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LSEG Q3 income rises 9.5%, beating forecasts

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Shares rise to record high, partnership with Microsoft ( MSFT ) on

track

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LSEG's acquires more LCH Group stake

(Adds share move in paragraph 1 and 4, details on capital

markets sales in paragraph 3, analyst comment in paragraph 5)

By Chandini Monnappa

LONDON, Oct 24 (Reuters) - London Stock Exchange Group ( LDNXF )

said on Thursday that its income rose a

better-than-expected 9.5% in the third quarter after strong

growth in its capital markets business, sending its shares to a

record high.

LSEG's total income, excluding recoveries, came in at 2.12

billion pounds ($2.74 billion) in the three months to September

30 on a constant currency basis, topping a company-compiled

analysts' consensus of 2.10 billion pounds.

The exchange, which transformed into a data giant after its

$27 billion acquisition of Refinitiv in 2021, said its capital

markets segment saw sales growth of 22.4% in the third quarter.

Shares in LSEG rose more than 3% to a record 107.7 pounds,

bringing year-to-date gains to 18% against a 7.5% rise in the

FTSE 100 index.

"We expect the market to see this as another healthy update,

supporting the view that the group is well positioned to deliver

on medium term guidance," Ben Bathurst of RBC Capital Markets

said in a note.

LSEG said the annual subscription value (ASV), which

reflects recurring revenue and is closely watched by analysts,

increased 6% in the quarter and is expected to remain around 6%

for the rest of this year.

However, it said it saw a small impact from cancellations

related to Swiss bank Credit Suisse in the period.

In its first quarter, LSEG had said its annual subscription

value was hit by UBS's emergency takeover last year of

Credit Suisse, which reduced demand for LSEG products, but that

the full impact of the deal was still to come.

LSEG, which runs the London Stock Exchange ( LDNXF ) and provides data

and analytics to banks and other institutions, said it continued

to make strong progress in its partnership with Microsoft ( MSFT ) and

that a product timetable was on track.

The company also announced it had bought an additional 8.3%

stake in LCH Group, the London clearing house in which it

already owns a majority stake, for 433 million euros ($467.73

million).

Reuters provides news for LSEG's news and data Workspace

terminal.

($1 = 0.7735 pounds)