London Stock Exchange alerts supply chain issues will affect IT spend

LSEG said it was on track to achieve cost savings from the alliance of data platform Refinitiv after a stable third quarter

 

The London Stock Exchange Group (LSEG) said it was on track to achieve cost savings from the

The London Stock Exchange Group (LSEG) said it was on track to achieve cost savings from the alliance of data platform Refinitiv after a stable third quarter, but alerted that supply chain shortages could affect the timings of the technology spending.

 

London stock exchange said that pro forma underlying income was 1.78 billion pounds in the quarter ended on September, from 1.75 billion pounds a year earlier that helped by a increased in stock trading volumes and initial public offerings (IPO).

 

Its data and analytics unit, which houses Refinitiv, posted a fall of 0.3 percent in pro forma income, with a decline in the earnings from its Trading & Banking solutions business.

 

Chief Executive Officer, David Schwimmer said in a statement, "We are making excellent progress on the integration of Refinitiv and are comfortably on track to achieve 125 million pounds of cost synergies in 2021, ahead of our original phasing."

 

LSEG said it expected year to April income to increase by between 4 or 5 percent, but for income in the fourth quarter may not grow as fast as it did in the third quarter.

 

LSEG without giving out the details has said that there was no change to previous cost or capital expenditure plans, however, supply chain pressures may impact the timing of some of the technology spend this year.

 

Refinitiv, the data platform was carved out from Thomson Reuters, parent of Reuters News, and in 2018 by a consortium led by Blackstone before being bought by LSEG in a USD 27 billion deal which was finalised earlier in January.

 

Schwimmer, with this takeover is trying to transform LSEG into a one-stop shop for data, trading and analytics, however the costs of absorbing the data provider have worried several investors.

 

LSEG's shares fell by around 17 percent since the start of the new fiscal year when comments about the cost of the Refinitiv integration scared several investors.

 

 

India Scanner News Network

Leave a comment