London Stock Exchange Group Plc interim management statement for the period to 20 January 2010

London Stock Exchange Group Plc interim management statement for the period to 20 January 2010

21/01/10

Headlines:

Revenues and KPIs for three months ended 31 December 2009:

  • Revenue of £154.9 million, down nine per cent on Q3 last year (12 per cent decline at constant currency) but up four per cent on Q2
  • Money raised on the Group’s markets was strong at £25.9 billion, including £22.8 billion raised in secondary issues, contributing to a 14 per cent rise in primary market revenue 
  • Cash equities trading revenues in UK and Italy combined declined 29 per cent, with a reduction in UK trading activity combined with a lower yield following the September price changes; in Italy average trading volumes declined 6 per cent; continued improvement in the MTS fixed income trading business delivered 23 per cent revenue growth
  • Post Trade revenues declined 13 per cent as a result of the expected reduction in interest on margin held in the clearing business from the unusually high levels last year
  • Information & Technology Services revenues increased three per cent with first time contribution from MillenniumIT; the total number of professional users of real time information was broadly unchanged since the half year though down on the previous year, while revenues from other data and IT businesses were solid overall

     Good operational progress:

  • Continued focus on cost reduction, with further savings announced through agreement to sub-lease surplus space at Paternoster Square offices, providing £3 million per annum income statement benefit from next financial year
  • Acquisition of MillenniumIT completed in October 2009, to provide high performance trading system and reduce ongoing IT related expenses, with project work underway for migration to new platform by the end of 2010
  • Agreement to acquire Turquoise MTF (expected to complete February 2010), forming a partnership with major banking clients to create a new pan-European lit and dark trading platform
  • Successful migration to new derivatives trading system at EDX in December 2009
  • Plans announced for launch of UK retail bond trading platform in February 2010
  • Executive team further strengthened with addition of Kevin Milne as Director of Post Trade Services in January 2010

Commenting on performance in the past quarter, Xavier Rolet, Chief Executive, said:

“Market conditions have not been easy in the last quarter, particularly in cash equities, though the Group has benefitted from the breadth of its activities, with good performances in primary markets and fixed income trading, and the Information & Technology Services division has also proven resilient.

“Market conditions are expected to remain testing in the current quarter.  We continue to focus on improving the shape of the business, with actions clearly underway to reduce underlying operational costs, and improve business efficiency and our competitive position.  The agreement to acquire Turquoise and the acquisition of MillenniumIT are good steps to enhancing our trading offering.  We continue to work on ways to leverage the assets and develop opportunities across the Group to provide a platform for growth further ahead.”

Read the full RNS announcement here