LSEG Delivers Another Quarter of Strong, Broad-Based Growth in Q3 2023

London Stock Exchange Group (LSEG) has released the trading update for the third quarter of 2023, indicating a continuous strong performance during this period, with total income (excluding recoveries) of £1,966 million, up 8.0% year-on-year on a constant currency basis.

Q3 2023 highlights (All growth rates on a constant currency basis unless otherwise stated):

Gross profit in Q3 2023 stood at £1,772 million, up 8.2% year-on-year from £1,696 million. 

Data & Analytics operation was up 7.2% to £1,298 million with improving sales, rising retention and this year's higher annual price increase all contributing to growth.

• Trading & Banking was up 2.2% to £404 million with growth in both Trading and Banking revenue. 

• Enterprise Data rose 9.0% to £345 million. Demand for LSEG's leading Real-Time data services remains strong, with particularly good growth in LSEG's cloud-based services and tick-history data. 

• Investment Solutions  was up 9.5% to £357 million, accelerating from H1 2023. Asset-based revenue returned to positive growth (+8.3%) driven by inflows and more favourable year-on-year market levels. Subscription revenue in Benchmark Rates, Indices & Analytics also grew strongly (+11.4%) driven by demand for flagship equity products.

• Wealth was up 2.6% to £69 million, as good growth in data feeds offset lower growth in the workflow business. 

Capital Markets increased 6.2% to £375 million, driven by growth at Tradeweb.

• Equities was down 8.6% to £55 million, reflecting subdued market volumes in both primary and secondary markets.

• FX dipped 3.3% to £61 million, reflecting lacklustre industry volumes which particularly impacted LSEG’s dealer-to-client platform, FXall.

• Fixed Income, Derivatives & Other was up 12.7% to £259 million, with Tradeweb performing strongly across rates, credit, and money markets. Volumes accelerated in Q3, partially offset by a skew in activity towards lower-fee short-duration instruments.

Post Trade grew 17.0% to £286 million. OTC Derivative revenues rose 25.9% to £125 million as activity in SwapClear continued to be supported by market volatility. Net Treasury Income was up 9.1% to £70 million as a higher margin offset lower cash collateral balances. Cash collateral continued to moderate towards the quarter end, following a prolonged period of very heightened levels.