LSEG smashes expectations with strong growth and bold 2025 outlook
London Stock Exchange Group (LSEG) has reported strong financial results for 2024, exceeding market expectations and reinforcing its position as a lead player in global financial data and analytics.
The firm’s total income, excluding recoveries, grew by 7.7 per cent in 2024, with broad growth across divisions.
Income at the firm’s flagship data business, where it makes most of its cash, jumped 4.5 per cent.
Meanwhile, income at the FTSE Russell arm was up 10.9 per cent, risk intelligence was up 11.3 per cent, and capital markets surged by 17.8 per cent.
The group also reported an 9.1 per cent rise in adjusted earnings before interest, taxes deprecitation, and amortisation (EBITDA), with £2.2bn in equity free cash flow.
Chief executive David Schwimmer highlighted the firm’s focus on product innovation.
He said: “We have delivered on our strategy in 2024, with strong performance across the group, an exceptional year for tradeweb, and significant advancements in our Microsoft partnership.”
“Our model continues to drive consistent growth and improved profitability”.
LSEG’s strategic partnership with Microsoft reached a major milestone. Its first co-developed products are now available, and the company has a strong pipeline for other projects in 2025.
The firm also expanded its portfolio by acquiring over 11.6 per cent more of the London Clearing House (LCH) group, bringing ownership to 94.2 per cent.
It also sold its 4.92 per cent stake in Euroclear.
Despite its pivot towards data and analytics, LSEG has faced scrutiny over the declining role of the flagship London Stock Exchange, which now contributes just three per cent of group revenue.
The firm has sought to tackle concerns by championing reforms to strengthen London’s position as a financial hub.
Looking ahead, it forecasts at least 6.5 per cent organic growth in total income for 2025, while expecting £2.4bn in equity cash flow.
Further, LSEG has committed to returning £500m in buybacks by July 2025.