London Stock Exchange Reports Good First-Half Results; Integration of Refinitiv on Track

Wide-moat London Stock Exchange reported a good and largely uneventful first-half 2022. Revenue on an underlying basis, excluding foreign-exchange movements, grew 6.2% to GBP 3,240 million. This is close to our 6.6% revenue growth assumption for the full year. Integration of Refinitiv is progressing nicely, with LSEG showing confidence that it can achieve synergies slightly earlier than previously expected. This comes after the group already lifted expected cost synergies from GBP 350 million to GBP 400 million at the beginning of the year. The turnaround in trading and banking solutions is also on track as trading posted its first quarter of growth after years of decline. We maintain our GBX 9,800 per share fair value estimate. Shares in LSEG have appreciated about 21% since the beginning of the year and we believe there is about 17% left on the table.