LSE revenue up after Italian deal

The LSE has been expanding overseas

The London Stock Exchange (LSE) has reported a surge in quarterly revenues, helped by its purchase of Borsa Italiana in October 2007.

Revenue hit £167.9m in the three months to 31 December, an 87% rise on the same period a year earlier.

Exchanges have been merging in a bid to cut costs and offer wider services, amid stiff competition.

The LSE said its cash equities trading had been particularly strong and the merger was going well.

"We are making good progress on integration of the businesses and we are confident of a good outcome for the current financial year," said Clara Furse, LSE's chief executive.

For the nine months to 31 December, revenue rose 47% to £371m year-on-year. Excluding the impact of the Borsa Italiana purchase, the rise was 19%.

But the LSE said costs were likely to increase in the second half because of performance-related and share-based payments.

LSE recently set out plans for a new Beijing office in an attempt to offer Chinese firms access to European capital and at a lower cost than US rivals.