London Stock Exchange Group beats expectations in ‘particularly strong quarter’

The London Stock Exchange Group beat market expectations today as it reported a bump in growth across its divisions in a “particularly strong quarter”.

In the three months to the end of September, the owner of London’s stock market recorded gross profits of £1.92bn, up 8.5 per cent on the same period last year and ahead of the £1.9bn expected by the market.

The group recorded growth across its five divisions, with its capital markets revenues rocketing 22 per cent to £468m, up from £375m last year and ahead of market estimates. 

Its flagship data business, where LSEG now makes the majority of its cash, rose 4.6 per cent to £992m, up from £375m last year.

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

“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.”

In 2022, the firm struck a deal with Microsoft that saw the tech giant take a four per cent stake in LSEG and the two firms roll out a number of products in partnership. 

Schwimmer said the partnership “continues to make strong progress” and a timetable is “on track”.

LSEG’s indexing business, FTSE Russell, recorded a 9.2 per cent boost in revenues to £227m, while its risk Intelligence arm recorded growth of 10.4 per cent and its post trade business notched 4.8 per cent growth.

LSEG has been expanding its data business in recent years but has come under fire from some in the City for its pivot away from the flagship London Stock Exchange. The historic bourse now makes up around three per cent of the group’s revenues.

While the move has been a lucrative one for LSEG, it has come amid a dearth of IPOs and questions over the exchange’s future.

Schwimmer angered some corners of the Square Mile last year when he told a reporter the downturn for the exchange “is what it is”.