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RELX Posts Strong In-Line Q2 With Credit Metrics Steady; Not A Spread Mover

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Rating: A3/BBB+/BBB+

  • H1 revenue saw underlying growth of +7% (reported figure -1.9% vs. BBG consensus, low number of estimates). Three largest divisions showed misses of 1-2% with the Exhibitions unit (only 10% of revenue) in line.
  • Op Profit saw underlying growth of +10% (reported figure +0.5% vs. BBG consensus) with margins +110bps YoY. Three largest divisions all 1-2% misses with the Exhibitions unit beat (EUR 223mn vs consensus of EUR 195mn) driving the overall figure ahead of consensus.
  • Leverage flat to FY23 at 2x. H1 FCF conversion of 95% flat to H123.
  • FY guidance confirmed.

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