London Stock Exchange Group set out plans to return £1 billion to shareholders via buybacks today, with financial data powered by AI at the centre of its growth plan.
The business, which has become less reliant on the fate of the London Stock Exchange itself, focusing more on data services through arms such as Refinitiv, laid out its medium-term plans today. While the stock exchange the group is named for has struggled amid a dearth of new floats and some high-profile departures this year, Refinitiv - currently in the process of being rebranded under the LSEG name - has continued to grow.
It sees revenue growing by a mid-to-high single digit percentage annually, and its margins improving over time.
CEO David Schwimmer said: "In less than three years we have transformed our business, trebling the growth rate of the Refinitiv Data & Analytics businesses we acquired and beating our growth targets line by line.
“But the real opportunity still lies in front of us. As we enter the next phase of growth, we will leverage our leading franchises across the financial markets lifecycle to create seamless workflows within and across asset classes. We will provide our customers with new AI-driven insights based on our trusted and validated data, combined with straight-through execution, risk management and capital efficiency across their businesses.
An investment from Microsoft has played a part in the growth. LSEG said it has seen “strong progress” with the world’s best-known software firm.
Schwimmer said: “LSEG's heritage - a track record of trusted industry partnership and constant innovation - is also its future. Working with Microsoft and across the industry, I'm excited about the growth opportunities ahead of us, and I am confident we have the right people, assets and partners to deliver them."
LSEG shares cllosed today at 8,418p, up almost 18% for the year. The update came after markets closed.
