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LSEG forecasts 6.5%-7.5% income growth for 2025

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Partnership with Microsoft ( MSFT ) reaches milestone, new products

available

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LSEG declares 13% increase in annual dividend to 130 pence

per

share

(Writes through)

Feb 27 (Reuters) - London Stock Exchange Group ( LDNXF )

gave guidance on Thursday for continued growth and improving

profitability in 2025, citing a strong pipeline of innovations

to enhance its Workspace product and boost annual subscription

values.

The company, which runs the London Stock Exchange ( LDNXF ) and

provides data and analytics to banks and other institutions,

said it expects its 2025 annual income to grow between 6.5% and

7.5%, after reporting 2024 income slightly ahead of analysts'

expectations.

LSEG's upper estimate for 2025 income growth is above the

7.1% growth analysts forecast, according to a company compiled

poll. The company said it is looking to grow EBITDA margins by

around 250 bps between 2024-2026, against a 2023 baseline.

Pointing to highlights in 2024, CEO David Schwimmer said

LSEG had reached an important milestone in its partnership with

Microsoft ( MSFT ), with the first products now generally

available for customers.

The rollout was complemented by an "exceptional" year for

Tradeweb and continued significant progress across products and

geographies in its Post Trade business, Schwimmer added.

However, annual subscription value (ASV), which reflects

recurring revenue and is closely watched by analysts, rose 6.3%

last year, slowing from 7.4% growth the previous year.

"There was a building level of angst in the market heading

into this print, so what LSEG has delivered should be

well-received," analysts at Jefferies said in a note.

LSEG, which transformed into a data giant after its $27

billion acquisition of Refinitiv in 2021, declared an annual

dividend of 130 pence per share, up 13% from a year earlier.

Its total income, on a constant currency basis and excluding

recoveries, rose 8.4% to 8.49 billion pounds for 2024, slightly

ahead of a company-compiled analysts' average estimate of 8.47

billion pounds.

In 2022, LSEG had said that Microsoft ( MSFT ) would buy a 4% stake

worth $2 billion in the group, making its data and analytics

available through Microsoft Teams, and Schwimmer had said

customers would see the benefits from 2024.

Reuters provides news for LSEG's news and data terminal

Workspace.

($1 = 0.7900 pounds)