LSEG first-half income rises 5.4%, progress on Microsoft JV By Reuters

By Huw Jones

LONDON (Reuters) -London Stock Exchange Group reported first half income above analysts’ consensus on Thursday, and a rise in annual subscription value, saying it was sticking with its medium-term earnings growth guidance.

LSEG’s total income excluding recoveries in the first half of 2024 was 4.204 billion pounds ($5.40 billion), up 5.4% on the the first half of 2023, and above analysts’ consensus of 4.195 billion pounds.

Operating profit in the first half rose 9% to 1.563 billion pounds, with adjusted earnings per share of 174 pence, up 8.1% on the same period last year, both ahead of analysts’ consensus estimates collated by LSEG.

Annual subscription value (ASV), which reflects recurring revenue and closely watched by analysts, was up 6.4% at June 2024, in line with guidance, and up from 6% in the first quarter.

“We are also delivering efficiency improvements, with underlying margin improving year-on-year despite ongoing investment, and we expect this trend to continue,” LSEG CEO David Schwimmer, said in a statement.

“We look forward to further progress in the second half of the year, and are reiterating all of our medium-term guidance.”

LSEG said its partnership with Microsoft (NASDAQ:) is “approaching commercialisation” as the first product becomes more widely available by year-end.

The exchange, transformed into a data powerhouse after its $27 billion acquisition of Refinitiv in 2021, reiterated all medium-term guidance of mid to high single digit organic revenue growth annually, accelerating after this year.

LSEG said its recently announced content agreement with Dow Jones creates a leading news offering across its platforms.