2% revenue rise for Elsevier in first half

Elsevier's business trends "remain positive", with underlying revenue growth of 2% for the first half of 2016, parent company RELX Group has reported.

Revenues for Elsevier - the Scientific, Technical and Medical division of the RELX Group - for the six months to 30th June were £1,056m (2015: £987m), 80% of which were generated by digital.

Adjusted operating profit for was posted at £374m (2015: £349m), with an underlying growth rate of 4%, slightly ahead of revenue growth. 

The underlying margin improvement was offset by exchange rate movements, according to the report.

Elsevier said print book declines continued “in line with recent years”. In primary research, there was “strong growth in usage” and article submissions “continued”. The number of subject categories in which an Elsevier journals was ranked number one by impact factor increased from 62 in 2015 to 71 this year.

RELX said that for Elsevier: "Overall we expect another year of modest underlying revenue growth, with underlying operating profit growth continuing to exceed underlying revenue growth."

Investment in new products and related infrastructure was particularly sustained in Scientific, Technical & Medical, alongside Legal, according to the report. Capital expenditure for the RELX Group, formerly known as Reed Elsevier, was £153m (2015: £143m), including £139m (2015: £119m).

Overall revenue for RELX Group increased 4% in underlying terms to £3,257m, with all four business areas contributing to underlying growth. Underlying adjusted operating profit totalled £1,003m, a rise of 6% on 2015, which the company said reflected "the benefit of cost control across the Group".