London Stock Exchange software business reports robust growth

The London Stock Exchange's technology service has demonstrated robust sales growth, despite an overall decline in revenue for the group, according to its...

The London Stock Exchange's technology service has demonstrated robust sales growth, despite an overall decline in revenue for the group, according to its results for the six months to September.

Revenue in its technology services grew by 78% to £24.5m, compared to the previous six months.

The division provides technology connections and datacentre services for clients of LSE and Borsa Italiana. It also includes LSE's Sri-Lanka-based MillenniumIT software business, which provides the group's technology.

Xavier Rolet, chief executive at the LSE, said the roll-out of the MilleniumIT trading platform has helped to "transform the group".

"The next step will be moving the main UK cash equities market over to the Millennium Exchange platform in early 2011," he said.

MillenniumIT was acquired in October last year for £25m. It has contributed sales of £9m to the group in the six months to September, added the report.

The new platform will be instrumental in growing its multilateral trading facility Turquoise, as clients connect to the system and new clients take advantage of the high performance technology, said Chris Gibson-Smith, chairman at the LSE.

Earlier this month the Turquoise platform was the subject of a two-hour outage. "This was an isolated incident and although a thorough investigation is ongoing it is clear that it was unconnected to the functioning of the trading platform itself," said Gibson-Smith.

"Plans for roll out of the new system continue and we are working with customers on a date for migration of the UK main market, likely to be early calendar 2011," he added.

Total revenue at the exchange dropped by 1% to £297.9m, compared to the six months to September 2009. However, profit before tax increased by 26% to £100m.

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