LSEG on track to meet growth targets due to strong analytics performance

investmentweek.co.uk:

The group’s annual subscription value (ASV) growth, a key measure for analysts, reached 7.1% in the quarter, after a dip in Q2.

In a Q3 trading update today (19 October), the group said total income had jumped 8% over the last three quarters, leaving it on track to hit its target of 6-8% growth for the year.

The group's capital markets business saw growth of 6.2%, while its data and analytics business, much of which came from its acquisition of Refinitiv in 2021, grew by 7.2%.

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Charlie Huggins, manager of the 'Quality Shares Portfolio' at Wealth Club, argued the acquisition had «transformed» LSEG's data capabilities, leaving it as a «financial powerhouse to rival Bloomberg», and the integration was currently «progressing broadly to plan».

He added: «Confidence in the Refinitiv deal is growing. While it is still too early for LSEG to declare victory, given the complexity of this multi-year merger, every quarter of good delivery will help to quieten the sceptics.»

The group's annual subscription value (ASV) growth, a key measure for analysts, reached 7.1% in the last quarter, after a dip in Q2.

LSEG CEO David Schwimmer said: «LSEG delivered another quarter of strong, broad-based growth. By building compelling solutions that meet customers' evolving business needs we have established a consistent track-record of growth in our data and analytics business.

»Our capital markets revenues accelerated in the third quarter, with ongoing innovation increasing Tradeweb's share of global credit trading."

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Wealth Club's Huggins added the current difficult economic backdrop was not impacting the group much, due to most of its