London Inventory Trade warns on provide chain shortages By Reuters
© Reuters. FILE PHOTO: The London Stock Exchange is seen during morning rush hour in the City of London April 11, 2011. REUTERS / Toby Melville
By Rachel Armstrong and Tom Wilson
(Reuters) – The London Stock Exchange Group said it was on track to realize cost savings by integrating the Refinitiv data platform after a stable third quarter, but warned that supply chain bottlenecks could affect the timing of its technology spending.
The exchange announced that underlying pro forma earnings were £ 1.78 billion ($ 2.46 billion) for the three months ended September, up from 1.75 billion the previous year, helped by an increase in the Stock trading volume and initial public offerings.
The data and analytics unit, of which Refinitiv is a part, saw pro forma income fall 0.3%, while profits from its trading and banking solutions business fell.
“We are making excellent progress in integrating Refinitiv and are well on our way to achieving £ 125 million in cost synergies in 2021 before our original expansion,” said CEO David Schwimmer in a statement.
The LSEG share even lost 4.2% and most recently lost 3.5%.
The LSEG expected revenue to grow 4% to 5% year through April, but fourth quarter revenue will not grow as fast as it did in the third quarter on a constant currency basis.
There were no changes to previous cost or investment plans, although supply chain pressures “may affect the timing of some technology spending this year,” it said, without giving further details.
Refinitive emerged from Thomson Reuters (NYSE :), parent company of Reuters News, in 2018 by a consortium led by Blackstone (NYSE 🙂 before it was bought by LSEG in a $ 27 billion deal in January 2021.
With the acquisition, Schwimmer seeks to turn LSEG into a one-stop shop for data, trading, and analytics, although the cost of acquiring the data provider has worried some investors.
LSEG’s shares have fallen around 17% since early March when comments about the cost of the Refinitiv integration scared some investors.
Thomson Reuters now has a minority stake in LSEG and Refinitiv pays Thomson Reuters for the news it distributes.
($ 1 = 0.7249 pounds)
Disclaimer: Fusion Media would like to remind you that the information contained on this website is not necessarily real-time or accurate. All CFDs (stocks, indices, futures) and forex prices are not provided by exchanges, but by market makers. Therefore, prices may not be accurate and may differ from the actual market price, meaning that prices are indicative and not suitable for trading purposes. Therefore, Fusion Media is not responsible for any trading losses you may incur as a result of using this data.
Fusion Media or any other person involved in Fusion Media assumes no liability for any loss or damage that may arise from reliance on the information contained on this website, including data, prices, charts and buy / sell signals. Please inform yourself comprehensively about the risks and costs associated with trading in the financial markets, as it is one of the riskiest forms of investment.