London Stock Exchange Group: Increased Volatility Drives Good Performance of Markets Segment

London Stock Exchange Group reported first-quarter income of GBP 2,360 million, in line with company-compiled consensus. Income growth of 7.5% on an organic basis was good, supported by a strong performance in the markets segment. Increased market volatility drove good results across equities, foreign-exchange, and over-the-counter derivatives trading and clearing. Tradeweb continued to grab market share in the first quarter, growing its average daily volume by 34%. The index business also reported a good quarter with subscription and asset-based income up 8% and 13%, respectively. The segment saw healthy demand for its index products and benefited from higher market levels. Data and analytics posted 5% organic growth. LSEG sees good sales activity for its current offering as well as newly developed products. We maintain our GBX 11,200 fair value estimate and wide moat rating.