LONDON — Parent company of RX Global Events, RELAXpublished its results report for 2022 and the results show that the organization’s market positions remain strong across the group, particularly in its exhibition division.
Total revenue in 2022 was £8,553 million, up from £7,244 million in 2021, for underlying revenue growth of 9%. The underlying growth rate reflects strong growth across all four of RELX’s market segments: electronic and face-to-face revenues were strong, although partially offset by continued declines in print revenues. Risk continued to deliver strong growth, while STM and Legal improved their growth rates.
Regionally, RELX’s North American operations led the way with revenue of £5,101 million, up from £4,321 million in 2021. Europe generated revenue of £1,800 million in 2022, up from £1,472 million in 2021. Revenue from the rest of RELX’s global operations increased from £1,451 million to £1,652 million over the same period.
Commenting on RELX’s earnings report, CEO Erik Engstrom said: “RELX delivered strong revenue and earnings growth in 2022. The improved long-term growth trajectory is driven by the continued evolution of our business mix toward higher-growth analytics and decision tools that deliver added value to our customers across all market segments.
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Exhibitions saw a strong recovery in revenue. Revenue growth was driven by a significant increase in face-to-face activity as exhibition venues reopened in most countries around the world. Adjusted operating profit for exhibitions for 2022 was £953 million, an increase of 78% on the previous year.534m operating profit in 2021. “The financial results demonstrate that RX globally has seen a strong recovery in 2022. It is clear that the appetite for face-to-face events is stronger than ever, delivering unique value to our clients that cannot be replicated through other channels,” said Scott Stevens, Vice President, Global RX Group.residentDhere, DItalian, RRegistration, supply and Price for the Americas.
Exhibition cycling, where exhibitors attend multiple trade shows in a short period of time, had a positive impact, generating constant currency revenue growth of 11%. The impact of currency fluctuations Revenue also increased by 7%. Reported revenue, including the effects of the exposure cycle and currency movements, was £8,553 million in 2022 (2021: £7,244 million), up 18%.
In 2022, RELX’s results report noted that its exhibition business managed its events calendar flexibly, adapting to changes in local government policies. By the end of the year, exhibitions were operating without material disruption in most countries. Good progress was also made in digital initiatives, with a growing range of digital tools supporting physical events.
“Coming out of the pandemic, we learned valuable lessons about digital experiences that we can integrate into our in-person events. In 2022, we continued to expand our suite of digital solutions to deliver a more immersive experience for our buyers and sellers, which was met with overwhelmingly positive adoption and feedback. In particular, the launch of our Exhibitor Dashboard ushered in a new era of data-driven event performance analytics, enabling exhibitors to measure and improve their ROI,” said Stevens.
In 2023, the report projects that in-person events will remain susceptible to economic cycles, communicable diseases, severe weather and other natural disasters, terrorism and the reallocation of venues to alternative uses. In particular, it notes that the impact of the COVID-19 pandemic on RELX’s business continues to depend on a range of factors that are not easily predicted with precision, including the duration and magnitude of the pandemic, and the duration and extent of containment measures, such as quarantines or other travel restrictions and venue closures. These measures have had and may continue to have an impact on the exhibition business as government restrictions on in-person events continue to evolve, particularly in China.
But overall, RELX believes momentum remains strong across the group, and expectations are high that underlying growth rates in revenue and adjusted operating profit will remain above historical trends, driving another year of strong growth in adjusted earnings per share at constant exchange rates. ““In recognition of our strong cash flow and financial position, we are proposing a 10% increase in the annual dividend and intend to deploy a total of £800 million in share buybacks in 2023,” it said. Engstrom.
Reach Erik Engstrom on +44 (0)20 7166 5724 and Scott Stevens on (203) 840-4800.