RELX - Earnings call transcript Q2 2021

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Erik Engstrom

Good morning, everybody. Thank you taking time to join us on our call today.

As you may have seen from our press release this morning, we delivered a strong first half with underlying growth trends across all market segments returning to the improving trajectory that we saw in the early part of 2020. We made good operational and strategic progress, investing behind our strategic priorities to drive organic growth through the development of analytics and decision tools across segments with recent acquisitions performing well.

We also continued to build on our strong ESG performance, making good progress on many of our internal metrics and maintaining or improving our key external ratings. revenue constant half, was first the growth currencies at X%. In profit growth operating was Adjusted XX%. share XX%, dividend growth announced per earnings Adjusted was in pound an and the sterling X%. interim of increase had we

the business largest improved growth all Our first three areas half. underlying delivered revenue in

adjacent driven platforms continued and of decision revenue will double-digit. with of growth Emailage Services to have revenue XX% by was leading was double and acuity revenue, tools. technology Financial XX% growth XX% So In the representing and significantly underlying last the Subscription strengthened see expansion was second grew through analytics seen alignment in data has insurance, revenue, represents identity more and the around Business XXXX revenue, of Compliance, our year's rollout XX%. total, demand Business the of the the half. new most In half at Underlying particularly nearly divisional and recent Volumes in segments. of our XXXX. XX%. customer around In look develop a segments historical nearly Revenue all of growth markets. each of across and Transactional an return the represents was strong strong within half Services let's in disruption, area. the divisional was fraud identity, strong enhanced first sharing XX% by of of In driven digital of verticals. represents continue were disrupted adjusted performed around of total, business rates, more XX%. strongly solutions accelerated digits first which across both proposition results Risk, of growth ThreatMetrix operating almost growth profit sales enable divisional and driven well, in rollout by divisional market weighted, growth the half continuing new total to both Crime against which the and first to year's last

of In automation customers divisional recovery. alternative represents are federal since April XXXX is have in currently revenue, rollout analytics and but seen around of was a last other of we've over in growth up Data stages data tools continued over early from strong as driving year. strong markets home and are continued first and fluctuates disruption such years. the around as and recover U.S. a representing March and the XX% The recent Our revenue, the local insurance has and growth XX% following in petrochemicals which XX% verticals, in of In expansion saw a and seek with and X% sources for In and point trajectory. by driven growth data whilst now U.S. across last claims levels, was customer divisional April agriculture writing we half of overall similar just low aviation seen of volumes government, segments year. recovery state of the the and of to Services, adjacent growth application both the markets. activity line processes. strong decision auto continued life insurance somewhat, in in shopping of

open last gains revenue, articles of STM, stabilized models. year's representing journals number revenue, Going good electronic in in steep access continued revenue of forward, the matching broadly we strong expect total, total. profit share revenue Print the growth above adjusted subscription drove underlying of underlying the underlying remain with half and represented X%, research, XX% growth we first revenue operating of in In by levels, saw XX% of published driven our the articles and submitted at growth market historical particular of In elevated declines trends, slightly growth the following year. payment underlying which primary last growth. to in number growth both

our know, achieve model higher get objectives that happy to you and payment we're and than help is providers. As from major they quality always very way aim their effective to with in customers a our them other gives us value prefer, they serve them from better can whatever

Our or remained key relative growth consistently subsegment usage has maintained all and article has quality advantage measures. on been in each strong increased, in

our divisional account reference. stabilized after of we subscription renewal launched digital over clinical steep in medical electronic year, decision and and first advanced divisional revenue declines. another electronic XXX This key, adoption books, Databases clinical which saw X% last of simulation strong have of revenue, to and geographical driven in evidence-based access over in and rates path. open by continued this line half, author training, bringing with increased the completion and represents far journal open XX pays trends. represent a including in sales historical tools, So support little tools reference, strong half now education, including Print year's are in first titles, was our rollout clinical X/X solutions access unusually tools, new which over growth growth

growth well revenue Going following representing well North which key half we expect accounts revenue growth year. we unite analytics Lexis+ with development revenue in revenue, currently analytics revenue, sales declines positive in functionality. Lexis+. driven of was growth profit grow with of natural modernized profit segments growth. print further launched X% markets first at last interface. around integrated rollout underlying In the We've delivered moderated by declines slightly language running Electronic major seen across and the for for stable of new and uptake operating market divisional historical all customer across customers forward, total, renewing with X/X trends September, divisional has Last America, and operating of growth and up all XX% functions and customer and process multiple recent new X%, unusually new to legal Trends revenue segments our revenue underlying steep ahead exceeding and almost of machine innovation. research growth are using of continued learning the underlying customers with above holding was Legal, slightly rates legal user growth years. all reflecting majority of through opting the processing, adjusted renewal ahead adjusted underlying underlying

the running more hold Going U.S. recently have XX% forward, a profit and been declined above elsewhere. mostly expect revenue in the half That Statistical line Japan with constant growth. adjusted trends exceeding underlying Exhibitions April. of since were currencies we events we historical underlying operating China last revenue underlying and as in the and or growth with revenue slightly first for first has in whole. in to half been year able ahead that growth in

exhibitors costs and few and initiatives. have We being all in revenues Nick by take minutes. through you Exhibitions digital generally by supported well been a are of both and the will attendees received details

the structure revenue the significantly year prior on forward, the pace in than year. results reopening. for outcome benefit of from Going full lower depend a sequence and operating the cost will will The

productive. deliver get of segments unchanged. results better Our to and we our our increasingly value make them which to of strategic tools more priority. customers organic and operational and development and make the across be are priorities, The progress one strategic good continue help are our enhanced sophisticated analytics In number decision on market drivers better improved decisions, half, first the performance,

and make the through half, the recent contributions afterwards more efforts. a growth made We acquisitions, Luff, our we I our saw With small detail. business. acquisitions. results as now Our acquisitions in supported perform metrics targeted further strategy to a to hand external you organic to well. talk remain will internal over continued CFO, is will recognition first be we on our we're five able I our committed Q&A. first In responsibilities, usual half, that back unique corporate improvement and by in quick the drawing our will to and And that, our wrap-up who for in of Nick the

Nick Luff

you, everyone. Thank Good Erik. morning,

group Adjusted start to reflecting growth operating improved conversion to constant down up a strong at leases was me of end period improved with providing X% currency, XX% results. XX% flowed showing the and Cash profit significant areas performance Risk, strong constant was contributing at The more STM earnings improved was on four X.Xx reduction for leverage Revenue share, Let growth the pensions, adjusted XX.X%. business from financials. Legal. currency. profit and all which performance at the The XXX%, were margin at at per including by to currency, the through constant X.Xx detail XXXX. operating to of adjusted

to overall performance, we've by dividend to the X% XX.Xp. strong been interim increase the Given able

at Legal trends XX%, with revenue, trajectory that early part largest Looking STM improving to areas our the XXXX, business three at the saw at Risk in X% we at returned and of underlying growth in X%.

for of extent first Portfolio the rescheduling not a year, Exhibitions during changes the measures whole. the the a for half hence are and not Given net some revenue for with were of Risk growth group underlying operating event Risk. benefit small the course. of as of roundings, Legal. underlying But X% on with for a underlying were for STM the adjusted reported Legal well a as negative positive On on in majority the in first group slightly sterling and small euro dollars, against generate positive a the half average our stronger dollar for And We small revenues of drag ahead and currency within phasing down compared with X% as growth and expenses. growth year, delivered X% of sterling sterling. profit, revenue between movements from rate last of with the meaningful

neutral £XX three in Exhibitions the with largest on growth. operating results to For was operating broadly its of STM, million profit loss business effects were adjusted adjusted compared Portfolio revenue, the lower despite line revenue in in growth first areas. prior million £XX an adjusted profit half. improved operating with

You incurred events. half, canceled in exceptional to in in million we XXXX, £XX that Exhibitions mostly with costs the falling will relating recall first

group drag The being was continued over Including the figures by excludes XX%. business costs in adjusted were operating largest the There The saw The first of revenue. an half that were increase no costs. Currency innovation just margin, Legal, at control to profit which up constant from three costs. largest profit movements shown group up billion. similar operating tight in a on comparative XXXX areas process to Exhibitions, benefit X% in year. and to £X that results profit exceptional half growth, currency, was first this still from exceptional to of adjusted the each improved drag here

XX.X%. exhibitions, operating X.X the for With to margins percentage points by group the reduced improved in loss adjusted overall,

as Looking detail. at they exhibitions year last But in the on April. were, have since of Revenues bit half mentioned, year. ahead Erik been down running prior a more of course,

reflecting course, business XXXX comparison with slide. able in event on the that as by able significantly the costs been you have were down, HX On a will to of an benefit with historically, the the and of a the of shown half, the a shown first reduction recall costs, run We targeting the the operate base, to cost lower figures program were with indirect half. XX% little in annum, we basis. costs We actually those some we run level achieved within first ongoing the million that, that run target than £XXX around and year. better around were the on phasing per Direct from

also from an in result benefited normal. where joint largely ventures, half China first The operate to mainly we're contribution increased as able from

despite reduced. operating loss overall, lower So the the revenue, was

close and half. and us consistently of we've April. of Those Japan, July, U.S., China the running to countries. breakeven In events since we've deliver been Looking second enable the position million into operating other in to result run at roughly with revenue positive will couple month a for events £XX a the

program up. continue countries to We to and ready when year, face-to-face the the flexible open remainder the for hold be events with as venues and of

Going to numbers. back group the

reconcile through revenue constant currency. effective a profit. This was Here first charges profit of operating at next currency statement, of resulted The by share expense in growth a net XX% increase in before effective lower rates of showing in which X% extent is operating in adjusted benefited to adjusted profit the an is XX% rate reflecting XX%, profits. from XX.X%. and income the prior the year, year, effective of £XXX in earnings the also The flow Exhibitions. interest to charge. lower interest how on aided That nonrecurring constant half the adjusted to was strength The At of this and tax in ongoing from interest XX% the profit our growth that debt currency was sterling growth average rate exchange and million, million, had Both up charge of lower tax rates first average we in X% compared The and Net the was effective change from XXXX period. slide half. up albeit borrowings rate. X.X%. last rate, the you tax reported normal £XXX gross half of the the XXXX credits, first compared benefited at to first prior tax exceptional biggest half with we the XXp, hence shows up at constant to of relative rates, reconciliation XX% below lesser per in reported interest

EPS million, of before relating intangibles XX.Xp, £XX venture tax XX%. of I of exceptional worth the larger million, were XXXX net Also, to exceptional XX% of million XX% those million, reported As at costs and lower was net profit in half costs £XXX first reported up was there £XXX profit £XX was disposals mainly amortization incurred in up million, no gain Overall, of year's on £XXX mentioned, with the of up acquired this also first portfolio. with and half. a

year's Turning million, million, paid the was CapEx to element conversion statement £XX some first higher Cash spend prior the including of lower taxes will tax from with half. of in strong higher reverse tax amount a than paid XXXX. line the XXX%, in U.K. was to This in the the of X.X% some related period in interest in revenue. period. which million flow. CapEx of the some regime the equivalent Group charge, and working of cash to with benefiting new prior Cash year benefited income bonds of installment favorable half cash the phasing, cash long-term in movements. £XXX capital charge second the the the Cash timing was prior one-off timing at redemption resulting payments payments, £XXX was of of from

on in full adjusted £XXX Exhibitions, expect acquisition limited transactions. here's cash but had aligned And XXXX, relating million up cash to the to paid with cash exceptional XXXX We be spend the five million. year in with some million the consideration £XX prior use total year, free For free incurred and charge. we lower flow we that £XXX to tax was After half broadly total over tax items, how in the first of cost small by flow. acquisition-related

You state gain will booked Palantir our we on in recall the mark-to-market helped the fund venture XXXX.

you will historical billion. in the operating our to also ratio to back final Including half net disposal year-end in makes were through net generation, down which X.Xx. benefited which to state, the almost improvement half. of up in of range during fell still £X.X translation proceeds pensions, dollars, million that, year's Total first of hand of strong the calculated EBITDA. cash has X.X the first at proceeds million to dividend. EBITDA, that down come sold above combination With million £XXX in now flowed from all payments the £XXX to X.Xx by profit, Through U.S. leases have almost and I We benefit, to the debt and from operational X.Xx, debt a but dividend last Erik. of net M&A currency Leverage £XXX

Erik Engstrom

Thank you, Nick.

with what our first and a Just to summarize trends to delivered improving segments part in almost early morning. strategic the growth covered to strong underlying we trajectory continue priorities. all XXXX, behind this of that We the market saw invest we we across returning half

full with ready in above to performance and questions. well improved on per underlying I think trends. as forward, earnings in constant historical to Risk, to we rates Legal the Going go the adjusted in adjusted year currency based STM that, we're be half, and operating first revenue And slightly growth expect share as profit and growth

Operator

Adam the Please line UBS. question. of your [Operator Berlin from first Our question ask from Instructions] is

Adam Berlin

for UBS. Berlin got I've Adam from three me.

last was easy it I the on effect just revenues improvement say, of first and is organic strong? why just you are The first quarter-on-quarter year? understand, seeing question wanted is RBA. an into QX to And growth the that Or is starting, expect year? to we continue QX question. so do in of sequential the QX this comps That's a in

sense for And is those second sense with us broadly the in normalized million, is shows gap shows still run of some give of -- Can you Mark revenue July line in And first reported just publications There half? kind in said the did give Allen for revenues on that impact the that the £XX Exhibitions. that STM. on half? they some for second revenues press the material? are a XXXX The third STM to any you the underlying where us you've -- question substantially Can a down? excluded generated of from Can versus question sold you the Group. ran in is July? you what in performance the of in that revenues that us tell Will have if was effect that's of on Elsevier that was STM

Erik Engstrom

done through the in to hand of we and after the at to an coming comes last year see through is earlier year question though, will to second strengthen. saw came here. the in I improvement transactions risk, come the the Nick in we second impact about with talked as to half what first third -- it already same time, half. negative second the and starting When subscriptions, that the the later continued I'm we And in

that So you it's combination that balance of the results has of a created see now. the the two

to came basically, issue, of last terms to compare bit Then you be first second drilling middle then first of the quarter. it's the so in year can second the that the was through specifically significantly impact quarter or again at disruptive not to quarter-on-quarter, impacted the the a half of March and during for have a you of beginning talk But first not and until was subscriptions. half to fourth And the this the it. now -- in the disrupted and later where quarter, part it's question of the Subscriptions quarter-on-quarter what year third the we more in this and about Nick coming end year. transaction of in of significantly a at end

growth than to And half it So this significantly year, year two. last comes you can when we the piece of first so those small, the second immaterial rate of see a had two. commercially the not It's in magdalene-oriented sold at of the you very, STM. half you sector, immaterial the was higher sort it's balance it when tale some STM, was an these in comes it's can that When to it. was it immaterial way very in corporate-oriented as look any of

Nick Luff

Yes. the And Exhibitions outcomes to Adam, on performance quite and of range there's prior the the of shows, relative terms a addition. the July in

up, is often the addition. previous a all others actually we've seeing are year. well long way events typically I and doing above mean, Some are quite and down, China that been is the

Sometimes sometimes they to of year. giving -- holding depending changed changed you below, in of and able the all sorts It's But the what we've can't got mean, felt was them. we above, service time we've dynamics. we're international some worth you've other the the But city, but provide always markets. events, them. of these of customer are it on compare with I sort still events how

circumstances doing think so event, future are I that read on much of range. reference, the there and what city, that restrictions capacities anything into you they're not So are, big sure what how on because on. there it limits for there's can a I'm specific wide depends

a So range. wide big

Adam Berlin

dollars, how Q-on-Q on just not? seeing back So two revenue on way just can risk, follow on XXXX -- ask Nick, you other maybe on you -- can just different up to in questions a just suppose, levels? international you to can And I I improvements absolute or in revenues return just we of it a dependent are Exhibitions, are travel to kind then, quickly? get

Nick Luff

got look domestic China, of impacted, different is The Erik in risk, so to revenues -- dependent absolutely, we and But there disruption to transactional in of clearly, the prior that the it side yes, that going good up. then be of Yes. longer year. better to events pattern period. was the Good mean, was the sort momentum, -- what held Exhibitions, the as I I up definitely. tend you improving sequencing was continue We've taken grow. if audience very side Obviously, had the at has was a of new more in on The And mean how domestic. is, U.S. very it, back. terms much sales. on initially more come describing, on last subscription the

read restrictions Some component -- international, to international if a going on And of going what run. going these reopening. sure the a travel that's are. the amount it, mean of what's But constraints there is to clearly whole depend how into I'm shows to just them, just some happened not can in I more tougher. U.S., we've there's that's you forward, lifted, that's particularly only are

how very is as our it's as But early a most things to days audience from will whole. the portfolio of we across So said, see domestic develop here.

we'd to important. shows important. clearly, and easier, some the others, for less be travel very, of it's international is So But very like

Operator

next Our Nick from Dempsey question. Barclays. Please ask from is of line the your question

Nick Dempsey

three. got I've

in style we've Legal the mix, print seen analytics shrinking pretty and STM first both and offerings. So fast one, divisions, you've got in

mentioned in at a and if they Your the But maintain growth, strong two that that XXXX, forward strong you holding in the on I can give actually you but divisions first XX% we larger there. Second growth organic must very half. those to a They revenue of they the comment is level saw move think slightly Emailage to growth, a mix. they be getting when better than in where, have pretty so context small July. important third are £XX much effect? in terms they Exhibitions And million could you that up a see too And risk? bit us the to revenue of you in Can of for see November for bit. second be your give question, of normally still to month organic are confidence in Or think positive the revenue a you I beyond July context look of on bit that, XXXX? maintaining start little interested of million. growth a the might and So ThreatMetrix Aren't still it a whole you about but bit an move how some big that is needle quite mentioned that is? slate in you see does China of XXXX September those big through half, planned £XX question, for I'd month you, events Japan?

Erik Engstrom

the again right hand you're to that the third let STM, print typically will declining. about of that drag Legal might And drag. In can that calculate me you're basically I in question print STM, two. Nick the a drag, be historically other here, saying has business the take in but XX% there first and half, you when been absolutely print that

little past in much absent So because through year, customers. coming of because worse driving this the but that driver average, already is print was and has the that drag are so was slightly talked the improved in rates, In trajectory hit, feels sort bit year The a development heading and of to showing side. a than our our on a here, time, base, period. maybe drag stabilizing. the the decision that impact while on what of was earlier over print XX% and XXXX, continues a of were little driver we're across we the that's improvement acceleration each benefit Legal, it's And time, difference reduce, differences customer in the And the growth long-term real of saw an our should, -- an electronic any think But highlighted to course. in fundamental is six-month Clearly, markets improvement print growth I increasingly the now of that the an rate, has in material, first strategy, was bit we an underlying in also of move it a one early many a rate about shrink the we fundamental one value half, that growth that, benefit. to been smaller division. rates which drag sophisticated back volatile. more the main this then of little and fundamental STM it or And that tools continuing of to [XX] in rollout in our objective improving Legal disrupted. drive not part It in of bit growth average our decision our And beginning all the each pandemic analytics the and segments, percentage reference over COVID is, the bit point continued an we year. and that of bit which tools last which and add on

they that bigger, at course. to are the and rate growth are continue at Risk, bigger percentage bit, very point they On get XX% well this were likely to as a aid very they even second in in roughly grow of going very in they bigger, time though is They're that that actual holding tools point would start to grow and year rate. grow little continuing the now identity expect specifically they're question, the Yes, than market. strongly. a getting They're I organically. about think are we to organic well continuing to to talked I ago, positioned about XX% up our probably digital

a bit growth their the rate as growth they leaders they indentity the continue it this highlighting organically. is very that are tools segments. in slow would be them more we're we reason their the gradually like that impact expect And acquisitions think organically should, But I well. get because risk. little develop to of to tools growing and they're developed are of I to to in think in more on rate realistic But But of section course, they're identity. hope larger. overall also and course, internally digital growing Digital segments have an

Nick Luff

the on of the of But certainly like. year vacations the Exhibitions, month a active month. yes, the it's in tone July and is I normally Nick, sort pattern for think our Yes. year, been given Exhibitions, this most key of

look is the forward, you industry, quiet. exhibition August generally If

you November, the pick would that would September say, and be typically As to busy it period. up again

we'll So lot of elsewhere a have U.S., countries, which we'll able and moment, events at and we how ones we opportunity it's see -- whether the clearly And Japan see have we're world. but China, to open run. to up a run few to events scheduled, other have the in the and markets what

Operator

Exane. Next Sam from question. the question from Kassab Please ask your is line of

Sami Kassab

as questions quick well. two have I

£XXX The leverage first turn. half up one, We've come million. a your we've We've seen seen operations cash down your by flow by seen free normalizing.

planning running a the had you what looking other I in And about the buyback Can February, the were suggested think looking Are criteria you extent adoption that to number? And on rollout at order of what us Lexis+? are directly lastly, resume that in program? number? that Rx run shows you in improvement of you of the XX% you new talk to XXXX. Lexis+? you shows sales update or key on of Secondly, can in the XX% smaller share is still you for the related So to to

Erik Engstrom

I'll address second you -- cash questions hand you're might first will Well, back answer while question as on question also the it. the flow, of and the the over Nick Exhibitions at well I and to to answer one. come

Nick Luff

It's up leverage historic we for didn't in Hence, we leverage capital with as Clearly, we said year, I won't quite have due buyback returning down service Yes, last had Sami, it's buyback, but the stepped down. has shareholders. come that's mean, as capital. pointed quickly. above having you the share on resume to surplus suspended, our we XXXX. that the it that to in know, and you out, still our the EBITDA But range, the the was mechanism reduction come

see were this we'll So we don't we'll question obviously, is variables. of we have biggest all run your we evolves make for might focus next and bit the the Clearly, to performs But acquisition to what that. judgment around exhibitions, and the year how still spend events see moment, probably from are here. expecting exactly the But we'll a and that. that then elevated on little business On have rest the I [XX,XXX]. at on year, number said think of how leverage a

pushing just think to calendar, than won't and them the that but now. the definitely year, that that calendar. later they them. if calendar they're all. all we've not be serve the It's well, But number in Obviously, industry the clear. a of happen hold was There been lower the not to events I in who is we rescheduling to room in said, of in

when markets the got. develops. the focus that and to on terms in think, in the lower see is still to markets open we fair So and than today we it's other that what different I it's ability now. -- numbers, plenty operate is operate said, but how a bit looking can where see But as the key we've events we'll in There's the calendar, countries, opportunities of and of

Erik Engstrom

And on well last was It's very Legal, you launched Lexis+, by been customers. know, year. as received our

integrates integrated more and a Legal. what factor I And therefore, the sales, types for have that easy-to-use as factor, these increased an that, significant I are to perceive integrated of use we've said, different different more growth improvement opt the would And access new renewal different seen success on who that customers trajectory new that so majority it that contributing and up way. the they a have We analytical to almost tools is Lexis+. we for that when offering we've customers Lexis+. content. in out. up underlying we And in now of customers it of continue of that's do renew say for also improvement often as that to feedback And our customer conversations, the contributing And a when and the believe they an of usage roll that all tools in

Sami Kassab

of you other see May opting up view? ARPU gaining opt customers for existing moving Lexis+, I for ones follow these away your platforms? When an on with you when you Or quick new in Lexis+, new the in you And customers share customers you research increase Lexis+ do two established secondly, do see customers? see see Lexis+? from are with

Erik Engstrom

other most use Yes. as our and much firm often as more to legal use they customers large a question customers, it's them us the for because well of corporate share them. use well which complicated it large customers it's share question as of comes they law purposes straight in most providers. of as When how customers than the market, And often a

sort is and central and main think utility us. usage losing a from value our often customers. That's attention that's increased believe see or it. of I customers driver. of as and that not increased And it We taking we are So are the small part that we increased getting

We, set opt to, with I therefore their content course, is -- with increased spending an end but tend and therefore, on that. Lexis+, what have direct others, analytical a so So won't use with when us. tools customers for up broader sets comment our spend of into don't insight and they of

Operator

And Matthew Walker question. from is Please your our ask next from Suisse. question Crédit

Matthew Walker

Congratulations on the results.

the First sustainability is, of I the question guess, growth.

which in and would What are are point precision how about the journal you're compared is the clinical percentage question That breakeven. what this on second sustainability penetration of growth in next penetration, final adoption for And products the side for tools for or use know for the to to university key for curve analytics, which the the products? that? XXX%? And it's be partner, is breakeven side? I event The talking what's into interesting event very where question but question are those you're That's nearly U.S. clinical looking growth? a probably this you kind stuff. then year. roughly on a roughly been like on hospitals You've Nick many your the history of STM, better on you the analytics And to while. year you in, compared is, for which tools unpredictable, going of analytics of would is doctors driving at some the the year after obviously for looking to know

Erik Engstrom

the more is sophisticated our believe with that direction to we way add time, always are as more more decision would the value happen at that, more across therefore, therefore is There value tools the over that, driving do that add question value course, that because we in direction sustainable a believe spend what use of customers that they in sustainable year. want more Therefore, while. that times is can't all The us direction tools, pandemic different get they been that more strategic strategic and to will happened and a last heading our increasing by we that whole analytics the with for of and and have sustainability, On of of such reason a our spending things market this we strategy. segments have products we, and because that us. more the of control world are and with

what should So any better happen will that is But we lead it's very in predict organic this year. believe a strategy to over hard exactly time. to growth one sustainable that

move are When to with where still said, fundamental competition course, have percentages But transition half Of specific about many not risk might tools, we to and this by in XX%, in public path. a example, something STM, improvement because and significant I and prepared for contributor it from path talk do that others. beyond it's be as continue a in already, end-user we each the XX%, of time. that XX% but the reference small also may division events that that. quite that as product on about you serve competitive general, in that possible direction we there there's we analytics say is first risk in general our in markets, specific this talk we're each products, down set, to in XX% products to growth in this there of adoption absence we customer is that and track, I continue say, are are decision or to in markets by for customers there print down curves at we, it's there well. impact, underlying only sophisticated which XX%, slight if growth year's that are When the the that that point the And support rate the comes Legal STM, and in

end. not Nick, do I certainly at the you we're So Exhibitions? want anywhere near believe beginning, to do not but cover the we're

Nick Luff

I'm forecast sure half profit second Exhibitions Yes. not [indiscernible]. for to precise I'm the give going a for of

Operator

the next is our Citi. So ask your from question. line Tom from Singlehurst of Please question

Tom Singlehurst

transformative and and and Tom and universities in with bit on was open they're I of journals We've to properly, of second can I that of wondering widespread me it whether whether half whether beyond. in already articles bundled sort here likely used you comments the the and out apologize line there, a couple questions. STM, revenue. this incrementally and of was access cut OA but around short-term as universities so phenomenon, and/or if submissions of from part of that's helping whether reports just had It's sort deals. is make linkage seen of volumes One a having you My that full some from through I'm from Citi. revenues volumes consortia come hear can't quota a danger any that's on

I would say are talk year running to that at you interested revenues. remaining that I'm XXXX important at in and management year then back that schedule. events. But is this it highly they just on proportion of happen, you right happen recognize question time And was flexible events is about get in only of what the the question. and of right first So second how the unusual. just year is time i.e., of critical but sync, that how events not recovering the they

Erik Engstrom

increase for for we again volumes articles year. Yes, are what said basically we Nick that due increase we of me question. market increasing of in of that articles access of ways stand-alone both but the this I published market the that year journals Exhibitions, in geographies this the year the full of increase believe first access another and on XX% submissions to as due an over STM launched terms so open let last continued us. That I in of in to And to growing very first and second terms And we let across publish customer was are our articles question and overall of partly answer access is half our is pace, offering to grow the share. published the open strongly the around far and in this XX in seeing morning, will sets published cover journals. the we partly as said, terms alternative in open

there So that there customers number some on. agreements so in of of and course, of are articles have specific

significant the think general material numbers or in overall are I that proportion a trend factor seeing. is we not us, for a the

Nick Luff

I mean, Events the on you're And right. are taking to when things quite of place Tom, is normal. exactly disrupted question, terms The in compared schedule

overall break a on find works the how for typically, important relatively and relevant dates are it. fine out it we'll schedule But just industries new the just and Sometimes, and fits with date all together. program

work to So quite them pretty but do normal it events year. year. everyone typically, time it's this of you'd understands the take back like timing, that. which is be that to terms and get depending It's looking of place disrupted But in

doing we us still good So I very event for a think hold can of customers are supportive if them. that

most at So -- some but point. moving most we'll of them -- back will be likely

Tom Singlehurst

well, X.X clear.One -- follow-ups. Okay. Very

everything that you in possible I I the wondering the time the will mean, back way as that do for then you -- XXXX whether a OA. growth submission event get for to And think is it you the in year published. in articles of figure similar was side, XXXX take On all have right the talked well? increase to on -- to about XX% through

Erik Engstrom

this When to jump it had open first the half comes access to a significant the sort last year. submissions we in of year submissions,

middle a the that first but open order -- high access But I half me, half. numbers towards in last magnitude, exact almost had top about I because middle roughly the say, I half above have submissions in think of on year. think very of middle I even from don't large of spike had those of the first that all number such front that of the it's the second numbers, beginning the the on in in way should XX%. the doubled we the spike the it the of year,

Nick Luff

start I normal 'XX. the exactly does long in how for get happens to with the of an place year means depend that year unusual and do then at for and take what it event back and And events on to what of that place think taken calendar? this time they've if remainder take particular which to it will

how get you throw back, normal adjust things we'll events every will sort it If but cycling the to then year, calendar well evolve. as take think little I have see and everything assuming place in to and take a bit that of conditions time operating of

Operator

Next question from is your of from the Bernstein. Littunen ask line question. Matti Please

Matti Littunen

and First Emailage. ThreatMetrix question on

don't where customer bit LexisNexis expecting them see your that remind the strong are the Now see resolution for the as of position? you as third-party had perhaps rely or you've of on you a additional then And what removal tailwind think market far them? tools one of could cookies is you since on an a do and/or identity product just particularly understand, growth two as as as of main cookies? is market I third-party yourself Legal, you having us And segments

Erik Engstrom

again? explain that you like would sure or you absolutely there. clear your me. Could do repeat can to to I second It actually make wasn't question

Matti Littunen

or product could see course. them for of you are customer perhaps are then LexisNexis what market you us yourself having bit On relatively. segments remind of the you Yes, if there where any a Legal, as of And main them? see a stronger position

Erik Engstrom

Okay.

understand. I Now

billions device characteristics we in million have of different in has pinged hundred very in financial or recognition sophisticated numbers and example. order On institution, a bit about the that day in behaving in on how that are previously magnitude were a some verification, our over we system. first these of the of had examples, very digital it time And a digital used are is are how XXX for services that several couple with and that devices devices actually behaved that identity within And talked these tools checked tools a their identity last of times devices. being there in checked our we embedded public, and database that device of being digital question, embedded and identity are

recognition segment, a in that some believe sophisticated of Legal, are at the international, large of the forward. course, cookie U.S., personally customer is, the will we impact of So software way Australia, sort we said have very tool. trend we it's moment, do I and On it course, we those technological had personal a and significant on is in U.S. at the the main is large have is makes of going X/X have deep the law That's, U.K., X/X device of law a or look Legal segment. Inside a firm a opinion. for example, France, impact course, and going has significant not firms countries. of that

We segment. have firm law a smaller

have we sort the U.S. customers. and We local of government in also customers, state as the government government as well have corporate legal and federal state,

help more and in more they exposure, and, operate them the costs, talk customer particular, So across of often help as a broad we but mostly the decision-making several them legal manage customer Traditionally, range segments litigation legal law manage use our tools those. decision well that and we legal the them sets are help they manage about there. because firm tools legal around other customers, there their analytics their

So range it is customer segments. a relatively actually broad of

Matti Littunen

Emailage. about Just point clarify and ThreatMetrix to on that first

the sophistication the understand I Now of tools.

identity recognize on the impending versus clients actually, strength as positive question a cookies? you your resolution impact cookie solutions rely have relative was had perhaps removal the from So of my that more

Erik Engstrom

of kind believe is directly solution to with actually not we cookies. I ones do that offer the the comparable

believe has think a So I been because not far different there significant so that, competed in on a we segment. impact I do that have

believe and So as and opinion I don't to I to can market factor. think any you. a likely interpretation be the don't significant factor, it has of But I and opposed the been data that's personal as said, significant is my audience a I give it

Operator

from Stanley. Next your is Please Morgan ask question. Patrick from question Wellington

Patrick Wellington

questions. Three

clearly product you You're shift market First open a gains one, reading about talked open that's of in deals share access? access. we've think your in -- your greater published Do STM. and taking share shift towards

are taking business. was you taking it around database which businesses? Clarivate, does tools I people look of like? you to the And they databases STM. question, the you like at and if have single-digit That's share If extend have You're high aspirations in Why subscription. Do sort similar? share, about growth first your in talking

may question, a one, but garbled. I answered line second the have Matthew's bit you The partly think was this in

the So is it's really. And are say exhibitions STM and represented question you analytics tools and my third what now percentage around of revenues in decision Legal three and the got activities? would kind by then of parts,

the is, seemed line The Nick the for to but first one profit I'm sure momentarily. year, us out likely number gave the cut again,

role could million it July and August if us update November; £XX assumption? Secondly, a £XX again? to final say, one revenue, just you million; would get we could subscription-based on £XX million the to my then Exhibitions So about is that again? million is, a million, reliable October, can its the £XXX £XXX be well, group? simply if nice will for about £XX a a business. we you about on Erik, short give month, million year. Would each; be reasonable us You within December, And And September, on like

And the Return but lot group. You last as XXXX you've of like been on Exhibition revenue six two. growth numbers had exhibitions of organic in years roughly. has invested regular since terms now including characteristics. has XX down a very period, years a good capital organic in that got for to in very compounder growth be producing good, a is RELX

business sort RELX happily a of the a if sit rate, XX with Group? X of does that So sort that miss does out within of you like,

Erik Engstrom

and I'll Nick. we'll over about questions, start and that. and to Exhibitions the come STM then by Legal after addressing the last back question I'll hand the talk

or market and an less really, journals market is market to it where that have and with are asking spin-off that presence main different have -- rate due where high of expanded spinning I subscription, And journals you we effective believe to we share providers. slightly we STM, see of have it in when in that very than I in open did on time. have quality methodology more say, in the market. subscription of in is, those alternatives a to research market quality do And increase year I pockets the and open think also as our why that as do customers segments and off target that comes same therefore, the I higher and lower continue other launch across faster-growing at I share our and So a And strategy, different market which better to scale little market price continue many faster well with a had our major the what on other the in types to to and growing much each gain than value we last to of do we journals to approaching market better effective a quality, now creating we this we again, and platform before, And over can recently increase continue better you're first, about is in -- presence high pace to our open we market as across the an reasonable systematically better because to tiers, increased your a in believe content we're would in do ongoing offer years, primary be similar a to I market to objective with should you have set access of platform which side. quality the it to have, subscription we we segments, one that a than think, publishing access access open that, that a other value continue comes that tools is technology driver if That's few of than tools said the at the with to strategy, open access. higher technology for access, segments the basis. had When applied we a side, the share? and started that share do major in believe that bit providers. publishing, continue quality that to

the Our market of specific think small. relatively share deal significant. deals? are directly question I that The still think does share of more to the is gains

[indiscernible]. it's think I

whatever serve whichever We are and they customers publisher they our ever publishing to very models happy combination prefer or if call prefer to of they with prefer them.

contributor. like, I work they a think strategy main here But positive clearly, believe our is with them that's and the So offer that our would fundamental customers driver. when what I we

long Second than period our we database a of before, question database as because other the increase I of And comment they strategy. that they of the of to of our have our said was course, time, more each can't rate will of should think specific long into for expense electronic now tools, database to I on base strong STM does a on do have division. knew extend providers reference, it growth of And grown and subsegment. on what revenue are continue growth travel growing continues that sort rates for tools the be. execute well X/X they as to direction period database strategy as our tools? tools, STM The it's any But we a time year if successfully share of

You And is product for is tools. different is tools define or tool sell a or are Most time, asked do built in not the decision a we our on increase tools of on this decision times, difficult also because an to reference separately and the the top that in is take and what that built and we it's subsegments or analytical what a content a sell question tool but proportion on very of percent Legal, it analytics tool. sets. many and different that we received and decision STM question analytics reference we

the sets the them Sometimes, integrated. for content tool sold with

And sometimes the tool is sold separately.

said this it's define metric the magnitude here. difficult to that sustainable XX% So road STM XX% journey. Legal and of down in very or divisions. that argue I on order I We're But a the accounting would probably

Nick Luff

restrictions breaking But you for on now I could was way was in We've roughly that, quarter. since restrictions happens the or the in Exhibitions be -- of those the been know what basis characterizing don't had and of time half. be there. that don't you even not. the the it what at we other profit when year. in we and yet events obviously, in terms indeed said, We opening the we we see what miss through open. didn't The in to open have the know a was will remainder me And And markets the are from of the Patrick, know actually have markets don't the that's I'm for And remainder loss sure -- up forecast even when place giving open. the first then we year what tell that first we'll markets today of markets in to get the that will we are

So few we'll your question months will have much to at breakeven to revenue It running that now. is same. depend. been for see, but the answer a My position have we

do can want. obviously anything You you that

the what the create in to up. If and when on forecast -- of those and event second each for it calendar you try the Exhibitions, will which circumstances particular geographies those come half events are in events want in in revenue depend a

to So see. have we'll

Erik Engstrom

contributor of Exhibitions' said, terms average RELX, role both growth over Exhibitions capital, development time, within organic on the on way acquisitions has revenue know, good organic we've done invested been, you as a and returns good and Exhibitions, Okay. On Nick as to in it.

Before increase and to the the if hit, and so over to pandemic and see people and XX-year do have that of better. and several could transition value, drive in pandemic that accelerate more use And I provide we sophisticated the objective, industry digital of analytics our That more that might tools the that exhibitions value division to business functions to improve datasets, industry. using journey. in X- digital the decision value tools the we that businesses the customer towards could them the risk and help would over data was several the digital sophisticated a we accelerated we be analytics thought exhibition think transferred to the from we

market digital know transition has had not pandemic a hoped coming this pandemic. and or exhibition focused is XXX% supporting at this I be point focused will if have the analytics few and the the we're pushing on the has division, to next come our few and support right developed we're years, the division we through that Nick's and a in To if to again solutions customers point, because that as we the for and tools the it address well working we're accelerated see supporting segment. question customers interesting the very how though, an tools the decision our analytics with at we in But think in We when few moment. our will out more the back, of Exhibition digital way have and it now on way customers years, the years, for

Operator

ask be Please last Rajesh HSBC. our coming question. question from And from your will Kumar

Rajesh Kumar

transactional from growth. include XXXX? a which on moved and growth picked from does suggesting the active in follow half confirm first that the in first Exhibition not that that delayed I seeing Risk a up on STM, revenue is Just you there's Legal, QX say question last year, to have a terms, large clarify just Can second up, half we're Can demand specific The side. when in you that you're flush is of not second the in half?

too but likely division what what remains Just you were XXXX? as certainty, if towards is even growth Are forward slow early participants Or on see growth bookings on getting And just talk are on are sort I'm that dollar the one? your to base, dollar seeing interest slow? it you that but you comment is against earlier -- heads, ThreatMetrix larger end to discussion tell growth the color the start of would a XXXX? same that lower similar, growth? of saying for that the to mathematical Or you the level made implying from various when you seeing seeing percent you the of that they of they you in is sense -- the base the are growth sure on

Erik Engstrom

delayed to in first number the number do segment. hand backlog or XXXX But something the question that That's not inflated the have will any and there's way or first, we believe material there. artificially that noticed. second three I'll Nick. answer I We not of specific any one revenue Okay. half in any

is attractive segment. the believe growth a way saying in The I'm any is I reason revenue only is might it though segment, ThreatMetrix, represented fast-growing the very even do point the When revenue percentage time we that growth believe it's a not in So half. will to fade comes slow. over that somewhat that it's that the dollar and first what growth it

position, business We a difficult hope be It's have direction to of we on. do sustain gets leading that percentage growth we'll more and we're and a on in growth The point the that clear high naturally basis. bigger going to way very very bigger. dollar not percentage as very a believe bigger be slow. and and We the not any doing that travel are points well more should

Nick Luff

go can on people event And that industry forward your and ready get the Clearly, there. No, you're them. appetite ahead It's for are of generally times able product there's are are keen hold take event is and Generally exhibitions. to whether is affect booking that The an And actually the wanting the particular so shorter, it's or appetite. your do terms events depending talking sometimes second for event what we lead face-to-face restrictions is event key the well uncertainty customers for see to are they the and for to them. events. ahead about, good sometimes The are question, that come not. location? seeing to -- people go your to working to going and variable people. to They're the Rajesh, we that the on bookings hold we in can given speaking, generally have issue when relevant knowing tool the to able and good longer

Operator

time. There continue. Please further questions no this at are

Erik Engstrom

today, forward I to Well, you. and to thank for Thank soon. us look you talking all our on you call again joining

Operator

Thank Thank today. for you, speakers. That all for you participating. our conclude conference does

now by. may disconnect. You please Speakers, stand

RELX (RELX) 31 Jul 212021 Q2 Earnings call transcript