LSEG Reports YoY Fall in Operating Profit in H1 of 2020

The (LSEG) has published its financial results for the first six months of 2020, revealing a slight uptick in revenue but a fall in operating profit during the period.
Total revenue for the first half of 2020 increased by 4 per cent to reach £1.058 billion, up from £1.018 billion in the first half of 2019. Total income for the six-month period increased by 8 per cent, hitting £1.235 billion.

LCH sees record activity in H1 2020
LSEG closed the first half of 2020 with a 9 per cent uptick in post-trade revenue, climbing from £342 million in H1 of 2019, to £372 million in H1 of 2020. This growth in revenue was driven by a strong performance from – LCH, which saw record activity in foreign exchange (forex), CDS and cash equities clearing. In particular, the total income at LCH jumped by 19 per cent to £548 million. 
For the Group, operating profit sunk by 2 per cent on a yearly comparison, falling from £399 million in the first six months of last year, down to £391 million in H1 of 2020. Adjusted operating profit, however, increased by 8 per cent, coming in at £575 million.
During the six month period, profit before tax was £362 million, as compared to the £363 million in H1 of 2019. LSEG posted a profit after tax of £261 million, which is lower than the same period of the previous year, which had a profit after tax of £265 million.
LSEG is making good progress with Refinitiv deal
Commenting on the performance for the period, David Schwimmer, CEO said in the statement: “The Group has delivered a good financial performance and demonstrated strong operational resilience.  During this unprecedented period, we have focused on ensuring the welfare of our employees and on continuity of services to our customers, maintaining access to our markets and clearing venues, with record volumes executed across our services. 
“We are making good progress on the proposed transaction with Refinitiv, securing a number of regulatory approvals and engaging constructively with authorities on remaining approvals.  We also continue to make good progress on integration planning to ensure we are ready to deliver the benefits of the transaction to our shareholders, customers and other stakeholders.  We expect to close the transaction by the end of the year or in early 2021.”