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Relx revenue, earnings growth 'above historical trends'

By Josh White

Date: Thursday 21 Oct 2021

Relx revenue, earnings growth 'above historical trends'

(Sharecast News) - Business information and analytics provider Relx reported underlying revenue growth of 6% in the first nine months of 2021 on Thursday, adding that it expected full-year underlying growth rates in revenue and adjusted operating profit, as well as constant currency growth in adjusted earnings per share, to be above historical trends.
The FTSE 100 company said underlying revenue growth in its risk division was at 10%, and within that, in business services, demand for fraud prevention and identity solutions was driving double digit growth.

It said insurance growth was driven by strong new sales and further expansion in adjacent verticals, while data services showed "varying dynamics" across segments, but recently returned to strong growth overall.

Government, meanwhile, continued to grow strongly.

"We expect underlying revenue growth to be slightly above historical trends, with underlying adjusted operating profit growth broadly matching underlying revenue growth," the Relx board said of its outlook for the risk division.

In its scientific, technical and medical operations underlying revenue growth was 4%, with electronic revenue, accounting for 87% of the divisional total, continuing to grow "well", while print revenue remained stable.

Primary research growth was driven by continued market share gains in both subscription and open-access payment models.

Databases and tools, and 'e-reference', continued to grow strongly.

"We expect underlying revenue growth to be slightly above historical trends, with underlying adjusted operating profit growth slightly exceeding underlying revenue growth," the directors said.

In legal, underlying revenue growth was at 3%, with electronic revenue, making up 88% of the divisional total, continuing to grow well, while print revenue declined broadly in line with historical trends.

Relx said the increased adoption of its integrated research products and legal analytics continued to drive good renewal rates and strong new sales.

"We expect underlying revenue growth to be slightly above historical trends, with underlying adjusted operating profit growth exceeding underlying revenue growth."

Finally, in exhibitions, underlying revenue growth was at 9%, with that growth driven by a gradual reopening of exhibition venues across geographies.

"We expect strong underlying revenue growth, with total costs broadly matching total revenue for the full year," the board said of the exhibitions business.

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