LSE Group in 'strong position' after first half

London Stock Exchange Group issued its interim results for the six months ended 30 June on Thursday, reporting a “strong” financial performance, with double-digit revenue growth in its information services, LCH and capital markets divisions.

The FTSE 100 company said revenue rose 12% to £953m year-on-year, while total income was ahead 12% to £1.06bn.

Adjusted operating profit was ahead 21% to £480m, with the firm’s underlying operating expenses on an organic and constant currency basis up 5% as the group continued to invest in growth and efficiencies.

On a reported basis, operating profit was up 29% to £393m, profit before tax rose 30% to £360m, and profit after tax was £283m, up from £208m.

Adjusted earnings per share improved 25% to 88.7p, with basic earnings per share ahead 41% to 71.1p.

The board declared a 19% increase in the interim dividend to 17.2p per share, in line with its stated dividend policy.

LSE said it maintained a “strong” balance sheet position, with its leverage reduced to 1.6x adjusted net debt-pro forma EBITDA.

“I am delighted to join the group, which continues to deliver strong growth,” said chief executive officer David Schwimmer.

“The group's strategy, based on an open access and customer partnership approach, provides a great foundation for further success.

“My immediate focus is to meet with colleagues, customers, shareholders and other stakeholders, and to ensure we continue our focus on driving operational excellence across LSE Group as I work with the executive team to develop the group's many opportunities ahead.”

During the period, the group said it deployed capital for acquisitions, including increasing its stake in LCH Group to 68%, taking its ownership of FTSE TMX to 100%, and a 16% minority stake in AcadiaSoft, alongside organic investment to capitalise on multiple growth opportunities.

FTSE Russell integration of The Yield Book was said to be on track, which the board said was delivering further expanded multi-asset index capabilities, data and analytics.

LCH reportedly continued its leadership position, with record clearing volume at SwapClear, and the successful launch of non-deliverable and SOFR IRS.

ForexClear also launched options clearing, the board said.

LSE said it was “well-positioned” to drive further growth as a diversified, global financial markets infrastructure business, operating on an open access basis in partnership with customers.

“The group has delivered another strong performance, with growth across all business areas,” added group chief financial officer David Warren.

“LCH has launched new products and set new records for clearing levels in the SwapClear and ForexClear services, while FTSE Russell has produced another good result.”

Warren also said the capital markets division performed “well”, with increases in primary and secondary markets activity.

“We are in a strong position as we work to execute on our strategy and to meet our financial targets while continuing to invest for further growth.”