LSEG third-quarter income rises as Tradeweb lifts trading unit

London Stock Exchange Group reported higher third-quarter income, helped by strong growth in a trading business tied to Tradeweb. For everyday investors, the update is a reminder that LSEG is no longer mainly a story about the London stock exchange itself: the company said it makes more money from data and analytics than from the market that carries its name.

The company said third-quarter gross profit rose 8.5% to £1.92 billion, equal to about $2.5 billion. LSEG also said total income excluding recoveries increased 7.7% to £2.12 billion.

On an organic basis, total income excluding recoveries grew 8.7%, according to LSEG. Organic growth is a way companies describe performance after stripping out some effects such as acquisitions, disposals or currency moves, so investors can get a cleaner view of how the existing business is performing.

Tradeweb was the standout

LSEG said its fixed income and derivatives unit was its fastest-growing division in the quarter. The business posted 27.3% organic growth, driven by interest-rate revenue from Tradeweb, according to the company.

Fixed income refers to debt markets, including bonds, while derivatives are financial contracts whose value is linked to another asset or benchmark, such as interest rates. Tradeweb is part of the company’s volume-based businesses, meaning revenue can rise when more trading activity flows through its platforms.

That distinction matters for understanding the quarter. Subscription products, such as data and analytics tools, can create recurring revenue, while volume-based businesses are more tied to how active customers are in the market. LSEG said both areas contributed to the period.

CEO points to subscriptions and volume-based businesses

Chief Executive David Schwimmer said in a company statement that LSEG “delivered a particularly strong quarter,” citing growth in subscriptions and “very strong performance” in its volume-based businesses.

The company did not frame the update around the stock exchange operation alone. Instead, its reported figures showed momentum in the broader market infrastructure business, especially where trading activity and interest-rate products connect with Tradeweb.

LSEG’s reported numbers give investors a snapshot of how the group is making money across its mix of data, analytics and trading businesses. In the third quarter, the fastest growth came from fixed income and derivatives, while the overall group posted higher gross profit and higher total income excluding recoveries.

This story draws on original reporting from MarketWatch.