- Revenue rises 20% while earnings jump 65%
- Dividend increased by over 10%
- New buyback includes directed share purchases
London Stock Exchange Group (LSEG) joined the list of FTSE 100 companies raising their dividend payout after announcing strong results for 2022.
The shares gave up 1.3% to £73.54, although that still leaves them up 4% for the year.
SUCCESSFUL GROWTH MODEL
Total income for the group rose almost 20% last year to £7.4 billion thanks to strong results from the capital markets and post-trade businesses.
That translated into a 33% increased in operating profits to £1.4 billion and a 65% jump in earnings per share to 141.8p against 85.8p the previous year.
‘LSEG has had a strong year, successfully integrating Refinitiv and significantly improving its performance’, offered chief executive David Schwimmer.
‘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.’
At the end of last year the firm announced it had signed a 10-year strategic partnership with US software giant Microsoft (MSFT:NASDAQ) for the next generation of Workspace, new solutions in modelling and analytics and a data platform in the cloud.
While the macroeconomic outlook remains uncertain, the group said it had got off to a good start this year and raised its forecast for income growth while keeping its operating margin target of ‘at least 50%’.
RAISING SHAREHOLDER RETURNS
After paying an uncovered dividend of 95p per share for 2021, the firm has raised its 2022 payout to 107p and announced a new share buyback programme.
The existing £750 million repurchase scheme is only 40% complete but is expected to be completed by this July.
At its AGM (annual general meeting) in April, the firm will seek approval for a buyback directed at the former owners of Refinitiv. This includes funds affiliated with Blackstone, the Canada Pension Plan Investment Board, GIC and Thomson Reuters as part of a new £750 million repurchase programme.
