LONDON (dpa-AFX) - London Stock Exchange Group Plc (LSE.L) on Friday reported a 17 percent growth in income for the third quarter, as revenue grew 7 percent, benefiting from strong performance by the CCP business in Italy. Total income for the quarter increased 17 percent to 196.3 million pounds from 167.4 million pounds. On an organic basis, growth was 13 percent. Net treasury income through CCP business climbed 126 percent to 33.5 million pounds. Through the Exchange's Italian arm, Borsa Italiana, LSE offers clearing and settlement services for trades through CC&G and Monte Titoli. CC&G is the Group's Central Counterparty and covers multiple asset classes throughout the Italian equity, derivatives and bond markets. In Post Trade Services, total income increased 50 percent, driven by further sequential growth in treasury management income from clearing operations.
Total revenue grew 7 percent to 160.8 million pounds from 150.6 million pounds in the prior year with a 24 percent growth in Information Services and a 15 percent increase in Technology Services revenues. Organic revenue for the quarter grew 2 percent. Revenue from Capital Markets slipped 4 percent from last year as growth in annual fee income, derivatives revenues and Italian cash equities trading was offset by lower IPO activity and weaker fixed income and UK cash equities trading. Information Services revenue of 52.8 million pounds reflected operational growth and the initial benefits of the FTSE acquisition, the company said. Revenue growth in Technology Services comprised a 34 percent increase in MillenniumIT and a 4 percent improvement in Technology revenues. At FTSE International Limited, revenue for the 12 months ended December 31, 2011 increased 21 percent to 119.1 million pounds and EBITDA grew 34 percent to 53.6 million pounds. Further, the bourse operator said exclusive discussions are continuing with LCH.Clearnet and broader related stakeholder engagement. In September last year, the company won the backing of LCH.Clearnet's board to take over the clearing exchange. Commenting on the past quarter, Xavier Rolet, Chief Executive, said, 'This has been another good quarter, with strong momentum and top line growth of 17 per cent. As well as a very positive organic performance, we successfully completed our acquisition of FTSE.' LSE expects continuing good overall group performance during the final quarter of the financial year. However, amid weak market conditions, the quarter has started with subdued secondary market trading, with average daily value traded in UK cash equities down 3 percent sequentially although volume traded in Italian cash equities is up 4 percent. LSE.L closed on Thursday at 881.50 pence, up 14 pence or 1.61 percent, on 344,266 shares.
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