The London Stock Exchange is “financially in good shape”, CEO Schwimmer says Reuters

Author: Hugh Jones

London (Reuters)- London Stock Exchange The group’s (LON:) financial situation is sound, and the integration of the $27 billion Refinitiv data and analysis company it acquired in January is expected to be achieved, CEO David Schwimmer said on Friday.

“Our financial situation is good,” Schwimmer said at an online investor event. “We still have the confidence to achieve the financial goals we set when we announced the transaction.”

He said that so far, as the integration is still in progress, the “run rate” has saved 40 million pounds (55 million U.S. dollars), and the leverage ratio has been reduced by 4 billion pounds.

Schwimmer stated that LSEG is continuing an investment plan for Refinitiv and its terminals, which was initiated by its former owner, the US private equity firm Blackstone (NYSE:).

These terminals are Refinitiv’s flagship products. Traders and investors use these terminals to access data and market news.

Schwimmer said: “We are very confident that we will achieve 4-6% annual data and analysis revenue growth in the medium term.”

The London Stock Exchange’s acquisition of Refinitiv makes the exchange the second largest financial data company after Bloomberg LP.

In March, the London Stock Exchange stock price plummeted from around 9,300 pence to more than 8,000 pence, due to the cost details of upgrading the Refinitiv platform.

The exchange said in April that it is expected to achieve 25% of the announced savings target of 350 million pounds by the end of 2021, and the guidance for capital expenditures of 850 million pounds and operating costs of 150 million pounds in 2021 has not changed.

“This business is gaining momentum,” said Andrea Remyn Stone, a former Bloomberg executive who became the head of LSEG’s data and analysis group on Thursday, replacing the former Refinitiv CEO. David Craig.

Costs and capital expenditures will be updated when the exchange reports the results next month.

LSEG shares rose 0.5% to 7,914 pence, which has hardly changed since the beginning of investor activity.

Thomson Reuters (NYSE:) is the parent company of Reuters News and holds a minority stake in the London Stock Exchange after the Refinitiv transaction.

(1 USD = 0.7273 GBP)