The London Stock Exchange Group (LSEG) has share preliminary results for the year ended 31 December 2024.
LSEG is reporting strong growth, “accelerating product innovation, significant margin improvement, equity free cash flow £2.2 billion; positive outlook for 2025.”
David Schwimmer, CEO at LEG said:
“We have delivered on our strategy in 2024. LSEG has achieved a strong performance across the Group enhanced by an exceptional year for Tradeweb. The product innovation we are bringing to customers continues to strengthen our position in the market, and we have made great progress on our transformation. We have successfully generated top line growth with improved profitability.”
They added:
“Key highlights for the year include material enhancements to the Workspace platform; the availability of more of our leading datasets across cloud-based platforms, meeting our customers where they want to work; and continued significant progress across products and geographies for Post Trade. In addition, we have been a driving force behind reforms that secure London’s position as a leading global venue for capital raising. We also reached an important milestone in our partnership with Microsoft, with the first products now generally available for customers, and a strong pipeline for 2025.”
They further noted that their guidance for continued growth and improving profitability in 2025 “demonstrates their confidence in our model, which has consistently delivered strong performance across a range of market conditions.”
They added that they remain committed “to innovating for customers and driving returns for shareholders.”
Financial highlights (all growth rates are expressed on an organic, constant currency basis, unless otherwise stated):
- Total income (excl. recoveries) +7.7% (Q4 +7.7%); +6.1% on a reported basis
- Broad-based growth: Data & Analytics +4.5% (Q4 +4.8%); FTSE Russell +10.9% (Q4 +11.2%); Risk Intelligence +11.3% (Q4 +12.0%); Capital Markets +17.8% (Q4 +14.3%); Post Trade +2.4% (Q4 +5.0%)
- ASV growth at December 2024 +6.3%
- Profitability: Adjusted EBITDA +9.1%, margin +160 bps, constant currency margin +80 bps. EBITDA +12.3% on a reported basis
£235 million of non-underlying asset impairments - Adjusted earnings growth: Adjusted EPS +12.2% to 363.5p, driven by revenue growth and increased efficiency. Reported EPS down 7.3%, affected by impairments
- Cash conversion: equity free cash flow £2.2 billion, combining good profit growth and reducing capital intensity
Strategic progress
- Innovation: over 500 enhancements to Workspace, increased availability of LSEG data on new platforms, new Post Trade Solutions and Risk Intelligence services launched
- First LSEG Microsoft Partnership products now generally available, with strong product pipeline and increased customer adoption in 2025
- Acquisition of ICD: gives Tradeweb access to an important fourth client channel, through services to corporate treasury; additional synergy opportunities across LSEG
- Active portfolio management: acquired a further 11.6% of LCH Group, taking ownership to 94.2%; sold 4.92% stake in Euroclear
- Shareholder returns: £1 billion returned via buybacks in 2024, with a further £500 million to be completed by July 2025; final dividend +12.2% to 89.0p per share3, to be paid on 21 May 2025 to all shareholders on the share register at the record date of 22 April 2025, subject to shareholder approval.
As covered, 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, expertise and scale, they aim to enable the “sustainable growth and stability of their 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 over 60 countries “across EMEA, North America, Latin America and Asia Pacific.”