We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
London Stock Exchange Group Plc | LSE:LSEG | London | Ordinary Share | GB00B0SWJX34 | ORD SHS 6 79/86P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
44.00 | 0.49% | 8,934.00 | 8,926.00 | 8,930.00 | 8,966.00 | 8,838.00 | 8,958.00 | 1,097,583 | 16:35:05 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Admin-gen Economic Programs | 8.06B | 761M | 1.4061 | 63.51 | 48.33B |
TIDMLSEG
RNS Number : 6366D
London Stock Exchange Group PLC
21 October 2022
London Stock Exchange Group plc: Q3 2022 Trading Update
Broad based growth, sustained execution, guidance unchanged
David Schwimmer, CEO said:
"We have delivered another strong quarter, with good growth across all businesses. The consistency of delivery in recent quarters demonstrates the strength of our business model, generating quality recurring revenues from a range of services that are highly valued by our customers.
"Our strategy is working, delivering growth and increasing efficiency. We are investing organically for growth and completed the acquisition of TORA during the quarter to strengthen our offering in Trading & Banking. We are also making good progress on returning surplus capital to shareholders through our share buyback programme.
"With sustained execution, a broad base of businesses and leading market positions, we remain well positioned."
Q3 2022 highlights -- Strong growth continues across all divisions : total income excluding recoveries up 16.2% on a reported basis, to GBP1,905m. Up 5.9% on a constant currency basis, and up 7.0% adjusting for Ukraine and Russia conflict impact(1) -- High-quality recurring revenue : like-for-like ASV growth continues to improve, up 5.8% in Q3 (up 280 basis points since Refinitiv acquisition in Q1 2021); driven by new sales and improved retention -- Continued good progress on integration : revenue and cost synergies in line with targets -- Active capital management : - TORA acquisition completed, enhancing Trading & Banking Solutions in Data & Analytics; provisional clearance achieved for Quantile acquisition, expected to complete in Q4 - Share buyback: GBP235 million returned in Q3 as part of our active 12 month, GBP750 million share buyback programme -- Well-positioned for further growth : strong progress, no change to guidance or targets Note: Unless otherwise stated, variances refer to growth rates relative to Q3 2021 on a constant currency basis
This release contains revenues, cost of sales and key performance indicators (KPIs) for the three months ended 30 September 2022 (Q3), certain columns and rows may not add due to the use of rounded numbers for disclosure purposes. Throughout this document, r evenues and cost of sales associated with the BETA divestment, completed on 1 July 2022, and the Borsa Italiana divestment, completed in H1 2021, have been classed as discontinued and are excluded from all periods. To reflect underlying performance, all constant currency variances compare the current and prior period at consistent exchange rates. For more information on accounting treatments and approach to FX please refer to the "Accounting and modelling notes" section below.
(1) Growth rates excluding the Ukraine / Russia conflict impact exclude income in the region and from sanctioned customers and related business from both periods
Q3 2022 summary
The deferred revenue accounting adjustment(1) was immaterial to growth rates in Q3.
Continuing operations Q3 2022 Q3 2021 Variance Constant GBPm GBPm % Currency Variance % -------- -------- Trading & Banking Solutions 417 373 11.8% 1.0% Enterprise Data Solutions 332 284 16.9% 6.2% -------- Investment Solutions 344 294 17.0% 4.7% -------- Wealth Solutions 71 61 16.4% 5.0% -------- Customer & Third-Party Risk Solutions 110 92 19.6% 8.5% --------------------------------------- -------- -------- --------- ---------- Data & Analytics 1,274 1,104 15.4% 4.1% -------- Equities 60 60 0.0% 1.2% -------- FX 68 56 21.4% 4.3% -------- Fixed Income, Derivatives & Other 241 193 24.9% 12.1% --------------------------------------- -------- -------- --------- ---------- Capital Markets 369 309 19.4% 8.6% -------- OTC Derivatives 103 86 19.8% 14.5% -------- Securities & Reporting 55 60 (8.3%) (7.4%) -------- Non-Cash Collateral 25 24 4.2% 0.8% -------- Net Treasury Income 66 47 40.4% 30.7% --------------------------------------- -------- -------- --------- ---------- Post Trade 249 217 14.7% 10.4% -------- Other 13 9 44.4% 23.4% --------------------------------------- -------- -------- --------- ---------- Total Income (excl. recoveries) 1,905 1,639 16.2% 5.9% -------- Recoveries 80 90 (11.1%) 4.5% --------------------------------------- -------- -------- --------- ---------- Total Income (incl. recoveries) 1,985 1,729 14.8% 5.9% -------- Cost of sales (289) (227) 27.3% 12.4% --------------------------------------- -------- -------- --------- ---------- Gross Profit 1,696 1,502 12.9% 4.9% --------------------------------------- -------- -------- --------- ----------
(1) The deferred revenue adjustment is further explained in the "Accounting and modelling notes" section
Q3 2022 business highlights
Constant currency basis
Data & Analytics : revenues up 4.1%; up 5.4% excluding impact -- of Ukraine / Russia conflict, with good growth across all businesses. In particular: -- Trading & Banking Solutions: up 1.0%; up 3 .5% excluding impact of Ukraine / Russia conflict with an improved product offering reflected in stronger sales and continued good retention. First time contribution from acquisition of TORA. -- Enterprise Data Solutions: up 6.2%; up 7.1% excluding impact of Ukraine / Russia conflict as investment in data content improved retention and sales growth; contribution of MayStreet's low-latency capabilities. -- Investment Solutions: up 4.7%; continued strong growth across Benchmark, Indices and Analytics, up c.8% adjusting for prior year effects; resilient Asset-based revenues with encouraging product inflows. Capital Markets : revenues up 8.6% with strong demand for our -- services and benefit of volatility at the end of the quarter . In particular: -- Fixed Income, Derivatives & Other: s trong performance at Tradeweb, with double-digit revenue growth across Rates, Credit, Equity and Money Market asset classes. Post Trade : total income up 10.4% reflecting strong demand -- for clearing services; good performance in OTC markets as we helped customers manage their risk in an uncertain market environment. Higher Net Treasury Income (NTI) reflects increased cash collateral (up 45% yoy to EUR151 billion). Cost of sales : up 12.4% reflecting strong SwapClear performance -- where revenue share arrangements are in place, additional cost of sales from acquisitions, and continued growth in Data & Analytics. Annual Subscription Value (ASV) growth Organic, constant currency ASV growth, excluding recoveries.
Share buyback programme
In August 2022, we announced a GBP750 million on-market share buyback programme through three tranches over a 12 month period. We made good progress in Q3, repurchasing 3.0 million shares for GBP235 million. The first tranche of GBP250 million (3.1 million shares) completed on 5 October 2022. The next tranche will commence on 1 December 2022.
Board appointment
William Vereker joined the Board as a Non-Executive Director with effect from 3 October 2022 and will also serve on the Risk, Remuneration and Nomination Committees. William brings a strong track record in the global financial services sector. His international experience in developing senior relationships, managing risk and organisational change will benefit the Group as we look to further capitalise on the trends shaping our industry.
Statutory(1) Q3 YTD results
Continuing operations Q3 9m Q3 9m 2022 2021 GBPm GBPm ------ Trading & Banking Solutions 1,186 994 Enterprise Data Solutions 953 761 Investment Solutions 980 819 Wealth Solutions 202 163 Customer & Third-Party Risk Solutions 306 239 --------------------------------- ------ ------ Data & Analytics 3,627 2,976 Equities 190 180 FX 191 147 Fixed Income, Derivatives & Other 708 521 --------------------------------- ------ ------ Capital Markets 1,089 848 OTC Derivatives 294 255 Securities & Reporting 177 183 Non-Cash Collateral 74 70 Net Treasury Income 187 155 --------------------------------- ------ ------ Post Trade 732 663 Other 25 22 --------------------------------- ------ ------ Total Income (excl. recoveries) 5,474 4,510 Recoveries 246 238 --------------------------------- ------ ------ Total Income (incl. recoveries) 5,720 4,747 Cost of sales (793) (619) --------------------------------- ------ ------ Gross Profit 4,927 4,128 --------------------------------- ------ ------
(1) Statutory figures for 9 months to 30 Sep 2021 incorporate figures from Refinitiv for February to September 2021.
Pro-forma Q3 YTD results
Continuing operations Q3 9m Q3 9m Variance Constant Constant 2022 2021 % Currency Currency GBPm GBPm Variance Variance % (excl. deferred revenue adjustment) (1) % ------ ------ Trading & Banking Solutions 1,186 1,118 6.1% 0.3% (0.4%) Enterprise Data Solutions 953 845 12.8% 7.0% 6.2% ------ Investment Solutions 980 854 14.8% 7.3% 6.8% ------ Wealth Solutions 202 184 9.8% 3.7% 3.2% ------ Customer & Third-Party Risk Solutions 306 267 14.6% 8.5% 7.6% ----------------------------- ------ ------ --------- ---------- ------------- Data & Analytics 3,627 3,268 11.0% 4.7% 4.0% ------ Equities 190 180 5.6% 5.6% 5.6% ------ FX 191 166 15.1% 5.7% 5.5% ------ Fixed Income, Derivatives & Other 708 580 22.1% 15.0% 15.0% ----------------------------- ------ ------ --------- ---------- ------------- Capital Markets 1,089 926 17.6% 11.5% 11.5% ------ OTC Derivatives 294 255 15.3% 12.9% 12.9% ------ Securities & Reporting 177 183 (3.3%) (1.2%) (1.2%) ------ Non-Cash Collateral 74 70 5.7% 4.3% 4.3% ------ Net Treasury Income 187 155 20.6% 17.2% 17.2% ----------------------------- ------ ------ --------- ---------- ------------- Post Trade 732 663 10.4% 9.1% 9.1% ------ Other 25 24 4.2% 0.3% 0.3% ----------------------------- ------ ------ --------- ---------- ------------- Total Income (excl. recoveries) 5,474 4,881 12.1% 6.6% 6.1% ------ Recoveries 246 268 (8.2%) 3.5% 2.7% ----------------------------- ------ ------ --------- ---------- ------------- Total Income (incl. recoveries) 5,720 5,149 11.1% 6.4% 5.9% ------ Cost of sales (793) (679) 16.8% 8.6% 8.6% ----------------------------- ------ ------ --------- ---------- ------------- Gross Profit 4,927 4,470 10.2% 6.1% 5.6% ----------------------------- ------ ------ --------- ---------- -------------
(1) Excludes the deferred revenue adjustment further explained in the "Accounting and modelling notes" section
Contacts: London Stock Exchange Group plc
Investors Peregrine Riviere / Chris Turner - Investor ir@lseg.com Relations Media Lucie Holloway / Rhiannon Davies - Financial +44 (0) 20 7797 1222 Communications newsroom@lseg.com
Additional information can be found at www.lseg.com
Q3 investor and analyst conference call:
LSEG will host a conference call for its Q3 Trading Update for analysts and investors today at 09:00am (UK time). On the call will be David Schwimmer (Chief Executive Officer), Anna Manz (Chief Financial Officer) and Peregrine Riviere (Group Head of Investor Relations).
To access the webcast or telephone conference call please register in advance using the following link:
https://www.lsegissuerservices.com/spark/LondonStockExchangeGroup/events/b49ef70b-c219-4ae7-a007-b470b8a5ed8a
-- Questions can be submitted in advance and during the event itself, either by clicking the 'Ask a question' button on the page or by emailing the LSEG Investor Relations team at ir@lseg.com . -- To ask a question live you will need to register for the telephone conference call here: https://cossprereg.btci.com/prereg/key.process?key=PTAJ4VAPV
Accounting and modelling notes
Financial details on completed acquisitions
The acquisition of TORA completed on 9 August 2022, enhancing our multi-asset class order and execution management capability within Trading & Banking Solutions. TORA will provide approximately 5 months of contribution to our P&L in 2022.
The financial performance of TORA in 2021 is shown below, consistent with LSEG's accounting treatment. TORA's costs are in addition to our existing organic constant currency cost guidance.
GBPm 2021 Total Income 29 ----- Cost of Sales (2) ----- Gross Profit 27 ----- Operating Expenses (24) ----- EBITDA 4 ----- Depreciation 0 ----- Operating profit 3 -----
Divestment of BETA
On 1st July, LSEG completed the divestment of BETA, previously contained within the Wealth Solutions business. Consistent with the treatment at Q1 and H1 2022, the financial contribution of BETA is excluded from our 2021 and 2022 continuing operations.
Organic growth
Organic growth is calculated on a constant currency basis, adjusting the results to remove disposals from the entirety of the current and prior year periods, and by including acquisitions from the date of acquisition with a comparable adjustment to the prior year.
Deferred revenue accounting adjustment
Consistent with purchase price accounting rules, Refinitiv's deferred revenue balances were subject to a one-time haircut at the time of acquisition. This adjustment impacted 2021 revenues, with no material impact in 2022. In order to provide insight into the underlying business performance, variance figures are presented that exclude the deferred revenue adjustment where appropriate.
FX conversion
The majority of LSEG revenues and expenses are in USD, followed by GBP, EUR and other currencies. The rates for the largest two currency pairs are shown in the table below.
Average rate Closing rate Average rate Closing rate 9 months at 9 months at ended 30-Sep-22 ended 30-Sep-21 30-Sep-22 30-Sep-21 GBP : USD 1.26 1.10 1.39 1.34 ------------- ------------- ------------- ------------- GBP : EUR 1.18 1.13 1.16 1.16 ------------- ------------- ------------- -------------
For definitions of technical terms - refer to the Glossary contained in the 2021 Annual Report, page 207.
Divisional revenues, gross profit and non-financial KPIs
1. Data & Analytics
The deferred revenue accounting adjustment(1) was immaterial to growth rates in Q3.
Q3 2022 Q3 2021 Variance Constant GBPm GBPm % Currency Variance % -------- -------- Trading & Banking Solutions 417 373 11.8% 1.0% Trading 330 296 11.5% 0.9% -------- Banking 87 77 13.0% 1.4% -------- Enterprise Data Solutions 332 284 16.9% 6.2% -------- Real-Time Data 212 182 16.5% 5.8% -------- PRS 120 102 17.6% 7.0% -------- Investment Solutions 344 294 17.0% 4.7% -------- Benchmark Rates, Indices & Analytics 157 136 15.4% 4.9% -------- Index - Asset-Based 73 62 17.7% 1.9% -------- Data & Workflow 113 96 17.7% 6.1% -------- Wealth Solutions 71 61 16.4% 5.0% -------- Customer & Third-Party Risk Solutions 110 92 19.6% 8.5% ----------------------------------------- -------- -------- --------- ---------- Total Revenue (excl. recoveries) 1,274 1,104 15.4% 4.1% -------- Recoveries 80 90 (11.1%) 4.5% ----------------------------------------- -------- -------- --------- Total Revenue (incl. recoveries) 1,354 1,194 13.4% 4.2% -------- Cost of sales (240) (191) 25.7% 9.3% --------- Gross Profit 1,114 1,003 11.1% 3.2% -------- ---------
Non-financial KPIs
Q3 2022 Q3 2021 Variance % -------- -------- Annual Subscription Value growth (%) (1) 4.4% 4.0% - Annual Subscription Value growth excl. U/R impact (%) (1, 2) 5.8% 4.0% - Subscription revenue growth (%) 4.5% - - (1, 3) Subscription revenue growth excl. 5.3% - - U/R impact (%) (1, 2, 3) Index - ETF AUM ($bn) 896 1,036 (14%) Index - ESG Passive AUM ($bn) (4) 261 132 98% ----------------------------------- -------- -------- ---------
(1) The deferred revenue adjustment is further explained in the "Accounting and modelling notes" section
(2.) Organic, constant currency variance
(3.) Growth rates excluding the Ukraine / Russia conflict impact exclude income in the region and from sanctioned customers and related business from both periods
(4.) 12-month rolling constant currency variance excluding the impact of the deferred revenue accounting adjustment. Due to a change in methodology, prior year comparator is unavailable
(5.) ESG Passive AUM is at 31 December 2021 and prior period comparator is at 31 December 2020. The metric is updated bi-annually
2. Capital Markets
The deferred revenue accounting adjustment(1) was immaterial to growth rates in Q3.
Q3 2022 Q3 2021 Variance Constant GBPm GBPm % Currency Variance % -------- -------- Equities 60 60 0.0% 1.2% FX 68 56 21.4% 4.3% -------- Fixed Income, Derivatives & Other 241 193 24.9% 12.1% ----------------------------------- -------- -------- --------- Total Revenue 369 309 19.4% 8.6% -------- Cost of sales (9) (7) 28.6% 12.4% ----------------------------------- -------- -------- --------- Gross Profit 361 302 19.5% 8.5% ----------------------------------- -------- -------- ---------
(1) The deferred revenue adjustment is further explained in the "Accounting and modelling notes" section
Non-financial KPIs
Q3 2022 Q3 2021 Variance % -------- -------- Equities Primary Markets New issues 18 45 (60%) Total money raised (GBPbn) 2.5 6.9 (64%) Secondary Markets - Equities UK Value Traded (GBPbn) - Average Daily Value 4.1 4.1 0% SETS Yield (bps) 0.67 0.75 (11%) FX Average daily total volume ($bn) 442 426 4% Fixed income, Derivatives and Other Tradeweb Average Daily ($m) Rates - Cash 324,153 337,167 (4%) Rates - Derivatives 328,636 246,981 33% Credit - Cash 9,275 8,440 10% Credit - Derivatives 20,020 13,796 45% ------------------------------ -------- -------- --------- 3. Post Trade Q3 2022 Q3 2021 Variance Constant GBPm GBPm % Currency Variance % -------- -------- OTC Derivatives 103 86 19.8% 14.5% Securities & Reporting 55 60 (8.3%) (7.4%) -------- Non-Cash Collateral 25 24 4.2% 0.8% ------------------------ -------- -------- --------- Total Revenue 183 170 7.6% 4.7% -------- Net Treasury Income 66 47 40.4% 30.7% ------------------------ -------- -------- --------- Total Income 249 217 14.7% 10.4% -------- Cost of sales (40) (29) 37.9% 33.3% ------------------------ -------- -------- --------- Gross Profit 209 188 11.2% 6.7% ------------------------ -------- -------- ---------
Non-financial KPIs
Q3 2022 Q3 Variance 2021 % --------- ------- OTC SwapClear IRS notional cleared ($trn) 249 202 23% SwapClear members 123 122 1% Client trades ('000) 696 516 35% Client average 10-year notional equivalent ($trn) 3.5 3.8 (8%) ForexClear Notional cleared ($bn) 6,243 5,528 13% ForexClear members 36 35 3% CDSClear Notional cleared (EURbn) 881 467 89% CDSClear members 25 25 0% Securities & Reporting EquityClear trades (m) 486 493 (1%) Listed derivatives contracts (m) 57.0 66.3 (14%) RepoClear - nominal value (EURtrn) 75.8 62.0 22% Non-Cash Collateral Average non-cash collateral (EURbn) 165.5 167.2 (1%) Net Treasury Income Average cash collateral (EURbn) 151.0 103.9 45% --------------------------------------------------- --------- ------- ---------
Appendix - Total income constant currency growth rates: Q3 2022
Continuing operations Constant Constant Currency Currency Variance Variance (organic) % % ---------- ----------- Trading & Banking Solutions 1.0% (0.3%) Enterprise Data Solutions 6.2% 5.3% Investment Solutions 4.7% 4.7% Wealth Solutions 5.0% 5.0% Customer & Third-Party Risk Solutions 8.5% 8.8% ----------------------------- ---------- ----------- Data & Analytics 4.1% 3.5% Capital Markets 8.6% 8.6% Post Trade 10.4% 10.4% Total Income (excl. recoveries) 5.9% 5.5%
Appendix - Total income and gross profit by quarter
2021 2022 GBPm Q1(1) Q2 Q3 Q4 2021 Q1 Q2 Q3 ------ ------ ------ ------ ------ ------ ------ ------ Trading & Banking Solutions 372 373 373 375 1,493 378 391 417 Trading 297 297 296 296 1,186 298 308 330 Banking 75 76 77 79 307 80 83 87 Enterprise Data Solutions 279 282 284 296 1,141 304 317 332 Real-Time Data 178 182 182 188 730 195 202 212 PRS 101 100 102 108 411 109 115 120 Investment Solutions 274 286 294 302 1,156 308 328 344 Benchmark Rates, Indices & Analytics 122 126 136 134 518 137 148 157 Index - Asset-Based 58 64 62 69 253 70 71 73 Data & Workflow 94 96 96 99 385 101 109 113 Wealth Solutions 61 62 61 65 249 63 68 71 Customer & Third-Party Risk Solutions 85 90 92 92 359 94 102 110 ----------------------------------------- ------ ------ ------ ------ ------ ------ ------ ------ Data & Analytics 1,071 1,093 1,104 1,130 4,398 1,147 1,207 1,274 Equities 61 59 60 61 241 67 62 60 FX 57 53 56 57 223 60 63 68 Fixed Income, Derivatives & Other 200 187 193 205 785 232 235 241 ----------------------------------------- ------ ------ ------ ------ ------ ------ ------ ------ Capital Markets 318 299 309 323 1,249 359 361 369 OTC Derivatives 87 82 86 103 358 93 98 103 Securities & Reporting 63 60 60 63 246 64 58 55 Non-Cash Collateral 22 24 24 25 95 24 25 25 Net Treasury Income 55 53 47 52 207 57 64 66 ----------------------------------------- ------ ------ ------ ------ ------ ------ ------ ------ Post Trade 227 219 217 243 906 238 245 249 Other 5 10 9 10 34 7 5 13 ----------------------------------------- ------ ------ ------ ------ ------ ------ ------ ------ Total Income (excl. recoveries) 1,621 1,621 1,639 1,706 6,587 1,751 1,818 1,905 Recoveries 88 90 90 86 354 80 86 80 ----------------------------------------- ------ ------ ------ ------ ------ ------ ------ ------ Total Income (incl. recoveries) 1,709 1,711 1,729 1,792 6,941 1,831 1,904 1,985 Cost of sales (230) (222) (227) (241) (920) (240) (264) (289) ----------------------------------------- ------ ------ ------ ------ ------ ------ ------ ------ Gross Profit 1,479 1,489 1,502 1,551 6,021 1,591 1,640 1,696 ----------------------------------------- ------ ------ ------ ------ ------ ------ ------ ------
(1) Q1 2021 is pro-forma and assumes that the acquisition of Refinitiv took place on 1 January 2021
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
END
TSTFEWFUSEESEDS
(END) Dow Jones Newswires
October 21, 2022 02:00 ET (06:00 GMT)
1 Year London Stock Exchange Chart |
1 Month London Stock Exchange Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions