LSEG trading statement shows total income of £587 million in Q3

In nine months to September 30, London Stock Exchange Group (LSEG) grew total income by 9percent to £1.727billion, while quarter-on-quarter (QOQ) the total income increased by 12percent to £587 million.

The third-quarter result summary shows Information Services revenue went up 9percent to £230 million. FTSE Russell was up 10percent, with strong performance in subscription revenues while Post Trade – LCH income was up 19percent to £197 million.

The strong results was driven by 22percent revenue growth in Over-the counter (OTC) clearing with strong volumes at Swapclear and continued growth in net treasury income, up 16percent.

Post Trade – Italy income was up 8percent to £39 million.

The good performance was supported by growth in clearing, settlement, custody and net treasury income, reflecting good volumes in fixed income.

Capital markets revenue was up by 14percent to £102 million. On a like-for-like basis (adjusting for last year’s IFRS 15 change), revenue increased 5percent, with growth in Primary Markets and in fixed income trading partly offset by subdued equity markets trading; while technology revenue went up 2percent to £16 million.

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While commenting on performance in Q3, David Schwimmer, CEO, LSEG said: “The Group continues to perform well and has delivered a strong Q3 performance. LCH’S OTC clearing services saw continued strong volumes during the period in both member and client clearing. In Information Services, FTSE Russell reported 10percent growth as subscription revenues remained strong. Capital Markets also produced a good overall performance against a backdrop of continued challenging market conditions.

“During the quarter, we announced the proposed acquisition of Refinitiv, a leading global provider of data, analytics and financial markets solutions. This is a transformational transaction that accelerates our Group’s strategy, positioning us in key areas of future growth as a global financial markets infrastructure leader.

“Together, we will create a multi-asset class capital markets business and bring world class data content, management and distribution capabilities to our customers on an open access basis. The transaction offers substantial strategic and financial benefits to our shareholders, customers, employees and other stakeholders.”