London Stock Exchange Group (LSEG) has announced an impressive 8% increase in total income, excluding recoveries, driven by robust and widespread growth across its business segments. The company also reiterated its full-year total income guidance.
Total income, excluding recoveries, reached £1.97 billion ($2.39 billion), up from £1.905 billion in the same period last year. Notably, data & analytics income grew by 7.2% to £1.30 billion, while capital markets income rose by 6.2% to £375 million. However, equities income experienced a decline of 8.3%, reflecting subdued market volumes. On the other hand, post-trade income surged by 17% to £286 million.
Recoveries mainly involve fees for third-party content, such as exchange data directly distributed to customers.
LSEG anticipates that total income, excluding recoveries, for 2023 will grow towards the higher end of the previously projected range of 6% to 8%. The company also reaffirmed its target earnings before interest, taxes, depreciation, and amortization margin of around 48%, with expected capital expenditure of approximately £750 million.
Chief Executive David Schwimmer expressed satisfaction with LSEG’s performance, stating, “LSEG delivered another quarter of strong, broad-based growth. By developing innovative solutions that cater to our customers’ evolving business needs, we have consistently achieved growth in our data & analytics segment.” He also highlighted the acceleration of capital markets revenues, particularly Tradeweb’s increased share in global credit trading. Furthermore, Schwimmer emphasized the continued robust growth of LSEG’s post-trade businesses, which provide risk management services sought after in an uncertain macro environment.