LSE bullish on outlook despite failed merger, Brexit uncertainty
The London Stock Exchange Group PLC said it expects to increase its gross profit margin and cut costs over the next two years, appearing to shrug off the collapse of a planned merger with Deutsche Boerse and uncertainty over Brexit.
The London Stock Exchange Group PLC said it expects to increase its gross profit margin and cut costs over the next two years, appearing to shrug off the collapse of a planned merger with Deutsche Boerse and uncertainty over Brexit.
The bourse operator expects to grow earnings before interest, tax, depreciation and amortization (EBITDA) margin to about 55 percent by 2019, up from 46.5 percent last year, it said in a statement on Monday ahead of an investor presentation.
The bullish outlook comes despite the collapse of a merger that would have helped it compete better with rivals such as Intercontinental Exchange Inc, and uncertainty raised by Britain leaving the European Union in 2019.
The exchange said it would cut costs by 50 million pounds ($63 million) annually until 2019, while operating expenses would remain stable at around a 4 percent increase.
Shares in LSE were down 0.7 percent at 3429 pence at 1228 GMT, in line with the FTSE 350 General Financial Index .
($1 = 0.7891 pounds)
(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)