London Stock Exchange profits continue resilient

graeme at 8:06 a.m. Wed 15 Jul 2009

The Londons Stock Exchange continued to see lower revenues from the lack of IPOs, other bull market activity, and the lower value of the market partially offset by more secondary offers — all those recent rights issues.

Despite the 7% growth in revenues over the last quarter, the year on year decline was still 12% at constant currency, and almost every line of business has declines since the same period last year.

The outlook for the company is largely the outlook for the market, which is never predictable. The good quarter on quarter comparatives are against a very weak fourth quarter for the financial year to March 2009. The trend is still downward and rights issues will not do more than blunt the effect of the lack of IPOs and the lower value of trading.

The general malaise of the industry is clearly shown by the sharp drops in the number of professional terminals (down 11% in the UK and 10% for the Borsa Italia).

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