RELX(RELX) - 2023 Q4 - Annual Report

Financial Performance - Revenue for 2023 increased to £9,161 million, representing a 7% growth compared to £8,553 million in 2022[12] - Adjusted operating profit grew by 13% to £3,030 million, with an operating margin of 33.1%[12] - Earnings per share (EPS) rose to 114.0p, reflecting an 11% increase in constant currency terms[18] - Proposed full-year dividend increased by 8% to 58.8p, up from 54.6p in the previous year[20] - Underlying revenue growth was reported at 8%, with all business areas performing strongly[18] - Total Shareholder Returns over the decade reached 347%, significantly outperforming the FTSE100's 67%[18] - Net debt decreased to £6,446 million from £6,604 million[15] - Cash generated from operations increased to £3,370 million, up from £3,061 million[15] - The company 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 for 2024[36] - The company reported a significant increase in daily transactions, exceeding 1 million, and annual transactions surpassing 300 million[110] Segment Performance - In 2023, the Risk segment generated £3,133 million in revenue, reflecting an 8% increase, with an underlying profit of £1,165 million, up 9%[71] - The Scientific, Technical, and Medical (STM) segment reported £3,062 million in revenue, a 4% increase, with an underlying profit of £1,165 million, also up 4%[71] - The Legal segment achieved £1,851 million in revenue, marking a 6% increase, with an underlying profit of £393 million, up 8%[71] - The Exhibitions segment saw a significant revenue increase of 30% to £1,115 million, with an underlying profit surge of 100% to £319 million[71] Technology and Innovation - RELX invests $1.7 billion annually in technology, employing around 11,000 technologists, over half of whom are software engineers[76] - Lexis+ AI, a generative AI solution, is designed to transform legal work, featuring capabilities such as conversational search and intelligent legal drafting[89] - Lexis+ AI is supported by advanced encryption and privacy technology, ensuring the security of sensitive data[90] - RELX's technology infrastructure enables high-speed data ingestion and processing, utilizing machine learning and natural language processing for actionable insights[78] - LexisNexis emphasizes data security and privacy, addressing customer concerns that these are significant barriers to generative AI adoption[94] - Scopus AI combines Elsevier's Scopus database with responsible AI, offering access to over 29,000 journals and 2.4 billion citations[97] Market Strategy and Growth - The company plans to continue its strategy of organic growth supplemented by selective acquisitions in high-growth markets[40] - The geographical revenue distribution shows 79% from North America, 14% from Europe, and 7% from the rest of the world, highlighting a significant market presence in North America[121] - The company is focusing on enhancing user experience through improved data analytics and integration of government systems, aiming to reduce fraud and enhance access to essential services[111] - The company is actively pursuing new product development and technological advancements to improve decision-making tools for consumers and businesses[111] - The company is committed to improving operational efficiencies and reducing risks through advanced data solutions and analytics[116] Sustainability and Corporate Responsibility - The company achieved a AAA MSCI Environmental, Social and Governance rating for the eighth consecutive year[28] - The company is committed to sustainability initiatives, with plans to reduce its carbon footprint by 40% by 2025, aligning with global environmental standards[145] Future Outlook - The company expects continued strong underlying revenue growth in 2024, with adjusted operating profit growth slightly exceeding underlying revenue growth[126] - Future outlook includes continued growth in digital solutions and a focus on improving operational performance metrics[120] - The company aims to leverage emerging market opportunities to drive further revenue growth and enhance customer satisfaction[120]