Relx: revenue jumps thanks to AI demand
Data group Relx has reported a seven per cent jump in revenue in 2024 as demand for its analytics and decision tools continued to grow.
The information and analytics giant, which serves industries ranging from legal to risk and science sectors, saw adjusted profit rise 10 per cent to £3.2bn, while earnings per share increased nine per cent to 120.1p.
The company announced a seven per cent increase in its full-year dividend to 63p and confirmed plans for a £1.5bn share buyback in the next year, up from £1bn last year.
Relx’s shift towards high-growth analytics and AI-driven tools has been a key driver of its long-term strategy.
The company has been embedding AI into its products for over a decade and recently rolled out Lexis+ AI, its advanced research tool, across multiple markets.
Chief executive Erik Engstrom highlighted the company’s AI and data solutions investment as a major contributor to revenue growth.
“We develop and deploy these tools across the company by leveraging deep customer understanding to combine leading content and data sets with powerful AI and other technologies.”
“This will remain a key driver of customer value and growth in our business for many years to come”, he added.
It has been identified as one of the firms best placed to benefit from generative AI and AI alongside tech giants like Microsoft and Nvidia.
Engstom said: “Our improving long term growth trajectory continues to be driven by the ongoing shift in business mix towards higher growth analytics and decision tools that deliver enhanced value to our customers across market segments”, he said.
Revenue grew eight per cent in the firm’s risk division, while its legal arm rose seven per cent, and its scientific business rose four per cent.
On the other hand, the exhibitions arm, which was hit during the pandemic saw an 11 per cent uptick.
The FTSE 100 firm, which has a £76bn market value, has consistently outperformed the wider index for over a decade, with its share price tripling in the past 10 years.
Looking ahead, Engstrom expressed confidence in further growth. “We expect another year of strong underlying growth in revenue”, he said.