RELX has reiterated its full-year outlook, saying it still expects strong underlying revenue growth, an increase in adjusted operating profit and robust adjusted earnings per share growth on a constant currency basis.
Shares listed in Amsterdam were trading down 2.8% by 09:33 GMT following the company's update.
The company highlighted strong new sales activity across several of its principal units. Management reported notable strength in the Risk, Scientific, Technical & Medical (STM), and Legal divisions. Within STM, Primary Research article submissions rose very strongly across the portfolio, a metric the firm singled out in its statement.
The Legal division continued to register double-digit growth in both Law Firms and Corporate Legal segments, according to the update.
On the Exhibitions side, RELX said it expects strong underlying revenue growth and an improvement in the adjusted operating margin compared with the prior full year. The company reiterated this outlook even though some events in its regional portfolio have been rescheduled because of the Middle East conflict.
RELX confirmed there were no changes to its outlook statements for the Risk, STM, or Legal segments.
Market reaction and context
Despite the company reaffirming its targets for revenue, adjusted operating profit and adjusted EPS growth on a constant currency basis, investors pushed the Amsterdam-traded stock lower by 2.8% by mid-morning trading.
Division-level detail
- Risk - new sales described as strong; outlook unchanged.
- STM - robust growth in Primary Research article submissions across the portfolio; outlook unchanged.
- Legal - continued double-digit growth in Law Firms and Corporate Legal segments; outlook unchanged.
- Exhibitions - company expects solid revenue growth and an improved adjusted operating margin versus the prior full year, although some events have been rescheduled in the regional portfolio due to the Middle East conflict.
RELX's decision to leave its guidance intact underscores the company's view that underlying trends across its principal businesses remain strong, even as certain events are moved in response to regional geopolitical developments.
Bottom line
RELX has maintained its full-year guidance and pointed to healthy sales and operational momentum across Risk, STM and Legal, while flagging resilience in Exhibitions' outlook despite some event rescheduling tied to the Middle East conflict. The company's Amsterdam-listed shares were down 2.8% by 09:33 GMT.