LSEG begins buybacks in wake of better than expected H1 results

The exchange has commenced a £750 million share buyback after seeing growth across its data and analytics, capital markets and post-trade businesses.

The London Stock Exchange Group (LSEG) has reported a better than expected set of interim results for H1, boosted by volatility and growth across its businesses.

LSEG reported an EBITDA of £1.8 billion for the first half of the year, up 14% from the first six months of last year.

The exchange reported a strong performance across all of its divisions, seeing 4% growth in its data and analytics division to just under £2.4 billion, 13% growth in its capital markets business to £720 million, and 8.5% growth in post-trade which rose to £483 million in the first six months of the year.

It has subsequently commenced a £750 million share buyback in light of the better than expected performance which will run for 12 months, with LSEG paying an interim dividend of 31.7 pence per share.

The exchange’s revenues and costs targets remained unchanged from its original predictions in 2021.

“LSEG has delivered a strong first half performance with continued revenue growth across our businesses. We are managing costs well and we continue to make progress on achievement of synergies,” said LSEG chief executive David Schwimmer in a statement.

“We provide solutions solving critical issues for our customers, with a high proportion of recurring subscription revenues and structurally growing transactional revenues that benefit from volatility. Our cash generation is allowing us to actively deploy capital across organic and inorganic investments, grow our dividend and commence a share buy-back programme, driving further value for our shareholders.”

The year to date has seen LSEG undertake a number of further acquisitions following the completion of its landslide $27 billion Refinitiv takeover at the start of 2021. The exchange continued its expansion trajectory with its move to acquire TORA for $325 million in March, adding digital assets to its roster for the first time, and market data solutions provider MayStreet in May for an undisclosed price.