21st Oct 2022 09:27
(Alliance News) - 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 GBP1.99 billion from GBP1.73 billion year-on-year.
Gross profit rose 13% to GBP1.70 billion from GBP1.50 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 GBP5.72 billion from GBP4.74 billion, and gross profit rose 19% to GBP4.93 billion from GBP4.13 billion.
In the third quarter, LSEG's Data & Analytics unit saw income grow by 13% to GBP1.35 billion from GBP1.19 billion, within which Trading & Banking Solutions income climbed by 12% to GBP417 million from GBP373 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 GBP369 million from GBP309 million, within which Fixed Income, Derivatives & Other income jumped 25% to GBP241 million from GBP193 million. They were up 8.6% and 12% at constant foreign exchange.
Post Trade total income rose by 15% to GBP249 million from GBP217 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 GBP750 million share buyback programme, LSEG completed GBP235 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.
By Tom Budszus; [email protected]
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