Relx exhibitions division swings to interim loss due to Covid-19

Relx - formerly Reed Elsevier - reported a 10% fall in interim revenue on Thursday as the Covid-19 pandemic weighed on the company’s exhibitions business.

In the six months to the end of June, revenue declined to £3.5bn from £3.9bn in the first half of last year, with adjusted operating profit down 24% to £939m. Adjusted earnings per share fell 19% to 37p and Relx left its dividend unchanged at 13.6p a share.

The company said its three largest business areas, STM, Risk & Business Analytics and Legal, which together accounted for 84% of revenue and 87% of adjusted operating profit in 2019, saw revenue rise to £3.3bn from £3.2bn,while adjusted operating profit increased to £1.1bn from £1.0bn. All three segments are currently "holding up well", it added.

However, the exhibitions division, which accounted for 16% of revenue and 13% of adjusted operating profit last year, has taken a significant hit from the pandemic, with first-half revenue slumping to £201m from £684m and an adjusted operating loss of £117m compared to a profit of £231m the year before.

"The outlook for the remainder of 2020 for this business area remains highly uncertain," the company said.

Chair Anthony Habgood said: "Despite the challenging environment, Relx has continued to pursue its strategic priorities successfully. Although earnings per share progress has been impacted by Covid-19 related disruption to our exhibitions business, we have announced an unchanged interim dividend of 13.6p reflecting the resilience of our three largest business areas and our strong financial position and cash flow."