LONDON: London Stock Exchange Group reported higher quarterly income as its clearing, capital markets and FTSE Russell businesses grew strongly, helping ease lingering investor concern after a difficult 2017 for the company.
Total income from continuing operations rose 13 percent to £520 million in the quarter ended March 31, while total revenue was up 11 percent at £470 million.
“The group has delivered a strong first quarter performance. All of our key businesses continue to perform well, with strong growth in FTSE Russell, LCH and Capital Markets,” Interim Chief Executive David Warren said in a statement.
The group named Goldman Sachs’ veteran David Schwimmer as chief executive officer earlier this month, drawing a line under a management row between its chairman Donald Brydon and activist hedge fund TCI.
TCI backs Schwimmer, Sky News reported late on Monday. TCI did not respond to request for comment.
LSE’s capital markets division, which makes money from fees paid by companies listing on its markets and trading of stocks and bonds, saw revenue rise by 14 percent to £107 million.
Revenue from information services rose 16 percent to £201 million, with double-digit growth at FTSE Russell, LSE said, adding its income from its clearing business, LCH, surged by 18 percent in the first quarter.
Schwimmer, who will take the helm in August, will have to protect LSE’s strong hold in euro clearing as rival Deutsche Boerse in Frankfurt is already seeking to exploit Brexit uncertainty to build up business. LCH dominates euro swaps clearing.
“The LSE would have more than £900 million in balance sheet capacity for M&A or further returns to shareholders,” RBC analysts who rate LSE as “Outperform,” said.
In March last year, European Union regulators blocked the 29-billion-euro merger between LSE and Deutsche Boerse, formally ending a deal that unraveled in the wake of the Brexit vote.
London Stock Exchange Group’s quarterly income rises
London Stock Exchange Group’s quarterly income rises
Closing Bell: Saudi main index closes higher at 10,596
RIYADH: Saudi equities closed higher on Tuesday, with the Tadawul All Share Index rising 43.59 points, or 0.41 percent, to finish at 10,595.85, supported by broad-based buying and strength in select mid-cap stocks.
Market breadth was firmly positive, with 170 stocks advancing against 90 decliners, while trading activity saw 161.96 million shares change hands, generating a total value of SR3.39 billion.
Meanwhile, the MT30 Index closed higher, gaining 6.52 points, or 0.47 percent, to 1,399.11, while the Nomu Parallel Market Index edged marginally lower, slipping 3.33 points, or 0.01 percent, to 23,267.77.
Among the session’s top gainers, Al Masar Al Shamil Education Co. surged 9.99 percent to close at SR26.20, while Saudi Cable Co. jumped 9.98 percent to SR147.70.
Cherry Trading Co. rose 4.18 percent to SR25.44, and United Carton Industries Co. advanced 4.09 percent to SR26.46.
Al Yamamah Steel Industries Co. also posted solid gains, climbing 4.07 percent to end at SR32.70.
On the downside, Emaar The Economic City led losses, slipping 3.55 percent to SR10.32, followed by Derayah REIT Fund, which fell 2.92 percent to SR5.31.
Derayah Financial Co. declined 2.13 percent to SR26.62, while United International Holding Co. retreated 1.96 percent to SR155.20, and Gulf Union Alahlia Cooperative Insurance Co. eased 1.92 percent to SR10.70.
On the announcements front, Red Sea International Co. said it signed a SR202.8 million contract with Webuild S.P.A. to provide integrated facilities management services for the Trojena project at Neom.
The agreement covers operations and maintenance for the project’s Main Camp and Spike Camp, including accommodation and housekeeping, catering, security, IT and communications, utilities, waste management, fire safety and emergency response, as well as other supporting services.
The contract runs for two years, with the financial impact expected to begin in the first quarter of 2026. Shares of Red Sea International closed up 0.99 percent at SR34.74.
Al Moammar Information Systems Co. disclosed that it received an award notification from Humain to design and build a data center dedicated to artificial intelligence technologies, with a total value exceeding 155 percent of the company’s 2024 revenue, inclusive of VAT.
The contract is expected to be formally signed in February 2026, underscoring the scale of the project and its potential impact on the company’s future revenues.
MIS shares ended the session 2.82 percent higher at SR156.70, reflecting positive investor sentiment following the announcement.
