London Stock Exchange Q3 revenue down 9 pct
(AP) — The London Stock Exchange reported Thursday that revenue in the three months ending Dec. 31 was down 9 percent compared with a year ago, and described the outlook for the current quarter as "testing."
Revenue for the company's fiscal third quarter was 154.9 million pounds ($251 million). On a constant currency basis, that is 12 percent lower than a year ago. The exchange said revenue was up 4 percent from the second quarter, excluding currency movements.
Cash equities trading revenue in the United Kingdom and Italy combined fell by 29 percent.
The company did not report earnings in the trading update.
LSE shares were fractionally lower at 695.5 pence in midafternoon trading.
"We believe that the revenue trends look pretty bleak for the LSE with new (multilateral trading facilities) like Chi-X and BATS taking market share and putting pressure on tariffs and therefore margins," said Nic Clarke, analyst at Charles Stanley & Co. He lowered his recommendation on the stock to "reduce."
"Market conditions have not been easy in the last quarter, particularly in cash equities, though the group has benefited from the breadth of its activities, with good performances in primary markets and fixed income trading, and the Information & Technology Services division has also proven resilient," said Chief Executive Xavier Rolet.
"Market conditions are expected to remain testing in the current quarter."
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