LSE full-year profits rise; seeks approval for £750m share buyback

The London Stock Exchange Group reported a jump in full-year profit on Thursday and said it was seeking shareholder approval to buy back £750m of shares from a consortium of former Refinitiv investors.

In preliminary results for the year to the end of December 2022, LSE said pre-tax profit rose 38.8% to £1.2bn, with total income up 19.6% to £7.4bn.

Chief executive David Schwimmer said: "LSEG has had a strong year, successfully integrating Refinitiv and significantly improving its performance, while also delivering strong results in our capital markets and post trade businesses.

"In addition to our existing share buyback, we are today announcing plans to seek shareholder approval for a buyback directed towards the Blackstone/Thomson Reuters consortium's stake, which will benefit all shareholders."

The company lifted its revenue synergy guidance from a £225 million run-rate by 2025 to between £350m and £400m.

LSE also said that for 2023, it expects total income growth on a constant currency basis of 6% to 8%. This includes a contribution of around 1% from acquisitions completed in 2022.

It also expects to achieve an adjusted EBITDA margin of around 48% after Microsoft-related costs. The group said it remains on track to achieve its 2023 exit EBITDA margin target of at least 50%, as adjusted for acquisitions, disposals, Microsoft investments and the forex movements of the last two years.