London Stock Exchange PLC (LON:LSE) said it has made a strong start to the year, swiftly shaking off the disappointment of its blocked merger with German rival Deutsche Boerse AG.
In a first quarter trading update, the stock markets operator said it saw sales growth across the group apart from capital markets, which was hit by lower trading levels than last year and currency factors.
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The LSE said revenue of £402mln in the three months ended 31 March were up 18% to £402mln, helped by currency factors, with total income from continuing operations rising by 19% to £458.7mln.
Of its three largest segments, the FTSE 100-listed firm said its information services sales grew by 24% at the reported level and 9% on an underlying basis helped by a first contribution from Mergent, the acquisition of which was completed at the start of the quarter.
It added that reported sales at its LCH clearing house post trade-services grew by 25%, with underlying sales growth of 17%, while capital markets revenues rose 1% due to currency effects but fell 4% at the organic level.
LSE actively engaged in exploring selective ongoing organic and inorganic investments
Xavier Rolet, the group‘s chief executive, said: "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."
In early morning trading, LSE shares were 0.9%, or 28p higher at 3,335p.
Russ Mould, director of investment group AJ Bell said: “The proposed merger with Deutsche Boerse has been blocked by the EU but the group is now looking at other investments to drive further growth.”
The European Union competition commissioner Margrethe Vestager put a final bullet in the LSE and Deutsche Boerse merger plans on March 29, coincidentally – or not – the day UK prime minister Theresa May triggered the Brexit process.
READ: EU competition boss delivers coup de grace to LSE merger
After almost exactly a year, the US$28bn all-share merger plan was terminated after Vestager ruled that it "would have significantly reduced competition" in the area of clearing of fixed income instruments.
In a statement, the EU commissioner said: "As the parties failed to offer the remedies required to address our competition concerns, the Commission has decided to prohibit the merger.”
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