LSEG posts strong financials
August 3, 2017

The London Stock Exchange Group has this morning posted its results for the first half of the year. It identifies the following as highlights.

Continued strong financial performance with income growth across core business areas - in particular, in Information Services, including strong results at FTSE Russell, and OTC clearing at LCH.

Revenue up 18 percent to 853 million (H1 2016: 722 million); total income up 20 percent to 946 million (H1 2016: 786 million).

Adjusted operating profit up 20 percent at 398 million (H1 2016: 333 million), with underlying operating expenses on an organic and constant currency basis up 5 percent as the Group continues to invest in growth and efficiencies.

On a reported basis: operating profit of 305 million (H1 2016: 199 million); profit before tax up 69 percent to 277 million (H1 2016: 164 million); profit after tax of 208 million (H1 2016: 114 million) and 186 million including discontinued operations (H1 2016: loss of 16 million).

Adjusted EPS up 23 percent at 71.2 pence (H1 2016: 57.7 pence); basic EPS up 84 percent to 50.4 pence (H1 2016: 27.4 pence).

Interim dividend increased 20 percent to 14.4 pence per share (H1 2016: 12.0 pence per share) in line with our stated dividend policy; 200 million share buyback ongoing.

Strong balance sheet position with leverage of 1.2 times adjusted pro forma net debt: EBITDA, notwithstanding continued investment spend, acquisition of Mergent and ongoing share buybacks.

Announced acquisition of The Yield Book and Citi Fixed Income Indices, including the World Government Bond Index, for total cash consideration of $685 million (535 million).

Investor Update event in June highlighted the good progress in executing our strategy, with new information on targeted revenue growth and continued cost control - expected to deliver further improvement to operating leverage, delivering enhanced operating margins and shareholder value.

Xavier Rolet, Group Chief Executive, said: "The Group has produced a strong financial performance, with good income growth across all of our core business areas. FTSE Russell and LCH OTC clearing services performed strongly, with double-digit growth at both businesses.

"As well as continuing to deliver organic growth, during the period we announced the acquisition of The Yield Book and Citi Fixed Income Indices business. At our Investor Update in June, we set out targets for further strong financial performance, based on continued execution of our successful growth strategy. The Group remains well placed, diversified both by business activity and by geography. Our Open Access approach and strong customer partnerships also position us well for the implementation of MiFID II (markets in financial instruments directive II), starting in just over 20 weeks' time."





This site, like many others, uses small files called cookies to customize your experience. Cookies appear to be blocked on this browser. Please consider allowing cookies so that you can enjoy more content across globalcustody.net.

How do I enable cookies in my browser?

Internet Explorer
1. Click the Tools button (or press ALT and T on the keyboard), and then click Internet Options.
2. Click the Privacy tab
3. Move the slider away from 'Block all cookies' to a setting you're comfortable with.

Firefox
1. At the top of the Firefox window, click on the Tools menu and select Options...
2. Select the Privacy panel.
3. Set Firefox will: to Use custom settings for history.
4. Make sure Accept cookies from sites is selected.

Safari Browser
1. Click Safari icon in Menu Bar
2. Click Preferences (gear icon)
3. Click Security icon
4. Accept cookies: select Radio button "only from sites I visit"

Chrome
1. Click the menu icon to the right of the address bar (looks like 3 lines)
2. Click Settings
3. Click the "Show advanced settings" tab at the bottom
4. Click the "Content settings..." button in the Privacy section
5. At the top under Cookies make sure it is set to "Allow local data to be set (recommended)"

Opera
1. Click the red O button in the upper left hand corner
2. Select Settings -> Preferences
3. Select the Advanced Tab
4. Select Cookies in the list on the left side
5. Set it to "Accept cookies" or "Accept cookies only from the sites I visit"
6. Click OK

The London Stock Exchange Group has this morning posted its results for the first half of the year. It identifies the following as highlights.

Continued strong financial performance with income growth across core business areas - in particular, in Information Services, including strong results at FTSE Russell, and OTC clearing at LCH.

Revenue up 18 percent to 853 million (H1 2016: 722 million); total income up 20 percent to 946 million (H1 2016: 786 million).

Adjusted operating profit up 20 percent at 398 million (H1 2016: 333 million), with underlying operating expenses on an organic and constant currency basis up 5 percent as the Group continues to invest in growth and efficiencies.

On a reported basis: operating profit of 305 million (H1 2016: 199 million); profit before tax up 69 percent to 277 million (H1 2016: 164 million); profit after tax of 208 million (H1 2016: 114 million) and 186 million including discontinued operations (H1 2016: loss of 16 million).

Adjusted EPS up 23 percent at 71.2 pence (H1 2016: 57.7 pence); basic EPS up 84 percent to 50.4 pence (H1 2016: 27.4 pence).

Interim dividend increased 20 percent to 14.4 pence per share (H1 2016: 12.0 pence per share) in line with our stated dividend policy; 200 million share buyback ongoing.

Strong balance sheet position with leverage of 1.2 times adjusted pro forma net debt: EBITDA, notwithstanding continued investment spend, acquisition of Mergent and ongoing share buybacks.

Announced acquisition of The Yield Book and Citi Fixed Income Indices, including the World Government Bond Index, for total cash consideration of $685 million (535 million).

Investor Update event in June highlighted the good progress in executing our strategy, with new information on targeted revenue growth and continued cost control - expected to deliver further improvement to operating leverage, delivering enhanced operating margins and shareholder value.

Xavier Rolet, Group Chief Executive, said: "The Group has produced a strong financial performance, with good income growth across all of our core business areas. FTSE Russell and LCH OTC clearing services performed strongly, with double-digit growth at both businesses.

"As well as continuing to deliver organic growth, during the period we announced the acquisition of The Yield Book and Citi Fixed Income Indices business. At our Investor Update in June, we set out targets for further strong financial performance, based on continued execution of our successful growth strategy. The Group remains well placed, diversified both by business activity and by geography. Our Open Access approach and strong customer partnerships also position us well for the implementation of MiFID II (markets in financial instruments directive II), starting in just over 20 weeks' time."



Free subscription - selected news and optional newsletter
Premium subscription
  • All latest news
  • Latest special reports
  • Your choice of newsletter timing and topics
Full-access magazine subscription
  • 7-year archive of news
  • All past special reports
  • Newsletter with your choice of timing and topics
  • Access to more content across the site