London Stock Exchange Group Earnings: A Good 2023; Focus Will Shift Toward Microsoft Partnership

We maintain our GBX 9,800 per share fair value estimate for London Stock Exchange Group after it posted a good set of results. Total income of GBP 8.01 billion in 2023 (up 8% versus a year ago) was supported by a good performance across its three main segments. Particularly noteworthy, London Stock Exchange’s exposure to the rapidly expanding and successful Tradeweb fixed-income business has resulted in an outstanding 6% income growth in the capital markets segments. Other European exchange groups were not as successful in offsetting weaker performances in primary and secondary markets in 2023. Our wide moat rating is unchanged.