Yahoo Finance Relx revenue jumps as demand for the firm’s AI tools and data analysis surges
Tech group Relx’s revenue surpassed £9bn in the 2023 financial year as the company benefited from the growth of information-based analytics and decision tools.
The group generated revenue of £9.2bn in 2023, up from the figure of £8.6bn reported last year, with tech and data analysis representing 83 per cent of the total.
The FTSE 100 group also reported strong growth in face-to-face activity more than offsetting the print decline, bringing the overall group’s underlying revenue growth rate to 8 per cent.
Its reported operating profit rose to £2.7bn, up from £2.3bn, the profit includes amortisation of acquired intangible assets of £280m.
Net debt as of 31 December 2023 was £6.4bn, down from £6.6bn.
Speaking to City A.M., Nick Luff, chief financial officer of Relx, said “all four of our businesses contributed to their results”. He noted the strong growth in its risk business, while scientific technical medical continued on its improved growth profile, adding that legal stepped up in growth”.
Luff explained that its legal business has shifted towards legal analytics which as he explained it is “growing faster and that’s meant the growth profile stepped up from what was a 2/3 per cent growth business a few years ago to 5 per cent growth in 2022 and now 6 per cent in 2023.”
The business has shifted more towards that side of things. They’re obviously
The group is a global provider of information-based analytics and decision tools which employs around 11,000 technologists and spends about £1.3bn a year on IT.
Over 2023, Relx completed six small acquisitions, for a total consideration of £130m, and one disposal.
Over last year, the group completed £800m in share buybacks. It promises to buy back £1bn worth of shares in 2024, of which £150m has already been completed. Luff explained that the level of capital required in the businesses is modest and therefore it’s generating surplus capital every year.
The group has proposed a full-year dividend of 58.8p, an 8 per cent increase on the previous full-year payout. The final dividend proposed by the board is 41.8p per share.
If approved, the final dividend will be paid on 13 June 2024, with an ex-dividend date of 2 May 2024 and a record date of 3 May 2024.
On its 2024 outlook, the FTSE 100 group predicts it will see “positive momentum across the group” as it expects another year of “strong underlying growth in revenue and adjusted operating profit, as well as strong growth in adjusted earnings per share on a constant currency basis.”
Commenting on the results, chief executive officer, Erik Engstrom said: “RELX delivered strong revenue and profit growth in 2023, driven by the ongoing shift in business mix towards higher growth information-based analytics and decision tools that deliver enhanced value to our customers across market segments.”
Relx share prices is up 2 per cent as it is trading at 3,402p on Thursday.
