The London Stock Exchange Group PLC (LON:LSE) reported slower income growth towards the end of last year but declared a bumper dividend as it looked forward to completing the US$27bn acquisition of Refinitiv later this year.
Revenue and total income both rose 8% to £2.1bn and £2.3bn respectively for 2019, down from the 9% growth seen in the first nine months of the year.
Of the three largest businesses, Information Services grew 5% on an organic basis, including 10% growth from FTSE Russell, while LCH’s post-trade services grew 13% and Capital Markets was up 5$
With cost of sales down 8%, operating expenses up 1% but total costs up 7% reflecting higher depreciation and amortisation from increased capital investment, LSE’s various measures of profit were mixed.
Adjusted operating profits grew 14% to £1.1bn, reported operating profits were down 2% to £738mln, adjusted EBITDA jumped 19% to £1.3bn, but profit before tax fell 5% to £651mln.
Many investors may not worry too much as a final dividend of 49.9p per share was proposed, resulting in a 16% increase in the full year dividend to 70p, which directors said reflected “good performance and confident outlook”.
This included on the Refinitiv deal, where “detailed integration planning” is underway and regulatory approvals processes “on track” for completion in the second half of the year.
There was no update on the consultation on potentially changing the trading hours of the London Stock Exchange, though the company told Proactive it was “continuing to review and analyse the responses we have received and are aiming to publish a summary by end of Q1”.