1 May 2025
If you are covering LSEG’s Q1 trading update, please find comments below from Will Howlett, financials analyst at Quilter Cheviot:
"LSEG's Q1 2025 trading update aligns with expectations, delivering steady growth while navigating macroeconomic uncertainties.
“Markets performance saw a modest beat, driven by TradeWeb’s strength in Fixed Income, OTC Derivatives, and FX. However, slight softness in Data & Analytics and FTSE Russell balanced this out. Importantly, with 70% of revenues recurring and a gearing toward higher volatility, the group maintains strong revenue visibility.
“Despite trading at a discount to market data peers, LSEG continues to exhibit a similar growth trajectory. The company reiterated its guidance for 2025, projecting organic growth of 6.5-7.5%, an improved margin, and robust free cash flow. While LSEG's forward PE of 27.5x is slightly above its five-year average, earnings growth remains competitive, surpassing exchange peers and keeping pace with top market data firms.
“With ongoing buybacks and steady annual subscription value growth, LSEG remains a compelling proposition for investors.”
