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27 July 2023
RESULTS FOR THE SIX MONTHS TO 30 JUNE 2023
RELX, the global provider of information-based analytics and decision tools, reports results for the first half of 2023 and reaffirms the full year outlook.
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First half highlights Ø Revenue £4,499m (£3,969m), underlying growth +8% Ø Adjusted operating profit £1,486m (£1,239m), underlying growth +16% Ø Adjusted profit before tax £1,350m (£1,163m), constant currency growth +12% Ø Adjusted EPS 56.2p (47.2p), constant currency growth +14% Ø Reported operating profit £1,308m (£1,081m) Ø Reported profit before tax £1,137m (£998m) Ø Reported EPS 46.0p (39.5p) Ø Interim dividend 17.0p (15.7p) +8% Ø Net debt/EBITDA 2.2x; adjusted cash flow conversion 95% Ø Completed two acquisitions for a total consideration of £111m Ø Completed £550m of the previously announced £800m share buyback Full year outlook Ø As we enter the second half, 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. |
Chief Executive Officer, Erik Engstrom, commented:
"RELX delivered strong revenue and profit growth in the first half of 2023. The 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."
"By embracing artificial intelligence technologies for well over a decade we have been able to develop and deploy these analytics and decision tools across the company, and we believe that our ability to leverage AI, as it evolves, will continue to be an important driver of our business going forward."
"In recognition of our strong cash flow and financial position we have announced an 8% increase in the interim dividend to 17.0p."
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ENQUIRIES:
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Colin Tennant (Investors) +44 (0)20 7166 5751 |
Paul Abrahams (Media) +44 (0)20 7166 5724 |
Operating and financial review
Revenue £4,499m (£3,969m); underlying growth +8%: Electronic revenue, representing 84% of the total, grew +7%, with a further recovery in face-to-face activity more than offsetting the print drag, bringing the overall group underlying revenue growth rate to +8%.
Adjusted operating profit £1,486m (£1,239m); underlying growth +16%: Our strategy of driving continuous process innovation to manage cost growth below revenue growth, together with the recovery in face-to-face activity, resulted in an improvement in the group adjusted operating margin to 33.0% (31.2%).
Reported operating profit £1,308m (£1,081m): Reported operating profit includes amortisation of acquired intangible assets of £143m (£143m).
Adjusted profit before tax £1,350m (£1,163m); constant currency growth +12%: the adjusted net interest expense increased to £136m (£76m). The average interest rate on gross debt was 4.2% (2.3%).
Reported profit before tax £1,137m (£998m) Reported profit before tax includes a loss on disposal-related items of £35m (£5m). Reported net interest was £136m (£78m).
Tax: The adjusted tax charge was £284m (£255m). The adjusted effective tax rate was 21.0% (21.9%), with the current period benefitting from non-recurring tax credits. The reported tax charge was £264m (£238m).
Adjusted EPS 56.2p (47.2p) +19%; constant currency growth +14%.
Reported EPS 46.0p (39.5p)
Dividend: We are declaring an interim dividend of 17.0p (15.7p), an increase of +8%, returning dividend cover to 2.0x on a 12 month trailing basis.
Net debt/EBITDA 2.2x (2.3x): Net debt at 30 June 2023 was £6.9bn (£6.9bn). Adjusted cash flow conversion was 95% (103%), in line with historical trends.
Portfolio development: In the first half of 2023 we completed two small acquisitions, for a total consideration of £111m, and one small disposal.
Share buybacks: Of the previously announced £800m share buybacks, £550m was completed in the first half. A further £50m has been completed since 1 July, and the remaining £200m will be deployed before the end of the year.
Environmental, social and governance (ESG) recognition: In 2023, RELX achieved a AAA MSCI ESG rating for an eighth consecutive year; maintained its first place sector ranking on ESG by Sustainalytics; placed fifth in the Responsibility100 Index, which measures FTSE 100 companies against the UN Sustainable Development Goals; and was a constituent of the Bloomberg Gender Equality Index for a fifth consecutive year.
RELX FINANCIAL SUMMARY
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Six months ended 30 June |
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Adjusted figures
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2022 |
2023 £m |
Change |
Change at constant currencies |
Change underlying |
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Revenue |
3,969 |
4,499 |
+13% |
+9% |
+8% |
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Operating profit |
1,239 |
1,486 |
+20% |
+15% |
+16% |
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Operating margin |
31.2% |
33.0% |
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Net interest expense |
(76) |
(136) |
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Profit before tax |
1,163 |
1,350 |
+16% |
+12% |
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Tax charge |
(255) |
(284) |
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Net profit attributable to shareholders |
909 |
1,067 |
+17% |
+13% |
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Cash flow |
1,280 |
1,408 |
+10% |
+4% |
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Cash flow conversion |
103% |
95% |
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Earnings per share |
47.2p |
56.2p |
+19% |
+14% |
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Dividend |
2022 |
2023 |
Change |
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Ordinary dividend per share |
15.7p |
17.0p |
+8% |
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Reported figures |
2022 |
2023 £m |
Change |
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Revenue |
3,969 |
4,499 |
+13% |
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Operating profit |
1,081 |
1,308 |
+21% |
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Profit before tax |
998 |
1,137 |
+14% |
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Net profit attributable to shareholders |
761 |
874 |
+15% |
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Net margin |
19.2% |
19.4% |
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Net debt |
6,932 |
6,883 |
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Earnings per share |
39.5p |
46.0p |
+16% |
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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 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. Constant currency growth rates are based on 2022 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: compromises of RELX cyber security systems or other unauthorised access to our databases; regulatory and other changes regarding the collection, transfer or use of third‐party content and data; changes in law and legal interpretations affecting RELX intellectual property rights and internet communications; current and future geopolitical, economic and market conditions; changes in economic cycles, communicable disease epidemics or pandemics, severe weather events, natural disasters and terrorism; changes in tax laws and uncertainty in their application; changes in the payment model for RELX products; competitive factors in the industries in which RELX operates and demand for RELX products and services; failure of third parties to whom RELX has outsourced business activities; breaches of generally accepted ethical business standards or applicable laws; significant failure or interruption of RELX systems; inability to realise the future anticipated benefits of acquisitions; inability to retain high-quality employees and management; exchange rate fluctuations 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.
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 35,000 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 £48bn/€56bn/$62bn.
London WC2N 5JR
United Kingdom
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