1,597p during early trade this morning after the FTSE 100 member revealed its underlying half-year revenues had advanced 8%.

London Stock Exchange, which owns the Italian stock exchange as well as the domestic London bourse, said total revenues during the six months to 30 September had gained 44% to £504m following the acquisition of a majority stake in LCH.Clearnet.

The LSE added that its adjusted operating profits had advanced 6% to £230m, although the group did admit profits had declined 13% if LCH.Clearnet and currency movements were excluded.

Today’s results confirmed the value of UK shares traded on the London market had increased 4% to £528bn during the six months, although the number of companies quoted on the UK exchange had dropped 2% to 2,453.

A “strong” performance from the FTSE indices business helped the LSE’s information services division lift its revenue by 14% to £168m.

The group also announced its first-half dividend would be lifted 4% to 10.1p per share.

Xavier Rolet, the chief executive on the LSE, said: 

This has been a good overall first half for the Group. We remain focused on developing growth opportunities, realising the benefits from the acquisition of LCH.Clearnet, and delivering on our strategy.

Prior to today, City experts had predicted the LSE would deliver earnings of 102p per share and a dividend of 31.2p per share for the year to March 2014.

Those projections may place the shares on a potential P/E of 16 and a possible yield of 2%.

> Maynard does not own any share mentioned in this article.