London Stock Exchange Group PLC (LSE.LN) said Friday that its revenue and profit rose strongly in 2018, but investment means it won’t hit its previously stated cost and margin targets this year.
The exchange operator made an adjusted operating profit of 931 million pounds ($1.24 billion), up 15% from the prior year. Including depreciation, amortization and impairment costs, operating profit rose 20% to GBP751 million.
LSE Group’s revenue climbed 8% to GBP1.91 billion. Revenue from the FTSE Russell index business rose 8% on an organic, constant-currency basis, while LCH over-the-counter clearing revenue climbed 17% on the same basis.
Chief Executive David Schwimmer, who joined in August from Goldman Sachs Group Inc. GS, +0.76% said Brexit hadn’t affected LSE Group’s market position and the company intends to keep investing.
That investment means LSE Group has abandoned previous targets for holding operating expenses at 4% growth annually between 2017 and 2019. Operating expenses rose 6% in 2018 on an organic and constant-currency basis. LSE Group also said it is unlikely to achieve a goal of a 55% Ebitda margin in 2019, with the margin at 49.9% in 2018.
LSE Group declared a final dividend of 43.2 pence a share, bringing its total dividend to 60.4 pence a share.