RELX PLC (RELX) Q2 2025 Earnings Call Transcript

RELX PLC reported strong first-half 2025 financial results, with underlying revenue growing 7%, underlying adjusted operating profit up 9%, and adjusted earnings per share increasing 10% at constant currency. The company also announced a 7% increase in its pound sterling interim dividend. CEO Erik Engstrom highlighted a "higher quality growth profile" across segments, including 8% underlying revenue growth in Risk driven by AI-enabled analytics, alongside continued strong performance in Exhibitions and improved momentum in STM and Legal.

Analysis

RELX PLC reported a strong first-half 2025 performance, characterized by a 7% increase in underlying revenue, a 9% rise in underlying adjusted operating profit, and 10% growth in adjusted earnings per share at constant currency. This robust operational performance is complemented by a 7% increase in the pound sterling interim dividend, signaling management's confidence in the financial outlook. Management highlighted a 'higher quality growth profile' compared to the prior year, underpinned by broad-based strength across its business areas. The Risk segment was a standout performer, delivering 8% underlying revenue growth fueled by the successful rollout of higher-value, deeply embedded AI-enabled analytics and decision tools. Furthermore, the company noted positive trends in its other major segments, with 'developing momentum' in STM, a 'further step-up in growth' for Legal, and Exhibitions now established at a 'strong ongoing growth' rate, demonstrating a well-diversified and effective growth strategy.

Key Decisions for Investors

• The strong execution across all business segments, especially the 8% growth in the AI-driven Risk division, reinforces the company's strategic direction and supports a positive outlook on the stock.
• With 10% EPS growth and a 7% dividend hike, the results provide a solid foundation for shareholder returns, suggesting that existing investors may find the results validate a decision to maintain their positions.
• Investors should closely monitor whether the 'developing momentum' in the STM division and the 'step-up' in Legal can be sustained through the second half, as this will be key to confirming the 'higher quality' growth narrative presented by management.