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Investing.com -- London Stock Exchange Group (LON:LSEG) reported a jump in pretax profit and total income for the past year, supported by growth across its key business segments.
The group’s shares climbed over 3% in London trading as of 08:35 GMT.
The financial information and stock exchange operator posted a pretax profit of £1.26 billion ($1.60 billion), up from £1.195 billion a year earlier, but below the £2.18 billion expected by analysts surveyed by FactSet.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 9.8% to £4.15 billion, with the adjusted EBITDA margin improving to 48.8% from 47.2%. These figures were slightly ahead of a company-compiled consensus, which had forecast £4.11 billion in adjusted EBITDA.
Total (EPA:TTEF) income, excluding recoveries, climbed to £8.49 billion from £8.01 billion, surpassing expectations of £8.47 billion.
The data and analytics division saw revenue rise 4.5%, while capital markets posted a 17.8% increase. Post-trade income edged up 2.4%.
Organic annual subscription value (ASV) growth in 2024 stood at 6.3%, exceeding the management’s guidance of 6%.
Recoveries primarily consist of fees for third-party content, such as exchange data provided directly to customers.
"Results are in-line and guidance suggests little change to consensus, but given YTD de-rating and reassurance on ASV and data growth we expect a positive reaction," Morgan Stanley (NYSE:MS) analysts commented.
LSEG’s board also announced a total dividend of 130 pence per share, up from 115 pence last year.
For 2025, the company expects organic revenue growth, excluding recoveries, of 6.5% to 7.5% on a constant currency basis. It also forecasts an EBITDA margin expansion of 50 to 100 basis points and free cash flow of at least £2.4 billion.