25 July
2024
RESULTS FOR THE SIX MONTHS TO 30 JUNE 2024
RELX, the global provider of information-based analytics and
decision tools, reports results for the first half of 2024 and
reaffirms the full year outlook.
First half highlights
Ø Revenue
£4,641m (£4,499m), underlying growth +7%
Ø Adjusted
operating profit £1,583m (£1,486m), underlying growth
+10%
Ø Adjusted
EPS 59.5p (56.2p), constant currency growth +10%
Ø Reported
operating profit £1,431m (£1,308m)
Ø Reported
EPS 52.6p (46.0p)
Ø Interim
dividend 18.2p (17.0p) +7%
Ø Net
debt/EBITDA 2.0x; adjusted cash flow conversion 95%
Ø Completed
two acquisitions for a total consideration of £61m
Ø Completed
£700m of the previously announced £1,000m share buyback
Full year outlook
Ø We
continue to see positive momentum across the group, and we expect
another year of strong underlying growth in revenue and adjusted
operating profit, as well as strong growth in adjusted earnings per
share on a constant currency basis.
Chief Executive Officer, Erik Engstrom,
commented:
"RELX delivered strong revenue and profit growth in the first
half of 2024. Our improving long-term growth trajectory continues
to be driven by the ongoing shift in business mix towards higher
growth analytics and decision tools that deliver enhanced value to
our customers across market segments."
"We
develop and deploy these tools across the company by leveraging
deep customer understanding to combine leading content and data
sets with powerful artificial intelligence and other technologies.
This has been a key driver of the evolution of our business for
well over a decade, and will remain a key driver of customer value
and growth in our business for many years to
come."
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ENQUIRIES:
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Colin Tennant (Investors)
+44 (0)20 7166 5751
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Paul Abrahams (Media)
+44 (0)20 7166 5724
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Operating and financial review
Revenue £4,641m (£4,499m); underlying growth
+7%: Electronic revenue,
representing 84% of the total, also grew +7%, with the strong
growth in face-to-face activity offsetting the print
decline.
Adjusted operating profit £1,583m (£1,486m); underlying growth
+10%: Our strategy of driving
continuous process innovation to manage cost growth below revenue
growth led to an improvement in the group adjusted operating margin
to 34.1% (33.0%).
Reported operating profit £1,431m (£1,308m):
Reported operating profit includes amortisation of
acquired intangible assets of £131m (£143m).
Adjusted profit before tax £1,450m (£1,350m):
The adjusted net interest expense was £133m
(£136m). The average interest rate on gross debt was 4.1%
(4.2%).
Reported profit before tax £1,295m
(£1,137m).
Tax: The adjusted tax charge
was £334m (£284m). The adjusted effective tax rate was 23.0%
(21.0%), with the prior period benefitting from non-recurring tax
credits. The reported tax charge was £309m (£264m).
Adjusted EPS 59.5p (56.2p); constant currency growth
+10%.
Reported EPS 52.6p (46.0p).
Dividend: We are declaring an
interim dividend of 18.2p (17.0p), an increase of +7%. The interim
dividend will be paid on 5 September 2024, with an ex-dividend date
of 1 August 2024 and a record date of 2 August 2024. Shareholders
on the Register of Members or holding shares in CREST will
automatically receive their dividends in Pounds Sterling (but may
elect to receive their dividends in Euro). Shareholders who hold
shares through Euroclear Nederland will automatically receive their
dividend in Euro (but may elect to receive their dividend in Pounds
Sterling). The closing date for currency elections is 16 August
2024 (by 5pm London time). Dividend Reinvestment Plans are
available for shares trading on the London Stock Exchange and
Euronext Amsterdam. The closing date for elections in relation to
participation in the Company's Dividend Reinvestment Plans is also
16 August 2024 (by 5pm London time).
Portfolio development: In the
first half of 2024 we completed two small acquisitions, for a total
consideration of £61m, and three small disposals for a total
consideration of £52m.
Net
debt/EBITDA 2.0x (2.2x): Net debt at
30 June 2024 was £6,973m (£6,883m). Adjusted cash flow conversion
was 95% (95%).
Share buybacks: Of the
previously announced £1,000m share buyback, £700m was completed in
the first half. A further £50m has been completed since 1 July, and
the remaining £250m will be deployed before the end of the
year.
Corporate responsibility and ESG recognition:
RELX currently has an AAA MSCI ESG rating which it
has held for nine consecutive years, is ranked second in our sector
by Sustainalytics, and has been a constituent of the Bloomberg
Gender Equality Index for six consecutive years.
RELX FINANCIAL SUMMARY
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Six
months ended 30 June
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Adjusted figures
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2023
£m
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2024
£m
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Change
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Change at
constant currency
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Change
underlying
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Revenue
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4,499
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4,641
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+3%
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+7%
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+7%
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EBITDA
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1,736
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1,841
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Operating profit
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1,486
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1,583
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+7%
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+10%
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+10%
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Operating margin
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33.0%
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34.1%
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Net interest expense
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(136)
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(133)
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Profit before tax
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1,350
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1,450
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Tax charge
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(284)
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(334)
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Net profit attributable to
shareholders
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1,067
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1,115
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Cash flow
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1,408
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1,498
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Cash flow conversion
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95%
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95%
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Earnings per share
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56.2p
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59.5p
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+6%
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+10%
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Dividend
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2023
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2024
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Change
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Ordinary dividend per
share
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17.0p
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18.2p
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+7%
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Reported figures
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2023
£m
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2024
£m
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Change
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Revenue
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4,499
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4,641
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+3%
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Operating profit
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1,308
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1,431
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+9%
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Profit before tax
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1,137
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1,295
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Net profit attributable to
shareholders
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874
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985
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Net
margin
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19.4%
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21.2%
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Net debt
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6,883
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6,973
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Earnings per share
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46.0p
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52.6p
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+14%
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RELX uses adjusted figures as additional performance measures.
Adjusted figures primarily exclude the amortisation of acquired
intangible assets and other items related to acquisitions and
disposals, and the associated deferred tax movements. Underlying
growth rates are calculated at constant currency, 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. Constant currency growth rates are based on
2023 full-year average and hedge exchange rates.
Disclaimer regarding forward-looking
statements
This announcement contains
forward-looking statements within the meaning of Section 27A of the
US Securities Act of 1933, as amended, and Section 21E of the US
Securities Exchange Act of 1934, as amended. These statements are
subject to risks and uncertainties that could cause actual results
or outcomes of RELX PLC (together with its subsidiaries, "RELX",
"we" or "our") to differ materially from those expressed in any
forward-looking statement. We consider any statements that are not
historical facts to be "forward-looking statements". The terms
"outlook", "estimate", "forecast", "project", "plan", "intend",
"expect", "should", "could", "will", "believe", "trends" and
similar expressions may indicate a forward-looking statement.
Important factors that could cause actual results or outcomes to
differ materially from estimates or forecasts contained in the
forward-looking statements include, among others: regulatory and
other changes regarding the collection or use of personal data;
changes in law and legal interpretation affecting our intellectual
property rights and internet communications; current and future
geopolitical, economic and market conditions; changes in the
payment model for our scientific, technical and medical research
products; competitive factors in the industries in which we operate
and demand for our products and services; our inability to realise
the future anticipated benefits of acquisitions; compromises of our
cybersecurity systems or other unauthorised access to our
databases; changes in economic cycles, communicable disease
epidemics or pandemics, severe weather events, natural disasters
and terrorism; failure of third parties to whom we have outsourced
business activities; significant failure or interruption of our
systems; our inability to retain high-quality employees and
management; changes in tax laws and uncertainty in their
application; exchange rate fluctuations; adverse market conditions
or downgrades to the credit ratings of our debt; changes in the
market values of defined benefit pension scheme assets and in the
market related assumptions used to value scheme liabilities;
breaches of generally accepted ethical business standards or
applicable laws; and other risks referenced from time to time in
the filings of RELX PLC with the US Securities and Exchange
Commission. You should not place undue reliance on these
forward-looking statements, which speak only as of the date of this
announcement. Except as may be required by law, we undertake no
obligation to publicly update or release any revisions to these
forward-looking statements to reflect events or circumstances after
the date of this announcement or to reflect the occurrence of
unanticipated events.
Notes for Editors
About RELX
RELX is a global provider of
information-based analytics and decision tools for professional and
business customers. RELX serves customers in more than 180
countries and has offices in about 40 countries. It employs more
than 36,000 people over 40% of whom are in North
America.
The shares of RELX PLC, the parent
company, are traded on the London, Amsterdam and New York stock
exchanges using the following ticker symbols: London: REL;
Amsterdam: REN; New York: RELX. The market capitalisation is
approximately £65bn/€77bn/$84bn.
RELX PLC
1‑3 Strand
London WC2N 5JR
United Kingdom
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