LSE first quarter revenue up

By Daisy Ku

LONDON (Reuters) - First-quarter revenues at the London Stock Exchange Group (LSE.L) rose 8 percent thanks to buoyant information and settlement services, the group said on Wednesday, sending its shares up 9 percent.

But revenue from issuance and trading remained roughly flat amid global financial turmoil and analysts expect the LSE's profit to remain under pressure from new competitors.

Recent European Union legislation has made it easier for rivals to set up and alternative trading venues Turquoise, BATS and Nasdaq OMX's (NDAQ.O) new pan-European market will launch in the next two months.

"In weak market conditions and a changing regulatory landscape, the Exchange has delivered a good performance in the first quarter of the year," the group said in a statement.

"We are well placed to meet the challenges and realise the opportunities ahead," the management added.

LSE shares, which have plummeted 64 percent since January and dropped 7 percent on Tuesday, jumped as much as 9.1 percent in morning trading on the better-than-expected results.

LSE's revenue rose to 178 million pounds in the three months ended June on the back of 19 percent growth in real-time data sales and a 20 percent increase in clearing and settlement revenue.

The exchange operator said that despite tough markets the results highlighted the bourse's well-diversified business.