Latest Results & Presentations

Interim results for the six months ended 30 June 2019 (H1)

1 August 2019

Unless otherwise stated, all figures below refer to continuing operations for the six months ended 30 June 2019 (H1 or H1 2019).  Comparative figures are for continuing operations for the six months ended 30 June 2018 (H1 2018). 

  • Strong financial performance in H1 despite challenging market conditions
  • Continued good growth in Information Services and Post Trade

  • Focus on Group-wide collaboration to drive product innovation and development of growth opportunities

  • Continued successful execution of strategy aligned with core principles of Open Access and Customer Partnership

H1 summary

  • Total Revenue up 7% to £1,018 million (H1 2018: £953 million); total income up 8% to £1,140 million (H1 2018: £1,060 million)

  • FTSE Russell revenue up 9% to £315 million (H1 2018: £290 million) with growth in subscription and asset-based revenues

  • Post Trade revenue at LCH up 12% to £266 million (H1 2018: £237 million), driven by strong growth in OTC volumes notably in the SwapClear service

  • Operating expenses, excluding depreciation and amortisation, were flat and 2% down on a constant currency basis, with good cost control while continuing to invest

  • Adjusted operating profit1 up 11% to £533 million (H1 2018: £480 million); operating profit was up 2% at £399 million (H1 2018: £393 million); profit before tax up 1% to £363 million (H1 2018: £360 million); profit after tax of £265 million (H1 2018: £283 million)

  • Adjusted EPS1 up 13% to 100.6 pence (H1 2018: 88.7 pence); basic EPS down 1% at 70.7 pence (H1 2018: 71.1 pence)

  • Interim dividend increased 17% to 20.1 pence per share (H1 2018: 17.2 pence per share), in line with stated dividend policy

  • Strong balance sheet position with leverage at 1.7 times adjusted net debt: pro forma EBITDA notwithstanding continued investment spend during the period

Organic growth combined with new product development and investment in opportunities continued throughout the period.  Highlights include:

 

Information Services

  • Acquisition of Beyond Ratings, a highly regarded provider of Environmental, Social and Governance (ESG) data for fixed income investors
  • FTSE Russell launched innovative climate risk government bond index allowing investors to incorporate climate change risk considerations into their fixed income portfolios for the first time
  • FTSE Russell successfully commenced inclusion of China A-Share stocks within its global equity benchmarks increasing connectivity between Chinese companies and international investors
  • ETF AUM benchmarked to FTSE Russell indices increased 9% in the period to $705bn

Post Trade

  • Acquisition of a 4.9% stake in Euroclear with a seat on the Board, which has helped strengthen the existing commercial relationships between the businesses

  • SwapClear volumes hit a record €660trn in the period with strong growth in both member and client clearing

  • Continued growth at ForexClear, RepoClear and CDSClear with record volumes cleared across all services

Capital Markets

  • Newly launched Shanghai-London Stock Connect welcomed its first issuer Huatai Securities raising over $1.5bn on the Shanghai segment of London Stock Exchange
  • CurveGlobal trading volumes in H1 increased 211% whilst total open interest increased 156% over the last 12 months with strong market share in SONIA products

  • Following acquisition of minority investment in Nivaura, we are working in partnership to make the debt issuance process more efficient and cost-effective