As reported by RELX on Thursday, 19 October:
Highlights
- Underlying revenue growth year to date +8%
Full year outlook
- As we enter the final quarter, momentum remains strong across the group, and we expect underlying growth rates in revenue and adjusted operating profit to remain above historical trends, driving another year of strong growth in adjusted earnings per share on a constant currency basis.
Risk (35% of H1 2023 revenue)
- Underlying revenue growth YTD +8%
- Growth continues to be driven by our deeply embedded analytics and decision tools across segments. Business Services growth was driven by Financial Crime Compliance and digital Fraud & Identity solutions. Insurance growth reflected continued new sales momentum and positive market factors. Specialised Industry Data Services has continued to deliver strong growth.
- Full year outlook: We expect another year of strong underlying revenue growth, in line with historical trends, with underlying adjusted operating profit growth broadly matching underlying revenue growth.
Scientific, Technical & Medical (33% of H1 2023 revenue)
- Underlying revenue growth YTD +4%
- Growth continues to be driven by the evolution of the business mix, with higher growth segments representing an increasing proportion of divisional revenue. Databases, Tools & Electronic Reference growth was driven by content development and further evolution of higher value-add analytics and decision tools. Primary Research growth was driven by article submissions, with pay-to-publish open access articles continuing to grow particularly strongly.
- Full year outlook: We expect underlying revenue growth to remain above historical trends, with underlying adjusted operating profit growth slightly exceeding underlying revenue growth.
Legal (20% of H1 2023 revenue)
- Underlying revenue growth YTD +6%
- Improving growth was driven by the continuing shift in business mix towards higher growth legal analytics. Lexis+, our integrated platform with leading analytics, leveraging extractive AI functionality, continues to see increasing customer adoption and usage across markets. The customer testing phase of Lexis+ AI, our new platform leveraging generative AI functionality, has progressed well.
- Full year outlook: We expect continued strong underlying revenue growth, with underlying adjusted operating profit growth continuing to exceed underlying revenue growth.
Exhibitions (12% of H1 2023 revenue)
- Underlying revenue growth YTD +32%
- Average like-for-like event revenue across the portfolio continues to run ahead of pre-pandemic levels, with increased exhibitor usage of a growing range of digital tools.
- Full year outlook: We expect a year of strong underlying revenue growth. The operating result will continue to benefit from the structurally lower cost base, with full year adjusted operating margin expected to be above pre-pandemic levels.
Underlying growth rates are calculated at constant currencies, excluding the results of acquisitions until twelve months after purchase, and excluding the results of disposals and assets held for sale. Underlying revenue growth rates also exclude exhibition cycling, and timing effects.
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