RELX - Earnings call transcript Q1 2022

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Operator

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

As you may have seen from our press release this morning, we've delivered strong financial results in the first half of 2022, and we made further operational and strategic progress. At constant currencies, revenue growth was 13%, adjusted operating profit growth was 16%, adjusted earnings per share growth was 14%, and we have declared an increase in the pound sterling interim dividend of 10%. All four business areas delivered good revenue growth, with underlying adjusted operating profit growth in line with, or ahead of, revenue growth in the three largest business areas and return to profitability in exhibitions.

the each at area. look let's results business for So, following growth growth half In revenue X%, of particularly year. first Risk, underlying the was strong in of last XX% revenue growth operating adjusted line operating increase margin. was adjusted a slight profit with Underlying underlying growth, with in in which growth. around strong represents services, of divisional Business delivered revenue, XX% revenue Emailage our XX%. identity, and grew fraud around identity solutions very growing strongly Within digital with ThreatMetrix and

to well. growth Industry XX% biometrics In acquisitions first analytics represent improve. an Data in over saw some by representing federal improved and financial expansion divisional was driven including aviation, have behavioral improved of and whilst the from which see recent and and proposition momentum divisional continuing both tools our local factors of most market XX% revenue, the strong Our are continued just half. improvement under the others compliance performing and state Insurance, X% growth segments, just total, markets. prior starting In auto, overall of year, representing and Services, the across value continued Specialized customer other only crime are improved beginning In divisional US the in now just and with to of over rollout year. over Government, strength revenue, decision petrochemicals in of strong

improve. STM number growth underlying open to growth. grow levels, year's research, with recent all ranked growth increased access Elsevier's published. and The with underlying adjusted most The approaching trends, X%. now sales party has We journals, primary impact, continue going and that articles submitted show revenue of growth ahead historical and Databases education, their continued adjusted Underlying Electronic of medical strong with in our articles now first medical and profit underlying globally. The third among XX% we Overall, elevated journals forward, slightly Reference, line revenue across metrics well. of saw growth published last XX% growth the continued management, at revenue to and of of articles strong expect around broadly revenue. profit quality in XX% new of Going Tools was operating from revenue & In corporate. X%. matching research growth renewals underlying divisional solutions, operating are Lancet growth delivered clinical

continued growth Legal, revenue, remain Going underlying underlying trends, to further adjusted integrated with expect analytics representing the exceeding new uptake across to offering, by revenue see Electronic sales profit growth to X% profit strong divisional improved slightly Lexis growth above total, XX% growth has customer In X%. forward, growth remain grow analytics Plus, tools. decision strong our with see of to very legal almost continued momentum. continue we underlying well, positive underlying Renewals to has driven operating and strong of underlying revenue historical segments. and revenue offering adjusted growth. in

reopening exceed Exhibitions, expect Going underlying of to In was forward, exhibition by XXX%, over operating with revenue we underlying revenue profit remain across trends, growth. growth above to growth continuing revenue historical geographies. driven venues most growth underlying adjusted

and flexibly, supplement that manage adjusted digital with return result to our progress levels physical in local The and our cost positive responding making lower the scheduled structure. further policies, We reflects continue to government event tools activity increased to events. we're changes operating

continue strong base. of from Going underlying structurally will lower growth. benefit The revenue operating to result forward, the we expect the year cost

unchanged, direction this as Our in slide in strategic you showed remains we February.

capturing STM and on from Legal, afterwards objectives in progress trajectory more for will we our a who have through be made growth back year, CFO, growth Luff, growth hand growth the will up usual sustaining our Nick opportunity I I improved talk strong exhibitions. you wrap this now Q&A. in quick our the the to and results our digital of risk, will reopening continuing far and long-term and profiling good So on in over detail.

Nick Luff

Erik. Good you, morning, Thank everyone.

Let by me start providing more the group on detail financials.

improved times, said, constant improved reflecting and of operating operating per and of charges, result and The the but down results. performance interest the year. strong at growth to constant offset XX% slightly at XX.X%. strong business was operating in earnings at all was adjusted recovery driven XX%, tax currencies, at last The increase at Erik conversion improving times the currencies, X.X growth in STM was constant risk, again, from XXX%, still end XX% the leverage at period the currencies. revenue share As Exhibitions. four by Legal for higher was X.X by drove The their of adjusted was Cash adjusted profit areas with margin

Given resumed overall spend we've to strong interim to by the half. £XXX Acquisition £XXX performance, buyback, and we the dividend increase been £X.XXX million, share. first million in XX% the the able was per spending

business of the were most for scheduling to this stage, group, meaningful not and the events each low as and underlying last. good growth, in year at X%, Exhibitions, a more able areas is compared with growth and base, underlying run geographies. both differences largest at Risk Turning strong Legal Exhibitions the X%. reopened At and saw we half tripling consequently year STM to given to a in three major from revenues for delivered full revenue, venues growth, our than program event

For for year, as we reporting underlying Exhibitions whole. normal be a as and the RELX full will for growth

first our Exhibitions numbers know, generated you in bill our sterling of too. North other operating revenues to of of the £X reported both growth, in the often £XX profit group growth to are second profit business adjusted line growth. started Total currencies. sterling was almost growth rates Legal US sterling dollars growth constant with and these America, revenue at in does world XX% to in operating around revenue we and X% last revenue in the The adjusted up in of million of XX% to strength group the continue year, parts results. Overall, XX% As areas. recovery That the the revenue was boost adjusted expose billion. up half dollar in in a the of in profit XXXX the was STM of with up was Risk FX and revenue while delivered profit ahead half operating movements relative of

movements with growth As in both boost and currency in of and three areas adjusted from Margins It's boosted with improvement business just billion. Legal underlying improved £X.X largest group XX% revenue, in [XX%]. STM with a Risk. profit by the (sic) operating up in currency each profit over sterling

constant in in enabling cost higher operating income XX.X%. translation higher rate gross growth revenue Returning half in the profitable adjusted of expense offset a Continued and process currency whole innovation Exhibitions below of through statement to giving than The charge With reflected currency which rate the interest more before inflation we debt growth million, XX% the some adjusted effective profit shows interest cost saw of of us rates control was level keep interest on to effect revenue base, tight effects. impact and flowed financials, an in XX%. tax the percentage that profit, parts cost of X.X growth. to XX.X%. average and in of the operating of group The growth Tax XX% was the the X.X%. tax £XXX points group to by first XXXX, margins for improved of

per up and tax earnings the You'll we tax helped the constant half rate small XX% non-recurring the was Net buyback, share share up year by up XX% the million, currency. profit XX% resumed year as in both adjusted was credits. from a was at With full Sterling XXXX £X.XXX. lower remember constant at a that £XXX benefit count, to currencies. was

to revenue. working CapEx flow, flow inflow, £XXX adjusted With profit. half a under small was Turning capital the adjusted billion. million, £X.X cash of EBITDA was to just to equivalent cash X% just first was for above close operating Group

with conversion of million, cash paid than reflecting statement XXX%. £XXX interest first Cash was £XX payments. of higher timing than tax line interest tax million higher So, was income the expense. half, tax was last year's charge the Cash and over in

to half £XXX prior flow operating by tax the million. With cash first at period, the offset higher payments, cash was flow free similar higher

self-inspection Here's in Flyreel, BehavioSec, notable cash deployed acquisitions We half, completed consideration biometrics; a the total flow. a we leader how with six of year's final first last Risk information Interfolio, joined and business; provider Most million. which of that a of behavioral million, a free £XXX both insurance, during £XXX systems, faculty the being for were dividend. which joined STM. app Dividend payments

the the full buyback As year. we of for program, I £XXX share first out half spending the the mentioned, plan million in resumed million £XXX

that, billion. between and in to movements, £XXX the Our FX times. I dollars to half, benefiting Erik. first down split movement, debt EBITDA leverage net strength currency evenly But resulted came taking fairly debt you to X.X the With will with and in hand Dollar is million improving back from £X.X euros.

Erik Engstrom

Nick. Thank you,

this XXXX, results covered half summarize progress. In have we've to Just made and operational and we morning. strategic further the what first delivered financial we strong of

we half, go think remains that, share, expect as ready trends. to profit, earnings full and as the group, currency year to we As continue growth above remain the in rates entered adjusted with to strong operating questions. second revenue underlying to adjusted across well we're in and And I growth momentum historical constant per

Operator

[Operator Instructions].

Dempsey We will question take from our Nick Barclays. from first

Nick Dempsey

three. got I've

think Legal The were better both first than seen a that I first and the one. at The growth people half, in revenue STM X% expecting. organic you've little most

one-offs any what the I've year. flag to half, in dissuade from from which hard too working us first for aren't expecting benefits or heard would timing the full X% You

to organic growth well. subsequent hate year lower You'd the division clearly as on a dip in

revenues models. divisions? this for could normal Second be those So the of transactional Risk. two from question on XX% new

improvement you've this, third exposed revenues, more In on other be the this inflation what testing of getting for those question. use by recession? Is X top risk more been inflationary events, that how negatively overall of thinking about So cetera, your renewals this to are price to talked recession? decade internal that claims, contribution more a be fair how the STM product, would stuff in is Legal? et sure a to US adding insurance transactional of might to to the more the improving volumes But those price. to it's stress growing of X% about squeeze much I'm say rest than you and not for that And in a those division US people into You've cycle impacted point in and directionally a there you've in year. really but been that are And factors? it, from able to the of shopping so, environment,

Erik Engstrom

strategic and Let continue that before, before, me in that those the say heard as STM may Legal, to me in improved order in questions our on you growth here. The divisions take X% objective have those heard in is direction we've I've that COVID little then told the trajectory a heading before, for a struck, were been and growth before as had of towards And bit years. disruption. you heading we few we last

a Now half rate trajectory. a growth it's received increased back tick to growth by is our on today, the to analytics that rate true value. and our what's in legal hard and when year of or and Legal for of improving research first products, uptake that is is analytics But offering, the customers in integrated that our a this when and because Exactly full its course, increased of well us predict. value rounds a which we usage half driving our year, increased improvement for are product they underneath up very higher

is across revenue. in half, on print traditionally or that the launch segment of first mid is to would've over new tools. we normally the That's features, starting same. high average is main last functionality, XX% but In in and of the that an has over declines, right typical or divisional you division single the And division moderate of first decline share very probably as digits nothing driver half had XX grown come unusual sort approaching similar, less have new also mid-single timing it. half, ratio that's the the the them there's That's STM more in on STM year. story of half continue roll out to and slightly likely the full growth the X less time. we print we become that to exactly world, becomes now Legal related. the larger And digits didn't products, than average of improving up rate The and increased of therefore have, impact. But continued would to first is of in part the to and we a trajectory. division. So new databases the the the And had larger years. but the an is

said often the So, insurance, that volumetric over billing rate about said, move invoicing, to improvement gradually. Legal. Insurance by an trends we But you US more as you now the nine we inside driven yes, and seeing Risk, gradually contracts. our tend as and growth volumes our industry the slowly But long seen insurance asked or term is of months. was and improvement recession. through STM XX% have are revenue And coming in in six tend question insurance last side. gradually a a change to you also, to

environments. signing the in insurance, cover insurance are first, if for last impact at our that see up switching significant one and several economic I not other downturn During that drivers we slowdown insurance did just revenue how in also, because growth recessionary look off a people during there

during boosted to is largest we that year, services. months very now, first continued months extra Continues strong as And that little strongly. in grew some first services, activities and Business the few half. almost this growth the rates half the continuing then, have But of last for created last were more a what's year, to revenue, that's bit risk second in a in grow of half. is course, Very very before. business even the first half year, lapping one the sort of a of part the half growth services normalized. very bit few that in year, the we the were one-off boost there last in business growth where first other strongly a US strongly were extra grow The transactional where unusual

level a If not the you been with are solutions grow think at that use time, what a they period significant though, off same solutions serve during recession, our then offering little Typically, long US well. that has to delayed. I it it's offer happen been look and offer use new better at pure per that per as that cost at use a a down But that ability for of bit value products, when them when when same likely slow them so a Risk the are it's don't they down industries could has our are time, we the if significantly slowing impact them. value. economically transaction, they muted They we customers transaction, bit might the our than

a on delayed. product. an less, But So we don't our the impact, even industries we significant the spend trend see serve that and muted on there growing would if downward be are slightly have that though could

the driven or big If a you Risk directories of that saw screening spend the when relating in there look pre-employment advertising, to at that impact by particular. particular US happened, marketing segments some those were in decline, recession or last were

entirely. out segments now almost all are We of those

what at accelerated So, decline a which last the is ones point. that Risk time. Risk, out not saw also the impacted of this recession print of were also, time division are significantly last And we're completely basically part in material an

pricing there in growth pricing. the is half Your answer question on Is no. and was that impact The time? any rate inflation first this to last

Operator

take from now will Berlin from next We UBS. our question Adam

Adam Berlin

from questions two Just me.

up on Risk, Just Erik. following

that's Given recession, what clarify rate given the then expect mean the comp? is deep acceleration recession particularly the to there risk a half, in if does not HX, growth Just we second no saying. in easier should US in an that you're

the on in open the HX question access tell the number? growth revenue if you STM. Second us Can revenue give article us or was is you can't what growth

Erik Engstrom

launch and year, at see The only continue you the growth last different half the had the is consideration growth part year of On to like-for-like have we one-off we period couple an last growth that it very normal actual a a higher is good a when lower. we at we in segments and when we way Because this in of products from have believe boost sometimes growth. this take where is the little year activity continue have you any to exceptional out, before we half the strong The them have that transactional a of is any industry true some look you to unusual rate, little don't year. forward-looking risk value position, reason in the in almost rate. and indication don't that of revenue we little that had and financial the no few didn't second very services and Risk. roll business, first a see add to the we growth point, we to and didn't first a comparison from last product, thing high see a question that US at rate months the have into have look we that that something here growth We

you is, So, easier against say we half? comp up boost that have question we in look half. second almost in and at that can because the it your are Yes, we one-off the are didn't a second slightly

open half The to some you when access when other and access. and of that open first comes there's tools inside volume roughly analytical how agreement the question it for access articles. an the in subscription some interpretation article of revenue, certain a that count slight And growth the On covers put both question us you of volume some XX%. was open

XX%. that. the growth a question slightly article define to more it's So, continues the revenue exactly how around growth you difficult to relative to look But at be

Operator

with next BNP now Paribas. will Sami Kassab take We question our from

Sami Kassab

well. have a few questions I as

increases you Second cost be price question. base seen asked in inflation suggested around on have historically in there you revenue XXXX? And selected passing perhaps than that going pricing your higher XXXX? into on the Will going through comment some you Nick So, of that HX. Can had none. your been you the any price growth into impact policy

to in your You of elaborate improving recent insurance can referred think to given will improving have in these with think the exhibitions HX? weeks postponed the late. market Chinese on or you to will be to some shows, you country, insurance able Do run that in most situation the your Can what And to on in factors you in thoughts the are see Chinese factors division XXXX? be you lastly, you regards of months? that you have please the update in shows us HX and would

Erik Engstrom

then effective in our we our goes unit as those of I'll provide in their or that take and we pricing actually inflationary per tools, have to make use improves, but less so up, to what over trying the in the to every declining time in is price to be at then, our rate have The sure value I'll strategy rolled cost might the third are it a look unit environment. Nick unit. value over that they objective year on customers new an of very we provided slope effective environment we a basis, way new single to value that relative to than that is that, pricing our avoidance we be and value to that value goes effective so cover two per down we're price value. the or trajectory. inflation price would one. and here the tools improves, different in the because have volume deflationary effective That's on the time, look first customer improvement then to that customer, and and do is the at And environment environment, business, out, that try steep then price stable that It decline inflation to that's ask a customers that price customer improved time that improves over value actually a at their that that that it higher we tools per the possible more, the to a the price we a our customers

visions? to we our less Number it's say have So, that impact all there's likely a a the the a believe really changes companies. most a on of come across some see think of on because everybody that, product, but slightly, No, cost to inflation. slightly. we're that increases in the drive going our we're environment, product else, we When driven cost price course, will our Do and of revenue have rate policy that of on operates unit inflationary different than that chain. significantly supply but we trajectory or like I they're of by inflation, of direct to we're don't value base, get high continued sudden from to improvement question if switch stream a possibility of quite you cost have that changes don't selling do really possible separately you of of going one, the or we the trajectory per it And rate see products, cost other the the secondly, cost we stream manufacturing volume. base, logistics not from our and by the base directly customers depending

was half, growth half, you We second year. insurance in volume the to and that this to the first market to the some year. track be So, continue expansion question. if strategy of can been process throughout growth, operate then we the customers, first to starting on manage continues that in you base the beginning so the could revenue growth. improve slight grows that cost less already the revenue tools, through Insurance. technology margin Insurance strategy, from slightly of That see relate on see grow to to incremental, cost profit the our margin, value which and than strategy, our of will that continue driving look innovation, and the we factors half the has that the our and first drives at the

prior year. claims patterns than higher year, than the volumes could higher You prior see were were that the driving

at So, already those high half. the you that could were beginning of see the first

started in having see And the can in and first see were that second very which that's and recently. that last also has the sales been new come extremely the also year. to come as slightly shopping recently, to down you year's auto of half Now, high, half slowed up you on middle US, can from last very then the activity second started up you behind, half had particularly low started

extremely there, did and So we to the up half in new the that's we're we're halves lap strong, was something one lapping first that in now sales in lapping lowest something many America auto second of of years.

those couple I are the So, Nick? exhibitions, factors to. of China point could

Nick Luff

historically, as in to one Sami, know, there's digit going China, tell China's a uncertainty exhibitions can high-single been been exhibitions mid you, clearly city. we city you ran percentage we does back Shenzhen have of vary revenue it running and the overall but I time. in in in by June, in

So flexible we'll events what the run happens. and and we can whenever we'll see we're staying

Operator

next from with take will our we Yang Sachs. question Lisa And Goldman

Lisa Yang

the trends follow-ups your for On underlying have not Given please. health last and question. QX view talk implication it business? within of still does understanding about the Just the the and how could That's fit year, in each What's of a Exhibitions, that maybe the in you few industry was what HX, terms in one, exhibitions necessarily things versus changed first the but comparable your portfolio? structurally imply?

remaining scope been quite buyback you one the level revaluations high given the maybe thinking see in is and do have that HX weakness? HX. second elevated already capital space? allocation the also also And question with interesting just you more Do there seeing million stepped think third allocation, to obviously, M&A is virtually How has in of you I is rate increase The you market at M&A, are the And think quickly, £XXX buyback, done up capital aggressive. on about in tax the HX in bit see a the already. opportunities you really fact I

some So, costs, year? and the have give the could similarly, dollar on full indications think interest I And interest floating net some well. us denominated you any as you on debt

we should the cost? for what basis year the full interest So, on expect

Erik Engstrom

all okay. if here three that's cover ask to I'm those, going to actually of Nick

Nick Luff

and On and times strategically, exhibitions world good significant been shorter reopening when it very the look we've exhibitions be have face-to-face often come rescheduling, clearly, digital international still a opportunity venues see travel's I wanted for And we're the and on. change, good to focusing seen And, opportunity the have we lead structural demand. and the and been and we've to but flexible at of have think around that's People demand. we back what events. seen we in affected to the

I depends think done Clearly on in it acquisitions, said, we M&A, we've million. unusual. capital acquisition, your year a allocation £XXX question spent terms like nothing spend, normal on looking of as It's on pretty six all what opportunities the But years. think which of average exactly it the come in in been we've normal, describe as I up sit here we'd doing second the today, half. as context year I a last few

accelerate organic are and up. we'll there doing already they acquisitions development to what we're We continue opportunities take and and enhance on if be primarily focused the the come to

our value we're focused and can for haven't us. can approach – where just and We the add natural changed things owner that on

February. to the for On decide it the the share the buyback, our normal is in results year with and announce share practice buyback

February out we're to in XXXX we'll for set plans what we do for XXXX. and tell what our So going are you

half obviously, rate, had be on the year. The tax tends rate's credits. we've a over of the the On lower your yeah, the been accounting, based for thought, do one-off full last the the way set rate some you little tax tax years prediction the bit couple because to

you historically what point of can the to trying sort half normalized Clearly, first is get So, that settled, But was credits I so things good forward. had – get first half rate, we – a nothing XX.X% in look the things get could have as if we and starting is saw the a it. have in debits and distorting credits as in are change. you you some think the past

our on point. costs. stay reasonable you of rates if a particularly interest interest yesterday, first see you rate rolls what was but we debt rising and are, floating said Clearly, it's half, the starting was is of And last And floating they So, question just rates. are over where base have through then just some rates interest the about in on will debt, that our your saw including into XX% that debt.

that apply if increase while be in to takes obviously math increase you will a it an flow but and in So, effect. into to the cost, you can interest the interest the full see year rates, there

Operator

our Citi. now from will question We with next Singlehurst take Tom

Tom Singlehurst

relative bit less or reasonable could numbers in for I on, whether why And it was this conservative To XX% to still. to peers. yours, think on question of of that's And to running the the give consensus numbers it recovered. problem, our for example, full-year is that that more rebound their some expectation levels XX%, like reason you sense is running wondering businesses Whereas a shows On consensus RELX are Exhibitions, actually. is is just events the feels put proportion any some that, whether RELX of maybe us for XX% you that peers. but should probably than or one other reasonable, is some a for BXB for are not think, [indiscernible] former, some of slot than recover expectation. just optimistic there and normal is I more it give XXXX some about your

Erik Engstrom

I'll cover this as well. ask Nick to

Nick Luff

compare It's to for to portfolios, we how sectors. very different us people. They have different on different comment hard geographies, completely other

to having to to go after see get and digital we you a some seeing improving was of Don't are event Clearly, is that events, the been we and to can more we way historically demand this forward, just adding from stay is on do where careful are first still do opportunity can focusing that that that value. to we pleased trend. and there can. all forget half the are where what an we the but reopening. is and when on of them, events run and are and so be biased alongside business, has below And reopening been the us we that looking flexible is strong as on running that's we're pre-pandemic, around allows comment the a So, that, typical We've back but data, what and face-to-face seeing. it

think Clearly opportunity that's all probably as can we as we'll we uncertainty, of I there's the So, much capture can. say. but

Tom Singlehurst

is about a I first full levels. point XXXX throated a to significant that return bit half XXXX, then. of see you'll XH more weighting And suppose

Nick Luff

will Yeah. Yeah. Well, we see.

Tom Singlehurst

Perfect. great. get commit it. to Trying to That's you to

Operator

[Operator Instructions].

next Matthew Suisse. take Walker now We Credit our from will with question

Matthew Walker

I guess questions. of just Yeah, of just couple questions. couple a a

calculate, interest growth then want didn't the commit comps. please? like sounded to trend? Risk. is, again, just you The I transactions think growth question Erik, And growth the business at stay concerned second should you you potential rates, first as is and earlier what half Nick, e-commerce are. is, of things slower how ad that asked your you Can same on in And a Risk to in probably and Risk. and business transaction Can the if they should were start exposed adjusted just really were you to because seen to to a relatively year, to be We've to sense give you for next going slower this Facebook. for I faster us rate what and of was the easy in interest least about current on charges. one on at be think around we slow, back seen It be year the Google asked question how that we've net expand was going the e-commerce market interest your

more So, precise a net interest can you for XXXX, be XXXX? bit on

Erik Engstrom

complex as across Risk other of questions and from ways, On the financial we course, the end our of fraud question, government higher across, many well. serving, type customers are areas of and identity in services, related

And some e-commerce.

not what than who less probably in that in e-commerce, We we many consider across the transactional, involved from straightforward we're range retail segment are large advertising-driven there. but particularly mid-market, do – do broad identity. some, We

are add We more solutions complex, higher value mostly.

So, advertising our exposure none. is it's even virtually there comes not to small, zero. When it related, though

July, see slightly then is year this growth, historically question now in – year, any for seeing right therefore, see in we as October, external the in see on lower we consider the our is transactional the been reason year, with higher right we be see the which year, then, it's normalized the think now one-off every half, don't volume half. now is that going see last that growth in this to predict forward. relative you not that us going we've December run half that easy that, were lacking right question side, that growth we've that in growth to year. that we second in in way Risk, Your we any just a what a this for exactly this. rate little should business inside we've revenue it seen half year, be we now, rates first any that November, volume months don't growth growth when different what seen year, around few right the But now if to we services the to first boost one-off top get created first last And and why there this reason slightly component And, last of that

didn't those second half. know, second you exceptional surge of in have didn't the As year, last have half the half the second any boosts. any And

up less we the So first the in half. comp are second coming against than half a challenging

you that. on do And math the So Nick? can

Nick Luff

Matthew, you XX% it. math got debt. said, you of It's me billion We've but help floating. straightforward, with the reasonably about let £X as is

aren't US rates under £X billion. interest floating just rates. over So are up, X%, that's If just they, dollar

to So X% a year. £X time. the billion, it's million happens apply of a that over £XX the period Obviously

stayed forget are, where don't of is in you're So they course, most at. it looking but And interest, our XXXX, differentiator doesn't interest rates that in all the if dollars. in that's come of

Sterling than don't from profit that the trying So The there's forget are interest the is – currency. in – well. But more way also our to currency a don't into figure, as take to operating interest account forget get you as impact benefit translation effect.

Matthew Walker

be up more sounds like could because interest XXXX It dollar than million that got you've £XX component.

Nick Luff

the But, have reset, into currency on the you looking number, well. And exchange you're take the then effect. to the obviously both rate rate going assumptions, Sterling of as and think it yes, course, do you to depends what happen. If is at the fixed rates

forget don't that factor. So,

Matthew Walker

reason a floating? there particular have why XX% to chose Was you

Nick Luff

If have locked you'd you most curves it. a reasonably already slope for a in we then but the rate much interest staying into floating a of and of charge, upwards could been over higher option. time, period locked Interest cheaper look time, is

So, it's have average, it's a lower. bit – as necessarily got typically, will you it some obviously mean floating doesn't just more because variable rate But, on exposure.

Operator

[Operator Instructions].

We Matti will our take question Littunen now Bernstein. with from next

Matti Littunen

A side question on cost in Risk. the

Now growth the operating still growth. match the will revenue profit in that you're underlying adjusted guiding

the update product there? coming between want staff if general new get is there's or material where cost OpEx So, things like growth growth inflation, to any an just from, versus on areas in cost factors other

Erik Engstrom

growth base our is way value as we possibly machine use the the for much at that our is so in and AI that that constant no types growth different alternative automatically, cost to can, cost evolving divisions the be to you and year different. at directly decision keep have we customers. not in of add look really next think innovation, cost no other manage cost year Risk this as learning, should through up other base to will our a way our to we is technology, looking free constant but made linked tools the revenue I process is on growth and base our higher the as And well ways cost we focus of

manage We it will way. continue that to

in it but think And overall and and slightly as initiative, letting a grow we much, We trend strategy. so focus by way process ongoing, in components product any base different there our month no grow shift different different. term fast. our our revenue from growth long cost about period, sometimes or it. see more faster slightly up sometimes we that be strategy, to And one continuous, cost might areas, innovation And slightly the as management some in six driven is less is

Matti Littunen

potentially So we future. about leverage operating it investment think should now more to as enable the in

Erik Engstrom

we margin. to for objective create come. long-term come also not leverage end objective create but in. to to we the leverage shareholders. our cash our allowing and up conversion, time what value the investments, add margins with at to, us strategies have many sustain refer in a in if more close gets are I to Well, can our so to the to cost that that in the our our Even is and spend, growth or adjacent significant growth our new capital, create not product as that have significant our you our to XXX% of the build up is in return our up we to that's a innovation, leverage operating in a risk way not all if division pushing would to because believe growth. do that, digits, organic that We're to to on a cash for high-single we and actually not for business margins Because operating years close period range, could, for growth years this real our organically, not the average to objective theory, and just and try the level increase that's value on to you have operating X% that conversion, the that XX% you very operating creation in with customers, to add Risk, value X% very XXX% revenue And to when growing many you been this in that's high customers,

Erik Engstrom

Okay.

it. have if question, us I'll soon. that's forward I'd further no to again to to I thank and like you joining all you think talking today look for Then you

RELX (RELX) 1 Aug 222022 Q1 Earnings call transcript