RELX's 2024 Earnings: A Mixed Bag of Growth and Missed Expectations

In the world of information and analytics, RELX PLC has been a beacon of growth and innovation. However, the company's 2024 earnings report has left investors with a mixed bag of emotions, as the results fell short of analyst expectations. Let's dive into the details and explore what this means for RELX and its shareholders.

The Good: Strong Revenue and Profit Growth

RELX reported underlying revenue growth of 7% and underlying adjusted operating profit growth of 10% for 2024. This growth was driven by strategic shifts towards higher value-add analytics and decision tools across all business areas. The company's adjusted earnings per share increased by 9% at constant currency, with a proposed 7% increase in the pound sterling full-year dividend.

The Risk segment, in particular, experienced underlying revenue growth of 8% and underlying adjusted operating profit growth of 9%. Over 90% of the division's revenue came from machine-to-machine interactions and deeply embedded AI-enabled analytics, demonstrating the segment's strong performance and continued support from new product introductions and increased adoption of mature products.

The Not-So-Good: Missed Expectations

Despite the strong growth, RELX's revenue and earnings missed analyst estimates. The company's revenue missed by 1.1%, while earnings per share (EPS) missed by 2.9%. The company's profit margin increased to 21% from 19% in the previous year, driven by higher revenue. However, the increase in earnings was not sufficient to meet analyst expectations.

What Went Wrong?

Several factors contributed to RELX's revenue and earnings missing analyst estimates in 2024:

1. Revenue Miss: RELX's revenue growth rate of 3.0% was lower than the industry average of 6.3% for the Professional Services industry in the United Kingdom. The company's revenue was primarily driven by the Risk segment, which contributed a total revenue of UK£3.25b (34% of total revenue). However, the segment's growth rate was lower than the industry average.
2. Earnings Miss: RELX's earnings growth was not sufficient to meet analyst expectations. The company's profit margin increased to 21% from 19% in the previous year, driven by higher revenue. However, the increase in earnings was not enough to offset the lower-than-expected revenue growth.

What's Next for RELX?

Looking ahead, RELX expects continued positive momentum across the group for 2025, with strong underlying growth in revenue and adjusted operating profit, as well as solid growth in adjusted earnings per share on a constant-currency basis. The company's focus on developing and deploying analytics and decision tools across the business, leveraging deep customer understanding to combine leading content and data sets with powerful artificial intelligence and other technologies, positions it well for continued growth in this area.

To replicate the success of the Risk segment in other segments like STM and Legal, RELX can employ several strategies, such as:

1. Shifting towards analytics and decision tools.
2. Accelerating product innovation.
3. Optimizing the business mix.
4. Leveraging successful platform rollouts.
5. Expanding into growing markets.



In conclusion, RELX's 2024 earnings report was a mixed bag of growth and missed expectations. While the company's strong revenue and profit growth are encouraging, the missed analyst estimates highlight the need for RELX to address specific factors and implement strategic changes to drive future growth. As RELX looks ahead to 2025, investors should closely monitor the company's progress and assess its ability to execute on its growth strategies.