London Stock Exchange rises as Frank Russell buoys its revenues 

The London Stock Exchange Group’s shares rose strongly after it reported an increase in revenues for the first quarter, driven by its information services arm and its takeover of the Frank Russell Company, an index compiler and asset manager.

Chief executive Xavier Rolet last summer sealed a £1.8billion deal to buy Russell, giving him an inroad into US capital markets.

The growth of tracker funds has meant increased demand for specialist market data and index products and Rolet is hoping the combination of FTSE International with the Russell indexes will enable him to compete with market giants MSCI and S&P Dow Jones.

Up: Shares in the LSE have shot up by more than 50 per cent in the past year

Up: Shares in the LSE have shot up by more than 50 per cent in the past year

Early indications are positive as revenues rose 86 per cent to £581million in the three months to the end of March, with total income up 79 per cent to £602million. 

The figures include £246.5million from Russell Investment Management, the part of the Frank Russell empire the LSE wants to offload. Information services revenue rose 42 per cent to £130.8million, with the inclusion of Russell Indexes.

The group said the sale of Russell Investment Management is ‘on track’ with a good number of indications of interest from potential buyers.

Shares in the LSE, which have risen by more than 50 per cent in the past 12 months, gained 20p to 2591p before closing down 27p at 2544p.

Before Rolet’s arrival, the LSE was the target of a string of takeover bids under predecessor Dame Clara Furse. Rolet has made clear he wants to be the acquirer, not the target.


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