LSEG interim results for the 6 months ended 30 June 2017

Unless otherwise stated, all figures below refer to continuing operations1 for the six months ended 30 June 2017.  Comparative figures are for continuing operations for the six months ended 30 June 2016 (H1 2016). 

  • Strong financial performance with income growth across all business areas and 23% AEPS growth

  • Successful strategy based on customer partnership, innovation and an Open Access model strongly positions the Group to make further progress as a global financial markets infrastructure business

H1 2017 Highlights

  • Continued strong financial performance with income growth across core business areas - in particular, in Information Services, including strong results at FTSE Russell, and OTC clearing at LCH

  • Revenue up 18% to £853 million (H1 2016: £722 million); total income up 20% to £946 million (H1 2016: £786 million)

  • Adjusted operating profit2 up 20% at £398 million (H1 2016: £333 million), with underlying operating expenses on an organic and constant currency basis up 5% as the Group continues to invest in growth and efficiencies

  • On a reported basis: operating profit of £305 million (H1 2016: £199 million); profit before tax up 69% to £277 million (H1 2016: £164 million);  profit after tax of £208 million (H1 2016: £114 million) and £186 million including discontinued operations (H1 2016: loss of £16 million)

  • Adjusted EPS2 up 23% at 71.2 pence (H1 2016: 57.7 pence); basic EPS up 84% to 50.4 pence (H1 2016: 27.4 pence)

  • Interim dividend increased 20% to 14.4 pence per share (H1 2016: 12.0 pence per share) in line with our stated dividend policy; £200 million share buyback ongoing

  • Strong balance sheet position with leverage of 1.2 times adjusted pro forma net debt:EBITDA, notwithstanding continued investment spend, acquisition of Mergent and ongoing share buybacks

  • Announced acquisition of The Yield Book and Citi Fixed Income Indices, including the World Government Bond Index, for total cash consideration of $685 million (£535 million)

  • Investor Update event in June highlighted the good progress in executing our strategy, with new information on targeted revenue growth and continued cost control - expected to deliver further improvement to operating leverage, delivering enhanced operating margins and shareholder value

Commenting on performance for the period, Xavier Rolet, Group Chief Executive, said:

“The Group has produced a strong financial performance, with good income growth across all of our core business areas.  FTSE Russell and LCH OTC clearing services performed strongly, with double-digit growth at both businesses.

“As well as continuing to deliver organic growth, during the period we announced the acquisition of The Yield Book and Citi Fixed Income Indices business.  At our Investor Update in June, we set out targets for further strong financial performance, based on continued execution of our successful growth strategy.  The Group remains well placed, diversified both by business activity and by geography.  Our Open Access approach and strong customer partnerships also position us well for the implementation of MiFID II, starting in just over 20 weeks’ time.”

 

1 continuing operations exclude business sold, being Russell Investment Management

2 before amortisation of purchased intangible assets and non-recurring items

Organic growth is calculated in respect of businesses owned for at least 6 months in either period and so excludes ISPS, Mergent, SwapMatch and Russell Investment Management. The Group’s principal foreign exchange exposure arises from translating our European based Euro and US based USD reporting businesses into Sterling.

Further information is available from:

London Stock Exchange Group plc

Lucie Holloway/Ramesh Chhabra – Media

Paul Froud – Investor Relations

+44 (0) 20 7797 1222

+44 (0) 20 7797 3322

 

The full interim results for the period ended 30 June 2017 can be found here http://www.lseg.com/investor-relations/latest-results

The Group will host a conference call of its Interim Results for analysts and institutional shareholders today at 08:30am. On the call will be Xavier Rolet (CEO), David Warren (CFO) and Paul Froud (Head of Investor Relations). 

To access the telephone conference call dial 0800 694 0257 or +44 (0) 1452 555 566

Conference ID: 5665 0921

For further information, please call the Group’s Investor Relations team on +44 (0) 20 7797 3322.