LSEG Achieves Strong Performance in H1 2022 with 6.2% Jump in Total Income
London Stock Exchange plc today released its financial results for the first six months of 2022.
H1 2022 highlights:
Strong progress in H1 across all divisions, and momentum continuing into H2
Continued delivery on revenue and cost synergies; all targets unchanged
Successfully executing on organic and inorganic investment opportunities to drive growth, build a more agile and efficient business and enhance its customer offering
Well positioned for the current environment; providing high value solutions for customers' critical needs
Launching £750 million share buy-back over 12 months with the first tranche to commence immediately
Strong income growth across all divisions, with pro-forma total income (excluding recoveries) up 6.2%; up 7.0% adjusting for Ukraine and Russia conflict impact
ASV growth metric on a like-for-like basis continues to improve, up 5.4% at the end of H1 (Q1: 4.9%); improved retention and new sales driving the increase
Pro-forma adjusted operating expense increase of 4.3% reflects lower phasing of costs in H1 2021; cost guidance for low-single digit growth in 2022 maintained despite inflationary backdrop
Adjusted EBITDA margin of 48.8%; on track to deliver margin target of at least 50% by end of 2023
Pro-forma AEPS up 21% to 167.4p
Robust cash generation in H1 and completion of two acquisitions – GDC and MayStreet; Quantile and TORA expected to complete in H2
Leverage is inside 1-2x target range within 18 months of the Refinitiv acquisition
Interim dividend up 27% to 31.7 pence per share
David Schwimmer, CEO said:
"LSEG has delivered a strong first half performance with continued revenue growth across our businesses. We are managing costs well and we continue to make progress on achievement of synergies.
"We provide solutions solving critical issues for our customers, with a high proportion of recurring subscription revenues and structurally growing transactional revenues that benefit from volatility. Our cash generation is allowing us to actively deploy capital across organic and inorganic investments, grow our dividend and commence a share buy-back programme, driving further value for our shareholders. We are successfully executing on our strategy, have good momentum going into the second half and our targets remain unchanged."
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