19th Oct 2023 08:10
(Alliance News) - London Stock Exchange Group PLC on Thursday backed its yearly growth guidance after a "strong" third-quarter, shaking off a slow period for its Equities offering.
The London Stock Exchange operator said total income, excluding recoveries, was 8.0% higher on-year at constant currency in the third-quarter of 2023. Recoveries relate to fees for third-party content, including exchange data, that is distributed to its customers.
Total income amounted to GBP1.97 billion, rising 3.2% on-year from GBP1.91 billion.
Organic annual subscription value grew 7.1%.
Growth was broad-based in its three major divisions, LSEG said.
In Data & Analytics, total income was 1.9% higher year-on-year at GBP1.30 billion. At constant currency, it was 7.2% higher. The unit includes LSEG's market surveillance and risk management solutions offering.
In Capital Markets, it rose 1.6% to GBP375 million, or 6.2% at constant currency. That was despite a slowdown in Equities and foreign exchange, where total income was 8.3% and 10% lower, respectively, or 8.6% and 3.3% down at constant currency. The fixed income and derivatives offering led the way, with a total income rise of 7.5%, or 13% at constant currency.
In Post Trade, total income surged 15% year-on-year to GBP286 million. At constant currency, it was 17% higher.
"LSEG delivered another quarter of strong, broad-based growth. By building compelling solutions that meet customers' evolving business needs we have established a consistent track-record of growth in our Data & Analytics business. Our Capital Markets revenues accelerated in the third quarter, with ongoing innovation increasing Tradeweb's share of global credit trading. Our Post Trade businesses also continue to grow strongly as customers look to our risk management services in an uncertain macro environment," Chief Executive David Schwimmer said.
Looking ahead, LSEG expects total income growth towards the upper end of 6% to 8% outlook range.
Shares in the company were 0.8% lower at 8,008.00 pence each in opening exchanges in London on Thursday.
By Eric Cunha, Alliance News news editor
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