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London Stock Exchange boosted by rising ETF demand

Published: 19:10 01 Mar 2019 AEDT

LSE
Business is going very well

London Stock Exchange PLC (LON:LON) increased revenues and underlying profits in 2018 even though company funding activity fell.

The number of new issues dropped 10% to 177, while the amount of capital raised by companies was 35% lower at £28.7bn but there was a surge in new ETFs (exchange-traded funds) as the trend towards passive investments gathered pace.

READ: London Stock Exchange makes friends in Europe as it buys stake in Euroclear

Trading volumes picked up helped by market volatility with daily activity on the LSE rising 9% to £5.8bn.

Information Services, the largest division, saw revenues rise 14% to £841mln boosted by a strong performance by FTSE Russell, the global indices and market analytics arm, helped by the greater number of ETFs.

Overall group revenue rose by 8% to £1.91bn while ongoing business profits increased by 16% to £678mln.

Pre-tax profits dipped to £553mln after a £125mln one-off charge,

The dividend for the full year rises 17% to 60.4p.

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