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London Stock Exchange Group first-half results show strong growth

London Stock Exchange Group first-half results show strong growth

The London Stock Exchange Group Plc (LSEG) on Thursday August 2, 2018 released its interim results for the 6 months ended June 30, 2018. The results seen by BusinessDay show revenue went up by 12percent to £953 million (H1 2017: £853 million); while total income increased by 12percent to £1,060 million (H1 2017: £946 million).

The Group is well positioned to drive further growth as a diversified, global financial markets infrastructure business – operating on an open access basis in partnership with its customers.

“I am delighted to join the Group, which continues to deliver strong growth. The Group’s strategy, based on an open access and customer partnership approach, provides a great foundation for further success.

“My immediate focus is to meet with colleagues, customers, shareholders and other stakeholders, and to ensure we continue our focus on driving operational excellence across LSEG as I work with the executive team to develop the Group’s many opportunities ahead,” said David Schwimmer, Group CEO, London Stock Exchange Group Plc.

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The Group’s adjusted operating profit increase by 21percent to £480 million (H1 2017: £398 million), with underlying operating expenses on an organic and constant currency basis up 5percent as the Group continues to invest in growth and efficiencies.

On a reported basis, operating profit was up 29 percent  to £393 million (H1 2017: £305 million); profit before tax increased by 30percennt to £360 million (H1 2017: £277 million); while profit after tax was  £283 million (H1 2017: £208 million).

The Group’s adjusted Earnings Per Share (EPS) was up by 25percent to 88.7 pence (H1 2017: 71.2 pence); basic EPS up 41percent to 71.1 pence (H1 2017: 50.4 pence). Interim dividend increased 19percent to 17.2 pence per share (H1 2017: 14.4 pence per share), in line with its stated dividend policy.

During the period, capital was deployed for acquisitions, including increasing stake in LCH Group to 68percent; 100percent ownership of FTSE TMX; and circa 16percent minority stake in AcadiaSoft alongside organic investment to capitalise on multiple growth opportunities.

FTSE Russell integration of The Yield Book is on track, delivering further expanded multi-asset index capabilities, data and analytics. LCH continues global leadership with record clearing volume at SwapClear, and successfully launched non-deliverable and SOFR IRS. ForexClear launched options clearing.

“The Group has delivered another strong performance, with growth across all business areas. LCH has launched new products and set new records for clearing levels in the SwapClear and ForexClear services, while FTSE Russell has produced another good result.

“Capital Markets performed well with increases in primary and secondary markets activity. We are in a strong position as we work to execute on our strategy and to meet our financial targets while continuing to invest for further growth,” said David Warren, Group CFO, London Stock Exchange Group Plc.