London Stock Exchange Group
plc: Q3 2024 Trading Update
Strong Q3 performance,
extending our track record of broad-based growth; further strategic
progress
David Schwimmer, CEO
said:
"We delivered a particularly strong
quarter, with healthy growth in our subscriptions business and very
strong performance in our high-quality volume-based businesses.
"We are executing successfully on our
strategy, delivering multiple new products in Q3. The ongoing
transformation of our business with faster product innovation and
more powerful solutions is driving higher user engagement and
better outcomes for our customers. Our partnership with Microsoft
continues to make strong progress and our product timetable is on
track.
"We are confident of continued growth
as we look forward to 2025."
|
Q3 2024
highlights
|
|
(All growth rates
on an organic constant currency basis unless otherwise
stated)
|
|
·
|
Strong growth: Total income
(excl. recoveries) +9.5% constant currency and +8.7%
organic
|
|
·
|
All
divisions contributing to growth: Data & Analytics +4.6%, FTSE Russell +9.2%, Risk
Intelligence +10.4%, Capital Markets +22.4%, Post Trade
+4.8%
|
|
·
|
ASV
growth in-line with guidance: Period-end ASV growth of +6.0% consistent with guidance;
continue to expect ASV growth to remain around 6% for the rest of
the year
|
|
·
|
High cadence of product innovation: Launched global cloud-based DataScope offering, new Main
Market for UK equities, multiple Workspace enhancements, SOFR
futures clearing for FMX
|
|
·
|
Product development with Microsoft progressing
well: On track to deliver against
our product timetable
|
|
·
|
Acquiring 8.3% of LCH Group, taking ownership to
94.2%: Agreement to acquire further
minority interest in LCH Group for €433 million
|
This release contains revenues,
cost of sales and key performance indicators (KPIs) for the three
months ended 30 September 2024 (Q3). Constant currency variances
are calculated on the basis of consistent FX rates applied across
the current and prior year period (GBP:USD 1.243 GBP:EUR
1.150).Organic variance is calculated on a constant currency basis,
adjusting the results to remove disposals from the entirety of the
current and prior year periods, and including acquisitions from the
date of acquisition with a comparable adjustment to the prior year.
Certain columns and rows may not add due to the use of rounded
numbers for disclosure purposes.
Q3 2024
summary
(Commentary on
performance is on an organic constant currency basis, unless
otherwise stated)
|
|
|
|
|
|
|
|
|
|
Q3 2024
£m
|
Q3
2023
£m
|
Variance
%
|
|
Constant
currency variance
%
|
Organic,
constant currency
variance
%
|
|
|
|
|
|
|
|
|
|
Workflows
|
472
|
465
|
1.5%
|
|
3.2%
|
3.2%
|
|
Data & Feeds
|
465
|
443
|
5.0%
|
|
6.1%
|
6.1%
|
|
Analytics
|
55
|
55
|
0.0%
|
|
5.2%
|
5.2%
|
|
Data
& Analytics
|
992
|
962
|
3.1%
|
|
4.6%
|
4.6%
|
|
|
|
|
|
|
|
|
|
Subscription
|
156
|
141
|
10.6%
|
|
13.1%
|
13.1%
|
|
Asset-based
|
71
|
73
|
(2.7%)
|
|
1.8%
|
1.8%
|
|
FTSE
Russell
|
227
|
214
|
6.1%
|
|
9.2%
|
9.2%
|
|
|
|
|
|
|
|
|
|
Risk
Intelligence
|
131
|
123
|
6.5%
|
|
8.5%
|
10.4%
|
|
|
|
|
|
|
|
|
|
Equities
|
60
|
55
|
9.1%
|
|
8.5%
|
8.5%
|
|
Fixed Income, Derivatives &
Other
|
341
|
259
|
31.7%
|
|
35.3%
|
27.3%
|
|
FX
|
67
|
61
|
9.8%
|
|
12.8%
|
12.8%
|
|
Capital Markets
|
468
|
375
|
24.8%
|
|
27.7%
|
22.4%
|
|
|
|
|
|
|
|
|
|
OTC Derivatives
|
148
|
125
|
18.4%
|
|
18.4%
|
18.4%
|
|
Securities & Reporting
|
55
|
64
|
(14.1%)
|
|
(11.1%)
|
(11.1%)
|
|
Non-cash collateral
|
28
|
27
|
3.7%
|
|
5.3%
|
5.3%
|
|
Net treasury income
|
66
|
70
|
(5.7%)
|
|
(5.5%)
|
(5.5%)
|
|
Post
Trade
|
297
|
286
|
3.8%
|
|
4.8%
|
4.8%
|
|
|
|
|
|
|
|
|
|
Other
|
2
|
7
|
(71.4%)
|
|
(75.1%)
|
(75.1%)
|
|
Total income (excl. recoveries)
|
2,117
|
1,966
|
7.7%
|
|
9.5%
|
8.7%
|
|
Recoveries
|
89
|
88
|
1.1%
|
|
2.6%
|
2.6%
|
|
Total income (incl. recoveries)
|
2,206
|
2,054
|
7.4%
|
|
9.2%
|
8.4%
|
|
Cost of sales
|
(283)
|
(282)
|
0.4%
|
|
3.8%
|
3.6%
|
|
Gross profit
|
1,923
|
1,772
|
8.5%
|
|
10.0%
|
9.2%
|
|
Total income (excluding recoveries)
was up 9.5% including M&A, and 8.7% on an organic
basis.
|
|
|
|
·
|
Data & Analytics was up
4.6% reflecting continued strong retention, good sales and a
contribution from pricing consistent with the first
half.
|
|
o
|
Workflows was up 3.2%, with
particular strength in FX, commodities and banking users. The
continuous improvement to our offering is resonating with
customers, reflected in good retention, sales and competitive
displacements. We remain on track to sunset Eikon in the first half
of next year.
|
|
|
o
|
Data & Feeds was up 6.1%,
driven by continued innovation and expansion in both our Real Time
and Pricing and Reference Services. We launched Snowflake access to
our leading DataScope product in Q3, with further expansion into
other cloud environments to follow. The first datasets in our Data
as a Service (DaaS) initiative entered into external pilot in Q3,
with broader customer availability anticipated by year
end.
|
|
|
o
|
Analytics was up 5.2%,
primarily driven by growth in Yieldbook's fixed income analytics
and loan data.
|
|
|
·
|
FTSE Russell was up 9.2%.
Subscription revenues remained strong, growing 13.1%, driven by
demand for flagship equity indices and benchmarks. Growth in
asset-based revenues, up 1.8%, slowed sequentially mainly due to
adverse mix effects but also reflecting the termination of an ETF
contract in the period. FTSE Russell added Asian and European
interest rate benchmarks to LSEG's ecommerce platform in Q3,
demonstrating its continued innovation and natural linkages with
the broader group.
|
|
|
·
|
Risk Intelligence was up 10.4%
driven by strong business momentum and customer demand in our
screening business, World-Check.
|
|
|
·
|
Annual Subscription Value (ASV): Period-end organic ASV growth was 6.0%, consistent with
guidance. We saw a small incremental impact from Credit Suisse
cancellations in the quarter. As previously communicated, we
continue to expect ASV growth to remain around 6% for the rest of
the year.
|
|
|
·
|
Capital Markets was up 22.4%,
with positive growth across all venues and a particularly strong
contribution from Tradeweb.
|
|
|
o
|
Equities was up 8.5% as the LSE
continued to gain share against a backdrop of strong market
activity. July saw the successful launch of the new Main Market,
helping to ensure the continued competitiveness of the UK
market.
|
|
|
o
|
Fixed Income, Derivatives & Other
was up 27.3% with another record quarter for
Tradeweb. Strong institutional client activity drove growth in
interest rate revenues, supported by Tradeweb's innovative trading
protocols and an uncertain macroeconomic outlook. Credit volumes
also grew strongly reflecting increased client adoption of
execution tools like request-for-quote (RFQ) and portfolio trading.
Tradeweb continues to increase its share of US investment grade and
high yield trading, reaching 17.7% and 7.8% respectively. In August
Tradeweb closed the acquisition of the corporate money market
platform Institutional Cash Distributors (ICD), adding Corporates
as a fourth client channel alongside Institutional, Wholesale and
Retail.
|
|
|
o
|
FX was up 12.8% as the elevated
market volatility and geopolitical uncertainty in the quarter
supported growth in both interbank volumes on Matching and
dealer-to-client volumes on FXall.
|
|
|
·
|
Post Trade was up 4.8% with
very strong volume-driven growth at SwapClear more than offsetting
the impact from completion of the Euronext migration in the
quarter. As previously highlighted, the Euronext exit will have a
greater impact on Q4 growth. Net treasury income was unchanged from
the previous quarter, with collateral levels stabilising after
recent declines. In September, LCH entered into the clearing of
SOFR futures, supporting FMX's launch in the space.
|
|
|
·
|
Group cost of sales was up
3.6%, below the growth rate in revenue reflecting business mix and
the partially fixed nature of the costs.
|
|
|
·
|
Gross profit was up 9.2%, with
growth slightly ahead of total income (excl. recoveries) as a
result of the lower growth in cost of sales.
|
|
Capital
allocation
In September, LSEG agreed to acquire
an additional 8.3% of LCH Group from minority shareholders for €433
million. This will take LSEG's ownership of LCH Group to 94.2%. The
transaction is expected to close shortly.
Also in September, we successfully
raised c.£575 million across two debt instruments as part of the
ongoing financing of the group: a €600 million bond and a $100
million private placement, with coupons of 2.75% and 4.00%
respectively and 3-year maturities.
Q3 investor and analyst
conference call:
LSEG will host a conference call for
its Q3 Trading Update for analysts and investors today at 10:00am
(UK time). On the call will be David Schwimmer (Chief Executive
Officer) and Michel-Alain Proch (Chief Financial
Officer).
To access the webcast or telephone
conference call please register in advance using the following
link:
https://sparklive.lseg.com/LondonStockExchangeGroup/events/f10a5c8b-8425-4298-833d-1ec6eb42b7cf/lseg-q3-results-2024-investor-analyst-call
To ask a question live you will need
to register for the telephone conference call here:
https://registrations.events/direct/LON470060
Contacts: London Stock
Exchange Group plc
|
Investors
|
|
|
Peregrine Riviere / Chris
Turner
Neha Kasabia / Tom
Ferguson
|
ir@lseg.com
|
|
|
|
|
Media
|
|
|
Lucie Holloway / Rhiannon
Davies
|
+44 (0) 20 7797 1222
newsroom@lseg.com
|
Additional information can be found
at www.lseg.com.
Divisional non-financial
KPIs
1. Subscriptions1
|
|
Q3 2024
|
Q3
2023
|
|
Annual subscription value growth
(%) 2
|
6.0%
|
7.1%
|
|
Subscription revenue growth
(%) 2, 3
|
6.1%
|
6.8%
|
1 Subscription revenues in
Data & Analytics, FTSE Russell and Risk
Intelligence
2 Organic, constant currency
variance
3 12-month rolling constant
currency variance
2. FTSE
Russell
|
|
Q3 2024
|
Q3
2023
|
Variance
%
|
|
Index - ETF AUM ($bn):
|
|
|
|
|
- Period end
|
1,433
|
1,099
|
30.4%
|
|
- Average
|
1,358
|
1,134
|
19.8%
|
3. Capital Markets
|
|
Q3 2024
|
Q3
2023
|
Variance
%
|
|
Equities
|
|
|
|
|
Secondary Markets - Equities
|
|
|
|
|
UK Value Traded (£bn) - average daily
value
|
4.1
|
3.3
|
24.2%
|
|
SETS yield (bps)
|
0.70
|
0.73
|
(4.1%)
|
|
|
|
|
|
|
Fixed income, Derivatives and Other
|
|
|
|
|
Tradeweb average daily volume ($m)4
|
|
|
|
|
Rates - cash
|
496,603
|
361,421
|
37.4%
|
|
Rates - derivatives
|
801,512
|
491,837
|
63.0%
|
|
|
|
|
|
|
Credit - cash
|
15,251
|
12,980
|
17.5%
|
|
Credit - derivatives
|
27,338
|
16,955
|
61.2%
|
|
|
|
|
|
|
FX
|
|
|
|
|
Average daily total volume
($bn)
|
495
|
433
|
14.3%
|
|
|
|
|
|
4 Q3
2023 volumes revised from previous reporting to align LSEG
reporting methodology with Tradeweb methodology
4. Post
Trade
|
|
Q3 2024
|
Q3
2023
|
Variance
%
|
|
OTC
|
|
|
|
|
SwapClear
|
|
|
|
|
IRS notional cleared
($trn)
|
418
|
315
|
32.7%
|
|
Client trades ('000)
|
1,091
|
779
|
40.1%
|
|
|
|
|
|
|
ForexClear
|
|
|
|
|
Notional cleared ($bn)
|
9,755
|
7,207
|
35.4%
|
|
ForexClear members
|
39
|
38
|
2.6%
|
|
|
|
|
|
|
Securities & Reporting
|
|
|
|
|
EquityClear trades (m)
|
249
|
331
|
(24.8%)
|
|
Listed derivatives contracts
(m)
|
39.1
|
54.2
|
(27.9%)
|
|
RepoClear - nominal value
(€trn)
|
79.9
|
78.1
|
2.3%
|
|
|
|
|
|
|
Collateral
|
|
|
|
|
Average non-cash collateral
(€bn)
|
204.4
|
180.1
|
13.5%
|
|
Average cash collateral
(€bn)
|
108.0
|
124.2
|
(13.0%)
|
Foreign
Exchange
The majority of LSEG revenues are in
US dollars followed by sterling, euro and other
currencies.
|
|
USD
|
GBP
|
EUR
|
Other
|
|
Total income by division1,2
|
58%
|
16%
|
17%
|
9%
|
|
Data &
Analytics1
|
62%
|
9%
|
15%
|
15%
|
|
FTSE Russell
|
70%
|
22%
|
3%
|
5%
|
|
Risk Intelligence
|
63%
|
9%
|
16%
|
12%
|
|
Capital Markets
|
62%
|
16%
|
19%
|
2%
|
|
Post Trade
|
25%
|
39%
|
34%
|
2%
|
1 Total income includes
recoveries
2 Percentage splits based on
Q3 YTD 2024
Due to rounding, income percentages may not add to
100%.
Spot / Average
Rates
|
|
Average
rate
3 months ended
30 September 2024
|
Closing
rate at
30 September 2024
|
Average
rate
3 months ended
30 September 2023
|
Closing
rate at
30 September 2023
|
|
GBP : USD
|
1.300
|
1.341
|
1.266
|
1.221
|
|
GBP : EUR
|
1.183
|
1.199
|
1.163
|
1.153
|
For definitions of technical
terms - refer to the Glossary contained in the 2023 Annual Report,
page 255.
Organic, constant currency growth rates
|
|
Q1
2024
|
Q2
2024
|
Q3
2024
|
|
Q3
YTD
2024
|
|
|
|
|
|
|
|
|
|
|
Workflows
|
1.7%
|
3.1%
|
3.2%
|
|
2.7%
|
|
|
Data & Feeds
|
6.8%
|
5.5%
|
6.1%
|
|
6.1%
|
|
|
Analytics
|
6.5%
|
3.8%
|
5.2%
|
|
5.1%
|
|
|
Data
& Analytics
|
4.3%
|
4.3%
|
4.6%
|
|
4.4%
|
|
|
|
|
|
|
|
|
|
|
Subscription
|
6.2%
|
13.2%
|
13.1%
|
|
10.9%
|
|
|
Asset-based
|
16.4%
|
14.1%
|
1.8%
|
|
10.5%
|
|
|
FTSE
Russell
|
9.5%
|
13.5%
|
9.2%
|
|
10.8%
|
|
|
|
|
|
|
|
|
|
|
Risk
Intelligence
|
12.5%
|
10.4%
|
10.4%
|
|
11.1%
|
|
|
|
|
|
|
|
|
|
|
Equities
|
1.6%
|
6.2%
|
8.5%
|
|
5.4%
|
|
|
Fixed Income, Derivatives &
Other
|
21.3%
|
27.9%
|
27.3%
|
|
25.5%
|
|
|
FX
|
(2.2%)
|
3.9%
|
12.8%
|
|
4.8%
|
|
|
Capital Markets
|
14.4%
|
20.6%
|
22.4%
|
|
19.1%
|
|
|
|
|
|
|
|
|
|
|
OTC Derivatives
|
0.1%
|
6.6%
|
18.4%
|
|
8.1%
|
|
|
Securities & Reporting
|
(0.5%)
|
2.5%
|
(11.1%)
|
|
(3.1%)
|
|
|
Non-cash collateral
|
6.5%
|
5.4%
|
5.3%
|
|
5.7%
|
|
|
Net treasury income
|
(2.6%)
|
(14.7%)
|
(5.5%)
|
|
(7.8%)
|
|
|
Post
Trade
|
(0.1%)
|
0.1%
|
4.8%
|
|
1.6%
|
|
|
|
|
|
|
|
|
|
|
Other
|
(43.9%)
|
(48.6%)
|
(75.1%)
|
|
(55.1%)
|
|
|
|
|
|
|
|
|
|
|
Total income (excl. recoveries)
|
6.4%
|
7.8%
|
8.7%
|
|
7.7%
|
|
Total income and gross profit
by quarter
|
|
2023
|
|
2024
|
|
£m
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
|
Q1
|
Q2
|
Q3
|
|
YTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Workflows
|
488
|
473
|
465
|
477
|
1,903
|
|
479
|
479
|
472
|
|
1,430
|
|
Data & Feeds
|
446
|
454
|
443
|
467
|
1,810
|
|
465
|
472
|
465
|
|
1,402
|
|
Analytics
|
56
|
55
|
55
|
52
|
218
|
|
55
|
55
|
55
|
|
165
|
|
Data
& Analytics
|
990
|
983
|
962
|
996
|
3,931
|
|
999
|
1,006
|
992
|
|
2,997
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription
|
139
|
136
|
141
|
147
|
563
|
|
144
|
153
|
156
|
|
453
|
|
Asset-based
|
66
|
71
|
73
|
71
|
281
|
|
74
|
81
|
71
|
|
226
|
|
FTSE
Russell
|
205
|
207
|
214
|
218
|
844
|
|
218
|
234
|
227
|
|
679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk
Intelligence
|
120
|
121
|
123
|
128
|
492
|
|
131
|
132
|
131
|
|
394
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equities
|
59
|
57
|
55
|
56
|
227
|
|
60
|
60
|
60
|
|
180
|
|
Fixed Income, Derivatives &
Other
|
269
|
246
|
259
|
294
|
1,068
|
|
318
|
317
|
341
|
|
976
|
|
FX
|
66
|
62
|
61
|
62
|
251
|
|
61
|
64
|
67
|
|
192
|
|
Capital Markets
|
394
|
365
|
375
|
412
|
1,546
|
|
439
|
441
|
468
|
|
1,348
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTC Derivatives
|
126
|
134
|
125
|
132
|
517
|
|
138
|
141
|
148
|
|
427
|
|
Securities & Reporting
|
64
|
63
|
64
|
63
|
254
|
|
62
|
65
|
55
|
|
182
|
|
Non-cash collateral
|
26
|
27
|
27
|
27
|
107
|
|
28
|
28
|
28
|
|
84
|
|
Net treasury income
|
73
|
77
|
70
|
69
|
289
|
|
69
|
65
|
66
|
|
200
|
|
Post
Trade
|
289
|
301
|
286
|
291
|
1,167
|
|
297
|
299
|
297
|
|
893
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
9
|
6
|
7
|
7
|
29
|
|
5
|
3
|
2
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income (excl. recoveries)
|
2,007
|
1,983
|
1,966
|
2,053
|
8,009
|
|
2,089
|
2,115
|
2,117
|
|
6,321
|
|
Recoveries
|
93
|
96
|
88
|
93
|
370
|
|
93
|
92
|
89
|
|
274
|
|
Total income (incl. recoveries)
|
2,100
|
2,079
|
2,054
|
2,146
|
8,379
|
|
2,182
|
2,207
|
2,206
|
|
6,595
|
|
Cost of sales
|
(288)
|
(284)
|
(282)
|
(289)
|
(1,143)
|
|
(289)
|
(299)
|
(283)
|
|
(871)
|
|
Gross profit
|
1,812
|
1,795
|
1,772
|
1,857
|
7,236
|
|
1,893
|
1,908
|
1,923
|
|
5,724
|
|
|
|
|
|
|
|
|
|
|
|
|
| |