LSE meets growth forecasts - FT.com The London Stock Exchange defied tough market conditions to hit quarterly growth forecasts as acquisitions and expansion into information and technology services boosted revenues. Despite weak trading in its core capital markets business, the British exchange on Wednesday said revenues rose 10 per cent to £209.5m in the three months to the end of June, roughly in line with a forecast for £210.3m. The LSE Group share price was flat at £10.08 in morning trade. However, the share price has jumped 26 per cent since the start of the year as investors have praised the company's diversification and acquisition strategy. In short, the revenue increase, announced in its interim management statement, was largely down to the inclusion of an estimated £35m from the FTSE index business, which the group bought from Pearson, owner of the Financial Times, in December. Revenue from the LSE's information services business, helped by its development of trading technology platforms, including in the equity and fixed income arena, shored up its performance. This offset a fall in capital markets revenues because of tough market conditions as subdued initial public offering activity and weak secondary trading volumes undermined performance. Xavier Rolet, chief executive of LSE Group, said: "We have delivered a good overall performance, reflecting our broad suite of products and services and the increased diversification of the group." Peter Lenardos, director of European diversified financials at RBC Capital Markets, said: "This is a positive statement for the LSE. It shows their diversification strategy is paying off. They are developing their post-trade business, information services and trading platforms quite well. The statement is evidence that despite a tough economic, regulatory and trading environment, and in addition to adverse currency movements, they can grow the top line and pay down debt. Other analysts and investors said it left the business well placed for future success. Some investors also argue that their planned acquisition of LCH.Clearnet, Europe's dominant clearing house, should put them in an even stronger position. The deal, which was announced in March, is due for completion in the fourth quarter. Elsewhere, revenue from the LSE's information services business increased 68 per cent to £75.3m. This wiped out falls in the LSE's capital markets business, which fell 15 per cent at £67.5m, and post-trade services, which fell 12 per cent to £22.8m. The LSE's technology unit grew 14 per cent to £12.1m, while the net interest income drawn from cash deposits with Italian banks, the fastest-growing LSE revenue stream in recent quarters, rose 10 per cent to £28.5m. "Notwithstanding continuing market and economic uncertainties, the group remains well positioned and will continue to focus on delivering benefits from recent transactions and its more diversified range of products and services," Mr Rolet said.