(Alliance News) - London Stock Exchange Group PLC on Thursday reported a jump in revenue during 2022 as it noted being an increasingly important strategic partner to customers across the financial markets value chain.

LSEG said pretax profit jumped by 39% to GBP1.24 billion in 2022 from GBP894 million in 2021, as total income including recoveries rose by 19% to GBP7.74 billion from GBP6.54 billion. This was slightly higher than company-compiled consensus of GBP7.73 billion.

Gross profit rose 11% to GBP6.68 billion from GBP6.02 billion, and outperformed company-compiled consensus expectations of GBP6.66 billion. Data & Analytics revenue grew 12% to GBP4.94 billion from GBP4.40 billion, and slightly higher than estimates of GBP4.93 billion.

Capital Markets climbed 17% to GBP1.46 billion, in line with expectations, from GBP1.25 billion.

Chief Executive Officer David Schwimmer said: "LSEG has had a strong year, successfully integrating Refinitiv and significantly improving its performance, while also delivering strong results in our Capital Markets and Post Trade businesses. The resilience of our business model and the quality of our earnings, diversified by customer, geography, product and asset class, and over 70% subscription-based, are becoming increasingly clear."

The company declared a total dividend for 2022 of 107.0 pence per share, up 13% from 95.0p in 2021, and 1.0% higher than 105.9p expected according to consensus. Further, LSEG plans to deploy up to GBP750 million in directed buybacks by April 2024.

Looking ahead, CEO Schwimmer noted the company's strategic partnership with Microsoft Corp, as well as investments in infrastructure and venues.

In December, LSEG said it will buy Microsoft products for the next 10 years, as the US software company took a 4% stake in LSEG from the Blackstone/Thomson Reuters consortium as part of the deal.

It has committed to spend a minimum of USD2.8 billion over the term of the partnership. In turn, Microsoft said it will purchase a 4% stake in LSEG through an acquisition of shares from the Blackstone/Thomson Reuters ownership consortium.

On Thursday, LSEG CEO Schwimmer said: "We are today announcing plans to seek shareholder approval for a buyback directed towards the Blackstone/Thomson Reuters consortium's stake, which will benefit all shareholders."

LSEG shares were 1.5% lower at 7,336.00 pence each in London on Thursday morning.

By Tom Budszus, Alliance News reporter

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