First-quarter revenues at the London Stock Exchange Group rose 8 percent thanks to buoyant information and settlement services, the group said on Wednesday, sending its shares up nearly 9 percent. But revenue from issuance and trading remained roughly flat in the three months ended June amid global financial turmoil, the stock exchange operator said.
"In weak market conditions and a changing regulatory landscape, the Exchange has delivered a good performance in the first quarter of the year," the group said in a statement. LSE shares, which had plummeted 64 percent since January, jumped 8.6 percent in early morning trading. LSE's revenue rose to 178 million pounds ($351.2 million) for the first quarter of its financial year on the back of 19 percent growth in real-time data sales and a 20 percent increase in clearing and settlement revenue.
The rise despite tough markets highlighted the bourse's well-diversified business, it said. Analysts expect the LSE's profit to remain under pressure amid increased competition, as new European Union legislation has made it easier for new rivals to set up, such as Chi-X.
LSE said it remained confident that active equity issuance and demand for real-time data would drive growth. During the quarter, the LSE bought back and cancelled 3.2 million of its own shares worth 31 million pounds. For the reporting period, the total value traded on the London and Milan cash equities markets dropped 8 percent. The UK equities average daily value traded was flat in April and down 11 percent and 8 percent in May and June, respectively.
Italian equities value traded declined 16 percent in April, 13 percent in May and 37 percent in June. Initial public offering (IPO) activity, in terms of money raised, dropped 45 percent in the first quarter from the same period last year.
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