London Stock Exchange Group Reveals Solid Financials for Q1 2017

LSEG’s total revenue from continuing operations was reported at $588.5 million (£458.7 million) in the first quarter.

The London Stock Exchange Group (LSEG) today reported its financial results for Q1 2017, covering the past three months ending March 31, 2017, which were largely positive when weighed against a year ago.

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The statistics come amidst news that the grand merger between LSEG and Deutsche Börse seems to be all but dead, as LSEG Board would not commit to the divestment of MTS S.p.A after the European Commission required this action to approve the deal.

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In terms of financial results for Q1 2017, LSEG’s total revenue from continuing operations was reported at $588.5 million (£458.7 million), up 19.0% year-over-year relative to $ 494.0 million (£385.0 million) in Q1 2016. LSEG’s gross profit also saw growth in the first quarter, yielding a figure of $524.8 million (£409.1 million) – this is a move of 17.0% year-over-year from just $449.8 million (£350.6 million) back in Q1 2016. On a constant currency basis, the total revenues and gross profits rose 9 percent and 7 percent respectively compared to last year.

Reinforcing this climb has been a steady growth in LSEG’s core business segments, with a healthy quarterly advance across the capital markets and at LCH. LCH income increased 31% (up 21% at constant currency), with 27% revenue growth in OTC from higher SwapClear client trades. Additionally, good performance was also noted across CDSClear and ForexClear, whilst non-OTC clearing revenue jumped 15 percent year-on-year with good growth in fixed income.

Commenting on the Q1 performance, Xavier Rolet, CEO, said: “The Group has made a strong start to the year with growth across all of our core businesses.  In particular, we recorded strong results in the SwapClear OTC clearing service, and at FTSE Russell.  We also have the first contribution from Mergent, having completed the transaction at the start of the quarter.”

“We are well positioned as an open access financial markets infrastructure group to benefit from the introduction of MiFID II and remain focused on executing our strategy, partnering with customers and delivering value for shareholders.  We continue to be actively engaged in exploring selective ongoing organic and inorganic investments in order to drive further growth,” he concluded.

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