London Stock Exchange revenue climbs 2 per cent as Refinitiv deal nears cost savings
Shares in London Stock Exchange dropped as much as 3 per cent this morning after it said revenue edged up by 2.1 per cent in the third quarter.
The exchange said it was on track to make cost savings from its integration of the data platform Refinitiv, which it acquired in January in a $27bn deal.
Strong performance by its capital markets business pushed pro forma underlying income to £1.78bn in the three months to the end of September, up from £1.75bn a year ago.
“We are making excellent progress on the integration of Refinitiv and are comfortably on track to achieve 125 million pounds of cost synergies in 2021, ahead of our original phasing,” Chief Executive David Schwimmer said in a statement.
Looking forward, the exchange said it expected income in the fourth quarter to slow down from the past quarter on a constant currency basis, and for full year to April growth to reach between 4 and 5 per cent.
It made no change to its previous cost or capital expenditure, but warned that supply chain pressures could impact the timing of some of its spending on technology. It provided no further details on how.
The group’s shares have been trading 17 per cent down since they slumped at the beginning of March, as investors’ doubts rose about when the costs of the Refinitiv deal would pay off.