RELX PLC (RELX) Q4 2022 Earnings Call Transcript

For the period ending December 31, 2022

February 16, 2023 3:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Erik Engstrom

Good morning, everybody. Thank you for taking the time to join us today. As you may have seen from our press release this morning, we delivered strong financial results in 2022. We made further operational and strategic progress, and we also performed well on our corporate responsibility priorities.

Underlying revenue growth was 9%. Underlying adjusted operating profit growth was 15%. Adjusted earnings per share growth was 10% at constant currencies, and we're proposing an increase in the pound sterling full-year dividend of 10%. All four business areas grew well, with underlying adjusted operating profit growth in-line with or ahead of underlying revenue growth.

So, let's look at the results for each business area. In Risk, strong fundamentals continue to drive underlying revenue growth. Underlying revenue growth was 8%, up from 7% in the first nine months of the year, with underlying adjusted operating profit growth broadly in-line with underlying revenue growth.

Business services, which represents around 45% of divisional revenue, continued to deliver strong revenue growth in financial crime and compliance and fraud and identity. And we have recently strengthened our customer proposition with small acquisitions in compliance and behavioral biometrics.

In Insurance, representing just under 40% of divisional revenue, the positive momentum that started in the first half strengthened through the remainder of the year supported by further improvement in key market factors such as shopping activity. Specialized industry data services, which represents just over 10% of divisional revenue, saw strong growth overall, with commodity intelligence growing particularly strongly and other segments, including aviation, returning to historical growth rates.

Government, representing just over 5% of divisional revenue, continued to grow strongly. Going forward, we expect strong underlying revenue growth in line with historical trends, with underlying adjusted operating profit growth broadly matching underlying revenue growth.

In STM, further development of analytics continue to drive an improvement in underlying revenue growth to 4%, up from 3% last year, reflecting the ongoing shift in business mix towards higher growth analytics and a reducing print track. Underlying adjusted operating profit growth was slightly ahead of revenue growth at 5%.

In databases, tools and electronic reference, and corporate primary research, which together represent around 45% of divisional revenue, continued strong growth across research, clinical and commercial markets, was driven by further content development and enhanced analytics and decision tools.

In primary research, academic and government segments, which also represent around 45% of divisional revenue, growth was driven by a higher volume of articles both submitted and published, with pay-to-publish open access growing particularly strongly. So far this year, renewal completion and new sales are going well. Going forward, we expect underlying revenue growth to remain above historical trends, with underlying adjusted operating profit growth slightly exceeding underlying revenue growth.