• Revenue of £158.2 million, up one per cent on Q1 last year (up two per cent at constant currency) and up three per cent on Q4; a resilient performance reflecting the diversified business streams
• Total income of £166.0 million, up two per cent on Q1 last year (up three per cent at constant currency) and up five per cent on Q4
• Capital Markets revenues overall down six per cent year on year (down four per cent at constant currency) at £74.2 million, mainly reflecting reduction in UK cash equities trading revenues following price changes in May and earlier tariff changes in September, partly offset by increased trading levels; in Italy trading volumes unchanged on last year; MTS contributed to 10 per cent revenue growth in fixed income trading, although down 6 per cent on prior quarter due to impact of euro debt crisis
• Share of trading of UK cash equities increased during the quarter: average share of total cash equities trading on the UK platform was 62.4 per cent in June, up from 60.0 per cent in April (up from 54.8 per cent to 57.4 per cent on just FTSE 100 trading); in addition Turquoise averaged 5.4 per cent in June, up from 4.3 per cent in April, as it became the largest European dark pool MTF
• Primary Market revenues up one per cent year on year as growth in annual fee income offset lower capital raising revenues
• Post Trade total income up two per cent over Q1 last year to £32.8 million (up five per cent at constant currency), principally reflecting net higher interest income on margin held in the clearing business
• Information Services revenues almost unchanged on corresponding period last year at £44.0 million (up one per cent at constant currency); the total number of professional users of LSE real time information unchanged since Q4 though down on Q1 last year, while revenues from other data products grew strongly
• Technology Services revenues increased organically by 17 per cent over Q1 last year, supplemented by a further contribution fon from MillenniumIT to a total of £12.7 million
• Currency effects: the three cent strengthening in the £:€ exchange rate in Q1 compared with same period last year resulted in a £2.3 million reduction in revenue
Current trading and Outlook
Market conditions remained variable in the first quarter, with new issue activity down on higher levels last year in terms of money raised and strong trading activity from market volatility in May contrasting with relatively lower levels in the remainder of the period. Trading across the Group's platforms in early July shows similarly varied trading levels.
Looking ahead, we are planning on the basis of market conditions remaining mixed. Management actions continue to improve business efficiency and competitive position, with immediate focus on introduction of the new trading system and development of new services across the Group to grow the business.
Commenting on the first quarter performance, Xavier Rolet, Chief Executive, said:
"Reflecting the breadth of the Group's activities, performance has been resilient in what have been mixed market conditions, with revenues increasing over the prior quarter and also up on last year.
"We are encouraged by the recent improvement in share of trading in UK cash equities and the growth in trading on Turquoise, particularly through the dark pool service. Good progress is being made with plans for introduction of the new MillenniumIT trading system, which will roll out in the UK in the autumn, starting with Turquoise in early October. Development work continues on other projects to improve operational efficiency and grow the business."