London Stock Exchange Group ups dividend as profit rises
5 March 2021, 08:44
The company saw benefits such as record trading levels from the pandemic, but was also challenged by working from home.
The London Stock Exchange Group (LSEG) upped its full-year dividend on Friday as it managed to increase profits during Covid-19.
Pre-tax profit rose to £685 million in 2020, up from £651 million a year earlier, on revenue of £2.1 billion, up 3%.
The shareholder dividend will increase by 7% to 75p, LSEG said in an update to investors.
Part of the business was hit by a massive drop in the markets in March, however the increased trading during the period also benefited other areas of LSEG, chief executive David Schwimmer said in a call with reporters on Friday.
The business faced challenges, such as having its staff work from home, while also seeing record volumes, both driven by the pandemic, he added.
“The Covid-19 pandemic and broader geo-political events presented unprecedented challenges in 2020. Despite this environment, and with the vast majority of employees working remotely across our global locations, LSEG has delivered for its customers and provided a strong financial performance, demonstrating strong operational resilience,” Mr Schwimmer said.
The year also marked LSEG’s move towards its transformational acquisition of Refinitiv, a financial markets data provider, which completed in January.
Mr Schwimmer said the £20 billion deal is “more compelling today” than it was when it was announced in August 2019.
He added: “Completion of the acquisition of Refinitiv in early 2021 marked an important milestone in LSEG’s history.
“LSEG is now truly global with a significant presence in North America, Europe, Asia and emerging markets, bringing together exceptional skills and experience at scale.”
January also saw Amsterdam overtake London as the largest trading centre for shares as the impact of new restrictions due to Brexit were felt.
Mr Schwimmer said the move to Amsterdam was “very much anticipated and planned for”.
He added: “There is no question that London remains one of the world-leading global financial capitals, and it will continue to remain so.”
