LSE Group posts 1H profit drop, but guides higher on full-year income

(Sharecast News) - The London Stock Exchange Group posted a decline in first half profits, but guided towards the upper part of its expected range for full-year income growth. For the six months finishing on 30 June, the stock exchange and financial information group posted a 7.9% jump in income, excluding recoveries, to reach £3.99bn at constant currencies.

Commenting on the group's results, chief executive officer, David Schwimmer, highlighted the fast growth in its Data & Analytics arm, "outstanding" growth in Post Trade and progress in Capital Markets, despite very strong comparables in the latter.

"Through our multi-year investment programme we are delivering better solutions and higher customer satisfaction, and building a faster-growing, more scalable business," he added.

"We are progressing well with the implementation phase of our transformational strategic partnership with Microsoft, with customers beginning to see the benefits from next year."

Adjusted earnings before interest, taxes, depreciation and amortisation meanwhile were up by 5.8% to £1.87bn.

Yet profit before tax fell by 17.6% to £662m with basic earnings per share off by 21.2% to 77.2p.

The LSE revised up its target for full-year net debt-to-EBITDA from 1.0-20 times to 1-5-2.5 times.

On the flip-side, full-year constant currency total income growth, excluding recoveries, was pegged to come in at the upper end of its 6-8% guidance range.

Its dividend per share was raised by 12.6% to 35.7p.

Share buybacks of up to £750m were anticipated by April 2024.