LSE profits on market turbulence

Source: Exec Digital UK

Date :16/11/2007 09:55:31

The London Stock Exchange posted an unexpectedly strong set of first-half results yesterday, buoyed by record trading levels.

Volatility

The LSE reported a 41 percent leap in operating profit to £114.7 million, beating analysts' predictions of £111 million largely thanks to investors looking to adjust their portfolios due to the instability of the market.

During the first half, LSE and the Italian stock exchange operator Borsa Italiana merged in £1.3 billion deal, which completed last month. The bourse also successfully fought off a bid by American rival Nasdaq.

Clara Furse, chief executive, commented on the results:

“The Exchange has produced an excellent first half performance, with revenue up 24 per cent and earnings per share increasing by 48 per cent,” she said.

Sustained growth

“This result reflects very strong performances in each division, particularly in Broker Services with the continued growth of trading on our SETS electronic order book, following the launch of our new TradElect trading platform in June.

“The quality of our technology, products, market model and regulatory integrity, plus our ability to provide best execution, means we are well placed to continue to compete successfully and meet the evolving needs of increasingly international market users.”

November 16, 2007