The London Stock Exchange Group (LSEG) has reported a gross profit of £2.1bn for the full year 2019 (FY 2019), a 9% increase compared to £1.9bn for the full year 2018 (FY 2018).
As per the preliminary results for the year ended 31 December 2019, the group’s basic earnings per share came down 14% from £138.3 in 2018 to £119.5.
The total revenue for the stock exchange company in FY2019 was up by 8% from £1.91bn in FY 2018 to £2.05bn with revenue growth continued to be seen across its businesses.
The London Stock Exchange Group said that owing to its continued cost discipline, its operating expenses before depreciation, amortisation, and impairment increased by only 1%. This was an increase from £834m in FY 2018 to £839m for the reported year.
The group’s adjusted operating profit, before amortisation of purchased intangible assets and non-underlying items, for the full year 2019 increased by 14% to £1.06bn from the 2018 figure of £931m. However, the operating profit came down 2% to £738m for the reported year from £751m made in FY 2018.
The London Stock Exchange Group’s information services unit had a 7% increase in its FY 2019 revenue at £902m from the £841m figure reported in the year before. The company said that FTSE Russell, which provides stock market indices and associated data services, has been a major contributor to its revenues with a 10% revenue growth during the year.
Capital markets fetched £426m revenue for the stock exchange group during FY 2019, which is a 5% increase from the FY 2018 revenue of £407m.
According to the London Stock Exchange Group, its post-trade divisions continued to do well in 2019 with LCH earning revenue of £550m, which is 13% more than the year before. CC&G and Monte Titoli, which also come under the post-trade businesses of the group, earned £103m, a 1% increase compared to FY 2018.
The dividend per share has been increased by 16% from 60.4p in FY 2018 to 70p in FY 2019.
The London Stock Exchange Group also revealed that it is on track to complete its previously announced acquisition of Refinitiv during the second half of this year. The stock exchange company is acquiring the financial data and infrastructure provider for $27bn.
London Stock Exchange Group CEO comments on the FY 2019 results
London Stock Exchange Group CEO David Schwimmer said: “It was another strong year for London Stock Exchange Group – delivering a good financial performance, making meaningful progress executing on our strategic objectives, and taking significant steps on a number of Group-wide initiatives.
“The Group continued to perform well, navigating an evolving macroeconomic and geopolitical landscape and remains well-positioned for the future. We continue to partner with our customers to develop innovative services in a range of areas, from reference rate reform to sustainable investment.”
