LSE posts better-than-expected Q1 income and gross profits

The London Stock Exchange posted better-than-expected income and gross profits for the first quarter, thanks to a strong showing by its Data and Analytics and Post Trade divisions.

Commenting on the results, chief executive officer, David Schwimmer, said the results showed the improving quality of the firm's revenues and its "critical" role in financial markets' resilience.

He also noted the renewed acceleration seen in Annual Subscription Value growth in Data & Analytics and a surge in volumes in Post Trade as clients "looked to manage risk effectively during a period of heightened volatility."

For the three months ending on 31 March, the group posted a 14.6% jump in total income, excluding recoveries, to reach £2.01bn (consensus: £1.98bn).

The Data and Analytics segment accounted for the bulk of the growth, reporting a 14.6% rise in income to £1.32bn, while in Capital Markets income rose 9.7% to £394m and in Post Trade by 21.4% to £289m.

At constant currencies, total income excluding recoveries was ahead by 7.5% or 8.0% when the imoact of the Russia-Ukraine war was excluded.

Gross profit was 13.9% higher to £1.81bn (consensus: £1.78bn).

The company also said that it was initiating the last £250m tranche of its share buyback programme.

But that it would also seek shareholder approval for a directed buyback from the Blackstone/Thomson Reuters consortium of up to £750m by April 2024.

CEO Schwimmer said: "As we continue our shift from integration to transformation, we are confident of making further progress through the rest of the year."