Belfast Telegraph

London Stock Exchange profits hit by Deutsche Borse merger bid costs

Profits at the London Stock Exchange (LSE) have been stung by costs associated with its attempted £21 billion merger with Germany's Deutsche Borse.

Net profit in the first six months of the year fell to £95.4 million compared with £115.5 million in the same period in 2015 as the exchange operator booked £54.8 million of transaction costs linked to the tie-up.

Revenue rose from £663 million to £721.9 million.

Both LSE and Deutsche Borse have received the blessing of shareholders for the tie-up, but the deal faces a number of regulatory hurdles and the merger has been complicated by Britain's decision to quit the European Union.

The pair moved quickly to assuage any fears that the referendum result would scupper the deal, but the LSE warned on Thursday that Brexit could have a detrimental effect on its business.

"Whilst the group has a global footprint and is well diversified from a geographic and product perspective, there are risks associated with the uncertainty in the UK and the potential impact across Europe.

"The uncertainty or the outcome may erode investors' confidence and impact primary and secondary market volumes, assets-based fees and clearing volumes in the UK."

The group added that the possibility of future referendums across Europe could lead to volatility in the foreign exchange markets and interest rates.

Chief executive Xavier Rolet said the LSE is "well-positioned to navigate political and macroeconomic changes".