RELX(US:RELX)2020-02-15 01:02Financial Data and Key Metrics Changes - The company reported a 4% underlying revenue growth for 2019, with a 7% growth in earnings per share (EPS) at constant currencies and a 5% growth in sterling revenue, translating to a 10% increase in sterling adjusted EPS [2][7][23] - Cash flow conversion remained strong at 96%, and the company proposed a 9% increase in the full-year dividend to 45.7p [2][23] - Adjusted operating profit growth was 5%, leading to a margin improvement of 30 basis points, with the adjusted operating profit margin reaching 31.6% [23][28] Business Line Data and Key Metrics Changes - In the STM segment, underlying revenue growth was 2%, consistent with the prior year, driven by electronic revenues despite print declines [7][10] - Risk & Business Analytics (RBA) experienced a strong growth of 7% in revenue and 8% in operating profit, with growth driven by enhanced analytics and dataset extensions [11][13] - Legal segment saw a 2% revenue growth and an 8% profit growth, aided by efficiency gains and process improvements [14][26] - Exhibitions reported a 6% revenue growth, with a decline in underlying operating profit due to cycling-out effects [16][24] Market Data and Key Metrics Changes - The U.S. market environment improved gradually throughout 2019, although it was less supportive than the prior year [11] - The company noted that the market conditions remained strong in Europe and the U.S., with good growth in China [16] - Currency movements positively impacted sterling reported revenues across all business areas by 2% to 4% [25][27] Company Strategy and Development Direction - The company's strategic priority is the organic development of sophisticated analytics and decision tools, supported by selective acquisitions [6][18] - In 2019, the company completed 14 acquisitions totaling £416 million, with a focus on enhancing customer value through targeted data and analytics [19] - The company aims to reshape its portfolio through acquisitions that align with its organic growth strategies [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continuing to deliver underlying revenue growth and adjusted operating profit in 2020, despite uncertainties related to the coronavirus outbreak [17][50] - The company anticipates that temporary venue constraints and the impact of the coronavirus will not significantly alter underlying revenue growth trends [17][48] - Management emphasized the importance of corporate responsibility and ESG performance, which has been recognized by external agencies [3][42] Other Important Information - The company reported a slight increase in leverage to 2.5x, including leases and pensions, slightly higher than the prior year [23][39] - The ongoing share buyback program totaled £600 million in 2019, with a reduction in buyback planned for 2020 due to recent acquisitions [23][41] Q&A Session Summary Question: Thoughts on the potential executive order regarding embargo periods on U.S. funded research - Management refrained from commenting on specific policy changes but welcomed engagement with funding agencies to understand objectives and collaborate [54] Question: Expectation of less drag on reported revenue growth from disposals - Management acknowledged that print revenues now represent only 9% of total revenues, indicating a reduced drag from disposals, but did not rule out further disposals [56] Question: Impact of postponing events due to coronavirus - Management confirmed the ability to reschedule events and emphasized the importance of customer health and well-being [58][60] Question: Strategic rationale behind recent acquisitions in fraud and identity space - Management highlighted the natural fit of the acquisitions within their existing offerings and the goal of providing comprehensive risk assessment tools [64][66] Question: Marginal benefits from new acquisitions to organic growth - Management indicated that the new acquisitions would contribute to underlying revenue growth in 2021, although the impact would be within normal variations [84] Question: Renewal rates for STM business - Management clarified that renewal completion rates are assessed based on revenue percentages, consistent with previous years [96]