LSEG first-quarter income beats estimates on strong growth in markets business

By Chandini Monnappa

(Reuters) -The London Stock Exchange Group on Thursday reported stronger than expected first-quarter income, driven by robust growth in its markets division, and a strong performance across its other businesses.

LSEG, which runs the London Stock Exchange and provides data and analytics to banks and other institutions, said total income, excluding recoveries, in the first quarter was 2.26 billion pounds ($3 billion), up 7.8% on an organic constant currency basis. Analysts were expecting a 7.6% increase on average, based on a company-compiled poll.

The markets division had growth of 13.5% on a constant currency basis and the data and analytics business produced growth of 5.1% in the quarter.

"Our Markets division saw strong broad-based growth against a backdrop of elevated volatility, which has persisted into April reflecting continuing uncertainty around the outlook for financial markets and the global economy more broadly," LSEG CEO David Schwimmer said.

Trading across financial markets has been volatile in response to U.S. President Donald Trump's trade policies that have prompted fears of a global economic downturn.

LSEG said annual subscription value, which indicates recurring revenue and is closely watched by analysts, grew 6.4% at the end of the first quarter, driven by strong sales and customer retention.

Early on Thursday, LSEG shares were flat at 116.15 pounds. The stock had hit a record high above 120 pounds in early February.

The company said it was confident of continued growth and improving profitability and reaffirmed its 2025 guidance.

LSEG expects organic constant currency growth of 6.5%-7.5% in 2025 in total income, excluding recoveries.

Analysts at RBC Capital Markets said reported income in millions terms was narrowly below consensus. They said that the reiteration of guidance was no surprise given how early it was in the period, but another similar outturn in Q2 could prompt a movement in the (guidance) range in their view.

Reuters provides news for LSEG's news and data terminal Workspace.

($1 = 0.7526 pounds)

(Reporting by Chandini Monnappa in Bengaluru; Editing by Mrigank Dhaniwala and Jane Merriman)