RELX Q2 2025 Earnings Call Summary

1. Key Financial Results and Metrics

Underlying Revenue Growth: 7% for the first half of 2025, consistent with 2024.
Underlying Adjusted Operating Profit Growth: 9%, leading to an adjusted operating margin of 34.8%.
Adjusted Earnings Per Share (EPS): Increased by 10% at constant currency and 7% in sterling to 63.5p.
Cash Conversion: Strong at 100%, with free cash flow exceeding GBP 1.1 billion.
Interim Dividend: Increased by 7% to 19.5p per share.
Net Debt: Approximately GBP 7.5 billion, with a leverage ratio of 2.2x.

2. Strategic Updates and Business Highlights

Business Segments Performance:
- Risk: 8% revenue growth driven by AI-enabled analytics and strong sales in financial crime compliance and insurance.
- STM (Scientific, Technical, and Medical): 5% revenue growth, with strong momentum from new product introductions and generative AI capabilities.
- Legal: 9% revenue growth, benefiting from higher-value legal analytics and successful rollout of Lexis+ AI.
- Exhibitions: 8% revenue growth, with margins significantly above pre-pandemic levels due to enhanced digital tools.
Transition from Print: Print revenue has decreased to 4% of total revenue, with ongoing strategic focus on digital and analytics tools.

3. Forward Guidance and Outlook

Full-Year Expectations: Continued strong underlying revenue growth anticipated across all segments, with adjusted operating profit growth slightly exceeding revenue growth.
Legal and STM Segments: Expected to maintain improving growth trajectories, though significant acceleration in growth rates within the year may be unlikely.
Exhibitions: Anticipated to sustain strong growth at newly established levels.

4. Bad News, Challenges, or Points of Concern

Print Revenue Decline: Continued decline in print-related revenue, with expectations of high single-digit annual declines.
Market Conditions: Potential pressures on U.S. universities' budgets could impact future renewals, although no significant changes have been observed yet.
Competitive Pressures: The legal and STM sectors face evolving market dynamics, including shifts in funding models and competitive offerings.

5. Notable Q&A Insights

Impact of NIH Policy Changes: While the NIH's new open access policy may influence revenues, management believes it won't significantly alter overall growth trajectories.
Partnership with Harvey: The collaboration aims to enhance customer value through co-developed tools, although specific monetization strategies remain under exploration.
Exhibitions Growth Drivers: Growth is attributed to increased value offerings and digital tools, although specific financial contributions from digital tools are not separately disclosed.
Print Segment Dynamics: The decline in print revenue is linked to proactive management strategies, including outsourcing and joint ventures, rather than solely disposals.
Government Demand Patterns: No significant changes in demand from U.S. government agencies have been observed, maintaining historical growth patterns.

This summary encapsulates the key points from RELX's Q2 2025 earnings call, highlighting financial performance, strategic initiatives, and future outlook while addressing potential challenges and insights from the Q&A session.

RELX — RELX Plc

Q2 2025 Earnings Call Summary