London Stock Exchange Group (LSEG) reported a significant increase in pre-tax profit for the first six months of 2025, reaching £991 million compared to £693 million the previous year. This positive financial performance was accompanied by the announcement of a further £1 billion share buyback program and a 15% increase in the interim dividend to 47.0 pence per share, payable on September 17, 2025.
Despite the rise in profit, LSEG's shares initially fell by as much as 5.4% before recovering to a 2% decline. This market reaction was attributed to a slowdown in recurring revenue growth, specifically a drop in annual subscription value (ASV) growth to 5.8% by June, down from 6.4% in the first quarter. Analysts, such as those at Jefferies, anticipate this ASV growth to further decelerate to approximately 5.5% by the end of September due to competitive pressures and customer migration from older LSEG offerings.
LSEG's total income, excluding recoveries, for the six months ending June, grew by 7.8% on an organic constant currency basis, slightly exceeding the 7.5% increase analysts had expected. The company maintains its full-year guidance for organic constant currency growth of 6.5% to 7.5% for total income and expects improved margins for 2025. CEO David Schwimmer noted strong and consistent growth despite market volatility, citing rising data demand driven by technological advancements. LSEG, which operates the London Stock Exchange and provides extensive data and analytics, is expanding its product offerings to address competition and meet increasing demand fueled by AI and cloud adoption.
