11th Feb 2021 08:16
(Alliance News) -Â RELX PLC on Thursday posted a drop in profit for 2020 as, while its three largest business areas performed well, its Exhibitions segment was hit by the coronavirus pandemic.
Shares in RELX were up 0.8% at 1,787.39 pence in London early Thursday.
Revenue for 2020 fell 10% to GBP7.11 billion, while pretax profit declined 20% to GBP1.48 billion from GBP1.85 billion.
The information and analytics firm noted that its three largest business areas, STM, Risk and Legal, reported combined revenue of GBP6.75 billion, up 2% from GBP6.61 billion the year prior and representing 95% of the group's total revenue for 2020.
"All three business areas continued to deliver underlying revenue growth. Electronic revenue, 87% of the RELX total, grew 3% underlying, print revenue, 8% of the total, declined 12% underlying, and face-to-face revenue, 5% of the total, was down by 71% underlying," RELX said.
However, the Exhibitions business, which accounted for 5% of group revenue in 2020 versus 16% in 2019, was "significantly" hit by the pandemic, with revenue shrinking 71% to GBP362 million from GBP1.27 billion. The unit posted an adjusted operating loss of GBP162 million for 2020 compared to a profit of GBP331 million in 2019.
RELX proposed a full-year dividend of 47.0 pence, up 3% on the 45.7p paid out for 2019.
Chair Anthony Habgood said: "Earnings per share is currently being impacted by Covid-19 related disruption to our exhibitions business, but we are proposing a 3% increase in the dividend to 47.0p reflecting our consistent track record and our confidence in the outlook for the company."
"I believe that overall the company is well positioned managerially, financially and strategically as I prepare to hand over the chair to Paul Walker in March," he added.
In 2021, RELX expects STM, Risk and Legal, to deliver another year of underlying revenue and adjusted operating profit growth, similar to pre-Covid-19 trends. The timing and pace of recovery in Exhibitions "remains uncertain".
By Lucy Heming;Â [email protected]
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