RELX's 2020 Net Profit, Revenue Dragged Down by Pandemic Hit on Events -- Earnings Review

By Adria Calatayud

RELX PLC reported results for 2020 on Thursday. Here's what you need to know:

REVENUE: The FTSE 100 information-and-analytics group reported full-year revenue of 7.11 billion pounds ($9.84 billion), down from GBP7.87 billion in 2019. Analysts polled by FactSet had expected revenue of GBP7.19 billion, according to a consensus based on estimates by 16 analysts.

NET PROFIT: The LexisNexis owner reported a net profit of GBP1.22 billion, down from GBP1.51 billion in 2019. This compared with analysts' expectations of GBP1.20 billion, according to a FactSet-provided consensus based on estimates by ten analysts.

WHAT WE WATCHED:

--EVENTS: Disruption caused by the coronavirus pandemic meant that the revenue contribution from RELX's exhibitions segment shrank to 5% of the group's total in 2020 from 16% a year earlier. The segment generated revenue of GBP362 million last year, topping RELX's guidance of between GBP330 million and GBP360 million, but still sharply below 2019's revenue of GBP1.27 billion. The timing and pace of recovery in exhibitions remains uncertain, the company said.

--OUTLOOK: RELX was more upbeat on its outlook for its three largest business areas--scientific, technical and medical, risk-and-business analytics, and legal. The company said it expects each of these segments--which together accounted for 95% of its revenue in 2020--to deliver another year of underlying revenue and adjusted operating profit growth in 2021, similar to pre-Covid-19 trends.

--BUYBACKS AND DIVIDENDS: The company said it doesn't plan to resume a buyback that was suspended last year due to coronavirus, but raised its full-year dividend to 47.00 pence from 45.70 pence.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

February 11, 2021 08:39 ET (13:39 GMT)

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