• LSEG as revenues increase 4.6% in H1
  • Shares rise 6.3% on best day of 2021
  • Refinitiv generates £ 77 million in cost synergies
  • Operating profit jumps to 1.17 billion pounds
  • More IPOs expected in the second half of 2021

LONDON, Aug.6 (Reuters) – The London Stock Exchange Group (LSEG.L) on Friday reported a sharp rise in first-half revenue, along with progress in integrating data group Refinitiv and a dividend increase, triggering the best daily performance of its action. away this year.

UK stock operator LSEG said its total income rose 4.6% to 3.36 billion pounds ($ 4.7 billion), aided by a 9.6% increase in capital markets income , with listings having their best first half since 2014 and higher volumes of fixed income securities.

Shares of the 300-year-old stock exchange rose 6.3% at 1:00 p.m. GMT, marking their best day since December 2020 and surpassing the Blue Chip FTSE 100 Index (.FTSE) and the European STOXX 600 (.STOXX).

“We have had a great first half – capital raising is very strong and a number of companies are entering the market,” Managing Director David Schwimmer told reporters after LSEG said its operating profit had increased. jumped from 457 million pounds to 1.17 billion pounds. one year earlier.

Schwimmer said he expects the remainder of 2021 to remain busy for initial public offerings (IPOs) and a modest number of special purpose acquisition companies to list.

The CEO is trying to turn LSEG into a one-stop-shop for data, commerce and analytics with his $ 27 billion buyout of Refinitiv. But the data provider’s absorption costs have worried some investors, and its shares are down 20% since early March, when he gave more details on the integration. Read more

The group said around £ 77million in cost savings from the deal has been achieved so far. He saw these jump to £ 125million by the end of the year, up from his previous forecast of £ 88million.

“Progress with execution rate synergies appears to be faster than expected,” Credit Suisse analysts said in a note, adding that cost growth estimated in the “low numbers” for 2022 and 2023 should also reassure the customer. Marlet.

LSEG said it expects further cost increases in the second half of 2021, caused by the return of costs, such as travel, which have been affected by the coronavirus pandemic as well as the current spending of the legacy computing and inflation.

He said he would pay an interim dividend of 25p per share, a 7% increase from a year ago.

Schwimmer said the company identified and resolved the cause of the issues with Refinitiv Eikon’s information and data platform after a number of outages. Read more

Refinitiv was separated from Thomson Reuters, parent company of Reuters News, in 2018 by a consortium led by Blackstone (BX.N) before being acquired by LSEG in a deal finalized in January 2021.

Thomson Reuters now owns a minority stake in LSEG and Refinitiv pays Thomson Reuters for the information it distributes.

($ 1 = 0.7184 pounds)

Reporting by Abhinav Ramnarayan, additional reporting by Joice Alves; Editing by Rachel Armstrong, Tomasz Janowski and Alexander Smith

Our Standards: The Thomson Reuters Trust Principles.

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