LSE Sales Rise 4%; Market Remains ‘Very Difficult’

By Nandini Sukumar

Jan. 22 (Bloomberg) -- London Stock Exchange Group Plc, Europe’s oldest independent market, said sales in the fiscal third-quarter rose 4 percent, aided by its information and post- trade services businesses.

Revenue for the three months ended Dec. 31 rose to 171 million pounds ($237 million) from 164.4 million pounds in the comparable period a year ago, LSE said in a Regulatory News Service statement today. The exchange said “market conditions remain very difficult.”

Europe’s Dow Jones Stoxx 600 Index slumped 46 percent last year, the worst annual performance on record, as credit-related losses and writedowns at financial companies reached $1 trillion and the U.S., Japan and Europe fell into the first simultaneous recessions since World War II. LSE, along with other bourses is also trying to fight off competition from new alternative trading platforms. Chi-X Europe Ltd., Turquoise, and European platforms set up by Bats Trading Inc. and Nasdaq OMX Group Inc. of the U.S. are seeking market share from traditional bourses.

“Since the start of 2009, cash equities trading volumes and value are lower than the average levels seen in the previous two months and down in comparison to the record trading levels last January,” LSE said in the statement. “Looking forward to the remainder of the financial year, market conditions remain very difficult and uncertain.”

The exchange, which is integrating its purchase of Borsa Italiana SpA, said “benefits” from the acquisition are being delivered, it’s developing new products and “tightly” controlling costs.

LSE said third-quarter results were boosted by a 19 percent rise in the euro against the pound during the quarter. At constant currency rates third-quarter sales were three percent lower.

Sales at the exchange’s Trading Services division fell 13 percent to 64.8 million pounds in the quarter, due to a decline in the value traded in stocks in the U.K. and a slowdown in trading volumes in Italy.

To contact the reporter on this story: Nandini Sukumar in London at nsukumar@bloomberg.net.