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H1’20: LSEG demonstrates strong operational resilience

The interim half-year (H1) results of London Stock Exchange Group (LSEG) showed strong operational resilience across the Group’s trading, clearing and data platforms during unprecedented period.

The Group’s irganic growth combined with new product development and investment continued throughout the period.

Like in Nigeria and other major markets, the majority of LSEG employees continue to work remotely due to Covid-19 pandemic.

In the six months to June 30, it’s total revenue went up 4percent to £1,058 million (H1 2019: £1,018 million); total income up 8percent to £1,235 million (H1 2019: £1,140 million).

FTSE Russell revenue was up 5percent to £330 million (H1 2019: £315 million) with growth in subscription revenues and flat asset-based revenues reflecting lower levels of Exchange Traded Funds (ETF) Assets Under Management (AUM).

Post Trade revenue was up 9percent to £372 million (H1 2019: £342 million).

Capital Markets revenue went down 4percent on a reported basis to £217 million, and up 12percent on a like-for-like basis excluding the one-off benefit of an IFRS 15 adjustment in prior year

Adjusted operating expenses, before depreciation and amortisation, were up 8percent (up 5percent on a constant currency basis) and up 1percent compared with H2 2019

Adjusted operating profit went up by 8 percent to £575 million (H1 2019: £533 million); operating profit was down by 2 percent at £391 million (H1 2019: £399 million); while profit before tax stood at £362 million (H1 2019: £363 million); and profit after tax at £261 million (H1 2019: £265 million)

“The Group has delivered a good financial performance and demonstrated strong operational resilience. During this unprecedented period, we have focused on ensuring the welfare of our employees and on continuity of services to our customers, maintaining access to our markets and clearing venues, with record volumes executed across our services”, said David Schwimmer, CEO, LSEG.

“We are making good progress on the proposed transaction with Refinitiv, securing a number of regulatory approvals and engaging constructively with authorities on remaining approvals. We also continue to make good progress on integration planning to ensure we are ready to deliver the benefits of the transaction to our shareholders, customers and other stakeholders. We expect to close the transaction by the end of the year or in early 2021.”

Capital Markets

£19.8 billion equity capital raised across new and further issues increased by 29percent, with 17percent increase in value traded across venues

China Pacific Insurance Group (CPIC) listed GDRs in London on Shanghai-London Stock Connect, the largest capital raise via an admission to London Stock Exchange in 2020 to date, raising $2 billion.

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