May 15, 2014 / 6:46 AM / 4 years ago

CORRECTED-UPDATE 1-London Stock Exchange posts 50 pct revenue increase

(Corrects to show year-ago revenues 726.4 million pounds, paragraph 2)

LONDON, May 15 (Reuters) - The London Stock Exchange reported a near-50 percent rise in full-year revenue on Thursday, citing earnings from recently purchased LCH.Clearnet and an economic recovery encouraging companies back to stock markets.

The exchange group said revenue for the year to March 31 was 1.09 billion pounds ($1.8 billion), up from 726.4 million pounds a year earlier and above analysts’ expectations of 1.05 billion pounds in an LSE-compiled survey.

Adjusted profit before tax was up 17 percent at 514.7 million pounds.

The exchange acquired a majority stake in Anglo-French clearing house LCH.Clearnet a year ago and said it expected to deliver 60 million euros ($82.3 million) of savings in 2015, ahead of its 23 million euro target, through job cuts and restructuring.

“We have accelerated our cost saving targets at LCH.Clearnet Group and we see opportunities for growth as the regulatory landscape evolves,” LSE Chief Executive Xavier Rolet said.

LCH.Clearnet had revenue of 263 million pounds in the year to March 31.

The group was also helped by the return of companies and investors to capital markets, saying it had seen firms raise more than 34 billion pounds in equity on its platforms in the past year.

London has proved a popular destination for initial public offerings (IPOs), with well-known brands such as Poundland and JustEat making their market debuts in 2014. LSE’s capital markets division pulled in 309.5 million pounds, up 16 percent on last year.

The group proposes a final dividend increase of 4.5 percent to 20.7 pence a share. ($1 = 0.5960 British Pounds) ($1 = 0.7294 Euros) (Reporting by Freya Berry; Editing by David Goodman)

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