00:00Top-line growth of 7.6%, operating margin improvement of over 200 basis points,
00:04so great operating leverage across the business.
00:07We're seeing strong performance across the business.
00:10We're seeing strong demand for our data through new AI distribution channels.
00:15And this is a business that does generate a lot of cash flow.
00:18So we are in a very healthy, strong position to take advantage of some of the dislocation in the shares.
00:24So we have announced a record buyback this morning, 3 billion pounds,
00:27largest buyback we've ever done.
00:30But what that does is that it allows us to, as I said, return surplus capital to shareholders,
00:37address some of the dislocation in the stock, but also maintain strategic flexibility for the business.
00:42We're not over-levering the business.
00:44Is it been frustrating for you watching what's been happening to the share price,
00:48given the strength in the business that you're pointing to in these earnings,
00:51to see your shares hit to the extent that they have been along with others in the sector?
00:56I think for us the focus is on executing.
00:58The focus is on delivering.
01:00The stock price, the markets, broadly, will do what the markets will do.
01:04Sometimes they seem very rational.
01:06Sometimes there seems to be some sort of indiscriminate activity
01:10and waves of either buying or selling in different sectors.
01:15From our perspective, we focus on delivering for our shareholders, executing for our customers.
01:22In terms of the pace of the financial markets data subscriptions, this is a big focus for the business.
01:29You mentioned it in the first answer that you gave us just there.
01:31Is that actually improving in terms of the data subscriptions model that you increasingly want to go to?
01:39So a couple ways to think about that.
01:41If you look at our annual subscription value growth metric, that we are at 5.9%, which is higher than
01:48what the market expected.
01:50We also are seeing, as I mentioned earlier, in terms of distribution of our data through new distribution channels with
01:58our AI partners.
01:59And these are the likes of Claude at Anthropic and ChatGPT with OpenAI.
02:04And we have a number of similar partnerships with others, like Databricks and Snowflake.
02:09We just turned these on a couple months ago.
02:12This is a new distribution channel for us and for the industry.
02:16And we're seeing very strong demand for accessing our data through these channels.
02:23And again, to be clear, if you are a user of our data or you want to access our data
02:28through these channels,
02:29you have to have a direct license with LSEG.
02:31But what's really interesting about this is that we're seeing both existing customers accessing our data through these new channels.
02:39We're seeing some new users at existing customers trying to access our data through these new channels, which is great.
02:45And then we're also seeing new customers looking to access our data through these new channels.
02:50So from our perspective, and this is playing out in the numbers, we're seeing the AI capabilities and partnerships as
03:01an expansion of our addressable market, as an expansion of distribution for us.
03:07And Dave, I should say at this point, the parent company of Bloomberg News competes with LSEG to provide news
03:12trading services and data to the financial industry as well.
03:15But given what you've just talked about in the development of that business, does that not add strength to the
03:20argument that perhaps you should consider spinning off the stock exchange business?
03:24So we have a core strategic approach that includes serving our customers across the trade lifecycle.
03:33So that's pre-trade, trade, and post-trade on a global basis and across asset classes.
03:39The London Stock Exchange is a core part of that.
03:42It is a primary capital execution venue.
03:48It also creates data for us to provide to our users and to our customers.
03:55And we have zero intention of selling off that business.
04:00Zero intention?
04:01Zero intention.
04:02Okay.
04:03That's despite the plunge in listings that LSEG saw last year, not in the top 20 global IPO destinations.
04:11Also, let me just, yeah, you want to clarify?
04:14Well, so if you, you use that metric, that's for the first three quarters of last year.
04:19If you look at last year in the fourth quarter, the IPO window opened.
04:23And as you know, the IPO window closes sometimes and it opens sometimes.
04:28IPOs in London last year, when you include the fourth quarter, it was the best year since 2021.
04:33We also saw very healthy activity in the secondary market in terms of secondary raises.
04:40And that was close to 20 billion pounds.
04:44So the market continues to be very healthy.
04:47Lots of access to capital.
04:48A strong pipeline for this year.
04:50How much pressure are you under from Elliott Management?
04:54The share buyback is not as big as Bloomberg was reporting that Elliott Management was pushing for earlier this month.
05:02And the question of selling off or divesting the stock exchange business is also perhaps part of the thinking about
05:09Elliott.
05:10How much pressure are you under from them for changes?
05:13So as my kids like to say, pressure is for tires.
05:17We have lots of shareholders.
05:21Some of them are more vocal than others.
05:24We listen to all of our shareholders.
05:26We're happy to engage with our shareholders.
05:28Some of them communicate very quietly and have great ideas.
05:31Are you in discussions with Elliott Management?
05:33We have had discussions with Elliott, but we talk to all of our shareholders.
05:36We've had a lot of discussions with our shareholders, especially over the past couple weeks, since a lot of this
05:42has been public.
05:44So I would say they're very different views amongst many of our shareholders.
05:49Some are of the view that the strategic approach we've been taking over the last several years is very much
05:57on target and that we have been executing very well.
06:00And I think the numbers that we put out this morning reflect that.
06:04Again, strong, consistent top line growth, strong margin improvement, strong allocation of capital.
06:11Other shareholders can have different views, and that's fine.
06:14We try to listen to all of our shareholders.
06:16We can't always make all of them happy.
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