LONDON (Reuters) – The London Stock Exchange Group reported a 3.9% rise in total income in the first quarter as it continued to integrate its $27 billion acquisition of data and analytics company Refinitiv.
The group said in a trading statement on Wednesday that its divestment of Borsa Italiana was progressing well and expected to be completed in the second quarter.
About 40 million pounds ($55.5 million) of cost synergies from the Refinitiv takeover have already been realised on a run-rate basis and new products arising from the combination now launched, the exchange said.
The exchange said it remained confident of achieving 25% of the announced 350 million pounds run-rate cost synergy target by the end of 2021, in line with previous guidance.
RBC analysts said the “robust” first quarter figures pointed to a strong start in the delivery of cost synergies.
The group completed its $27 billion takeover of Refinitiv in January, turning the 300-year old exchange into a financial market data giant overnight, although still number two behind leader Bloomberg LP.
In March, the company spooked markets by announcing integrating Refinitiv would cost a higher-than-expected $1 billion, sending LSE shares tumbling. Its stock price has fallen more than 20% since March 4.
In a further setback, Refinitiv’s data terminals suffered a blackout lasting several hours this month.
($1 = 0.7206 pounds)
(Reporting by Huw Jones and Muvija M.; Editing by Carmel Crimmins and Edmund Blair)
