David Schwimmer, CEO said:
“We have started the year well, delivering another quarter of solid growth consistent with our plans. We drove the strongest performances in FTSE Russell, Risk Intelligence and Tradeweb, and our Equities business returned to growth. The rapid pace of innovation continues, with new product launches across LSEG throughout 2024.
“We continue to make strong progress in our Microsoft partnership, with a number of products expected to be in external pilot or general release this half. We are now picking up the pace of migrating our datasets onto the Microsoft platform, which will transform access to our data for customers. We look forward to further progress in the rest of the year.”
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Q1 2024 highlights - Good start to the year, driven by solid performance across the business
Note: (all growth rates are expressed on a constant currency basis, unless otherwise stated)
- Solid growth: Total income (excl. recoveries) +7.3% incl. M&A, +6.4% organic.
- Robust performance from all divisions: Data & Analytics +4.3%, FTSE Russell +9.5%, Risk Intelligence +12.5%, Capital Markets +14.4%, Post Trade revenues flat reflecting strong prior year comparator.
- Organic Annual Subscription Value (ASV) growth +6.0%: good underlying growth from strong retention, robust sales and pricing, partly offset by increasing impact of Credit Suisse losses, as expected, plus initial step-down from entry into an attractive multi-year contract renewal with another major bank. Organic ASV growth expected to remain around these levels throughout 2024 despite further Credit Suisse impact.
- Active capital allocation: £500 million directed buyback completed in Q1, targeting £1 billion of total buybacks in 2024; refinancing of $1.25 billion in 3-year and 10-year bonds; acquisitions of ICD by Tradeweb and minority stakes in LCH Group.
- Further strong progress in partnership with Microsoft: delivering first products in H1; successful ongoing migration of datasets to our cloud-based data platform.
- Confident of continued growth and improving profitability: on track to deliver all financial guidance provided in November 2023’s Capital Markets Day.
Q1 2024 investor and analyst conference call
LSEG hosted a conference call for its Q1 Trading Update for analysts and investors on 25 April 2024 at 08:30am (UK time). On the call was David Schwimmer (Chief Executive Officer), Michel-Alain Proch (Chief Financial Officer) and Peregrine Riviere (Group Head of Investor Relations). Listen to a replay of the conference call below.
This is an audio-only recording.