TIDMREL
7.00am BST
22 October 2020
TRADING UPDATE -- October 2020
RELX, the global provider of information-based analytics and
decision tools, comments on trading in the first nine months of
2020 and the outlook for the full year.
Highlights Our three largest business areas, STM, Risk and Legal, which
together accounted for 84% of revenue and 87% of adjusted operating profit in
2019, have continued to see a gradual improvement in underlying revenue growth
rates since the end of the first half. Exhibitions, which accounted for 16% of
revenue and 13% of adjusted operating profit in 2019, has seen a reopening of
event activity in a limited number of countries. Our operating cash conversion
remains strong, and in the first nine months we acquired ten assets for a
total consideration of GBP821m. Full year outlook The full year outlook for
our three largest business areas, STM, Risk and Legal, remains unchanged, and
we now have greater visibility on the impact of COVID-19 on Exhibitions in
2020.
Scientific, Technical & Medical
-- Underlying revenue growth YTD +2%.
-- Electronic revenues, which represent around 85% of the divisional total,
continued to grow well, driven by expansion of analytical products
supporting research, evaluation of science, medical education and
clinical decision making.
-- In primary research we have continued to see strong growth in the number
of article submissions for both our subscription and open access journals,
and growth in author-pays open access revenue remains very strong.
-- Print book revenues, which represent just under 10% of the divisional
total, have seen their rate of decline moderate, but remain higher than
historical averages for the year to date as we enter the important fourth
quarter.
-- Full year outlook: We expect another year of modest underlying revenue
growth.
Risk & Business Analytics
-- Underlying revenue growth YTD +3%.
-- Transactional revenues, which represent around 60% of the divisional
total, have continued to see improved growth rates in both Insurance and
Business Services since the end of the first half.
-- Subscription revenues, which represent around 40% of the divisional total,
remained resilient overall, albeit with some delays in customer product
implementations, and with end customer markets showing varying dynamics.
-- Recent acquisitions in the fraud prevention and digital identity segments,
including ThreatMetrix and Emailage, have continued to grow very strongly,
with the launch of products combining new data sets progressing as
planned.
-- Full year outlook: The current underlying revenue growth run rate is
slightly over half the rate seen in recent years, with the full year
outcome dependent on the rate of improvement in business activity in the
remainder of the year.
Legal
-- Underlying revenue growth YTD +1%.
-- Good growth in electronic revenues, which represent around 85% of the
divisional total, continued, driven by further development and roll-out
of legal analytics solutions and new integrated functionality including
the recent Lexis+ launch.
-- The rate of print revenue decline has moderated following the disruption
earlier in the year, but year to date remains higher than historical
rates.
-- Full year outlook: We expect another year of modest underlying revenue
growth.
Exhibitions
-- Total revenue decline YTD -70%.
-- The business has been significantly impacted by COVID-19 since March,
with government restrictions preventing most events from taking place in
Europe and the Americas before the end of the year.
-- Exhibitions are now running in China, Japan and a few other countries.
Although revenue from most events is lower than from prior editions,
satisfaction measures for both exhibitors and visitors are generally
higher.
-- We have continued to develop and launch a range of new digital
initiatives in support of our customers and event brands, and have made
good progress on both hybrid and digital-only events.
-- Full year outlook: We now expect full year revenue of GBP330m-GBP360m.
After a range of cost initiatives, total costs for the year are expected
to be GBP530m-GBP540m excluding one-off costs related to restructuring
and cancellations.
Underlying growth rates are calculated at constant currencies,
excluding the results of acquisitions until twelve months after
purchase, and excluding the results of disposals and assets held
for sale. Underlying revenue growth rates also exclude exhibition
cycling, and timing effects. Given the extent of event
postponements and cancellations, underlying measures are not
meaningful for Exhibitions in the current period, and hence not for
the group as a whole. The growth rate for Exhibitions is calculated
at constant currencies
-ENDS-
ENQUIRIES: Colin Tennant (Investors) Paul Abrahams (Media)
+44 (0)20 7166 5751 +44 (0)20 7166 5724
Disclaimer regarding forward-looking statements
This announcement contains forward-looking statements within the
meaning of Section 27A of the US Securities Act of 1933, as
amended, and Section 21E of the US Securities Exchange Act of 1934,
as amended. These statements are subject to risks and uncertainties
that could cause actual results or outcomes of RELX PLC (together
with its subsidiaries, "RELX", "we" or "our") to differ materially
from those expressed in any forward-looking statement. We consider
any statements that are not historical facts to be "forward-looking
statements". The terms "outlook", "estimate", "forecast",
"project", "plan", "intend", "expect", "should", "will", "believe",
"trends" and similar expressions may indicate a forward-looking
statement. Important factors that could cause actual results or
outcomes to differ materially from estimates or forecasts contained
in the forward-looking statements include, among others: current
and future economic, political and market forces; the impact of the
COVID-19 pandemic as well as other pandemics or epidemics; changes
in law and legal interpretations affecting RELX intellectual
property rights and internet communications; regulatory and other
changes regarding the collection, transfer or use of third-party
content and data; changes in the payment model for our products;
demand for RELX products and services and competitive factors in
the industries in which RELX operates; ability to realise the
future anticipated benefits of acquisitions; significant failure or
interruption of our systems; exhibitors' and attendees' ability and
desire to attend face-to-face events and availability of event
venues; compromises of our data security systems or other
unauthorised access to our databases; legislative, fiscal, tax and
regulatory developments and political risks; exchange rate
fluctuations; and other risks referenced from time to time in the
filings of RELX PLC with the US Securities and Exchange Commission.
You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this announcement.
Except as may be required by law, we undertake no obligation to
publicly update or release any revisions to these forward-looking
statements to reflect events or circumstances after the date of
this announcement or to reflect the occurrence of unanticipated
events.
Notes for Editors
About RELX
RELX is a global provider of information-based analytics and
decision tools for professional and business customers. The Group
serves customers in more than 180 countries and has offices in
about 40 countries. It employs more than 33,000 people of whom
almost half are in North America. The shares of RELX PLC, the
parent company, are traded on the London, Amsterdam and New York
stock exchanges using the following ticker symbols: London: REL;
Amsterdam: REN; New York: RELX. The market capitalisation is
approximately GBP32bn/EUR35bn/$42bn.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20201021005862/en/
CONTACT:
RELX PLC
SOURCE: RELX PLC
Copyright Business Wire 2020
(END) Dow Jones Newswires
October 22, 2020 02:00 ET (06:00 GMT)
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