(Reuters) - London Stock Exchange Group gave guidance on Thursday for continued growth and improving profitability in 2025, citing a strong pipeline of innovations to enhance its Workspace product and boost annual subscription values.

The company, which runs the London Stock Exchange and provides data and analytics to banks and other institutions, said it expects its 2025 annual income to grow between 6.5% and 7.5%, after reporting 2024 income slightly ahead of analysts' expectations.

LSEG's upper estimate for 2025 income growth is above the 7.1% growth analysts forecast, according to a company compiled poll. The company said it is looking to grow EBITDA margins by around 250 bps between 2024-2026, against a 2023 baseline.

Pointing to highlights in 2024, CEO David Schwimmer said LSEG had reached an important milestone in its partnership with Microsoft, with the first products now generally available for customers.

The rollout was complemented by an "exceptional" year for Tradeweb and continued significant progress across products and geographies in its Post Trade business, Schwimmer added.

However, annual subscription value (ASV), which reflects recurring revenue and is closely watched by analysts, rose 6.3% last year, slowing from 7.4% growth the previous year.

"There was a building level of angst in the market heading into this print, so what LSEG has delivered should be well-received," analysts at Jefferies said in a note.

LSEG, which transformed into a data giant after its $27 billion acquisition of Refinitiv in 2021, declared an annual dividend of 130 pence per share, up 13% from a year earlier.

Its total income, on a constant currency basis and excluding recoveries, rose 8.4% to 8.49 billion pounds for 2024, slightly ahead of a company-compiled analysts' average estimate of 8.47 billion pounds.

In 2022, LSEG had said that Microsoft would buy a 4% stake worth $2 billion in the group, making its data and analytics available through Microsoft Teams, and Schwimmer had said customers would see the benefits from 2024.

Reuters provides news for LSEG's news and data terminal Workspace. ($1 = 0.7900 pounds)

(Reporting by Chandini Monnappa in Bengaluru; Editing by Savio D'Souza and Sinead Cruise in London; Editing by Susan Fenton)

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