LSEG reports first-quarter rise in total income

(Sharecast News) - London Stock Exchange Group reported an 8.7% increase in total income excluding recoveries in the first quarter on Thursday, or 7.8% on an organic basis, supported by solid growth across all business divisions and elevated market activity. The FTSE 100 exchange operator reiterated its full-year guidance, citing confidence in continued growth and margin improvement.

It said data and analytics revenue rose 5.1%, with gains led by analytics, and data and feeds.

Within that segment, analytics grew 7.4% on strong demand for fixed income tools and new Microsoft-partnered API capabilities, while data and feeds advanced 6.6% on innovation in real-time services and pricing products.

The workflows business delivered 3.4% growth, bolstered by enhancements across product lines.

LSEG said it was on track to sunset its Eikon platform by mid-2025.

FTSE Russell meanwhile grew 9.6%, driven by steady demand for equity benchmarks and higher asset-based revenues supported by inflows and improved market levels.

Risk Intelligence also posted strong results, up 10.7%, reflecting robust demand for World-Check and digital identity offerings.

Markets income climbed 10.7%, or 13.5% including the ICD acquisition, as heightened geopolitical and economic uncertainty lifted trading volumes.

Tradeweb recorded another record quarter with $2.55trn in average daily volume, contributing to a 17.3% organic rise in the fixed income, derivatives and other categories.

Foreign exchange revenue increased 12.3%, while OTC derivatives rose 16.8%.

Equities advanced 3.1%, though primary issuance remained subdued.

Securities and reporting fell 9.8% due to the prior-year loss of Euronext clearing business, and net treasury income declined 6.3% for the same reason.

Group cost of sales rose 7.2%, slightly below revenue growth, while gross profit increased 7.5%.

Annual subscription value growth reached 6.4% on strong sales and high retention.

By the end of April, LSEG said it had completed £245m of its planned £500m share buyback.

It also repurchased $250m of its 2031 dollar bonds in March to take advantage of current interest rates.

LSEG reaffirmed its guidance for 2025, including 6.5% to 7.5% organic income growth excluding recoveries, a 50 to 100 basis point improvement in EBITDA margin, and equity free cash flow of at least £2.4bn.

"We have started the year strongly, delivering another quarter of good growth," said chief executive officer David Schwimmer.

"Our data and analytics business accelerated further, and risk intelligence and FTSE Russell continued to perform well.

"Our markets division saw strong broad-based growth against a backdrop of elevated volatility, which has persisted into April reflecting continuing uncertainty around the outlook for financial markets and the global economy more broadly."

Schwimmer said the company was continuing to drive the strategic transformation of its business - building a strong product pipeline, investing in our engineering talent and delivering on the Microsoft partnership.

"Our strong first quarter performance is testament to the value of our diversified business model.

"We look forward to further progress in the rest of the year, consistent with our financial targets."

At 0931 BST, shares in London Stock Exchange Group were down 0.04% at 11,620p.

Reporting by Josh White for Sharecast.com.