LSEG operating profit soars 24% in H1

Source: LSEG

The Group has delivered a strong set of Interim results, with growth across each business area. This good performance reflects the success of our strategy to broaden and diversify the scale and scope of our activities.

  • Strong financial performance - revenue growth across each of the Group’s business areas
  • Revenue up 18 per cent to £592.6 million (H1 FY 2014: £504.2 million); up 15 per cent on organic and constant currency basis
  • Group continues to benefit from diversification across a wide range of businesses and markets
  • Total income, including net treasury income (excluding unrealised gains/losses at LCH.Clearnet), up 13 per cent at £642.5 million (H1 FY 2014: £567.1 million); up 10 per cent on organic and constant currency basis
  • Underlying operating expenses up 6 per cent, and up only 2 per cent on organic and constant currency basis, reflecting continued cost control and good operating leverage
  • Adjusted operating profit1 up 24 per cent at £286.1 million (H1 FY 2014: £229.9 million); up 21 per cent on organic and constant currency basis; operating profit of £172.3 million (H1 FY 2014: £151.0 million)
  • Adjusted basic EPS1 up 22 per cent to 58.7 pence (H1 FY 2014: 48.2 pence); basic EPS of 26.6 pence (H1 FY 2014: 27.7 pence)
  • Interim dividend increased 4.3 per cent to 9.7p pence per share, adjusting for the rights issue in September2 (rebased H1 FY 2014: 9.3 pence per share)
  • On track to complete the acquisition of Frank Russell Company before the end of 2014, with clearance from CMA received
  • The comprehensive review of Russell’s Investment Management business is making good progress and likely to be completed post acquisition completion, in late Q4 2014 or early 2015
  • Following completion of the Russell acquisition, approx. one-third of LSEG revenues will come from North America

Commenting on performance of the Group, Xavier Rolet, Chief Executive said:

“We have produced a strong set of first half results, with revenue up 18 per cent, reflect half results, wi half results, with revenue up 18 per cent, reflecting increases across each of our business areas.  In particular, our Capital Markets division delivered good growth in both primary and secondary market activities, FTSE revenues grew 10 per cent and LCH.Clearnet also performed well with increases in OTC and listed product clearing revenues.  Operating expenses have remained well controlled and we are seeing benefits of the cost reduction programme at LCH.Clearnet.
 
“We expect to complete the acquisition of Frank Russell Company within the next few weeks and are making good progress with the comprehensive review.  Following completion, the all important US market will represent around one-third of our revenues.  The Group remains well positioned to develop across a wide range of businesses and markets.”

Full results available here.

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