London Stock Exchange Stock: Robust Growth Drives Profit Surge

London Stock Exchange Group (LSE) has reported impressive financial results for the 2024 fiscal year, with profits climbing significantly and driving the stock upward. The company's pre-tax profit increased by 5.3% to £1.26 billion compared to the previous year, while total revenue rose 6.1% to £8.5 billion. Particularly noteworthy was the adjusted EBITDA, which grew by 9.8% to £4.15 billion, exceeding analyst expectations. The corresponding margin improved to 48.8% from 47.2% in the prior year. All five business segments contributed to this positive performance, with the capital markets division standing out with exceptional growth of approximately 18%, while the data and analytics segment expanded by 4.5%. Shareholders will benefit from an increased total dividend of 130 pence per share, representing a 13% rise. The final dividend of 89 pence per share is scheduled for payment on May 21.

Optimistic Outlook for 2025

The management team has provided a confident forecast for the 2025 fiscal year, projecting organic, currency-adjusted revenue growth between 6.5% and 7.5%. The EBITDA margin is expected to improve by an additional 50 to 100 basis points, continuing the company's profitability enhancement. For the period from 2024 to 2026, LSE anticipates a total margin increase of approximately 250 basis points compared to the 2023 baseline. Free cash flow for the current year is forecast to reach at least £2.4 billion. Investors responded positively to these results and outlook, with LSE shares gaining more than 3% in London trading, reaching £113.95.