London Stock Exchange Group plc (LSEG) has shared its Q1 2024 Trading Update.
LSEG is reporting a good start to the year, “driven by solid performance across the business.”
David Schwimmer, CEO said:
“We have started the year well, delivering another quarter of solid growth consistent with our plans. We drove the strongest performances in FTSE Russell, Risk Intelligence and Tradeweb, and our Equities business returned to growth. The rapid pace of innovation continues, with new product launches across LSEG throughout 2024. We continue to make strong progress in our Microsoft partnership, with a number of products expected to be in external pilot or general release this half. We are now picking up the pace of migrating our datasets onto the Microsoft platform, which will transform access to our data for customers. We look forward to further progress in the rest of the year.”
Q1 2024 highlights shared by LSEG are:
(All growth rates on an organic constant currency basis unless otherwise stated)
- Solid growth: Total income (excl. recoveries) +7.3% incl. M&A, +6.4% organic.
Robust performance from all divisions: Data & Analytics +4.3%, FTSE Russell +9.5%, Risk Intelligence +12.5%, Capital Markets +14.4%, Post Trade revenues flat reflecting strong prior year comparator. - Organic Annual Subscription Value (ASV) growth +6.0%: good underlying growth from strong retention, robust sales and pricing, partly offset by increasing impact of Credit Suisse losses, as expected, plus initial step-down from entry into an attractive multi-year contract renewal with another major bank. Organic ASV growth expected to remain around these levels throughout 2024 despite further Credit Suisse impact.
- Active capital allocation: £500 million directed buyback completed in Q1, targeting £1
- billion of total buybacks in 2024; refinancing of $1.25 billion in 3-year and 10-year bonds; acquisitions of ICD by Tradeweb and minority stakes in LCH Group.
Further strong progress in partnership with Microsoft: delivering first products in H1; successful ongoing migration of datasets to our cloud-based data platform. - Confident of continued growth and improving profitability: on track to deliver all financial guidance provided in November 2023’s Capital Markets Day.
Total income (excluding recoveries) was up 7.3% including M&A, and 6.4% on an organic basis.
Data & Analytics was up 4.3% “reflecting continued strong retention, good sales and a contribution from pricing consistent with the previous year. Overall Data & Analytics growth was impacted by cancellations related to Credit Suisse as expected, and by entry into an enterprise-wide LSEG Data Agreement (LDA) with a major bank securing a multi-year period of attractive growth and greater long-term value following an initial step down in revenue.”
LSEG (London Stock Exchange Group) is “a global financial markets infrastructure and data provider, playing a vital social and economic role in the world’s financial system.”
With their open approach, “trusted” expertise and global scale, they “enable the sustainable growth and stability of our customers and their communities.”
They are dedicated partners “with extensive experience, deep knowledge and a worldwide presence in data and analytics; indices; capital formation; and trade execution, clearing and risk management across multiple asset classes.”
LSEG is headquartered in the United Kingdom “with significant operations in 70 countries across EMEA, North America, Latin America and Asia Pacific.”
They employ 23,000 people globally, “more than half located in Asia Pacific.”