London Stock Exchange Group (LSEG) H1 2024 earnings summary

Executive summary

• Revenue grew 7.6% year-over-year in H1 2024, with all business lines contributing and rapid innovation, including Workspace displacing competitors.

• Margin improved by 50 basis points, with strong cash flow supporting significant shareholder returns, including a £1 billion share buyback and a 15% increase in the interim dividend.

• Strategic partnerships with Microsoft and Dow Jones are advancing, enhancing product offerings and market leadership.

• Integration of Refinitiv is nearing completion, with synergy targets ahead of schedule and cost synergies exceeding £400 million.

• Strong asset portfolio and multiple growth opportunities underpin confidence in delivering guidance.

Financial highlights

• Total income (excl. recoveries) rose 7.1% year-over-year to £4,204m; reported growth was 5.4%.

• Adjusted EBITDA grew 8.1% to £2,040m, with margin rising to 48.5%.

• Adjusted EPS increased 8.1% to 174.0p; basic EPS fell 16.2% due to higher non-underlying amortisation and tax.

• Equity free cash flow rose 29% to £761m; leverage at 2.0x net debt/EBITDA.

• Interim dividend up 14.8% to 41.0p per share; £1bn returned via buybacks in H1.

Outlook and guidance

• Medium-term guidance targets mid- to high-single-digit organic revenue growth annually, accelerating after 2024.

• EBITDA margin expected to continue increasing over time, supported by structural levers and ongoing investment.

• CapEx as a percentage of revenue/income will decrease from current elevated levels after 2024.

• Guidance for ASV growth remains around 6% for the year, with some headwinds from Credit Suisse expected to persist into H2.

• Adjusted tax rate for 2024 expected at 24-25%.