LSE Increases Dividend as Exchange Issues Upbeat Outlook

(Bloomberg) -- London Stock Exchange Group Plc increased its full-year dividend by 27%, as the exchange issued an upbeat outlook for 2022 and said the integration of Refinitiv was on track.

The company proposed a final dividend of 95 pence a share, ahead of estimates, as the broker reported adjusted earnings before interest, taxes, depreciation and amortization of 3.3 billion pounds ($4.4 billion), according to a statement Thursday.

Cost savings of 151 million pounds for 2021 were greater than the 125 million pounds guidance provided at half-year results. Data revenue grew 5.3% to 4.6 billion pounds while capital markets rose to 1.3 billion pounds, in line with estimates.

The stock exchange completed its $27 billion purchase of Refinitiv last year, kicking off a new era where the majority of its revenues come from data. The parent company of Bloomberg News competes with Refinitiv to provide financial news, data and information.

LSE shares rose 7% as of 9:02 a.m. in London.

“LSEG has delivered a successful first year after completion of the Refinitiv acquisition,” Chief Executive Officer David Schwimmer said in the statement. “We have produced a strong financial performance, have met or are ahead of all targets and have good momentum into 2022.”

Russian Suspension

In a separate statement, the exchange said it had suspended trading of Russian depositary receipts “in light of market conditions, and in order to maintain orderly markets.”

The market notice listed 27 firms including Gazprom PJSC, Sberbank of Russia PJSC and Lukoil PJSC. VTB Bank PJSC was halted on Tuesday. The London Stock Exchange hosts the largest market for Russian firms outside of Moscow, according to its website, reflecting years of Russian firms flocking to the City of London.

Schwimmer said on an interview with Bloomberg Television that the suspension encompassed “the full number of Russian listed and GDR securities on the London Stock Exchange.”