London Stock Exchange unveils expected Russian exit stunt

London Stock Exchange unveils expected blow of Russian exit after invasion of Ukraine, but says earnings are on track

  • London Stock Exchange Group expects £60m turnover in Russia exit
  • But the group said it is on track to meet all of its annual financial targets at present.

Russia’s invasion of Ukraine is hitting London Stock Exchange Group’s earnings but the exchange remains on track to meet its annual financial targets, it revealed today.

LSEG said the war in Ukraine is expected to generate revenue of around £60m this year, mainly due to the suspension of business and banking services in Russia.

He said total first-quarter revenue rose 6.3%, with solid growth across all divisions, and up 6.8% after adjusting for measures taken by the group in response to the invasion. of Ukraine by Russia, namely the cessation of trading in its Russian listings.

Impact: LSEG said the war in Ukraine is expected to generate revenue of around £60m this year

The exchange suspended all products and services for customers in Russia and halted distribution of news and commentary in the country.

LSEG shares fell today and were down 1.36% or 110.00p at 7,974.00p this afternoon. Shares are up more than 6% in the past year.

LSEG boss David Schwimmer said: “Our ability to invest for growth, make strategic acquisitions and return capital to shareholders demonstrates the strength of the Group and its high quality recurring revenue.

“The group is well positioned and we look forward to further progress during the remainder of 2022.”

The group said revenue growth was driven by a pick-up in new business and strong customer retention.

LSEG said £25m of ‘run rate’ revenue synergies had been achieved by the end of March, adding it was ‘on track to meet all financial targets’.

Citi analysts said gross profit of £1.6bn was in line with its estimate in what was “overall a strong set of results” for LSEG.

Citi analysts said: “At the group level, Russia/Ukraine revenue attrition is estimated to be around £60 million in 2022, the vast majority of which is to be realized in data; analytic.’

LSEG bought Refinitiv in January 2021, turning the exchange into a major data player, but the move raised fears among investors that it had bitten off more than it could chew, especially after blackouts. Since then, however, nerves have calmed down as LSEG made progress in integrating the new company and meeting savings targets.