Latest Results

Latest Results

Q1 2021 Trading Statement

28 April 2021

Highlights:

Note: Unless otherwise stated, variances refer to growth rates on a pro-forma constant currency basis, excluding the impact of a deferred revenue accounting adjustment1, to provide the best view of underlying performance

  • Good Q1 performance driven by new business growth and strong customer retention

  • Q1 total income (excluding recoveries) up 3.9%, with good growth in Data & Analytics and Capital Markets; down 1.2% on a reported pro-forma basis (reflecting currency headwinds as USD declined 8% year on year versus GBP and the impact of the deferred revenue adjustment)

  • Acquisition of Refinitiv successfully completed on 29 January 2021 and execution of integration plan well underway to deliver on strategic and financial benefits

  • Approximately £40 million of cost synergies already realised on a run-rate basis and new products arising from the combination now launched

  • Successfully conducted c.£5 billion bond issuance with longer-term financing structure now in place at a blended cost of 1.6%2 across all LSEG debt

  • Borsa Italiana Group divestment progressing well and expected to complete shortly in Q2

  • Investor education events scheduled to give deeper insight into the new LSEG business; first event to be held on 2 July 2021 with an overview of Data and Analytics and deeper dives into Trading and Banking, Enterprise Data, and Customer and Third-Party Risk businesses; subsequent events to be announced to cover the remaining businesses

1 The deferred revenue impact is a one-time, non-cash, negative revenue impact resulting from the accounting treatment of deferred revenue within Refinitiv’s accounts which have been re-evaluated upon acquisition by LSEG under purchase price accounting rules. The result of this accounting treatment is a £22m adjustment reducing revenue for Q1 2021. The vast majority impacts the Data & Analytics business with a smaller impact applied to the FX venues business within Capital Markets. There will be further immaterial impacts in subsequent periods within 2021. Further information is available in the “Accounting and modelling notes” section. Constant currency variance shows underlying financial performance, excluding currency impacts, by comparing the current and prior year period at consistent exchange rates.

2 Reflects blended interest cost post divestment of Borsa Italiana Group