Latest Results & Presentations

Preliminary Results for the year ended 31 December 2018

1 March 2019

Unless stated otherwise, all figures in the highlights below refer to 12 months to 31 December 2018 and comparisons with the prior 12 month period on the same basis.

  • Continued successful execution of strategy driving strong operational and financial performance, and enhanced shareholder returns

  • Strong growth across core business divisions – Information Services, LCH and Capital Markets

  • Well positioned as a global financial markets infrastructure provider, operating on an Open Access basis in partnership with customers

  • Investment and a focus on greater collaboration to drive further growth opportunities and efficiency

2018 Highlights

  • Total revenue up 8% to £1,911 million (2017: £1,768 million)

  • Total income up 9% to £2,135 million (2017: £1,955 million)

  • FTSE Russell delivered 15% revenue growth (up 8% on an organic constant currency basis)

  • LCH OTC revenues up 16% (up 17% on a constant currency basis)

  • Adjusted operating expenses1 well controlled with 2% increase (up 6% including depreciation) reflecting continued investment in growth and efficiency

  • Adjusted operating profit2 up 15% at £931 million (2017: £812 million); operating profit up 20% at £751 million (2017: £626 million); adjusted EBITDA2 up 17% at £1,066 million (2017: £915 million)

  • Adjusted EPS2 up 17% at 173.8 pence (2017: 148.7 pence); basic EPS of 138.3 pence (2017: 153.6 pence)

  • Proposed final dividend increased to 43.2 pence per share - a 17% increase in the full year dividend to 60.4 pence per share – reflecting the strong performance and confident outlook for the Group

Continued organic and inorganic developments including:

  • Majority ownership of LCH Group increased to 82.6%

  • LCH SwapClear - 23% growth to $1 quadrillion notional cleared; $773 trillion compressed

  • LCH ForexClear - 54% increase in cleared notional – successful launch of FX options

  • Acquisition of a 4.9% minority stake in Euroclear - strengthens operational and commercial partnerships

  • FTSE Russell $16 trillion assets under benchmark to FTSE Russell with increased multi-asset capabilities and data and analytics opportunities

  • CurveGlobal delivered 88% increase in trading and 148% rise in open interest over the last 12 months

  • Acquisition of minority stake in Nivaura to support capital markets innovation

Good progress towards achievement of financial targets with strong revenue and margin growth; prioritisation of further investment in growth opportunities means the Group does not plan to achieve cost and Group margin targets in 2019

1Before depreciation, amortisation and non-underlying items.

2Before amortisation of purchased intangible assets and non-underlying items.

Organic growth is calculated in respect of businesses owned for at least 12 months in either period and so excludes ISPS, The Yield Book, MillenniumIT ESP and Exactpro. The Group’s principal foreign exchange exposure arises from translating and revaluing its foreign currency earnings, assets and liabilities into LSEG’s reporting currency of Sterling.

Further information
The Group will host a presentation and conference call on its Preliminary Results for analysts and institutional shareholders today at 09:00am (GMT). On the call will be David Schwimmer (CEO) and David Warren (CFO)

Participant UK Dial-In Numbers: 0800 376 7922
Participant Std International Dial-In: +44 (0) 2071 928 000
Conference ID # 598 7079

Presentation slides can be viewed at https://www.lseg.com/investor-relations 

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