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(Alliance News) - London Stock Exchange Group PLC on Thursday reported first-quarter growth largely across the board, as its "strategy continues to deliver".
LSEG's Data & Analytics arm in particular shone during the first three months of 2023, though its equities offering kept a lid on growth in the Capital Markets division.
The London Stock Exchange operator said total income in the first quarter, excluding recoveries, jumped 15% on-year to GBP2.01 billion from GBP1.75 billion. Gross profit climbed 14% to GBP1.81 billion from GBP1.59 billion.
"Our strategy continues to deliver, with all divisions contributing to growth. Our performance in the first quarter demonstrated the strength of our business model, the improving quality of our revenue and our critical role in the resilience of financial markets. In Data & Analytics, we saw a further acceleration in annual subscription value growth, reflecting the investments we have made in our services and stronger customer engagement. In Post Trade, our leading franchise attracted a surge in volumes as clients looked to manage risk effectively during a period of heightened volatility," Chief Executive David Schwimmer said.
"As we continue our shift from integration to transformation, we are confident of making further progress through the rest of the year."
In Data & Analytics, revenue, excluding recoveries, rose 15% year-on-year to GBP1.32 billion. The unit includes LSEG's market surveillance and risk management solutions offering.
The company last week announced Satvinder Singh as its head of Data & Analytics, effective July. Singh brings "strong leadership experience in financial services, in many parts of the trade lifecycle, and a proven track record of building high performing global teams".
In Capital Markets, revenue improved 9.7% to GBP394 million. LSEG's fixed income business delivered 16% revenue growth, while foreign exchange business grew by 10%. These more than offset a 12% fall in revenue in the equities business.
The decline in equities business reflected "subdued market volumes in both primary and secondary markets and a strong prior period for trading volumes in 2022", LSEG said.
Post Trade divisional revenue jumped 21% to GBP289 million.
LSEG backed its guidance for 2023. It expects total income growth, excluding recoveries, of 6% to 8% at constant currency. The top-line figure amounted to GBP7.43 billion in 2022. It predicts an earnings before interest, tax, depreciation and amortisation margin of around 48%, potentially rising from 47.8% in 2022.
LSEG shares traded 0.1% higher at 8,000.00 pence each in London on Thursday morning.
By Eric Cunha, Alliance News news editor
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