London Stock Exchange

LONDON—The London Stock Exchange on Wednesday reported a full-year loss of 338 million pounds ($553 million) as it absorbed a heavy charge and one-off losses related to its takeover of Borsa Italiana.

The loss for the year ending March 31 contrasted with a profit of 168.3 million pounds in the previous year. Revenue rose 23 percent to 671.4 million pounds.

LSE shares were down 0.4 percent at 697.5 pence at midday.

The company raised its full-year dividend by 2 percent to 24.4 pence per share.

Chris Gibson-Smith, the chairman, said a 484 million pounds goodwill write-off was "a technical accounting adjustment reflecting the major deterioration in current economic conditions."

"It belies the high quality of, and potential arising from the combination," Gibson-Smith said.

"Indeed, the assessed value of Borsa Italiana remains comfortably above the 1.3 billion pounds value at the time of completion of the merger given the strengthening of the euro."

Operating profit before the big impairment charge was up 3 percent to 274 million pounds. Operating profit was dented by exceptional costs of 15.2 million pounds relating to integrating the two exchanges and amortization related to the Italian business of 49.4 million pounds.

"We have performed well, with revenue up 23 percent, reflecting the overall resilience and diversification of our business, and full year effect of our merger with Borsa Italiana," said Clara Furse, who was retiring on Wednesday after eight years as chief executive.

"We have also made very good progress in achieving synergies from the merger and will now deliver a further increase in cost synergies to 32 million pounds, up by 60 percent from the original plan," she added.

Xavier Rolet, who formerly headed Lehman Brothers' operations in France, succeeds her as chief executive.