London Stock Exchange Group (LSEG) reported in-line first quarter earnings and progress with its Microsoft tie-up, as shareholders approved more buybacks and a potential doubling of CEO David Schwimmer’s pay.
The financial market data provider said it was “confident of continued growth and improving profitability”, on track to meet all financial guidance from November 2023. Despite an initial dip in shares, LSEG saw a 2% increase after analysts reviewed a drop in recurring subscription revenue.
First quarter income was 2.089 billion pounds, with gross profit of 1.893 billion pounds, meeting analysts’ forecasts. Organic annual subscription value (ASV) growth was 6%, impacted by the loss of business from Credit Suisse and a new contract with a global bank.
CEO David Schwimmer highlighted progress in the Microsoft partnership, with new products expected for external pilot or general release. The Refinitiv integration is nearly complete, transforming LSEG into a data and analytics-focused company.
At the annual meeting, shareholders approved a “reset” in Schwimmer’s remuneration policy, potentially doubling his annual pay to over 13 million pounds. LSEG also completed a 500 million pound buyback in the first quarter, with approval for a further billion pound buyback in 2024.
Despite concerns about London losing ground to other listings centers, Schwimmer remains optimistic about the IPO pipeline and upcoming UK listings rule changes. LSEG’s direction and reforms are seen as positive, with Schwimmer dismissing simplistic analysis of higher IPO valuations in New York.
Overall, LSEG’s performance and strategic initiatives are positioning the company for continued growth and success in the financial market data industry.