LSE gets over blocked merger with strong start to 2017

London Stock Exchange Group has got over its merger-that-never-was with Deutsche Bank and made a strong start to the year, with sales growth across the group apart from capital markets was hit by lower trading levels than last year.

With revenue of £402m in the three months ended 31 March was up 18% on the same period last year, helped by currency effects, with total income from continuing operations rising 19% to £458.7m.

Of the three largest segments, information services grew sales 24% at the reported level and 9% underlying, LCH post trade-services grew 25% with currency assistance and 17% underlying, and capital markets revenues rose 1% thanks to currency effects but fell 4% at the organic level.

A first contribution was made to the FTSE Russell unit within information services by Mergent, with the acquisition completed at the start of the quarter.

LSEG, which began a £200m share buyback at the end of the quarter, said it remained "actively engaged in exploring selective ongoing organic and inorganic investments in order to drive further growth".

The value of buyback is meant to reflect the special dividend that would have been paid to its shareholders had the merger with Deutsche Borse not been blocked by regulators.

Chief executive Xavier Rolet said: "We are well positioned as an open access financial markets infrastructure group to benefit from the introduction of MiFID II and remain focused on executing our strategy, partnering with customers and delivering value for shareholders.

"We continue to be actively engaged in exploring selective ongoing organic and inorganic investments in order to drive further growth."