London Stock Exchange profit jumps 69% as revenue rises 18%
Staff Writer |
London Stock Exchange Group said interim profit increased following double-digit revenue growth at its information services and clearing house businesses.
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For the six months ended June 30, pretax profit surged 69% to GBP277.0 million from GBP164.0 million the previous year.
Adjusted operating profit, before amortisation of assets and non-recurring items, was up 20% to GBP398.0 million from GBP333.0 million with with underlying operating expenses on an organic and constant currency basis up 5%.
Group revenue increased 18% to GBP853.0 million from GBP722.0 million and total income rose 20% to GBP946.0 million from GBP786.0 million.
The FTSE 100 company declared an interim dividend of 14.40 pence per share, up 20% from 12.00p and LSE is also currently conducting a GBP200.0 million share buyback programme that has been announced previously.
LSE said the company's "strong"performance in the period reflected growth in both the information services division and its multi-asset class clearing house business, LCH Group Ltd.
Revenue for information services, LSE's largest business segment, increased 24% to GBP355 million, or 13% on an organic constant currency basis, which the company said reflected a "strong" performance by the FTSE Russell stock market indices business, with revenue up 16% on an organic constant currency basis to GBP261 million.
There was also a first time contribution of GBP15.0 million from US data business Mergent Inc, which LSE bought at the start of the year.
LSE said it expects to deliver increased shareholder returns and meet its growth targets. In June the company said it was targeting continued double-digit revenue growth for 2017 to 2019 for FTSE Russell and LCH, and grow LCH's earnings before interest, tax, depreciation and amortisation margin to 50% by 2019. ■
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