RELX(RELX)2023-02-17 02:23Financial Data and Key Metrics Changes - Underlying revenue growth was 9%, with underlying adjusted operating profit growth at 15% [1][13] - Adjusted earnings per share increased by 10% at constant currencies, with a proposed full-year dividend increase of 10% [1][20] - Adjusted operating margin improved by almost 1 percentage point to 31.4% [13][41] - Net profit was just under £2 billion, up 10% at constant currency and up 16% in sterling [42] Business Line Data and Key Metrics Changes - In Insurance, underlying revenue growth was strong at just under 40% of divisional revenue, supported by improved market factors [2] - STM saw underlying revenue growth improve to 4%, up from 3% last year, with adjusted operating profit growth at 5% [3] - Legal experienced a further improvement in underlying revenue growth to 5%, driven by higher-growth legal analytics, with adjusted operating profit growth at 8% [4] - Exhibitions reported a remarkable 64% underlying revenue growth, driven by venue reopenings and improved profitability [5] Market Data and Key Metrics Changes - Across all market segments, the shift towards higher growth analytics and decision tools is driving long-term growth [6] - North America generated 60% of revenue, benefiting from a stronger dollar, with sterling revenue up 18% overall [14] Company Strategy and Development Direction - The company aims to sustain strong growth in Risk, continue improving growth trajectories in STM and Legal, and capture growth opportunities in Exhibitions [12][36] - The strategic focus remains on organic development of sophisticated information-based analytics and decision tools [36] Management's Comments on Operating Environment and Future Outlook - Management expects underlying growth rates in revenue and adjusted operating profit to remain above historical trends, driving strong growth in adjusted earnings per share [23] - The company is leveraging AI and machine learning to enhance operations and customer interactions, viewing this as a competitive advantage [33][140] Other Important Information - Total free cash flow was up by 18% to just under £2 billion, with significant cash utilized for acquisitions, dividends, and share buybacks [18][43] - The company achieved net zero carbon emissions across Scopes 1 and 2, with ongoing improvements in corporate responsibility metrics [46][47] Q&A Session Summary Question: What is driving the increase in article submissions? - The increase in submissions is driven by the growing number of researchers and the increasing information intensity of science, with direct open access submissions growing close to 30% [25][26][54] Question: What are the expectations for the Legal division's growth? - The Legal division is expected to maintain strong renewal rates and positive momentum in new sales, with a long-term improving growth trajectory [30][57] Question: What is the outlook for the Exhibitions division? - The Exhibitions division is recovering towards pre-pandemic levels, with margins expected to return to around 26% [66][105] Question: How is the company addressing the impact of generative AI? - The company views generative AI as an opportunity to enhance products and internal processes, with ongoing experimentation and development [87][140] Question: What are the expectations for tax rates in 2023? - The effective tax rate for 2022 was 21.3%, with expectations for it to settle in the 22% to 23% range due to changes in the UK corporation tax rate [94]