LSEG claims strong Q3 performance across all divisions
22 October 2021 UK
Image: AdobeStock/Douglas Freer
London Stock Exchange Group has reported 7.6 per cent growth in Q3 total income across all divisions and a 7.3 per cent rise in gross profit over the period on a constant currency basis, which is calculated on the basis of consistent FX rates applied across the current period and its 2020 equivalent.
In GBP terms (without constant currency adjustment), total income (excluding recoveries) rose from £1,665 million in Q3 2020 to £1,693 million in Q3 2021, a 1.7 per cent increase.
Gross profit (without constant currency adjustment), rose from £1,519 million in Q3 2020 to £1,555 million in Q3 2021, a 2.4 per cent rise.
The UK exchange group reports continued progress in integrating the Refinitiv financial market data business, which it purchased from Blackstone and Thomson Financial for US$27 billion in 2019.
In the post-trade segment, LSEG revenues were up 11.5 per cent YoY in constant currency terms, powered by strong clearing activity from new and existing customers. Total income has risen 2.3 per cent YoY, dented by a 21.0 per cent contraction in net treasury income.
Revenue from non-cash collateral climbed 19.0 per cent YoY in constant currency terms, reflecting stronger activity at SwapClear and RepoClear.
LSEG reports that its post-trade revenues from OTC derivatives transactions improved by 11.4 per cent in constant currency terms, assisted by a rise in the number of active clients trading on SwapClear, its interest rate swap clearing service.
Securities and reporting revenues were up 8.8 per cent YoY in constant currency terms, with record euro debt clearing volumes through RepoClear, the group’s cash bond and repo clearing service, contributing strongly to this growth.
LSEG data and analytics revenue increased 6.0 per cent YoY, with growth in annual subscription value rising from 3.9 per cent in H1 2021 to 4.0 in Q3, according to the Q3 trading report.
Capital markets revenue climbed 17.2 per cent YoY, led by double-digit growth at TradeWeb and supported by strong primary issuance in the equities sector and strong dealer-to-client volumes at Fxall, its integrated pre to post-trade foreign exchange service.
Specifically, equities revenues improved 15.4 per cent YoY on the back of high-profile listings and a stronger secondary market trading order book.
Fixed income, derivatives and other revenues grew 21.1 per cent YoY, with Tradeweb2 benefiting from stronger demand for electronic trading across OTC fixed income and derivatives segments.
Commenting on these Q3 results, LSEG CEO David Schwimmer says: “The Group has delivered a strong Q3 financial performance with revenue growth across all divisions. We are making excellent progress on the integration of Refinitiv and are comfortably on track to achieve £125 million of cost synergies in 2021, ahead of our original phasing.
“We continue to execute across a number of workstreams to deliver the target revenue synergies. The Group is well placed as we make targeted investments in product and technology enhancements to help us meet the needs of our customers and capitalise on the growth trends driving change across the industry.”
All figures in this article are quoted in constant currency terms, in accordance with how they are presented in the LSEG Q3 2020 trading statement, unless otherwise specified.
In GBP terms (without constant currency adjustment), total income (excluding recoveries) rose from £1,665 million in Q3 2020 to £1,693 million in Q3 2021, a 1.7 per cent increase.
Gross profit (without constant currency adjustment), rose from £1,519 million in Q3 2020 to £1,555 million in Q3 2021, a 2.4 per cent rise.
The UK exchange group reports continued progress in integrating the Refinitiv financial market data business, which it purchased from Blackstone and Thomson Financial for US$27 billion in 2019.
In the post-trade segment, LSEG revenues were up 11.5 per cent YoY in constant currency terms, powered by strong clearing activity from new and existing customers. Total income has risen 2.3 per cent YoY, dented by a 21.0 per cent contraction in net treasury income.
Revenue from non-cash collateral climbed 19.0 per cent YoY in constant currency terms, reflecting stronger activity at SwapClear and RepoClear.
LSEG reports that its post-trade revenues from OTC derivatives transactions improved by 11.4 per cent in constant currency terms, assisted by a rise in the number of active clients trading on SwapClear, its interest rate swap clearing service.
Securities and reporting revenues were up 8.8 per cent YoY in constant currency terms, with record euro debt clearing volumes through RepoClear, the group’s cash bond and repo clearing service, contributing strongly to this growth.
LSEG data and analytics revenue increased 6.0 per cent YoY, with growth in annual subscription value rising from 3.9 per cent in H1 2021 to 4.0 in Q3, according to the Q3 trading report.
Capital markets revenue climbed 17.2 per cent YoY, led by double-digit growth at TradeWeb and supported by strong primary issuance in the equities sector and strong dealer-to-client volumes at Fxall, its integrated pre to post-trade foreign exchange service.
Specifically, equities revenues improved 15.4 per cent YoY on the back of high-profile listings and a stronger secondary market trading order book.
Fixed income, derivatives and other revenues grew 21.1 per cent YoY, with Tradeweb2 benefiting from stronger demand for electronic trading across OTC fixed income and derivatives segments.
Commenting on these Q3 results, LSEG CEO David Schwimmer says: “The Group has delivered a strong Q3 financial performance with revenue growth across all divisions. We are making excellent progress on the integration of Refinitiv and are comfortably on track to achieve £125 million of cost synergies in 2021, ahead of our original phasing.
“We continue to execute across a number of workstreams to deliver the target revenue synergies. The Group is well placed as we make targeted investments in product and technology enhancements to help us meet the needs of our customers and capitalise on the growth trends driving change across the industry.”
All figures in this article are quoted in constant currency terms, in accordance with how they are presented in the LSEG Q3 2020 trading statement, unless otherwise specified.
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