RELX (REL) H2 2023 earnings summary

Executive summary

• Strong 2023 results: underlying revenue and adjusted operating profit each grew 8%; adjusted EPS rose 11% at constant currency.

• Operational and strategic progress continued, with positive momentum supporting guidance for another year of strong underlying revenue and adjusted operating profit growth in 2024.

Financial highlights

• Revenue was £9,161m, up 7% reported and 8% underlying; adjusted operating profit was £3,030m, up 13% reported and 13% underlying.

• Adjusted operating margin increased to 33.1% from 31.4%; adjusted net profit was £2,156m versus £1,961m, and adjusted EPS was 114.0p versus 102.2p.

• Free cash flow was £1,988m versus £1,970m; adjusted cash flow conversion was 98% versus 101%.

Outlook and guidance

• 2024 outlook: strong underlying revenue growth, adjusted operating profit growth and adjusted EPS growth at constant currency.

• Risk expects continued strong underlying revenue growth, with adjusted operating profit growth slightly exceeding revenue growth.

• STM expects continued good underlying revenue growth, with adjusted operating profit growth slightly exceeding revenue growth.

• Legal expects continued strong underlying revenue growth, with adjusted operating profit growth exceeding revenue growth.

• Exhibitions expects strong underlying revenue growth and further adjusted operating margin improvement; the overall leverage target range is 2.0–2.5x net debt/EBITDA.