• LSE Group’s 1Q Total income meets estimates at GBP2.09 billion, a 4.1% increase year-over-year (y/y).
• Gross profit for the first quarter stood at GBP1.89 billion, marking a 4.5% uplift from the previous year.
• Data & Analytics revenue weighed in at GBP999 million, a moderate 0.9% increase y/y.
• Breakdown of revenues in this segment includes GBP479 million from Workflows, GBP465 million from Data and Feeds, GBP55 million from Analytics, GBP218 million from FTSE Russell, and GBP131 million from Risk Intelligence.
• Capital Markets revenue fared well at GBP439 million, reflecting an 11% increase y/y.
• This sector saw equities revenue rising by 1.7% y/y to GBP60 million, while FX revenue dropped by 7.6% y/y to GBP61 million.
• Fixed income, Derivatives & Other revenue recorded a significant 18% growth y/y to GBP318 million.
• Post Trade revenue reflected a modest 2.8% y/y growth at GBP297 million.
• OTC Derivatives revenue grew by 9.5% y/y to GBP138 million, outperforming the estimated GBP134.3 million.
• Securities & Reporting revenue dipped by 3.1% y/y at GBP62 million.
• Non-Cash Collateral Revenue saw a 7.7% y/y increase to GBP28 million.
• Net Treasury income recorded a 5.5% decrease y/y to GBP69 million.
• Other revenue significantly decreased by 44% y/y to just GBP5 million.
• The 1st Quarter produced an organic annual subscription value that was 6% higher y/y.
• The group successfully completed a directed buyback worth £500m in the 1st Quarter, with a target of £1b of total buybacks set for 2024.
• The company is making “further strong progress” in its partnership with Microsoft.
• The company claims to be “on track” to deliver all financial guidance given during the November 2023’s Capital Markets Day.
• The LSE Group stock was rated 13 buys, 6 holds and a single sell.
A look at London Stock Exchange Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
London Stock Exchange Group plc, the primary stock exchange in the United Kingdom, has received a mix of Smart Scores across different factors. With a strong score in Growth and Momentum, indicating potential for expansion and positive market performance, the company appears well-positioned for long-term success. Additionally, with above-average scores in Value and Resilience, London Stock Exchange demonstrates stability and attractiveness for investors. However, its lower score in Dividend suggests a need for improvement in this area. Overall, considering its leading role in the UK stock market and global financial services, London Stock Exchange Group plc holds a promising long-term outlook.
London Stock Exchange Group plc operates as the UK’s main stock exchange, offering vital platforms for capital raising and securities trading. Providing a wide range of market services, including equities, derivatives, and fixed-interest securities, the company plays a crucial role in enabling financial transactions and information dissemination worldwide. With a strategic focus on growth and market momentum, London Stock Exchange Group plc aims to maintain its position as a key player in the global financial landscape, supported by its resilient operations. While improvements could be made in terms of dividend payouts, the company’s overall Smart Scores point towards a favorable outlook for long-term investors.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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