LSEG begins to show value of resilience

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The London Stock Exchange Group offices are seen in the City of London, Britain, December 29, 2017. REUTERS/Toby Melville/

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LONDON, Aug 5 (Reuters Breakingviews) - London Stock Exchange Group (LSEG.L) is sticking to its goals. The $57 billion bourse operator and financial data provider on Friday reported pro-forma revenue of 3.6 billion pounds for the first half of the year, up 6% year-on-year on a pro-forma basis. It also boosted its dividend by 27%, and announced plans to spend 750 million pounds buying back shares read more .

Significantly, Chief Executive David Schwimmer again confirmed targets for revenue growth and cost savings, which he first laid out when unveiling the $27 billion takeover of data purveyor Refinitiv. Since then, LSEG has had to navigate a global pandemic, Russia’s invasion of Ukraine, which will knock about 1% off the company’s top line this year, and most recently a surge in inflation.

Investors are beginning to give LSEG some credit. The company’s shares, which rose 4% on Friday morning, are up more than a fifth this year, outperforming the FTSE 100 Index, which is broadly flat. With an enterprise value of just over 14 times expected EBITDA for 2023, LSEG nonetheless trades at a discount to financial-data groups like S&P Global and FactSet Research Systems. Still, halfway through what Schwimmer expects to be a five-year integration, the company is showing its resilience. (By Peter Thal Larsen)

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(The author is a Reuters Breakingviews columnist. The opinions expressed are their own.)

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(The author is a Reuters Breakingviews columnist. The opinions expressed are their own.)

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Editing by Lisa Jucca and Streisand Neto

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