London Stock Exchange Group sees decent third quarter growth

London Stock Exchange Group updated the market on its third quarter trading on Friday, reporting growth across the group in the three months ended 30 September.

The FTSE 100 self-listed exchange operator said reported revenue for the period was up 5%, and total income was ahead 8% to £522m.

Oa like-for-like basis, excluding a £9m year-to-date accounting change impact on adoption of IFRS 15 in Capital Markets, it said revenue would have been up 7% and total income up 9%.

Reported revenue was 9% higher, and total income rose 10% on a nine-month year-to-date basis, including the effects of IFRS 15.

LSE Group also pointed out it was acquiring up to a further 15.1% stake in LCH Group, which was expected to take its majority ownership to over 80%, with completion targeted by the end of the fourth quarter.

On a divisional basis, LSE said in Information Services its revenues were up 17%, or 9% on an organic and constant currency basis, with reported double-digit growth at FTSE Russell.

In Post Trade, LCH income rose 15% on both a reported and constant currency basis, which the board said was driven by 12% revenue growth in OTC clearing, with strong volumes at SwapClear and ForexClear also contributing to 49% growth in net treasury income.

At Capital Markets, like-for-like revenues were up 2% both reported and at constant currency, while adjusting for IFRS 15, Capital Markets reported revenues were 8% lower than the comparative third quarter unadjusted period in the prior year.

“The third quarter results show continued momentum across the group, reflecting another period of operational execution and investment in the business,” said London Stock Exchange Group chief executive officer David Schwimmer.

“Information Services and LCH both delivered good year on year growth.

“We also announced today that we are in the process of acquiring up to a further 15.1% stake in LCH, which is expected to take our majority ownership of this valuable strategic business to over 80%, reflecting our continued confidence in LCH's opportunities for further growth as it develops its business in partnership with its customers.”

Schwimmer said that, since he joined LSE Group in August, his initial impressions of the group's strengths had been “reinforced” as he had spent time with its businesses and met with key stakeholders.

“The group has world class assets, a strong financial position and a proven strategic approach.

“As today's results show, we have a great platform from which to grow and develop further opportunities as we navigate the evolving economic and regulatory landscape ahead.”