2023 H1 Interim Results
3 August 2023
David Schwimmer, CEO said:
“LSEG delivered strong, broad-based growth in the first half. Data & Analytics is growing faster than it has for many years, with the ongoing improvements to our offering and strengthened customer relationships increasingly reflected in financial performance. Post Trade once again demonstrated the critical role it plays in helping customers manage risk in uncertain markets, delivering outstanding growth. Our Capital Markets businesses also made progress, despite a very strong prior period. LSEG’s resilient business model and the quality of our earnings, diversified by customer, geography, product and asset class, position us well for further growth in the second half and beyond.
“Through our multi-year investment programme we are delivering better solutions and higher customer satisfaction, and building a faster-growing, more scalable business. We are progressing well with the implementation phase of our transformational strategic partnership with Microsoft, with customers beginning to see the benefits from next year.”
H1 2023 highlights
(All growth rates relate to H1 and are expressed on a constant currency basis unless otherwise stated)
- Total income (excl. recoveries) up 7.9%; up 11.8% on a reported basis
- Accelerating growth in Q2: Total income (excl. recoveries) up 8.4% vs Q2 2022
- Broad-based growth: Data & Analytics +7.6%, Capital Markets +1.5%, Post Trade +19.2%
- Strong subscription revenue: organic annual subscription value (ASV) up 6.9% at June 2023, consolidating the significant improvements made over the last two years
- Good profitability: adjusted EBITDA up 5.8%. EBITDA and margin impacted by non-cash FX-related balance sheet adjustments. On track to deliver full year adjusted EBITDA margin around 48%1 excluding these items
- Basic EPS -21.2% on a reported basis; adjusted EPS -3.9% to 160.9 pence, impacted by non-cash FX items and higher effective tax rate
- Updated leverage target of 1.5-2.5x operating net debt to adjusted EBITDA (previously 1.0-2.0x) reflecting diversified and recurring nature of the Group’s revenues; day-to-day leverage expected around the middle of this range (H1 2023: 1.8x); no credit rating impact anticipated
1Based on GBP:USD of 1.21 and GBP:EUR of 1.14, excluding Acadia and non-cash balance sheet FX movements.
H1 2023 results analyst and investor conference call
LSEG hosted a presentation and a conference call for its H1 Interim Results for analysts and investors on 3 August 2023 at 10:00am (UK time). On the call was David Schwimmer (Chief Executive Officer), Anna Manz (Chief Financial Officer) and Peregrine Riviere (Group Head of Investor Relations). View a replay below.