London Stock Exchange Group (LSE: LSE) today reported on its final results for the year to 31 March 2010, reporting a 6% slide in revenue to £605.6 million due to stronger competition from rival trading platforms.
LSE said that performance in Italian cash equities and fixed income trading, Post Trade and Information & Technology divisions was good.
Total income slid by 6% to £628.3 million, while adjusted operating profit declined 18% to £280.3 million, leading to a 19% drop in adjusted earnings per share to 60.1 pence. Operating profit excluding one-off TradElect replacement costs amounted to £305.6 million.
The group managed to reduce costs as the organic cost base contracted 8%. the total dividend was maintained at 24.4 pence per share.
During the period the company acquired Turquoise to develop pan-European and dark pool trading services in a joint venture with 12 banking clients and Sri-Lankan software developer MilleniumIT to provide trading technology to the group and capital market clients.
Operational highlights included £77 billion worth of capital raised by companies on LSE's markets , a decline of just 1,000 in the number of LSE information users since H1 to 93,000, a 10% increase in revenues at non real time data businesses with growing contributions from SEDOL, UnaVista, FTSE and Proquote; and Technology services up 37%, including a first time contribution from MilleniumIT.
“The market, economic and regulatory environment in which our business operates is going through a period of significant change. We continue to take steps to ensure the business remains central to capital markets, competing for business as an efficient, low cost and client focused organisation with a clear strategy to deliver growth and value,” said chairman Chris Gibson-Smith.
The group added that it expected to see “further progress across businesses” in the coming year.