LSEG affirms 2023 targets, seeks shareholder nod for buyback

London Stock Exchange Group (LON:LSEG) on Thursday reaffirmed financial targets for the year, before it seeks shareholder approval for a previously announced buyback of shares from the Blackstone/Thomson Reuters consortium.

LSEG bought data and analytics company Refinitiv for $27 billion from the consortium in January 2021. The group’s traditional exchange activities date back more than 300 years.

“As we continue our shift from integration to transformation, we are confident of making further progress through the rest of the year,” LSEG CEO David Schwimmer said in a first quarter trading update.

LSEG said it has also made further progress with an on-market 750 million pound buyback programme, completing the second 250 million pound tranche in March, with the final tranche expected to be completed by July.

The exchange group holds its annual meeting in London later on Thursday.

“In addition, at today’s AGM, we are seeking shareholder approval for a directed buyback from the Blackstone/Thomson Reuters consortium, expected to be up to 750 million pounds by April 2024,” LSEG said.

Thomson Reuters holds a minority stake in LSEG, which pays Reuters for news.

LSEG said first quarter income from data and analytics rose 14.6% to 1.3 billion pounds year on year.

Total income, excluding recoveries, rose to 2 billion pounds, up 14.6%, and 1% ahead of consensus according to research from Jefferies.

Gross profit rose 13.9% to 1.8 billion pounds.

“In Data & Analytics, we saw a further acceleration in Annual Subscription Value (ASV) growth, reflecting the investments we have made in our services and stronger customer engagement,” Schwimmer said.

Jefferies said ASV growth was “highly impressive” and ahead of market expectations.

LSEG shares were trading 1 percent higher at 0710 GMT.

($1 = 0.8015 pounds)