LSE profits surge by almost 50%

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Copy of LSE . File photo: Reuters.

London - The London Stock Exchange Group's net profits surged by nearly 50 percent in the first quarter on the back of a resurgence in stock market flotations, it said on Friday.

Earnings after taxation soared to £52 million ($86 million, 65 million euros) in the three months to June, compared with £35.4

million a year earlier, the LSEG said in a results statement.

Pre-tax profits meanwhile jumped 40 percent to £83.6 million in the reporting period, while sales rallied by a fifth to £299.9

million.

The group's performance was lifted also by clearing house unit LCH. Clearnet, in which LSEG bought a majority holding in 2012.

The company announced plans to raise £938 million from a rights issue, or sale of new shares, to help fund its $2.7-billion acquisition of US asset manager Frank Russell Co.

“We continue to make good progress, delivering a strong financial performance this quarter,” said chief executive Xavier Rolet in the earnings release.

He added: “We have seen a resurgence in the IPO (initial public offering) market with an increase in both the number of companies joining our markets and the amount of money raised.

“While the summer period is seasonally slower, our diversified business is very well positioned for further growth.”

The operator of Britain's main exchange and Italy's Borsa Italiana repeated that the number of initial public offerings (IPOs) or flotations on its markets more than doubled to 78 from 33 in the same part of last year. New issue activity continued in July and August, it added.

Sapa-AFP


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