London Stock Exchange Group responds to activist pressure with one of the highest shareholder yields in the UK market
Shares in London Stock Exchange Group PLC (LSE:LSEG), the financial data and markets infrastructure company, rose 5% to 8,160p after it tripled its share buyback programme to £3 billion over the next 12 months, up from £1 billion previously.
The enlarged buyback gives LSEG a buyback yield of 7.7% on top of an indicated dividend yield of 2%, making it one of the highest-yielding stocks in the UK market.
Annual results for 2025 were broadly in line with consensus, while guidance for EBITDA margin expansion of 80 to 100 basis points this year came in above expectations.
The company also issued new medium-term targets for 2027 to 2029, forecasting a cumulative 150 basis points of EBITDA margin improvement and mid to high single-digit organic revenue growth.
Analysts at Panmure Liberum said LSEG had "clearly listened" to Elliott Advisers, the activist investor that recently built a stake in the company, noting the buyback should significantly lift the share price.
However, the broker cautioned the programme is not sustainable over the long term and does not address LSEG's high debt load.
Free distributable cash flow guidance of at least £2.7 billion was described as slightly light, though the margin outlook could trigger small earnings upgrades.
Capital expenditure intensity held steady at 9.5% of revenue.