London Stock Exchange launches £750m share buyback as HY1 profits surge

London Stock Exchange shares climbed 4.2% to 8,496p in late morning trading on Friday, after the group announced a sweeping slate of strong profits in HY1 2022.

The company reported a gross profit growth to £3.2 billion compared to £2.6 billion year-on-year, alongside an EBITDA rise to £1.7 billion from £1.2 billion and an operating profit of £897 million against £550 million.

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London Stock Exchange also confirmed a pre-tax profit of £803 million compared to £463 million the last year.

The company highlighted a total income rise of £717 million to £3.7 billion across the financial period.

London Stock Exchange reported a Data & Analytics revenue climb of £482 million to £2.3 billion, alongside a Capital Markets revenue rise of £181 million to £720 million and a Post Trade revenue increase of £37 million to £482 million.

The firm said it would be launching a £750 million share buyback over the coming 12 months on the strength of its profits and revenue, with the first tranche set to commence immediately.

The group noted a positive cash generation in HY1 and the completion of its GDC and MaryStreet acquisitions, with its acquisitions of TORA and Quantile expected to close in HY2.

The London Stock Exchange added it experienced good momentum going forward in HY2 2022, with effective cost management and strong progress in achieving synergies.

“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 London Stock Exchange CEO David Schwimmer.

“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. We are successfully executing on our strategy, have good momentum going into the second half and our targets remain unchanged.”

London Stock Exchange recommended a 27% dividend hike to 31.7p per share for HY1.

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