Half Year 2024 London Stock Exchange Group PLC Earnings Call Transcript
Key Points
- Revenues increased by 7.6% in the first half of 2024, with growth across all business lines.
- Strong cash flow growth supported significant shareholder returns, including a GBP1 billion share buyback and a 15% increase in the interim dividend.
- The partnership with Microsoft is progressing well, with new products expected to be available by year-end.
- FTSE Russell had a very strong first half, with broad-based growth in both equity and fixed income franchises.
- The company achieved a 50 basis point improvement in H1 margins, demonstrating a focus on efficiency and discipline.
- The Post Trade division faced challenges, including the impact of the loss of the Euronext business.
- The due diligence business continues to be impacted by a shortage of IPOs in the Asian market, particularly in Hong Kong.
- Net finance expenses increased by GBP30 million in H1 due to higher coupons on refinanced debt and front-loaded share buybacks.
- The effective tax rate rose from 23.7% to 24.8%, influenced by last year's increase in the UK corporation tax rate.
- The integration of Credit Suisse's impact on ASV is expected to continue into H2 and possibly into H1 2025, posing a headwind to growth.
Good morning, and welcome to our first half 2024 results. I'm joined by Michel-Alain Proch, or MAP, our CFO, and by Peregrine Riviere, Head of Investor Relations.
LSEG had a strong first half. Revenues were up 7.6%, and we made good progress in the commercial and strategic transformation of our business. Our first half growth was broad-based with positive contributions from every business line. We're bringing stronger offerings to the market, driven by a high pace of innovation and consistent customer focus.
We're driving regular displacements with Workspace, and the recent deal with Dow Jones expands our leadership in news. Our partnership with Microsoft is progressing well, delivering wider availability of the first products by year end.
We're delivering this performance with a clear and critical focus on efficiency and discipline, driving a 50 basis point improvement in H1 margins. We are committed to further margin expansion over the next few years.
Cash flow growth was
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