LSEG On Track To Meet Growth Targets Due To Strong Analytics Performance

In a Q3 trading update today (19 October), the group said total income had jumped 8% over the last three quarters, leaving it on track to hit its target of 6-8% growth for the year.

The group's capital markets business saw growth of 6.2%, while its data and analytics business, much of which came from its acquisition of Refinitiv in 2021, grew by 7.2%.

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Charlie Huggins, manager of the 'Quality Shares Portfolio' at Wealth Club, argued the acquisition had "transformed" LSEG's data capabilities, leaving it as a "financial powerhouse to rival Bloomberg", and the integration was currently "progressing broadly to plan".

He added: "Confidence in the Refinitiv deal is growing. While it is still too early for LSEG to declare victory, given the complexity of this multi-year merger, every quarter of good delivery will help to quieten the sceptics."

The group's annual subscription value (ASV) growth, a key measure for analysts, reached 7.1% in the last quarter, after a dip in Q2.

LSEG CEO David Schwimmer said: "LSEG delivered another quarter of strong, broad-based growth. By building compelling solutions that meet customers' evolving business needs we have established a consistent track-record of growth in our data and analytics business.

"Our capital markets revenues accelerated in the third quarter, with ongoing innovation increasing Tradeweb's share of global credit trading."

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Wealth Club's Huggins added the current difficult economic backdrop was not impacting the group much, due to most of its revenue being recurring, while its products and services "tend to be mission-critical to customers".

"This makes LSEG a pretty resilient business, as these results highlight," he said.

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