Capital markets and data analytics company the London Stock Exchange Group PLC (LSE:LSEG) enjoyed a cash-rich first half of 2024 that supported a bumper payout to its shareholder base.
The FTSE 100-listed group returned £1 billion to shareholders in the form of buybacks while increasing the interim dividend by 14.8% to 41p per share.
LSEG’s annual subscription value year-on-year growth came slightly ahead of expectations at 6.4% while adjusted profit margin increased 120 basis points to 48.5%.
On the top line, total revenues excluding recoveries added 5.4% to £4.2 billion.
An amortisation charge from the former Refinitv acquisition caused a 16.2% dip in basic earnings per share, but free cash flow was strong at £761 million, marking 29% year-on-year increase.
LSEG said it is gearing up to commercialise its partnership with Microsoft Corp in the second quarter.
Under the 10-year strategic partnership, LSEG and Microsoft will launch next-generation data and analytics and cloud infrastructure solutions.
Microsoft took a 4% stake in LSEG shares in 2022 to support the venture.
LSEG reiterated its medium-term guidance of All medium-term guidance of mid-to-high single-digit organic revenue growth annually.