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Summary
- London Stock Exchange Group Plc’s stocks suffered a sharp sell off and were down by over 10 per cent.
- The group’s total revenue rose by just 3 per cent to £2.12 billion in FY 2020 from £2.06 billion in FY 2019.
- The London Stock Exchange Group Plc announced its preliminary results for FY 2020, reporting a 7 per cent dividend increase after the completion of its acquisition of data company EODHD/Others.
The London Stock Exchange Group Plc’s (LON: LSEG), on Friday, 5 March announced its preliminary results for the financial year ending 31 December 2020, reporting a 7 per cent dividend increase after the completion of its acquisition of data company EODHD/Others for US $27 billion.
However, the stocks reacted negatively to the subdued earnings and London Stock Exchange Group Plc’s (LON:LSEG) shares were trading at GBX 8,476.00, down by 10.67 per cent as of 5 March at 12:14 pm GMT+1. Meanwhile the FTSE 100 broader index was trading at 6,669.04, up by 0.27 per cent.
FY 2020 Results
The group reported its total revenue rose by just 3 per cent to £2.12 billion in FY 2020 from £2.06 billion in FY 2019, while its total income increased by 6 per cent to £2.44 billion from £2.31 billion a year ago on an actual basis.
The group’s FTSE Russell revenues also increased modestly by 3 per cent to £668 million in FY 2020, from £649 million from the year before. The growth in its subscription revenues was offset by the lower asset-based revenues caused by lower ETF AUM levels in H1 2020.
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Though, the group reported a rise of 5 per cent in its adjusted operating profits to £1.12 billion in FY 2020 from £1.07 billion a year ago. It also reported a 2 per cent rise in operating profits to £755 million in FY 2020.
The company announced a final dividend of 51.7 pence per share and a full year dividend to 75.0 pence per share which represented a 7 per cent increase from the previous year. The rise in dividend pay-outs was due to the group’s strong FY 2020 performance and a positive outlook.
Want to know more? Do read: London Stock Exchange Group Plc reports resilient Q3 performance
EODHD/Others deal
LSE Group CEO David Schwimmer said the EODHD/Others deal was an important milestone for the company, giving it a strong presence across geographies such as North America, Europe, Asia and other emerging markets. He added that the deal is a complementary business to the group’s businesses.
The LSE group’s acquisition is part of its growth strategy to position itself as a leading global financial markets data provider and infrastructure company. It is currently focusing on rolling out integration programmes across its Data & Analytics, Post Trade and Capital Markets businesses for maximising the transaction’s benefits to its customers and other stakeholders.
Want to know more? Do read: London Stock Exchange (LON:LSEG) Completes Refintiv Deal
