Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
London Stock Exchange Group PLC on Friday reported a strong quarter, with growth across all of its businesses as it cited the "strength" of its business model.
Total income in the third quarter, including recoveries, rose 15% to £1.99 billion from £1.73 billion year-on-year.
Gross profit rose 13% to £1.70 billion from £1.50 billion.
"With sustained execution, a broad base of businesses and leading market positions, we remain well positioned," said Chief Executive Officer David Schwimmer.
In the first nine months of 2022, on a pro-forma basis, group total income grew 20% to £5.72 billion from £4.74 billion, and gross profit rose 19% to £4.93 billion from £4.13 billion.
In the third quarter, LSEG's Data & Analytics unit saw income grow by 13% to £1.35 billion from £1.19 billion, within which Trading & Banking Solutions income climbed by 12% to £417 million from £373 million. At constant currencies, those increases were 3.2% and 1.0%, respectively.
Within Data & Analytics income, growth in annual subscription value - meaning recurring revenue - increased to 4.4% from the end of the first half, up from a growth of 4.0% a year ago. LSEG said ASV growth has picked up since it bought Refinitiv early last year, driven by new sales and better client retention.
Capital Markets income increased 19% to £369 million from £309 million, within which Fixed Income, Derivatives & Other income jumped 25% to £241 million from £193 million. They were up 8.6% and 12% at constant foreign exchange.
Post Trade total income rose by 15% to £249 million from £217 million in the recent quarter, up 10% at constant currencies.
"The consistency of delivery in recent quarters demonstrates the strength of our business model, generating quality recurring revenues from a range of services that are highly valued by our customers," CEO Schwimmer said.
Regarding its £750 million share buyback programme, LSEG completed £235 million worth in the third quarter, buying 3.0 million shares. The next tranche of purchases will start on December 1, it said.
LSEG said it is well-positioned for further grows and kept its guidance and targets unchanged.
The stock was down 2.4% to 7,236.00 pence each in London on Friday morning.
Copyright 2022 Alliance News Limited. All Rights Reserved.