London Stock Exchange reports 7.1% rise in FX revenues in Q3 2021
London Stock Exchange Group plc (LSEG) today posted its Trading Statement for the third quarter of 2021. with the data revealing strong performance across all segments.
Capital Markets revenues increased 17.2% from the year-ago period.
Equities revenues rose 15.4% in the third quarter of 2021, with large scale and high-profile listings on London Stock Exchange. Secondary markets revenues have grown due to higher volumes across orderbooks.
FX revenues marked a rise of 7.1%, with strong volumes in dealer-to-client (FXall) driving growth, reflecting the investment in new product capabilities, relationship management and better customer service
Fixed Income, Derivatives & Other revenues grew 21.1% – Tradeweb continues to grow strongly, as it expands its offering to meet demand from increased electronification of trading markets.
The Exchange reported continued good progress on the integration of Refinitiv and said it was comfortably on target for full year run-rate cost synergy delivery of £125 million, ahead of original phasing. LSEG said 10 new products were launched in the three months to end-September 2021 as part of revenue synergy programme, taking the total to 37 year-to-date.
Data & Analytics revenue grew 6.0% and continues to perform well with growth in Annual Subscription Value increasing from 3.9% at H1 to 4.0% in Q3, reflecting strength in subscription-based new business wins.
Post Trade revenue grew 11.5% driven by increased clearing activity from both new and existing customers; total income up 2.3%, reflecting lower investment returns in Net Treasury Income compared to the strong comparator in Q3 2020.
Across all segments, total income rose to £1.69 billion, whereas gross profit increased to £1.55 billion.
As previously guided, the Group expects total income to grow between 4-5% for full year 2021, with Q4 2021 income not expected to grow as fast as Q3 on a constant currency basis due to the strong comparator in Q4 2020; no change to previous cost or capex guidance although supply chain pressures may impact timing of some technology spend this year.
David Schwimmer, CEO said:
“The Group has delivered a strong Q3 financial performance with revenue growth across all divisions.
“We are making excellent progress on the integration of Refinitiv and are comfortably on-track to achieve £125 million of cost synergies in 2021, ahead of our original phasing. We continue to execute across a number of workstreams to deliver the target revenue synergies. The Group is well placed as we make targeted investments in product and technology enhancements to help us meet the needs of our customers and capitalise on the growth trends driving change across our industry.”