LSE Group full-year profit beats analyst estimates

(Sharecast News) - The London Stock Exchange posted in line full-year top-line growth, but its profit beat analysts' estimates. "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," LSE boss David Schwimmer said.

"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."

Reported total income, excluding recoveries, was ahead by 6.1% to reach approximately £8.49bn and by 5.7% to £8.85bn once recoveries are included.

In organic terms and at constant currencies, revenues were up by 7.7%.

On an adjusted basis, earnings before interest, taxes, depreciation and amortisation jumped 9.8% to about £4.15bn, for a 12.2% rise in earnings per share to 363.5p (UBS: 354.5p).

Income in the key Data & Analytics unit was up by 4.5% for the year, or roughly twice the pace anticipated by UBS, and by 4.8% over the last three months of 2024.

Organic Annual Subscription Values meanwhile rose by 6.3%

Looking ahead, LSE Group guided towards organic total income growth at constant currencies of 6.5-7.5% once recoveries are excluded.

One week before LSE's latest results, UBS analyst Michael Werner had written to clients that: "LSEG's shares are trading at 28.5x forward consensus earnings. At these valuation levels the market is, in our view, pricing in a revenue growth outlook of 6% per annum, c.150bp below our expectations."

Also at constant FX, EBITDA margins were seen strengthening by 50-100 basis points.

Equity free cash flow was pegged to rise by at least £2.4bn.

A further £500m of share buybacks were expected to be concluded by July 2025 and the final dividend was raised by 12.2% to 89.0p.

-- More to follow --