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LSE Group's third quarter income jumps 19%, beats estimates

London Stock Exchange Group's chief executive Xavier Role
London Stock Exchange Group's chief executive Xavier Role

London Stock Exchange Group, which has agreed to merge with German rival Deutsche Boerse to create a giant European trading house, reported a 19% rise in third-quarter total income from continuing operations, aided by growth in all its businesses.

The company also owns Borsa Italiana and the London Stock Exchange. 

It said today that total income from continuing operations rose to £414.6m in the quarter ended September 30 from £349.4m a year earlier. 

Four analysts had forecast total income from continuing operations of £397.2m, according to company provided consensus estimates. 

"We remain focused on achieving the necessary regulatory approvals to complete the merger with Deutsche Boerse, creating a global markets infrastructure group," LSE's chief executive Xavier Rolet said in a statement. 

Third-quarter revenue from continuing operations rose 15% to £376.2m, higher than a company supplied estimate of £366.8m. 
 

LSE, which has offered to hive off its French clearing business in a bid to win merger approval from the European Union, said LCH, the clearing house, saw income increase by 29% to £114.9m. 

Its 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 16% to £89.6m, with growth in both primary and secondary markets despite volatile markets, the exchange operator said. 

This is LSE's first set of quarterly results since Britain's vote to leave the European Union, with the fall in the pound helping to send UK stock markets to record highs as foreign investors take advantage of sterling weakness. 

The pound has fallen about 17.5% against the dollar since the vote on June 23.