RELX(US:RELX)2021-02-18 18:06Financial Performance - Revenue for the year ended December 31, 2020, was £7,110 million, a decrease of 9.7% compared to £7,874 million in 2019[23] - Operating profit for 2020 was £1,525 million, down 27.4% from £2,101 million in 2019[23] - Net profit attributable to RELX PLC shareholders for 2020 was £1,224 million, a decrease of 18.7% from £1,505 million in 2019[23] - Total revenue for the year ended December 31, 2020, was £7,110 million, a decrease from £7,874 million in 2019[66] - Adjusted operating profit decreased by 17% to £2,076 million from £2,491 million in 2019[127] - Reported net profit attributable to RELX PLC shareholders was £1,224 million, down 19% from £1,505 million in 2019[133] Assets and Liabilities - Total assets as of December 31, 2020, were £14,145 million, an increase of 2.6% from £13,789 million in 2019[24] - Non-current borrowings increased to £6,276 million in 2020 from £4,354 million in 2019, reflecting a rise of 44.2%[24] - Net assets decreased to £2,101 million in 2020, down 4.1% from £2,190 million in 2019[24] - Shareholders' equity as of December 31, 2020, was £2,099 million, a decrease of 3.1% from £2,166 million in 2019[24] - As of December 31, 2020, borrowings were £7,123 million, up from £6,414 million in 2019, with net borrowings increasing to £6,898 million from £6,191 million[175][176] Revenue Segmentation - The Scientific, Technical & Medical segment generated £2,692 million in revenue, accounting for 38% of total revenue, up from 34% in 2019[66] - The Risk segment reported revenue of £2,417 million, representing 34% of total revenue, an increase from 29% in 2019[66] - The Legal segment's revenue was £1,639 million, which is 23% of total revenue, up from 21% in 2019[66] - The Exhibitions segment saw a significant decline in revenue to £362 million, down from £1,269 million in 2019, representing only 5% of total revenue[66] - Subscription revenue increased to £4,279 million, representing 60% of total revenue, compared to £4,129 million (52%) in 2019[103] Expenses and Costs - Total operating costs were £5,600 million, down 4% from £5,814 million in 2019[126] - Exceptional costs in the Exhibitions business amounted to £183 million, impacting overall profitability[130] - The operating profit included £376 million in amortization of acquired intangible assets, up from £295 million in 2019[25] Dividends and Shareholder Returns - Dividends per ordinary share increased to 45.7p in 2020, up from 43.3p in 2019, marking a growth of 5.5%[28] - The company proposed a final dividend of 33.4p for 2020, compared to 32.1p in 2019, indicating a 4.0% increase[28] - Total dividends for the year amounted to 47.0p per share, an increase from 45.7p in 2019[134] - Share repurchases in 2020 were £150 million, down from £600 million in 2019, while ordinary dividends paid to shareholders totaled £880 million, an increase from £842 million in 2019[173][174] Impact of Covid-19 - The impact of the Covid-19 pandemic has adversely affected RELX's business performance, particularly in the Exhibitions segment, which faced significant disruptions[32] - The Exhibitions segment experienced a significant decline, with revenue falling 71% to £362 million due to Covid-19 restrictions[155][159] Strategic and Operational Challenges - The company anticipates that ongoing economic uncertainties may lead to further declines in customer demand for its products and services[33] - RELX's ability to implement strategic plans may be hindered by challenges in recruiting and retaining skilled employees, particularly in technology and data analytics[53] - Trends affecting revenue and operating profit include customer renewal rates, migration to online services, and economic conditions impacting customer budgets[198] Acquisitions and Investments - Total cash spent on acquisitions in 2020 was £874 million, compared to £437 million in 2019 and £960 million in 2018[77] - The acquisition of Shadow Health enhanced the electronic healthcare education offering, contributing to growth in the healthcare segment[141] - In 2020, the Group spent £319 million on capitalized development costs, slightly down from £333 million in 2019, reflecting ongoing investment in new products[201] Currency and Economic Factors - Currency differences increased the Group's revenue by £29 million and profit before tax by £42 million in 2020 compared to 2019[166] - The company faces risks related to changes in tax laws and fluctuations in exchange rates, which could adversely affect its reported results[55][56]