London Stock Exchange Group (LSEG) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 delivered strong organic growth, with total income up 9.5% at constant currency and organic growth at 8.7%, driven by broad-based gains across all divisions.

• Growth was led by Post Trade, Data & Analytics, FX, equities, and sustained momentum in Tradeweb.

• High cadence of product innovation, including global cloud-based DataScope, new Main Market for UK equities, and enhancements to Workspace.

• Strategic partnership with Microsoft progressing, supporting product development and digital transformation.

• Acquisition of an additional 8.3% stake in LCH Group for €433 million, increasing ownership to 94.2%.

Financial highlights

• Total income (excluding recoveries) reached £2,117m, up from £1,966m in Q3 2023; total income (including recoveries) was £2,206m, up 8.4% year-over-year.

• Organic growth was 8.7% in Q3, up from Q2 and H1.

• ASV growth stood at 6.0% at Q3 end, in line with guidance, with a slight decline from 6.4% in June due to Credit Suisse impact.

• Capital Markets revenue grew 22.4% year-over-year, with Tradeweb and FX businesses performing strongly.

• FTSE Russell subscription revenue up 13.1% year-over-year; Risk Intelligence up 10.4%.

Outlook and guidance

• ASV growth expected to remain around 6% through year-end 2024.

• Confident in continued group growth for 2025, even with normalized Tradeweb contribution.

• Pricing increases for 2025 expected to be similar to prior years, around 3.5%.

• Modest incremental revenue from Microsoft partnership expected in early 2025, growing over time.