The third quarter trading update from the LSE came in ahead of expectations with total income up 19% to £414.6m and revenue from ongoing operations up 15% to £376.2m.
The group reported that all of its core divisions are seeing good growth with capital markets revenue up 16% in the three months to September and a 13% increase in income at information services.
Interested investors should appreciate that despite the Brexit vote causing some doubts, the focus remains on completing the merger with Deutsche Boerse in order to create a leading global markets infrastructure group, while the integration of FTSE Russell is progressing ahead of schedule.
The share price has powered ahead over the last five years on the back of improving markets but we continue to recommend London Stock Exchange as a ‘hold’ due to the recent moves towards diversifying the group’s operations, with good potential for growth in information services and increasing trade in derivatives.
Please remember, no news or research item is a recommendation or advice to buy. Every Investor is not responsible for accuracy and may not share the author’s views. If you are unsure of the suitability of any investment for your circumstances please contact an adviser. All investments can fall as well as rise in value so you could get back less than you invest.
** Keep an eye on how your favourite stocks are performing by using Company REFS – the ultimate stock pickers tool. Try now with a 30 day free trial **