LSE Income Up, but Share Price Down
London Stock Exchange Group (ISE: LSE.L) was down almost 3% at one point this morning, despite hitting quarterly growth forecasts and reporting a 10% increase in total income over Q1 2011, growing from 190.2 million pounds to 209.5 million pounds.
In an interim management statement released today, LSE reported that revenues from its information services operations rose 68% (75.3 million pounds, up from 44.7 million pounds), largely stemming from its acquisition of the FTSE index business last December, and those from its technology unit increased by 14% (12.1 million pounds, up from 10.6 million pounds).
Thankfully, these more than offset falls in its capital markets business, where revenues dropped 15% (down to 39.4 million pounds from 46.1 million pounds), and post-trade services, which slid 12% (down to 22.8 million pounds from 26 million pounds).
Given the broadly good news, chief executive Xavier Rolet was understandably positive:
We have delivered a good overall performance, reflecting our broad suite of products and services and the increased diversification of the Group.
In particular, we have seen a strong contribution from FTSE, which continues to demonstrate good growth.
Our focus remains on developing partnerships with our customers, executing on our strategy and delivering on cost control and benefits from recent transactions.
LSE's interim statement concluded that, despite continuing market and economic uncertainties, the Group remains well-positioned and will continue to focus on delivering benefits from recent transactions and its more diversified range of products and services.
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