London Stock Exchange Group plc (LSE.L) Thursday reported a 22% increase in first-half profit, while pre-tax profit increased 30% from last year. Revenues for the six months surged 70% year-over-year. Further, the company announced a 5% increase in interim dividend and said it decided to stop the current share repurchase program. The company's stock is trading down over 10%.
The company, which bought Italy's main stock exchange Borsa Italiana SpA last year, reported a profit of GBP 83.7 million for the latest period, up from GBP 68.7 million in the previous year. Profit attributable to equity holders increased to GBP 81.7 million from GBP 68.5 million reported last year. Results of the previous year have been restated to include the Italian bourse.
Earnings per share for the period declined to 30 pence from 33.7 pence in the previous year. Adjusted earnings per share, excluding amortization of purchased intangible assets and exceptional items, increased to 38.9 pence from 35.1 pence reported last year.
Profit for the period included a GBP 23.4 million charge for goodwill amortization, a GBP 6.1 million charge associated with the failure of Lehman Brothers Holdings Inc. and a third charge of GBP 3.4 million with regard to the Borsa Italiana integration.
Profit before tax increased 30% to GBP 127 million from GBP 97.8 million reported for the same period last year.
Operating profit before amortization of purchased intangibles and exceptionals increased 57% to GBP 179.9 million for the first half of the current fiscal from the previous year's GBP 114.7 million. The growth was 5% on a pro forma basis and flat on a constant currency basis.
LSE said revenue for the six months ended September 30 surged to GBP 345.5 million from GBP 203.1 million generated last year. On a pro forma basis, assuming Borsa Italiana had been acquired on April 1, 2007, the increase was 5% and flat in constant currency.
For the Issuer Services, revenue slipped 3% to GBP 49.4 million, while Trading Services revenues dipped 1% to GBP 151.1 million. In the Information Services, revenue increased 16% to GBP 89.8 million and Post Trade Services generated GBP 46.7 million during the period, an increase of 14% from last year.
SETS volumes increased 33% to 739,000 trades per day, while SETS value traded declined 2%. Trading at Borsa Italiana was 8% lower at 262,000 trades per day.
Operating costs, before amortization of purchased intangibles and exceptionals, increased 6% to GBP 165.6 million on a pro forma basis, flat in constant currency.
Commenting on the six months, Clara Furse, Chief Executive said, "This performance underlines the quality and resilience of our business, illustrating our critical capital raising and price forming role as a well regulated market with an exceptionally strong international brand... Activity on the Exchange will continue to reflect more difficult and uncertain market conditions."
The oldest independent market of Europe also said it is busy developing a number of new services and products as well as the opportunities arising from its merger with Borsa Italiana. Integration synergies are increasing and being achieved at a faster rate, with a 20% uplift in cost savings to at least GBP 24 million.
Additionally, the company said interim dividend has been raised 5% to 8.4 pence per share from 8 pence announced last year. It will be paid on January 5, 2009 to shareholders on the register on December 5, 2008.
The company also has decided to end the GBP 500 million share buyback program currently in place, as the board felt that due to the significant changes in global financial market conditions, it is currently prudent to retain a more robust balance sheet and to provide financial flexibility to pursue investment opportunities.
LSE.L is currently trading at 517.50 pence, down 62 pence or 10.70%, on 943,904 shares. For the past year, the stock trended in the range of 416.50 pence - 2,002 pence.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.