Rachel Armstrong and Tom Wilson
(Reuters)-The London Stock Exchange Group said it is on track to achieve cost savings through the integration of data platform Refinitiv after a stable third quarter, but supply chain shortages are driving technology spending. Warned that it could affect timing.
According to the exchange, Proformer base income for the three months to the end of September was £ 1.78 billion ($ 2.46 billion), up from £ 1.75 billion in the previous year, supported by increased trading volumes and initial public offerings.
The company’s data and analytics division, which houses Refinitiv, saw a 0.3% decline in proforma revenue due to lower revenues from its trading and banking solutions business.
“Refinitiv integration is on track to achieve £ 125m in cost synergy in 2021 prior to its initial phased adoption,” said David Schwimmer, CEO, in a statement. It’s going well. “
LSEG stocks fell 4.2% and finally 3.5%.
According to LSEG, revenues by April are expected to grow by 4-5%, but revenues in the fourth quarter will not grow as fast as in the third quarter on a constant currency basis.
Although supply chain pressure “may affect the timing of some of this year’s technology spending,” there have been no changes to previous costs or capital investment plans.
Refinitiv was acquired by LSEG from Reuters News parent company Thomson Reuters in a $ 27 billion transaction closed in January 2021 after being cut out in 2018 by a consortium led by Blackstone (NYSE :). ..
With the acquisition, Schwimmer is turning LSEG into a one-stop shop for data, trading and analytics, but the cost of absorbing data providers has plagued some investors.
LSEG shares have fallen about 17% since the beginning of March, when comments on the cost of refinitiv consolidation surprised some investors.
Thomson Reuters currently holds a minority stake in LSEG, and Refinitiv is paying for news delivered by Thomson Reuters.
($ 1 = £ 0.7249)
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London Stock Exchange warns Reuters of supply chain shortage
Source link London Stock Exchange warns Reuters of supply chain shortage