Key Morningstar Metrics for London Stock Exchange Group
- Fair Value Estimate: GBX 11,200
- Morningstar Rating: ★★★★
- Morningstar Economic Moat Rating: Wide
- Morningstar Uncertainty Rating: Medium
What We Thought of London Stock Exchange Group’s Earnings
London Stock Exchange Group LSEG reported first-half total income of GBP 4.5 billion, up 8% on an organic basis. The markets division stood out (up 10.7%), but all segments showed good growth. Competition in data and analytics is increasing retention efforts to stave off LSEG’s advances.
Why it matters: Data and analytics grew 5.1% organically, which was good. Annual subscription value growth declined to 5.8% from 6.3% for the full year of 2024. LSEG cited competition responding to its success with its workflow solution as a headwind.
- LSEG is turning around its terminal business, competing head-on with Bloomberg, the dominant player in this segment. LSEG expects further acceleration of its data and analytics segment as a result of its investments and partnership with Microsoft.
- The markets division enjoyed a strong first half, primarily driven by Tradeweb and its success in fixed-income markets. FTSE Russell’s performance was good, largely due to high demand for its subscription products.
The bottom line: We maintain our GBX 11,200 per-share fair value estimate and wide economic moat.
