- Investor Relations
- Financial Results
- Q3 Trading Update October 21, 2022
Q3 Trading Update
21 October 2022
David Schwimmer, CEO said:
“We have delivered another strong quarter, with good growth across all businesses. The consistency of delivery in recent quarters demonstrates the strength of our business model, generating quality recurring revenues from a range of services that are highly valued by our customers.
"Our strategy is working, delivering growth and increasing efficiency. We are investing organically for growth and completed the acquisition of TORA during the quarter to strengthen our offering in Trading & Banking. We are also making good progress on returning surplus capital to shareholders through our share buyback programme.
"With sustained execution, a broad base of businesses and leading market positions, we remain well positioned."
Q3 2022 highlights – Broad based growth, sustained execution
Note: Unless otherwise stated, variances refer to growth rates relative to Q3 2021 on a constant currency basis.
Strong growth continues across all divisions: total income excluding recoveries up 16.2% on a reported basis, to £1,905m. Up 5.9% on a constant currency basis, and up 7.0% adjusting for Ukraine and Russia conflict impact1
High-quality recurring revenue: like-for-like ASV growth continues to improve, up 5.8% in Q3 (up 280 basis points since Refinitiv acquisition in Q1 2021); driven by new sales and improved retention
Continued good progress on integration: revenue and cost synergies in line with targets
Active capital management:
– TORA acquisition completed, enhancing Trading & Banking Solutions in Data & Analytics; provisional clearance achieved for Quantile acquisition, expected to complete in Q4
– Share buyback: £235 million returned in Q3 as part of our active 12 month, £750 million share buyback programme
Well-positioned for further growth: strong progress, no change to guidance or targets
This release contains revenues, cost of sales and key performance indicators (KPIs) for the three months ended 30 September 2022 (Q3), certain columns and rows may not add due to the use of rounded numbers for disclosure purposes. Throughout this document, revenues and cost of sales associated with the BETA divestment, completed on 1 July 2022, and the Borsa Italiana divestment, completed in H1 2021, have been classed as discontinued and are excluded from all periods. To reflect underlying performance, all constant currency variances compare the current and prior period at consistent exchange rates. For more information on accounting treatments and approach to FX please refer to the “Accounting and modelling notes” section below.
1Growth rates excluding the Ukraine / Russia conflict impact exclude income in the region and from sanctioned customers and related business from both periods
Q3 2022 investor and analyst conference call
LSEG hosted a conference call for its Q3 Trading Update for analysts and investors on 21 October at 09:00am (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 of the webcast below.