LSE Group Posts Solid 2020 Revenue Growth across Clearing Units

The group increased its full-year dividend by 7 percent.

The London Stock Exchange Group (LSEG) published its full-year financials for the year 2020, reporting growth in revenue as well as profits despite the slowdown in the economic conditions.

The overall revenue of the stock exchange operator gained 3 percent last year to £2.1 billion in 2020, while the income was up by 6 percent.

The gain in performance was seen across most of the business areas of the group, but post-trade remained the strongest. The revenue of the segment came in at £751 million, 7 percent higher than the previous year, mostly driven by the growth in LCH. Clearing businesses of CDS, forex and equities jumped as the total income from the segment surged by 12 percent to £1.07 billion.

However, revenue from the capital markets remained flat at £427 million, while technology sales went down by 7 percent to £61 million.

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On an adjusted basis, the operating profits of the group came in at £1.1 billion, an annual increase of 5 percent, while the adjusted EBITDA gained 5 percent to reach £1.3 billion with a margin of 54.4 percent.

Solid Growth in Dividend Distribution 

But, the most highlighted part remained the dividend distribution with a full-year increase in dividend by 7 percent. 

2020 was an eventful year for the London-headquartered group. Along with the uncertainties caused by the pandemic on businesses, the group sold its stake in the top Italian bourse to clear its ambitious $27 billion Refinitiv acquisition deal, which was closed in January 2021.

“LSEG is now truly global with a significant presence in North America, Europe, Asia and emerging markets,” LSEG CEO David Schwimmer said in the statement. Furthermore, he stressed that the group is well-positioned for ‘long-term sustainable growth’.

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