(Alliance News) - London Stock Exchange Group PLC on Wednesday said it made progress across the board in the first quarter of 2022, as it presses on with the integration of its Refinitiv unit.
The stock exchange operator also earmarked a GBP60 million revenue hit stemming from Russia's invasion of Ukraine.
LSEG said it is on track to meet all financial targets. Total income excluding recoveries was GBP1.75 billion in the first three months of 2022, up 8.0% on a year before. Including recoveries, total income was up 7.0% to GBP1.83 billion from GBP1.71 billion.
Gross profit rose 7.6% to GBP1.59 billion.
The revenue hit from Russia's invasion of Ukraine is anticipated to be around GBP60 million in 2022.
"Most of the impact reflects the suspension of Data & Analytics services to customers in Russia, with the largest impact in Trading & Banking," LSEG said.
More positively, the company said it had achieved GBP25 million in run-rate revenue synergies by the end of the March from its acquisition of data & analytics firm Refinitiv.
LSEG completed the USD27 billion acquisition of financial market data and trading infrastructure provider Refinitiv in January 2021, ending a long process after first making its interest clear back in July 2019.
By division, LSEG's Data & Analytics unit saw 4.5% annual revenue growth in the first quarter, while Capital Markets experienced a 12% climb.
Capital Markets includes equities, foreign exchange and fixed income.
In Post Trade, which includes LSEG's over-the-counter derivative offering, total income climbed 6.6%.
"LSEG has delivered a good first quarter, with strong underlying performance across all divisions. During the quarter we announced two acquisitions to enhance our product offerings in Trading & Banking and Customer & Third-Party Risk. We also announced the divestment of BETA+, which will simplify and refocus our Wealth Solutions business," Chief Executive David Schwimmer said.
"Our ability to invest for growth, make strategic acquisitions and return capital to shareholders demonstrates the strength of the group and its high-quality recurring revenues. The group is well positioned and we look forward to further progress during the rest of 2022."
LSEG shares were down 1.6% at 7,952.00 pence each in London on Wednesday morning.
Earlier on Wednesday, Hong Kong's stock exchange operator reported a chunky quarterly profit drop, with fortunes hurt by Chinese regulations on tech firms.
Hong Kong Exchanges & Clearing Ltd said net income in the three months to the end of March fell 31% annually to HKD2.67 billion, about USD340 million.
By Eric Cunha; ericcunha@alliancenews.com
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London Stock Exchange (LSEG)
