London Stock Exchange Group’s 1H Adjusted Pretax Profit Missed Views — Earnings Review

By Elena Vardon

London Stock Exchange Group reported results for the first half of 2023 on Thursday. Here is what we watched:
TOTAL INCOME EXCLUDING RECOVERIES: The stock-exchange and financial-information company reported total income excluding recoveries of 3.99 billion pounds ($5.07 billion) for the six months ended June 30, slightly ahead of expectations taken from a compiled consensus based on 12 analyst estimates that saw the figure at GBP3.98 billion, and up from GBP3.57 billion in the same period of 2022.

ADJUSTED PRETAX PROFIT: The FTSE 100-listed group posted GBP1.355 billion in adjusted pretax profit for the period, compared with consensus’s GBP1.39 billion estimate and GBP1.33 billion a year prior. Pretax profit on a reported basis fell to GBP622 million from GBP803 million.
WHAT WE WATCHED:
–ASV: The group’s annual subscription value at the end of the June was up 6.9%, relative to up 7.6% at the end of the first quarter. “We saw a small sequential decline in ASV growth in 2Q, reflecting short-term timing differences between cancellations and the on-boarding of contracted sales,” the group said, adding that it expects the temporary impact to reverse in the second half.
–EBITDA MARGIN: The company’s adjusted earnings before interest, taxes, depreciation and amortization margin was 46.9% for the half year, down from 50.4% a year prior, as it was hit by non-cash foreign exchange-related balance sheet adjustments. Excluding these items, it is on track to deliver on its around 48% margin target for the year, the group said.
–REVENUE GUIDANCE: London Stock Exchange said it now sees its 2023 total income excluding recoveries coming in toward the top end of its 6% to 8% range previously guided.
Write to Elena Vardon at [email protected]