TIDMLSEG

RNS Number : 4463J

London Stock Exchange Group PLC

27 April 2022

London Stock Exchange Group plc: Q1 2022 Trading Update

This release contains revenues, cost of sales and key performance indicators (KPIs) for the three months ended 31 March 2022 (Q1). All figures quoted in this release are on an underlying basis. Q1 2022 is compared against Q1 2021 on both a statutory and pro-forma basis. Pro-forma figures assume that the acquisition of Refinitiv took place on 1 January 2021. Revenues and cost of sales associated with the BETA+ divestment have been classed as discontinued and are excluded from all periods. Revenues and cost of sales associated with the Borsa Italiana Group divestment, which completed in H1 2021, are also excluded. Constant currency variance is calculated on the basis of consistent FX rates applied across the current and prior year period. For more information on accounting treatments and approach to FX please refer to the "Accounting and modelling notes" section below.

 
 Q1 2022 highlights - continued strong financial and operational progress 
  Note: Unless otherwise stated, variances refer to growth rates on 
  a constant currency basis, with the comparator, Q1 2021, on a pro-forma 
  basis which also excludes the impact of a deferred revenue accounting 
  adjustment(1) . 
   *    LSEG continues to make strong financial and 
        operational progress 
 
 
   *    Q1 total income (excluding recoveries) up 6.3% with 
        good growth across all divisions; up 6.8% adjusting 
        for the actions LSEG has taken in response to the 
        Ukraine and Russia (U/R) conflict(2) 
 
 
   *    Good Q1 performance driven by new business growth and 
        high customer retention, building on the strong 
        foundations in 2021 
 
 
   *    Data & Analytics up 4.5% on an underlying basis; up 
        5.1% excluding U/R impacts, with Trading & Banking 
        growing; Annual Subscription Value (ASV) growth of 
        4.9% adjusted for U/R, or 3.6% unadjusted 
 
 
   *    Capital Markets up 11.9%, with good contributions 
        across Fixed Income (Tradeweb), FX and Equities 
 
 
   *    Post Trade up 6.6% with broad-based growth 
 
 
   *    73% of Group income (excluding recoveries) is highly 
        recurring in nature; diversified across customer, 
        activity, product and geography 
 
 
   *    Continued achievement of cost and revenue synergies 
        during the quarter; GBP25 million run-rate revenue 
        synergies achieved by end of Q1 
 
 
   *    On track to meet all financial targets 
 
 
  -- Continued focus on portfolio enhancement: acquisitions of Quantile, 
  TORA and GDC, which will enhance our offerings in Post Trade, Trading 
  & Banking and Customer & Third-Party Risk respectively, are all on 
  track for completion during 2022; divestment of BETA+, with a significant 
  proportion of the net proceeds of the divestment to be returned to 
  shareholders via a share buyback likely to commence in Q3 2022 
 

(1) The deferred revenue impact is a one-time, non-cash, negative revenue impact resulting from the accounting treatment of deferred revenue within Refinitiv's accounts which have been re-evaluated upon acquisition by LSEG under purchase price accounting rules. This reduced Q1 2021 revenue by GBP22m, mainly in Data & Analytics with a smaller impact in the FX business within Capital Markets. There is no material impact in 2022. More details can be found in the "Accounting and modelling notes" section

(2) Growth rates excluding the Ukraine / Russia conflict impact have been calculated by excluding income in the region and from sanctioned customers and related business from both periods

David Schwimmer, CEO said:

"LSEG has delivered a good first quarter, with strong underlying performance across all divisions. During the quarter we announced two acquisitions to enhance our product offerings in Trading & Banking and Customer & Third-Party Risk. We also announced the divestment of BETA+, which will simplify and refocus our Wealth Solutions business.

"Our ability to invest for growth, make strategic acquisitions and return capital to shareholders demonstrates the strength of the Group and its high-quality recurring revenues. The Group is well positioned and we look forward to further progress during the rest of 2022."

Q1 2022 Summary

Variances are provided on a pro-forma and constant currency basis. Unless stated otherwise, commentary is provided on the constant currency variance (excluding the deferred revenue adjustment) to provide insight into performance on a comparable basis. Revenues and cost of sales associated with the BETA+ divestment have been classed as discontinued and are excluded from all periods. Revenues and cost of sales associated with the Borsa Italiana Group divestment, which completed in H1 2021, are also excluded.

 
 Continuing operations              Q1 2022    Pro-forma    Variance(2)         Constant       Constant 
                                                                                Currency        Currency 
                                                                               Variance(3)      Variance 
                                      GBPm     Q1 2021(1)        %                  %            (excl. 
                                                                                                deferred 
                                                                                                 revenue 
                                                                                               adjustment) 
                                                                                                  (3,4) 
                                                  GBPm                                             % 
                                   --------  ------------  ------------      ------------- 
 Trading & Banking Solutions            378           372          1.6%               1.0%          (0.9%) 
 Enterprise Data Solutions              304           279          9.0%               8.8%            6.5% 
 Investment Solutions                   308           274         12.4%              10.8%            9.4% 
 Wealth Solutions                        63            61          3.3%               2.2%            0.9% 
 Customer & Third-Party 
  Risk Solutions                         94            85         10.6%               9.9%            7.8% 
---------------------------------  --------  ------------  ------------      -------------  -------------- 
 Data & Analytics                     1,147         1,071          7.1%               6.3%            4.5% 
 
 Equities                                67            61          9.8%              10.0%           10.0% 
 FX                                      60            57          5.3%               2.7%            2.4% 
 Fixed Income, Derivatives 
  & Other                               232           200         16.0%              15.2%           15.2% 
---------------------------------  --------  ------------  ------------      -------------  -------------- 
 Capital Markets                        359           318         12.9%              11.9%           11.9% 
 
 OTC Derivatives                         93            87          6.9%               7.5%            7.5% 
 Securities & Reporting                  64            63          1.6%               5.1%            5.1% 
 Non-Cash Collateral                     24            22          9.1%              10.5%           10.5% 
 Net Treasury Income                     57            55          3.6%               5.2%            5.2% 
---------------------------------  --------  ------------  ------------      -------------  -------------- 
 Post Trade                             238           227          4.8%               6.6%            6.6% 
 
 Other                                    7             5         40.0%              44.1%           44.1% 
---------------------------------  --------  ------------  ------------      -------------  -------------- 
 Total income (excl. recoveries)      1,751         1,621          8.0%               7.6%            6.3% 
 Recoveries                              80            88        (9.1%)               1.6%          (0.5%) 
---------------------------------  --------  ------------  ------------      -------------  -------------- 
 Total income (incl. recoveries)      1,831         1,709          7.1%               7.3%            6.0% 
 Cost of sales                        (240)         (230)          4.3%               2.9%            2.9% 
---------------------------------  --------  ------------  ------------      -------------  -------------- 
 Gross profit                         1,591         1,479          7.6%               8.0%            6.4% 
---------------------------------  --------  ------------  ------------      -------------  -------------- 
 

(1) The Q1 2021 comparator is pro-forma and assumes that the acquisition of Refinitiv took place on 1 January 2021

(2) Variance is the difference between current and prior year periods using FX rates prevalent at each time, therefore any changes in the FX rates are reflected in the variance percentage alongside business performance

(3) Constant currency variance shows underlying financial performance, excluding currency impacts, by comparing the current and prior period at consistent exchange rates

(4) Excludes the deferred revenue adjustment further explained in the "Accounting and modelling notes" section

Q1 2022 Highlights

Group Income (excluding recoveries) grew 6.3% at constant currency and up 6.8% adjusting for the actions LSEG has taken in response to the Ukraine and Russia (U/R) conflict. The revenue impact of U/R is anticipated to be c.GBP60 million in 2022. Most of the impact reflects the suspension of Data & Analytics services to customers in Russia, with the largest impact in Trading & Banking.

   --      Data & Analytics : revenues up 4.5%; up 5.1% excluding U/R impacts 

o Trading & Banking Solutions down 0.9%; but grew 0.1% excluding U/R impacts - Driven by better understanding and servicing of customer needs, with growth in Banking products and an improved performance in Trading revenues. Acquisition of TORA, expected to complete in H2, will enhance customers' ability to trade multiple asset classes across global markets through our platform

o Enterprise Data Solutions up 6.5% - Continued acceleration in revenue growth reflects our investment in broadening and deepening our data & analytics offering, and innovation in our delivery of this content. This has reinforced our #1 position in real-time data and continues to support market share gains in pricing and reference data

o Investment Solutions up 9.4% - Good growth in FTSE Russell with subscription revenues up 10.3%. Asset-based revenues rose 17.0%, despite volatile market conditions over the quarter. Further revenue synergy realisation in the quarter from cross-selling of FTSE Russell and Refinitiv data products

o Wealth Solutions up 0.9% - Steady growth in our subscription-based services providing data and analytics to Wealth advisory companies. Contribution from the transaction-orientated BETA+ business moved to discontinued operations ahead of expected divestment in H2 2022

o Customer & Third-Party Risk Solutions up 7.8% - Double-digit organic growth maintained in Q1, reduced on a reported basis by disposal of ERMT business in November 2021. Strong growth in the core screening business, WorldCheck, reflecting market share gains and customer demand for comprehensive, reliable and timely sanctions and KYC data

   --      Capital Markets : revenues up 11.9% 

o Equities up 10.0% - Robust secondary market activity in Q1, reflecting the value customers place on the breadth and depth of LSEG's liquidity, especially during periods of heightened volatility. This more than offsets the impact of weaker primary market issuance and suspension of securities impacted by the U/R conflict

o FX up 2.4% - Strong growth in our leading global dealer-to-client FX platform, FXall, reflects investment in customer service and platform functionality. Performance partially offset by weaker volumes on Matching platform, our dealer-to-dealer FX trading venue. We continue to make good progress towards transitioning Matching to our modern, proprietary trading architecture in 2023

o Fixed Income, Derivatives & Other up 15.2% - Strong performance at Tradeweb(1) which saw $1.17 trillion of total Average Daily Volume traded in the quarter, an increase of 11%. Growth was driven by continued market share gains and a more volatile macroeconomic backdrop

   --      Post Trade : total income up 6.6% 

o OTC Derivatives up 7.5% - Strong volumes seen across SwapClear, ForexClear, CDSClear and SwapAgent, as we support OTC market participants' need for robust risk management and capital optimisation

o Securities & Reporting up 5.1% - Good volume growth at RepoClear and EquityClear as they continue to provide an essential service through volatile markets and the introduction of Central Securities Depository Regulation (CSDR)

o Non-Cash Collateral up 10.5% - Mainly driven by an increase in average non-cash collateral balances

o Net Treasury Income up 5.2% - Reflecting the benefit of larger cash collateral balances due to increased clearing activity in Q1

(1) Tradeweb Q1 2022 results will be released on 28 April 2022 and will provide more detailed commentary on performance

Statutory financials(1)

 
 Continuing operations              Q1 2022   Q1 2021 
                                      GBPm      GBPm 
                                   -------- 
 Trading & Banking Solutions            378       247 
 Enterprise Data Solutions              304       194 
 Investment Solutions                   308       238 
 Wealth Solutions                        63        40 
 Customer & Third-Party 
  Risk Solutions                         94        57 
---------------------------------  --------  -------- 
 Data & Analytics                     1,147       776 
 
 Equities                                67        61 
 FX                                      60        39 
 Fixed Income, Derivatives 
  & Other                               232       141 
---------------------------------  --------  -------- 
 Capital Markets                        359       241 
 
 OTC Derivatives                         93        87 
 Securities & Reporting                  64        63 
 Non-Cash Collateral                     24        22 
 Net Treasury Income                     57        55 
---------------------------------  --------  -------- 
 Post Trade                             238       227 
 
 Other                                    7         4 
---------------------------------  --------  -------- 
 Total income (excl. recoveries)      1,751     1,248 
 Recoveries                              80        58 
---------------------------------  --------  -------- 
 Total income (incl. recoveries)      1,831     1,306 
 Cost of sales                        (240)     (171) 
---------------------------------  --------  -------- 
 Gross profit                         1,591     1,135 
---------------------------------  --------  -------- 
 

(1) The comparator Q1 2021 figures are statutory results, incorporating Refinitiv from acquisition at the end of January 2021. Revenues and cost of sales associated with the BETA+ divestment have been classed as discontinued and are excluded from all periods. Revenues and cost of sales associated with the Borsa Italiana Group divestment, which completed in H1 2021, are also excluded

Contacts: London Stock Exchange Group plc

 
 
 
   Investors 
 Paul Froud / Chris Turner - Investor Relations                  ir@lseg.com 
 Media 
 Lucie Holloway / Rhiannon Davies - Financial Communications     +44 (0) 20 7797 1222 
                                                                  newsroom@lseg.com 
 
 

Additional information can be found at www.lseg.com

Q1 investor and analyst conference call:

The Group will host a conference call on its Q1 Trading Statement for analysts and institutional shareholders today at 08:30am (UK time). On the call will be David Schwimmer (Chief Executive Officer), Anna Manz (Chief Financial Officer) and Paul Froud (Group Head of Investor Relations).

To access the telephone conference call or webcast please register in advance using the following link and instructions below:

https://www.lsegissuerservices.com/spark/LondonStockExchangeGroup/events/7c30d30d-da35-461a-8d5e-4314cd811e0e

-- If you wish to participate in Q&A, questions can be submitted by clicking the 'Ask a question button' on the page or by emailing the LSEG Investor Relations team at ir@lseg.com . Questions can be submitted in advance and during the event itself

-- If you wish to ask a question live, you will need to register for the telephone conference call here: https://cossprereg.btci.com/prereg/key.process?key=PQ6N49EQ8

-- NOTE: Once you have registered for the conference call, you will be provided with the information you need to join the conference, including dial-in numbers and passcodes. Please save this information to your calendar or print this information

Presentation slides can be viewed at https://www.lseg.com/investor-relations

Accounting and modelling notes

Minor business revenue reclassification - As indicated at Preliminary results 2021

To better align with our operating model, some small revenue items have been reallocated between business lines from Q1 2022. All results in this release reflect this reclassification. At a divisional level, the impact on the 2021 results previously reported is:

   --    GBP7 million of revenue moves from Post Trade to Data & Analytics 
   --    GBP6 million of revenue moves from Capital Markets to Data & Analytics 

Deferred revenue accounting adjustment

This adjustment is as previously described in 2021. There is no material impact in 2022. An adjusted variance, excluding the deferred revenue adjustment, has been presented to show true underlying business growth on the prior year.

As a reminder, the adjustment results from the acquisition of Refinitiv and the associated purchase price accounting rules. Refinitiv's deferred revenue balances were subject to a one-time haircut at the time of acquisition. This was a non-cash adjustment. 2021 saw a negative revenue impact of GBP25 million, with GBP22 million in Q1; GBP1 million in Q2; GBP1 million in Q3; GBP1 million in Q4. The impact is mostly in the Group's Data & Analytics division, with a much smaller impact on the Group's FX venues business sitting within Capital Markets.

FX conversion

As a result of the acquisition of Refinitiv, the majority of LSEG revenues and expenses are in USD followed by GBP, EUR and other currencies. All guidance given by LSEG, including the longer-term targets associated with the acquisition of Refinitiv as well as specific guidance for the 2022 financial year, has been given on a constant currency basis.

The results for Q1 2022 have been translated into Sterling using the average exchange rates for the period. The rates for the largest two currency pairs are shown in the table below.

 
              Average rate   Closing rate   Average rate   Closing rate 
               3 months       at             3 months       at 
               ended          31-Mar-22      ended          31-Mar-21 
               31-Mar-22                     31-Mar-21 
 GBP : USD           1.342          1.317          1.379          1.374 
             -------------  -------------  -------------  ------------- 
 GBP : EUR           1.196          1.180          1.143          1.173 
             -------------  -------------  -------------  ------------- 
 

Divisional revenue, gross profit and non-financial KPIs

   1.   Data & Analytics 

Results to gross profit (1)

 
 Continuing operations          Q1 2022    Pro-forma    Variance(2)         Constant         Constant 
                                                                            Currency         Currency 
                                                                           Variance(3)       Variance 
                                                                                          (excl. deferred 
                                                                                              revenue 
                                                                                            adjustment) 
                                                                                               (3,4) 
                                  GBPm     Q1 2021(1)        %                  %                % 
                                              GBPm 
                               --------  ------------                    -------------  ----------------- 
 Trading & Banking Solutions        378           372          1.6%               1.0%             (0.9%) 
    Trading                         298           297          0.3%                  -             (2.0%) 
    Banking                          80            75          6.7%               5.2%               3.3% 
 Enterprise Data Solutions          304           279          9.0%               8.8%               6.5% 
    Real Time Data                  195           178          9.6%               9.2%               6.6% 
    PRS                             109           101          7.9%               8.2%               6.4% 
 Investment Solutions               308           274         12.4%              10.8%               9.4% 
   Benchmark Rates, Indices 
    & Analytics                     137           122         12.3%              10.6%              10.3% 
    Index - Asset-Based              70            58         20.7%              17.0%              17.0% 
    Data & Workflow                 101            94          7.4%               7.0%               3.7% 
 Wealth Solutions                    63            61          3.3%               2.2%               0.9% 
 Customer & Third-Party 
  Risk Solutions                     94            85         10.6%               9.9%               7.8% 
-----------------------------  --------  ------------  ------------      -------------  ----------------- 
 Total revenue (excl. 
  recoveries)                     1,147         1,071          7.1%               6.3%               4.5% 
 Recoveries                          80            88        (9.1%)               1.6%             (0.5%) 
-----------------------------  --------  ------------  ------------      -------------  ----------------- 
 Total revenue (incl. 
  recoveries)                     1,227         1,159          5.9%               6.0%               4.1% 
 Cost of sales                    (198)         (192)          3.1%               1.5%               1.5% 
-----------------------------  --------  ------------  ------------      -------------  ----------------- 
 Gross profit                     1,029           967          6.4%               6.9%               4.6% 
-----------------------------  --------  ------------  ------------      -------------  ----------------- 
 

Non-financial KPIs (1)

 
                                      Q1 2022   Q1 2021   Variance 
                                                              % 
                                     --------  -------- 
 
 Annual Subscription Value growth 
  (%) (5)                                3.6%      3.0% 
 Annual Subscription Value growth 
  excl. U/R impact (%) (5, 6)            4.9%      3.0% 
 Subscription revenue growth (%) 
  (5, 7)                                 3.7% 
 Subscription revenue growth excl. 
  U/R impact (%) (5, 6, 7)               3.9% 
 Index - ETF AUM ($bn)                  1,100       956      15.1% 
 Index - ESG Passive AUM ($bn) (8)        167        63     165.1% 
-----------------------------------  --------  --------  --------- 
 

(1) The Q1 2021 comparator is pro-forma and assumes that the acquisition of Refinitiv took place on 1 January 2021. Revenues and cost of sales associated with the BETA+ divestment have been classed as discontinued and are excluded from all periods. Revenues and cost of sales associated with the Borsa Italiana Group divestment, which completed in H1 2021, are also excluded

(2) Variance is the difference between current and prior year periods using FX rates prevalent at each time, therefore any changes in the FX rates are reflected in the variance percentage alongside business performance

(3) Constant currency variance shows underlying financial performance, excluding currency impacts, by comparing the current and prior period at consistent exchange rates

(4) Excludes the deferred revenue adjustment further explained in the "Accounting and modelling notes" section

(5) The variance is a constant currency variance adjusted for acquisitions and disposals

(6) Growth rates excluding the Ukraine / Russia conflict impact have been calculated by excluding income in the region and from sanctioned customers and related business from both periods

(7) The variance is a 12-month rolling constant currency variance excluding the impact of the deferred revenue accounting adjustment. The comparator is not available due to different methodologies applied to the data for the periods before the completion of the Refinitiv acquisition

(8) ESG Passive AUM is at 30 June 2021 and prior period comparator is at 30 June 2020. The metric is updated bi-annually

   2.   Capital Markets 

Results to gross profit (1)

 
 Continuing operations        Q1 2022    Pro-forma    Variance(2)         Constant         Constant 
                                                                          Currency         Currency 
                                                                         Variance(3)       Variance 
                                                                                        (excl. deferred 
                                                                                            revenue 
                                                                                          adjustment) 
                                                                                             (3,4) 
                                GBPm     Q1 2021(1)        %                  %                % 
                                            GBPm 
                             --------  ------------                    -------------  ----------------- 
 Equities                          67            61          9.8%              10.0%              10.0% 
 FX                                60            57          5.3%               2.7%               2.4% 
 Fixed Income, Derivatives 
  & Other                         232           200         16.0%              15.2%              15.2% 
 Total revenue                    359           318         12.9%              11.9%              11.9% 
 Cost of sales                    (8)           (6)         33.3%              12.7%              12.7% 
---------------------------  --------  ------------  ------------      -------------  ----------------- 
 Gross profit                     351           312         12.5%              11.9%              11.8% 
---------------------------  --------  ------------  ------------      -------------  ----------------- 
 

Non-financial KPIs (1)

 
                                 Q1 2022    Q1 2021    Variance 
                                                           % 
                                ---------  --------- 
 Equities 
 Primary Markets 
 New issues                            27         35    (22.9%) 
 Total money raised (GBPbn)           2.6        6.9    (62.3%) 
 
 Secondary Markets - Equities 
 UK Value Traded (GBPbn) 
  - Average Daily Value               5.7        4.9      16.3% 
 SETS Yield (bps)                    0.66       0.71     (7.0%) 
 
 FX 
 Average daily total volume 
  ($bn)                               484        471       2.8% 
 
 Fixed income, Derivatives 
  and Other 
 Tradeweb Average Daily ($m) 
 Rates - Cash                     387,494    378,323       2.4% 
 Rates - Derivatives              361,041    287,477      25.6% 
 
 Credit - Cash                     10,793     10,382       4.0% 
 Credit - Derivatives              22,420     16,690      34.3% 
------------------------------  ---------  ---------  --------- 
 

(1) The Q1 2021 comparator is pro-forma and assumes that the acquisition of Refinitiv took place on 1 January 2021. Revenues and cost of sales associated with the Borsa Italiana Group divestment, which completed in H1 2021, are excluded from all periods

(2) Variance is the difference between current and prior year periods using FX rates prevalent at each time, therefore any changes in the FX rates are reflected in the variance percentage alongside business performance

(3) Constant currency variance shows underlying financial performance, excluding currency impacts, by comparing the current and prior period at consistent exchange rates

(4) Excludes the deferred revenue adjustment further explained in the "Accounting and modelling notes" section

   3.   Post Trade 

Results to gross profit (1)

 
 Continuing operations     Q1 2022    Pro-forma    Variance(2)         Constant 
                                                                       Currency 
                                                                      Variance(3) 
                             GBPm     Q1 2021(1)        %                  % 
                                         GBPm 
                          --------  ------------                    ------------- 
 OTC Derivatives                93            87          6.9%               7.5% 
 Securities & Reporting         64            63          1.6%               5.1% 
 Non-Cash Collateral            24            22          9.1%              10.5% 
 Total revenue                 181           172          5.2%               7.0% 
 Net Treasury Income            57            55          3.6%               5.2% 
------------------------  --------  ------------  ------------      ------------- 
 Total income                  238           227          4.8%               6.6% 
 Cost of sales                (34)          (32)          6.3%               9.9% 
------------------------  --------  ------------  ------------      ------------- 
 Gross profit                  204           195          4.6%               6.0% 
------------------------  --------  ------------  ------------      ------------- 
 

Non-financial KPIs (1)

 
                                    Q1 2022   Q1 2021   Variance 
                                                            % 
                                   --------  -------- 
 
 OTC 
 SwapClear 
 IRS notional cleared ($trn)            324       271      19.6% 
 SwapClear members                      123       121       1.7% 
 Client trades ('000)                   658       574      14.6% 
 Client average 10-year notional 
  equivalent ($trn)                     4.2       4.8    (12.5%) 
 
 ForexClear 
 Notional cleared ($bn)               6,512     5,474      19.0% 
 ForexClear members                      36        35       2.9% 
 
 CDSClear 
 Notional cleared (EURbn)               927       627      47.8% 
 CDSClear members                        25        26     (3.8%) 
 
 Securities & Reporting 
 EquityClear trades (m)                 647       506      27.9% 
 Listed derivatives contracts 
  (m)                                  77.8      74.9       3.9% 
 RepoClear - nominal value 
  (EURtrn)                             67.5      55.6      21.4% 
 
 Non-Cash Collateral 
 Average non-cash collateral 
  (EURbn)                             172.0     160.6       7.1% 
 
 Net Treasury Income 
 Average cash collateral 
  (EURbn)                             121.5     106.4      14.2% 
---------------------------------  --------  --------  --------- 
 

(1) The Q1 2021 comparator is pro-forma and assumes that the acquisition of Refinitiv took place on 1 January 2021

(2) Variance is the difference between current and prior year periods using FX rates prevalent at each time, therefore any changes in the FX rates are reflected in the variance percentage alongside business performance

(3) Constant currency variance shows underlying financial performance, excluding currency impacts, by comparing the current and prior period at consistent exchange rates

Appendix - Total income by type (1)

 
 Continuing operations              Q1 2022    Pro-forma    Variance(2)         Constant         Constant 
                                                                                Currency         Currency 
                                                                               Variance(3)       Variance 
                                                                                              (excl. deferred 
                                                                                                  revenue 
                                                                                                adjustment) 
                                                                                                   (3,4) 
                                      GBPm     Q1 2021(1)        %                  %                % 
                                                  GBPm 
                                   --------  ------------                    -------------  ----------------- 
 Recurring                            1,273         1,189          7.1%               6.6%               4.9% 
 Transactional                          414           372         11.3%              10.7%              10.7% 
 Net Treasury Income                     57            55          3.6%               5.2%               5.2% 
 Other income                             7             5         40.0%              44.1%              44.1% 
 Total income (excl. recoveries)      1,751         1,621          8.0%               7.6%               6.3% 
 Recoveries                              80            88        (9.1%)               1.6%             (0.5%) 
---------------------------------  --------  ------------  ------------      -------------  ----------------- 
 Total income (incl. recoveries)      1,831         1,709          7.1%               7.3%               6.0% 
---------------------------------  --------  ------------  ------------      -------------  ----------------- 
 

(1) The Q1 2021 comparator is pro-forma and assumes that the acquisition of Refinitiv took place on 1 January 2021

(2) Variance is the difference between current and prior year periods using FX rates prevalent at each time, therefore any changes in the FX rates are reflected in the variance percentage alongside business performance

(3) Constant currency variance shows underlying financial performance, excluding currency impacts, by comparing the current and prior period at consistent exchange rates

(4) Excludes the deferred revenue adjustment further explained in the "Accounting and modelling notes" section

Appendix - Total income and gross profit by quarter (1)

The table below has used FX rates on a YTD average basis which is the basis upon which the Group presents its financials. The 2021 results have been rebased to reflect the minor revenue reclassifications described in the "Accounting and modelling notes" section. Revenues and cost of sales associated with the BETA+ divestment have been classed as discontinued and are excluded in all periods. Revenues and cost of sales associated with the Borsa Italiana Group divestment, completed in H1 2021, are also excluded.

 
 GBPm                                Q1      Q2      Q3      Q4     2021     Q1 
                                   ------  ------  ------  ------  ------ 
 
 Trading & Banking Solutions          372     373     373     375   1,493     378 
                                                                           ------ 
    Trading                           297     297     296     296   1,186     298 
                                           ------  ------  ------  ------  ------ 
    Banking                            75      76      77      79     307      80 
                                           ------  ------  ------  ------  ------ 
 Enterprise Data Solutions            279     282     284     296   1,141     304 
                                           ------  ------  ------  ------  ------ 
    Real Time Data                    178     182     182     188     730     195 
                                           ------  ------  ------  ------  ------ 
    PRS                               101     100     102     108     411     109 
                                           ------  ------  ------  ------  ------ 
 Investment Solutions                 274     286     294     302   1,156     308 
                                           ------  ------  ------  ------  ------ 
    Benchmark Rates, Indices 
     & Analytics                      122     126     136     134     518     137 
                                           ------  ------  ------  ------  ------ 
    Index - Asset-Based                58      64      62      69     253      70 
                                           ------  ------  ------  ------  ------ 
    Data & Workflow                    94      96      96      99     385     101 
                                           ------  ------  ------  ------  ------ 
 Wealth Solutions                      61      62      61      65     249      63 
                                           ------  ------  ------  ------  ------ 
 Customer & Third-Party 
  Risk Solutions                       85      90      92      92     359      94 
---------------------------------  ------  ------  ------  ------  ------  ------ 
 Data & Analytics                   1,071   1,093   1,104   1,130   4,398   1,147 
                                           ------  ------  ------  ------  ------ 
 
 Equities                              61      59      60      61     241      67 
                                           ------  ------  ------  ------  ------ 
 FX                                    57      53      56      57     223      60 
                                           ------  ------  ------  ------  ------ 
 Fixed Income, Derivatives 
  & Other                             200     187     193     205     785     232 
---------------------------------  ------  ------  ------  ------  ------  ------ 
 Capital Markets                      318     299     309     323   1,249     359 
                                           ------  ------  ------  ------  ------ 
 
 OTC Derivatives                       87      82      86     103     358      93 
                                           ------  ------  ------  ------  ------ 
 Securities & Reporting                63      60      60      63     246      64 
                                           ------  ------  ------  ------  ------ 
 Non-Cash Collateral                   22      24      24      25      95      24 
                                           ------  ------  ------  ------  ------ 
 Net Treasury Income                   55      53      47      52     207      57 
---------------------------------  ------  ------  ------  ------  ------  ------ 
 Post Trade                           227     219     217     243     906     238 
                                           ------  ------  ------  ------  ------ 
 
 Other                                  5      10       9      10      34       7 
---------------------------------  ------  ------  ------  ------  ------  ------ 
 Total income (excl. recoveries)    1,621   1,621   1,639   1,706   6,587   1,751 
                                           ------  ------  ------  ------  ------ 
 Recoveries                            88      90      90      86     354      80 
---------------------------------  ------  ------  ------  ------  ------  ------ 
 Total income (incl. recoveries)    1,709   1,711   1,729   1,792   6,941   1,831 
                                           ------  ------  ------  ------  ------ 
 Cost of sales                      (230)   (222)   (227)   (241)   (920)   (240) 
---------------------------------  ------  ------  ------  ------  ------  ------ 
 Gross profit                       1,479   1,489   1,502   1,551   6,021   1,591 
---------------------------------  ------  ------  ------  ------  ------  ------ 
 

(1) Q1 2021 is pro-forma and assumes that the acquisition of Refinitiv took place on 1 January 2021

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April 27, 2022 02:01 ET (06:01 GMT)

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