RELX: Strong demand pushes up revenue for data firm
Global analytics and decision tools provider RELX has reported an increase in its underlying revenue for this year, as it stood by its guidance looking at strong growth.
According to a trading update to markets this morning, the London-listed firm said its underlying revenue rose by seven per cent, reaffirming its full year outlook as it projects continued growth in operating profit and revenue.
The data company provides information-based analytics as well as decision tools for business and professional customers, helping their decision making.
RELX said: “We continue to see positive momentum across the group”, adding that its positive performance was due to strong growth in its three core divisions: risk, scientific, technical and medical (STM) and legal and exhibitions.
The risk division, which makes up 35 per cent of the first-half revenue, rose by eight per cent in underlying revenue, driven by a demand for financial crime compliance and digital fraud solutions.
RELX noted strong new sales in its insurance and business services sectors.
STM contributed 34 per cent of the revenue, posting a four per cent rise despite ongoing decline in print revenue caused by RELX’s increasing focus on fast growing electronic and data-driven services.
Its legal arm, which makes up 20 per cent of the firm’s revenue, also grew by seven per cent due to increased demand for its AI-generated platform, Lexis+.
This demand for analytics underpinned by AI drove revenue as profit reached over £1.5bn in the group’s half-year results.
The exhibitions division too saw an increase, rising by 13 per cent due to a stronger event portfolio and favourable year-on-year comparisons.
Looking ahead, the company expects its underlying adjusted operating profit growth to exceed revenue growth across the majority of its divisions as it keeps a confident outlook for 2024.
The stock price has increased 17.9 per cent (£549) year to date, currently standing at £3,616.