RELX generated a decent financial performance in its last result and its underlying revenue increased by 9%. RELX anticipates that underlying revenue growth will continue to exceed historical patterns, with adjusted operating profit growth exceeding underlying sales growth. All four business segments expanded well, with underlying adjusted operating profit growth exceeding sales growth. Risk helped drive sales growth while delivering significant growth in adjusted operating profit. Both STM and Legal produced underlying profit increases that were higher than increases in sales. These business categories profited greatly from currency changes, but portfolio impacts had a minor negative impact on profit growth. Renewals and new sales remained strong. Furthermore, the company observed significant sales growth and a turnaround in profitability in exhibitions. The majority of exposition sites were reopened, which contributed to underlying revenue growth of 64%. Profitability also grew, which was a result of increased activity levels and a more efficient cost structure. We give RELX PLC a ‘Hold’ rating with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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