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Business growth boosts London Stock Exchange Group as it avoids big hit from Russia exposure

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Revenues at London Stock Exchange Group (LSEG) have rebounded strongly over the first three months of the year, powered by business growth and high customer retention.

The company has taken only a minimal hit from its Russia exposure, after the country’s invasion of Ukraine saw the suspension of stocks with strong ties to the Kremlin.

LSEG’s total income was up 6.3 per cent in the first quarter, or 6.8 per cent when adjusting for the losses it swallowed after suspending trading in 27 firms, including Gazprom and Sberbank.

The company runs the UK’s main market, revealed it is on track to meet all its financial targets this year with a strong focus on p

Chief executive David Schwimmer said the group had delivered a “good” first quarter, with company’s performance strong across all of its divisions.

It has been boosted by multiple acquisitions in recent months, including Quantile, TORA and GDC.

LSGE believes the deals will enhance its offerings in post trade, trading and banking and customer and third-party risk.

Capital markets have spiked 11.9 per cent, investment solutions up 9.4 per cent while data and analytics have increased 4.5 per cent.

There has also been an annual subscription value growth of 4.9 per cent.

LSEG suggests 73 per cent of Group income is highly recurring in nature, diversified across customers, activity, product and geography.

It has also reported continued cost and revenue synergies during the quarter, with £25 million of run-rate revenue synergies achieved by end of March.

The company is on track to meet all financial targets with a strong focus on portfolio enhancement.

Meanwhile, a significant proportion of the net proceeds from divesting in BETA + will be returned to shareholders via a share buyback likely to commence later this year.

Schwimmer said: “Our ability to invest for growth, make strategic acquisitions and return capital to shareholders demonstrates the strength of the Group and its high-quality recurring revenues. The group is well positioned and we look forward to further progress during the rest of 2022.”