LSEG reports 'particularly strong' third quarter

(Sharecast News) - London Stock Exchange Group reported a robust third quarter on Thursday, with total income excluding recoveries rising 9.5% on a constant currency basis and 8.7% organically. The FTSE 100 exchange operator said all of its divisions contributed to the growth.

Its data and analytics division grew 4.6%, benefiting from high customer retention, strong sales, and ongoing innovation.

FTSE Russell meanwhile saw a 9.2% increase in revenue, driven by demand for equity indices and benchmarks, while Risk Intelligence rose 10.4% due to strong demand in its screening services, including World-Check.

The group's annual subscription value (ASV) growth remained steady at 6%, aligning with previous guidance.

LSEG's capital markets division posted a notable 22.4% increase, with strong contributions across all venues.

Equities were up 8.5%, while fixed income, derivatives and other surged 27.3%, thanks to record growth from Tradeweb.

The FX segment also grew 12.8%, benefiting from market volatility and geopolitical uncertainty.

Post-trade revenue increased 4.8%, with strong growth from SwapClear offsetting the impact of Euronext's migration.

LSEG said it expected a greater effect from that migration in the fourth quarter.

In terms of capital allocation, LSEG agreed to acquire an additional 8.3% stake in LCH Group for €433m, taking its ownership to 94.2%.

The company also raised £575m through two debt instruments in September, to support its financing needs.

"We delivered a particularly strong quarter, with healthy growth in our subscriptions business and very strong performance in our high-quality volume-based businesses," said chief executive officer David Schwimmer.

"We are executing successfully on our strategy, delivering multiple new products in the third quarter.

"The ongoing transformation of our business with faster product innovation and more powerful solutions is driving higher user engagement and better outcomes for our customers."

Schwimmer added that the company's partnership with Microsoft was continuing to make strong progress, while its product timetable was on track.

"We are confident of continued growth as we look forward to 2025."

At 0911 BST, shares in London Stock Exchange Group were up 1.73% at 10,565p.

Reporting by Josh White for Sharecast.com.