- Revenue Growth Reported 8.7% revenue growth for the first half of 2025, driven by positive contributions from all businesses.
- Margin Expansion EBITDA margins expanded by 150 basis points to 49.5%, with adjusted EPS growing over 20% year-on-year.
- Shareholder Returns Returned £1 billion to shareholders through buybacks and dividends and announced a further £1 billion buyback program.
- Organic Growth Achieved 7.8% organic constant currency income growth, consistent across Q1 and Q2.
- Operational Efficiency Delivered strong operating leverage, with adjusted EBITDA growth of 11.2% and free cash flow growth of 43.6%.
Business Segments Performance
By division, Data & Analytics and FTSE Russell performed well, while Risk Intelligence and Markets grew at double-digit rates. Revenue growth was reported across all four businesses. The company raised its margin guidance and announced a further £1 billion buyback and a 15% increase in the interim dividend.
Operating Leverage and Cash Flow
Operating leverage was delivered, with top-line growth translating into higher adjusted EBITDA growth of 11.2%, AOP growth of 13.4%, and APS growth of 21.8%. The effective tax rate decreased to 24.0%, and AEPS was £208.9p, representing a 20.1% year-on-year increase. The company generated strong operating cash flow, with equity free cash flow growth of 43.6%.
Growth Drivers and Investments
The company highlighted four structural growth drivers: generative AI, cloud distribution, regulation, and digital asset classes. It is creating a portfolio of growth opportunities, securing near, medium, and long-term growth through investments in content and capabilities. The company deployed strong equity free cash flow for growth and shareholder returns, including a new £1 billion buyback.
Valuation and Shareholder Returns
At current prices, LSEG trades at a P/E Ratio of 72.26, a P/B Ratio of 2.15, and an EV/EBITDA of 19.06. The stock offers a Dividend Yield of 1.4% and a Free Cash Flow Yield of 6.78%. With a ROIC of 3.05% and ROE of 2.99%, the company's valuation seems to reflect its strong growth prospects and solid financial performance.
Outlook and Guidance
The company is confident in delivering on its 2025 guidance and medium-term plan. The company's organic growth guidance for the year remains unchanged at 6.5-7.5%, despite delivering 7.8% growth in H1. LSEG expects a progressive acceleration of its subscription business and margin progression, driven by pricing, client product usage, growth in clients, and new products.