London Stock Exchange reports gross profit up 17%; Q1 Results

Strong start to 2017: Q1 total income from continuing operations up 19% to £458.7 million; gross profit (after cost of sales) up 17%
Strong results reflect good headline growth across all core business areas as the Group continues to deliver and execute on its strategy; revenue up 18% (up 8% on an organic and constant currency basis)
Successful strategy based on customer partnership, innovation and an Open Access model makes the Group strongly positioned to make further progress as a well diversified financial markets infrastructure business with a global footprint

LCH income increased 31% (up 21% at constant currency), with 27% revenue growth in OTC from higher SwapClear client trades; good performances also in CDSClear and ForexClear. Non-OTC clearing revenue up 15% with good growth in fixed income
Post Trade Services (Italy) revenue up 18% (up 6% at constant currency) – increased settlement and custody revenues offset lower clearing revenue
Information Services revenues up 24% (up 9% on organic and constant currency basis) – FTSE Russell up 11% on a like for like basis, and up 31% on a headline basis with the inclusion of Mergent following the successful completion in early January
Capital Markets revenues up 1% (down 4% at constant currency), reflecting lower trading levels against a strong comparative quarter last year
Technology Services revenues up 27% (up 18% at constant currency)
Group continues to invest – new initiatives in the period include:

– CDSClear launched client clearing

– LCH SA began offering repo clearing on German debt

– FTSE Russell launched £SONET – a new secured rate for sterling overnight funds

– London Stock Exchange announced plans to launch a new International Securities Market

– More than 500 companies on ELITE, across 26 countries; ELITE Club Deal (online private

placement platform) signed a strategic partnership with The HUB to provide bespoke technology

Source: LSEG

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