LSE Revenue Up 16% In Q3

London Stock Exchange plc issued its quarterly trading statement for the three months and nine months ending December 31, 2005 (Q3), together with earnings per share on a calendarised basis for the 12 months ended December 31, 2005. All figures

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London Stock Exchange plc issued its quarterly trading statement for the three months and nine months ending December 31, 2005 (Q3), together with earnings per share on a calendarised basis for the 12 months ended December 31, 2005. All figures for the current year are unaudited.

In summary, the Exchange has produced another very strong financial performance, benefiting from continued good momentum in all main business areas in the third quarter, compared to the same quarter last year: main market new issues increased 20 per cent to 36; total new issues, including AIM, up from 148 to 168, SETS bargains/day up 25 per cent to 218,000 and professional terminals up 4,000 since Q3 last year to 86,000 at end of December 2005.

Reflecting continuing strong performance in Q3, financial results (excluding exceptional items) for the nine months ended 31 December 2005 show that revenue was up 16 per cent to 210.6 million and adjusted EPS up 43 per cent to 25.5 pence.

For the three months ended 31 December 2005, revenue was 80.9 million (2004: 62.5 million) including exceptional income of 6.4 million in respect of settlement reached with a customer in relation to reporting for information services. Operating profit was 37.5 million (2004: 21.9 million) and basic EPS was 11.1 pence (2004: 6.5 pence). Before exceptional items, revenue grew 19 per cent to 74.5 million (62.5 million) and operating profit increased 45 per cent to 32.4 million (2004: 22.4 million) while adjusted EPS showed growth of 46 per cent, rising to 9.8 pence (2004: 6.7 pence).

For the nine months ended 31 December 2005, revenue was 217.0 million (2004: 180.8 million). Operating profit was 62.6 million (2004: 67.3 million) and EPS was 20.7 pence (2004: 19.3 pence per share). Excluding net exceptionals of 20.6 million, revenue rose 16 per cent to 210.6 million, operating profit climbed 31 per cent to 83.2 million (63.3 million) and adjusted EPS increased 43 per cent to 25.5 pence (2004: 17.8 pence).

For the 12 months ended 31 December 2005, adjusted EPS was 31.9 pence and basic EPS was 25.6 pence.

Clara Furse, chief executive officer, said, “The Exchange has once again delivered very good top line growth in all main business areas and the strong momentum in earnings growth has been maintained, with adjusted EPS growth of 43 per cent for the year so far.

“This performance and the increasing value this creates for shareholders and customers, together with the quality of the Exchange’s brand, technology, franchise and global position, reinforces our dismissal of Macquarie’s offer which entirely fails to recognise the value of the business and its unique position. We remain confident of an excellent outcome for this year and continued strong trading should keep us on course to deliver a strong performance in financial year 2007.”

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