LONDON Stock Exchange Group (LSEG) reported first-half income above analysts’ expectations on Thursday (Aug 1), helped by progress with its Microsoft joint venture, as well as a rise in annual subscription value, an indicator of customer retention.
LSEG, which suffered outages in February and this month, said its partnership with Microsoft is “approaching commercialisation” as the first product becomes more widely available by year-end.
The exchange, transformed into a data powerhouse after its US$27 billion acquisition of Refinitiv in 2021, reiterated all medium-term guidance of mid to high single digit organic revenue growth annually, accelerating after this year.
LSEG shares opened 2 per cent higher.
“We are also delivering efficiency improvements, with underlying margin improving year-on-year despite ongoing investment, and we expect this trend to continue,” LSEG CEO David Schwimmer, said in a statement.
“We look forward to further progress in the second half of the year, and are reiterating all of our medium-term guidance.”
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
LSEG had made significant enhancements to Workspace, which distributes news and data to customers, resulting in “several competitor displacements”, Schwimmer said.
LSEG’s total income excluding recoveries rose 5.4 per cent to £4.204 billion (S$7.2 billion), topping an analysts’ consensus of £4.195 billion.
Operating profit in the first half rose 9 per cent to £1.563 billion, with adjusted earnings per share of 174 pence, up 8.1 per cent on the same period last year, both ahead of analysts’ consensus estimates collated by LSEG.
Annual subscription value, which reflects recurring revenue and closely watched by analysts, was up 6.4 per cent at June 2024, in line with guidance, and up from 6 per cent in the first quarter.
“All medium-term targets have been reiterated, and we think notably more confident commentary of competitor displacements around Workspace will be taken well,” analysts at RBC said in a note to clients.
LSEG said its content agreement with Dow Jones announced in July creates a leading news offering across its platforms.
LSEG pays Reuters for news. REUTERS
