Despite an uncertain economic environment due to the COVID-19 pandemic, the London Stock Exchange Group has revealed a growth in profits and 3% growth in overall revenue in its full year financial report for 2020. LSEG’S total income for 2020 was £2.4 billion, while its revenue reached £2.1 billion.
David Schwimmer, Chief Executive Officer of LSEG, said:
The Covid-19 pandemic and broader geo-political events presented unprecedented challenges in 2020. Despite this environment, and with the vast majority of employees working remotely across our global locations, LSEG has delivered for its customers and provided a strong financial performance, demonstrating strong operational resilience.
While a positive performance was reported across a large majority of business areas, Post Trade revenue remained the strongest, with a 7% increase up to £751 million. Compared to its total of £700 million in 2019’s report, this increase is said to have been driven by a significant growth in multi-national clearing house, LCH. Total income from FX, CDS and cash equities mostly reflected the higher cash margin held, as it rose up 12% to £1.07 billion.
Dividend distribution saw a full-year increase of 7%, reaching 75.0 pence per share. This reflects a positive performance and poised position for LSEG, although total revenue from capital markets remained constant at £427 million, and technology sales decreased by 7% to £61 million.
Operating profits on an adjusted basis reached a 5% annual increase to £1.1 billion, and adjusted EBITDA also gained a 5% increase with a margin of 54.4% to £1.3 billion.
Reported organic and inorganic development included the fact that China Yangtze Power Co. raised US$1.83 billion through Shanghai-London Stock Connect, making it the first Chinese issuer to receive LSEG’s Green Economy Mark. The Group accredited this news as highlighting London’s position as an international centre for sustainable finance.
As expected, the report also commented on LSEG’s recent acquisition of Refinitiv, an acquisition made in the hope that it will accelerate growth strategies, increase the group’s global footprint, and add to its functional capabilities.
David Schwimmer said:
Completion of the acquisition of Refinitiv in early 2021 marked an important milestone in LSEG’s history. LSEG is now truly global with a significant presence in North America, Europe, Asia and emerging markets, bringing together exceptional skills and experience at scale.
Paul Fincham was recently appointed as Group Head of Communications at LSEG. The newly established position will see him leading the London Stock Exchange Group’s global communications team, as he brings with him more than 25 years’ experience.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.