LSE profits rise 65% as Canadian merger moves closer

The LSE has formally filed paperwork for a merger with Canada's TMX

The London Stock Exchange, which is buying Canada's TMX Group, has exceeded analysts' forecasts with a 65% rise in pre-tax profits to £238.2m.

The LSE, which also owns an exchange in Italy, put the growth down to its diversification strategy through acquisitions.

Revenues rose 7% to £675m, above analysts' expectations of £651m.

The news boosted LSE shares, which rose 3.5%, one of the highest climbers on the FTSE 100 index.

"[There are] a range of growth opportunities which will remain pivotal to further progress in the year ahead," said chief executive Xavier Rolet.

The LSE agreed a merger with TMX on 9 February and also announced on Friday that it has filed its application with the relevant Canadian authorities.