Last checked at 28 Jul 2022 07:00
28 July 2022
INTERIM RESULTS FOR THE SIX MONTHS TO 30 JUNE 2022
RELX, the global provider of information-based analytics and decision tools, reports results for the first half of 2022 and reaffirms the full year outlook.
First half highlights Ø Revenue £3,969m (£3,394m), constant currency growth +13% Ø Adjusted operating profit £1,239m (£1,023m), constant currency growth +16% Ø Adjusted profit before tax £1,163m (£953m), constant currency growth +17% Ø Adjusted EPS 47.2p (40.0p), constant currency growth +14% Ø Reported operating profit £1,081m (£860m) Ø Reported profit before tax £998m (£825m) Ø Reported EPS 39.5p (34.5p) Ø Interim dividend 15.7p (14.3p) +10% Ø Net debt/EBITDA 2.3x; adjusted cash flow conversion 103% Ø Completed six acquisitions for a total consideration of £342m Ø Completed £300m of the previously announced £500m share buyback Full year outlook Ø As we enter the second half, momentum remains strong across the group, and we continue to expect full year underlying growth rates in revenue and adjusted operating profit, as well as constant currency growth in adjusted earnings per share, to remain above historical trends. |
Chief Executive Officer, Erik Engstrom, commented:
"RELX continued to deliver strong revenue and profit growth throughout the first half of 2022. We believe that this is a reflection of our ongoing strategy of focusing on the organic development of increasingly sophisticated analytics and decision tools that deliver enhanced value to our customers across market segments. Recent acquisitions, which have supplemented our organic growth strategy, continue to perform well."
"In recognition of the strong financial performance we have announced a +10% increase in the interim dividend to 15.7p."
ENQUIRIES:
| Colin Tennant (Investors) +44 (0)20 7166 5751 | Paul Abrahams (Media) +44 (0)20 7166 5724 |
Operating and financial review
Revenue £3,969m (£3,394m); constant currency growth +13%: The strong growth rate reflects good growth in electronic revenue, representing 85% of the total, supported by further development of analytics and decision tools, and a recovery in face-to-face revenue, representing 9% of the total, partially offset by continued print declines.
Adjusted operating profit £1,239m (£1,023m); constant currency growth +16%: Continuing process innovation is keeping cost growth below revenue growth which, together with the recovery in face-to-face, resulted in an improvement in the group adjusted operating margin to 31.2% (30.1%).
Reported operating profit £1,081m (£860m): Reported operating profit includes amortisation of acquired intangible assets of £143m (£143m) and acquisition related costs of £14m (£16m).
Adjusted profit before tax £1,163m (£953m); constant currency growth +17%: the adjusted net interest expense increased to £76m (£70m), reflecting currency movements and higher interest rates.
Reported profit before tax £998m (£825m)
Tax: The adjusted tax charge was £255m (£185m). The adjusted effective tax rate was 21.9% (19.4%), with the prior period benefitting from non-recurring tax credits. The reported tax charge was £238m (£164m).
Adjusted EPS 47.2p (40.0p); constant currency growth +14%
Reported EPS 39.5p (34.5p)
Dividend: We are declaring an interim dividend of 15.7p (14.3p), an increase of +10%.
Net debt/EBITDA 2.3x (2.8x): Net debt at 30 June 2022 was £6.9bn (£6.3bn), with the increase due to exchange rate movements. Adjusted cash flow conversion was 103% (112%).
Portfolio development: In H1 2022 we completed six acquisitions of content and data analytics assets for a total consideration of £342m.
Share buybacks: Of the previously announced £500m share buyback, £300m was completed in the first half. A further £50m has been completed since 1 July, and the remaining £150m will be deployed before the end of the year.
Environmental, social and governance (ESG) recognition: In 2022 RELX achieved a AAA MSCI ESG rating for a seventh consecutive year; maintained its first place ESG sector ranking by Sustainalytics; and remains fourth in the Responsibility100 Index, which measures FTSE 100 companies against the UN Sustainable Development Goals. RELX is one of 37 LEAD companies of the UN Global Compact among approximately 14,000+ business signatories.
RELX FINANCIAL SUMMARY
Six months ended 30 June | ||||
2022£m | 2021£m | Change | Change at constant currencies | |
Revenue | 3,969 | 3,394 | +17% | +13% |
Adjusted operating profit | 1,239 | 1,023 | +21% | +16% |
Adjusted operating margin | 31.2% | 30.1% |
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Reported operating profit | 1,081 | 860 | +26% | |
Adjusted net interest expense | (76) | (70) |
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Adjusted profit before tax | 1,163 | 953 | +22% | +17% |
Adjusted tax | (255) | (185) | ||
Adjusted net profit | 909 | 771 | +18% | +13% |
Reported net profit | 761 | 664 | +15% | |
Reported net margin | 19.2% | 19.6% |
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Adjusted earnings per share | 47.2p | 40.0p | +18% | +14% |
Reported earnings per share | 39.5p | 34.5p | +14% | |
Net debt | 6,932 | 6,316 | ||
Ordinary dividend per share | 15.7p | 14.3p | +10% | |
RELX uses adjusted figures as alternative performance measures. Adjusted figures primarily exclude the amortisation of acquired intangible assets and other items related to acquisitions and disposals, and the associated deferred tax movements. Reconciliations between the reported and adjusted figures are set out on page 30. Constant currency growth rates are based on 2021 full-year average and hedge exchange rates.
Disclaimer regarding forward-looking statements
This announcement contains forward‐looking statements within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the US Securities Exchange Act of 1934, as amended. These statements are subject to risks and uncertainties that could cause actual results or outcomes of RELX PLC (together with its subsidiaries, "RELX", "we" or "our") to differ materially from those expressed in any forward‐looking statement. We consider any statements that are not historical facts to be "forward‐looking statements". The terms "outlook", "estimate", "forecast", "project", "plan", "intend", "expect", "should", "could", "will", "believe", "trends" and similar expressions may indicate a forward‐looking statement. Important factors that could cause actual results or outcomes to differ materially from estimates or forecasts contained in the forward‐looking statements include, among others: the impact of the Covid-19 pandemic as well as other pandemics or epidemics; current and future economic, political and market forces; changes in law and legal interpretations affecting RELX intellectual property rights and internet communications; regulatory and other changes regarding the collection, transfer or use of third‐party content and data; changes in the payment model for RELX products; demand for RELX products and services; competitive factors in the industries in which RELX operates; inability to realise the future anticipated benefits of acquisitions; significant failure or interruption of RELX systems; exhibitors' and attendees' ability and desire to attend face‐to‐face events and availability of event venues; changes in economic cycles, severe weather events, natural disasters and terrorism; compromises of RELX cyber security systems or other unauthorised access to our databases; failure of third parties to whom RELX has outsourced business activities; inability to retain high-quality employees and management; legislative, fiscal, tax and regulatory developments; exchange rate fluctuations; and other risks referenced from time to time in the filings of RELX PLC with the US Securities and Exchange Commission. You should not place undue reliance on these forward‐looking statements, which speak only as of the date of this announcement. Except as may be required by law, we undertake no obligation to publicly update or release any revisions to these forward‐looking statements to reflect events or circumstances after the date of this announcement or to reflect the occurrence of unanticipated events.
Notes for Editors
About RELX
RELX is a global provider of information-based analytics and decision tools for professional and business customers. The Group serves customers in more than 180 countries and has offices in about 40 countries. It employs more than 33,000 people over 40% of whom are in North America. The shares of RELX PLC, the parent company, are traded on the London, Amsterdam and New York stock exchanges using the following ticker symbols: London: REL; Amsterdam: REN; New York: RELX. The market capitalisation is approximately £45bn/€54bn/$55bn.
RELX PLC 1-3 Strand London WC2N 5JR United Kingdom
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