London Stock Exchange Group Plc (LON:LSE) reported its preliminary results for 2016 showing nice growth in the business. And, the company remains fairly optimistic about its proposed merger with Deustche Borse, despite recent regulatory hurdles being thrown in the way, as well as the uncertainty surrounding the implementation of Brexit.
Overall, the LSEG saw Total Income up 17% to £1.66 billion in 2016 (2015: £1.42 nillion), with Total revenue up 14% to £1,52 billion (2015: £1.32 billion).
As far as its proposed merger with Deutsche Borse, the LSE had the following to say:
The Group has worked hard on our proposed merger with Deutsche Börse, which received formal approval from both sets of shareholders. This would be an industry-defining combination, expanding our presence as a global markets infrastructure group, anchored in Europe and we firmly believe that it would deliver significant customer and shareholder benefits through the acceleration of our complementary growth strategies, products, services and geographic footprint. The next milestone is expected to be the outcome of European Commission Phase II process on or before 3 April 2017.
Brexit and its eventual implications will surely play an important role in the LSE’s future success. Here is what LSE CEO Xavier Rolet had to say about Brexit:
One of the key events in 2016 was undoubtedly the vote by the citizens of the UK to leave the European Union. For LSEG, the immediate challenge presented by the vote was to ensure we maintained secure and stable markets for our customers, however volatile the conditions. We met this challenge admirably – across all of our markets and clearing houses – and I would like to offer my congratulations to everyone across the Group who was involved in delivering such seamless continuity.
Of course, the more profound consequences of the UK Referendum will take much longer to work themselves out. However, as a well diversified Group with a global footprint, we are well positioned to adapt as needed and, most importantly, to follow and continue to serve our customers as they make decisions about their business.
LSE’s complete 2016 results announcement can be seen here (pdf).