RELX(US:RELX)2025-02-13 20:33Financial Data and Key Metrics Changes - Underlying revenue growth was 7% and underlying adjusted operating profit growth was 10% [4][15] - Adjusted earnings per share growth was 9% at constant currency [4][15] - Proposed a 7% increase in the full year dividend to 63p per share [15][16] - Adjusted operating margin improved by just under 1 percentage point to 33.9% [15][49] Business Line Data and Key Metrics Changes - In Risk, underlying revenue growth was 8% and underlying adjusted operating profit growth was 9% [2][6] - Business Services growth was driven by Financial Crime Compliance and Digital Fraud & Identity Solutions [3][6] - STM (Scientific, Technical, and Medical) had underlying revenue growth of 4% and underlying adjusted operating profit growth of 5% [7][35] - Legal saw an improvement in underlying revenue growth to 7%, up from 6% last year [9][37] - Exhibitions delivered underlying revenue growth of 11% [11][39] Market Data and Key Metrics Changes - Electronic revenue, representing 83% of total revenue, saw 7% underlying growth [17][46] - Total revenue growth at constant currency for the group was 6% [18][47] - In sterling, total revenue growth was 3%, impacted by the strength of sterling against the dollar and euro [18][47] Company Strategy and Development Direction - The company aims to sustain strong long-term growth in Risk and continue improving growth trajectories in STM and Legal [13][42] - Focus on driving continuous process innovation to manage cost growth below revenue growth [13][42] - Strategic direction remains unchanged, with an emphasis on higher growth analytics and decision tools [12][40] Management's Comments on Operating Environment and Future Outlook - Management expects continued strong underlying revenue growth and adjusted operating profit growth [31][59] - Positive momentum across the group is anticipated for the upcoming year [31][59] - The company is confident in its ability to manage cost growth below revenue growth [20][116] Other Important Information - Cash conversion was strong at 97%, contributing to a reduction in leverage to 1.8% [16][29] - The company completed five acquisitions for a total consideration of £195 million and made seven disposals for £95 million [16][55] - Year-end net debt increased slightly to just under £6.6 billion [55][56] Q&A Session All Questions and Answers Question: Regarding the buyback and cash priorities - The buyback reflects surplus capital due to low acquisition spend, allowing for shareholder returns that exceed free cash flow after acquisition spend [63][64] Question: On working capital builds - The company operates in a net negative working capital position, with swings from year to year, particularly in the Exhibitions segment [65] Question: Trends in STM print declines - Print declines have been above historical averages, and while it's uncertain what will happen in 2025, the company is focused on reducing print drag [72][74] Question: Impact of U.S. research funding changes - The company has a low single-digit percentage of direct funding from U.S. government agencies, and historical trends indicate resilience to funding changes [77] Question: Growth in article submissions - The growth in article submissions is driven by a shift towards higher quality journals, with expectations of normalization in growth rates over time [80][81] Question: Financial difficulties at universities - There are always some institutions facing financial difficulties, but no significant trend change has been observed [90][91] Question: Margin improvement in Exhibitions - The company expects higher margins in Exhibitions due to improved operational structure and organic growth initiatives [92] Question: Adoption of Protégé product - Early feedback on Protégé has been positive, but it is too early to determine the adoption curve [94] Question: Acceleration in Legal growth - The acceleration in Legal growth was driven by new product introductions, particularly Lexis+ AI [104] Question: State of adoption for analytics tools in STM - Adoption of analytics tools is increasing, with a focus on higher value-add segments, but generative AI tools are still in early stages of adoption [122]