Market Analysis

The London Stock Exchange Group (LSEG) reported higher-than-expected first half income on Thursday, alongside an increase in annual subscription value, while maintaining its medium-term earnings growth guidance.

LSEG's total income, excluding recoveries, for the first half of 2024 was 4.204 billion pounds ($5.40 billion), a 5.4% increase from the first half of 2023 and surpassing analysts' consensus of 4.195 billion pounds.

Operating profit rose by 9% to 1.563 billion pounds, with adjusted earnings per share reaching 174 pence, up 8.1% from the same period last year. Both figures exceeded analysts' consensus estimates compiled by LSEG.

Annual subscription value (ASV), a key indicator of recurring revenue closely monitored by analysts, increased by 6.4% as of June 2024, aligning with guidance and up from 6% in the first quarter.

"We are also delivering efficiency improvements, with underlying margin improving year-on-year despite ongoing investment, and we expect this trend to continue," said LSEG CEO David Schwimmer in a statement.

"We look forward to further progress in the second half of the year, and are reiterating all of our medium-term guidance."

LSEG noted that its partnership with Microsoft (NASDAQ: MSFT) is "approaching commercialisation," with the first product set to be more widely available by the end of the year.

The exchange, which became a data powerhouse following its $27 billion acquisition of Refinitiv in 2021, reiterated its medium-term guidance of mid to high single-digit organic revenue growth annually, with acceleration expected after this year.

LSEG also highlighted its recently announced content agreement with Dow Jones, which creates a leading news offering across its platforms.

Paraphrasing text from "Reuters" all rights reserved by the original author.