First-quarter revenues at the London Stock Exchange Group rose 8% thanks to buoyant information and settlement services.
But revenue from issuance and trading remained roughly flat in the three months ended June amid global financial turmoil, the stock exchange operator said.
'In weak market conditions and a changing regulatory landscape, the Exchange has delivered a good performance in the first quarter of the year,' the group said in a statement. LSE shares, which had plummeted 64% since January, jumped 8.6% in early morning trading.
LSE's revenue rose to £178m sterling for the first quarter of its financial year on the back of 19% growth in real-time data sales and a 20% increase in clearing and settlement revenue. The rise - despite tough markets - highlighted the bourse's well-diversified business, it said.
Analysts expect the LSE's profit to remain under pressure amid increased competition, as new European Union legislation has made it easier for new rivals to set up, such as Chi-X.
LSE said it remained confident that active equity issuance and demand for real-time data would drive growth. Rights issues from the Royal Bank of Scotland, Imperial Tobacco and Groupe Eurotunnel contributed to a record issuance volume of £24 billion in May, with total money raised in the first quarter up 82% from a year ago.
Post-trade operations such as settlement and custody generated 14.5% of total revenue, up from 13% a year ago, thanks to higher treasury margins, despite a 9% drop in contracts cleared.
The UK equities average daily value traded was flat in April and down 11% and 8% in May and June, respectively. Initial public offering (IPO) activity, in terms of money raised, dropped 45% in the first quarter from the same period last year.
