London Stock Exchange Group reports 2.1% rise in revenue
14:20, 22 October 2021
The London Stock Exchange Group (LSEG) reported Friday a 2.1% rise in revenue in the third quarter – and said it was making continued good progress on the integration of data platform Refinitiv.
In a trading update, the exchange said pro forma underlying income was £1.78bn ($2.46 bn) in the three months ended September, compared with £1.75bn a year ago. A strong showing from its capital markets business drove the increase.
Total income rose 7.2% on an adjusted constant currency basis. Gross profit grew 2.4% to £1.55bn, or 7.3% on a constant currency adjusted basis.
Data and analytics
The data and analytics unit, which houses Refinitiv, posted a 0.3% decline in pro forma income, with a dip in earnings from its trading and banking solutions business. When measured on an adjusted constant currency basis, income rose 6%.
“We are making excellent progress on the integration of Refinitiv and are comfortably on track to achieve 125 million pounds of cost synergies in 2021, ahead of our original phasing,” chief executive David Schwimmer said in a statement.
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Fourth quarter outlook
LSEG also said it expected income for the full year to grow between 4-5%. Growth in the fourth quarter is expected to be slower than the third quarter on a constant currency basis due to the strong comparator with the pandemic-impaired Q4 2020.
There was no change to previous cost or capital expenditure. However, supply chain pressures could impact the timing of some of its spending on technology, it said.
Refinitiv was bought by LSEG in a $27bn deal that was finalised in January 2021. LSEG is trying to transform it into a one-stop shop for data, trading and analytics.
Shares were down more than 5% in afternoon trading in London.
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