IPO boom helps boost London Stock Exchange group

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Boom in stock quotes boosts London Stock Exchange as profits nearly double

  • Stock quotes had their best first half since 2014, according to LSE
  • LSE saw revenues rise 4.6% to £ 3.36 billion; Pre-tax profit up 94% to £ 510million
  • Saved around £ 77million from the Refinitiv deal

The recent boom in stock quotes helped boost the fortunes of the London Stock Exchange group, which saw profits nearly double in the first half of the year.

The 300-year-old exchange said it had seen the most new share issues since 2014 as a large number of companies, including Deliveroo, Dr Martens and Moonpig, went public.

LSE shares jumped 5% to the top of the FTSE 100 index of blue chip companies in morning trading, after the group announced a 4.6% increase in earnings to £ 3.36 billion and a 94% jump in pre-tax profit to £ 510 million.

IPO boom: stock quotes had their best first half since 2014

The LSE said all of its divisions saw growth, as its capital markets arm saw “record levels of activity” after a series of IPOs – “more than half of which” came from tech companies. and increased stock income by 2.5%.

But ‘secondary’ earnings have ‘normalized’ as stock trading, which surged last year when waves of new investors began to play in the stock market as it plunged, has now calmed down. .

The group’s electronic trading platform, Tradeweb, experienced strong growth, helping to increase revenues from fixed income, derivatives and others by 15.4%.

Overall, the Capital Markets division saw revenue rise 9.6% to £ 619million.

“We’ve had a great first half – the capital raising is very strong and a number of companies are entering the market,” Managing Director David Schwimmer told reporters.

He added that he expected the remainder of 2021 to remain busy for IPOs and a modest number of special purpose acquisition companies to list.

Equity trading, which surged last year when waves of new investors began to play in the stock market as it plunged, has now calmed down, the LSE said.

Equity trading, which surged last year when waves of new investors began to play in the stock market as it plunged, has now calmed down, the LSE said.

The company also said it had made “good progress” on incorporating Refinitiv, which it acquired for £ 20 billion in January.

Through the integration of the data company, the LSE said it has already achieved some £ 77million in cost savings and increased its target for the full year to around £ 125million, from £ 88million.

It comes as the data provider’s absorption costs worry some investors, causing its shares to fall 20% since early March, when he gave more details on the integration.

But LSE shares rose 4.4% to £ 77.92 in morning trading on Friday.

“There will be some relief among investors that £ 77million of efficiency has been identified […] because the acquisition had ruffled shareholders’ feathers over concerns about the higher than expected costs of integrating it into operations, ”said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

Bosses also said they would pay an interim dividend of 25p per share, a 7 percent increase.

However, the FTSE 100 company has warned investors that it expects further cost increases in the second half of 2021, due to Covid-related costs such as travel and legacy IT and IT expenses. ‘inflation.

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