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London Stock Exchange Group profits jump after Refinitiv acquisition

LSEG profits
Image credit: Songquan Deng via Shutterstock

The London Stock Exchange Group (LSEG) posted a stronger financial result than expected in its 2022 report, revealing a 38.8% jump in pre-tax profits from the year prior.

LSEG said its pre-tax profits rose to £1.24bn last year, a healthy increase from 2021’s £894m. The group cited the successful integration of the financial data company Refinitiv as a significant factor in its recent profit growth.

Refinitv was acquired by LSEG in 2021 for $27bn (£22.5bn) after it gained approval from the European Commission following an in-depth investigation of the deal.

The London Stock Exchange operator has recently been leaning heavily on a strategy of tactical acquisitions to boost its growth.

In October 2022, the group finalised the takeover of the fintech firm Quantile for £274m. The Quantile deal almost fell through after concerns were raised by the Competition and Markets Authority (CMA). However, the deal was eventually approved.

“LSEG has had a strong year, successfully integrating Refinitiv and significantly improving its performance, while also delivering strong results in our capital markets and post-trade businesses,” said LSEG CEO David Schwimmer.

“The resilience of our business model and the quality of our earnings, diversified by customer, geography, product and asset class, and over 70% subscription-based, are becoming increasingly clear.”

Schwimmer also announced plans for the company to purchase its own stock following its recent success.

“In addition to our existing share buyback, we are today announcing plans to seek shareholder approval for a buyback directed towards the Blackstone/Thomson Reuters consortium’s stake, which will benefit all shareholders,” Schwimmer said.