RELX reports faster growth in scientific and legal units

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RELX stronger growth in scientific, legal units

Highlights

RELX reports 7% underlying growth and 9% adjusted operating profit increase with a 70 basis point margin improvement in H1 2024.
The scientific, technical, and medical division grows 6%—its record rate—while the legal unit expands 10%, supported by AI-driven analytics and decision tools.
RELX shares rise 2.6% post-results despite long-term AI-sector concerns, yet remain 35% below last year's level per Citi analysts.

First-half results and division performance

As reported by Reuters, RELX says underlying growth reaches 7% in the six months to the end of June, while adjusted operating profit rises 9% as the group improves its margin by 70 basis points.

The scientific, technical and medical division records 6% growth, its fastest on record, while the legal unit expands by 10%. RELX also reiterates its forecast for another year of strong underlying growth in revenue and adjusted operating profit.

Chief Executive Officer Erik Engstrom says the improving growth trajectory is driven by a shift toward higher-growth analytics and decision tools, supported by AI. RELX reports revenue of 4.87 billion pounds, equivalent to $6.51 billion, and adjusted operating profit of 1.73 billion pounds for the period.

AI positioning and market reaction

RELX and peers including Wolters Kluwer and Thomson Reuters remain under pressure from investor concerns about the long-term effect of AI companies, including Anthropic's move into the legal sector. After the results, RELX shares rise 2.6%, and Citi analysts say the update should be taken positively, although the stock remains 35% below its level of a year earlier.

Chief Financial Officer Nick Luff says RELX is applying generative AI capabilities to its trusted and curated data to support customers in legal, scientific and financial services markets. He says hundreds of thousands of professionals use tools including Lexis+ with Protege every day, adding that customers in fields such as medicine, research, law and banking require reliable answers for high-value decisions.

In our earlier article on Alphabet and Tesla’s Q2 earnings, we explained how stronger-than-expected revenue was overshadowed by investor concerns over rising AI infrastructure costs. We highlighted that both companies reported negative free cash flow and guided to higher capital expenditures, which pressured their shares despite topline growth.

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RELX reports faster growth in scientific and legal units

Highlights

First-half results and division performance

AI positioning and market reaction

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