Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Relx shares slide after 13% profit growth disappoints

Stock Markets Feb 10, 2022 08:45
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Kate Holton

LONDON (Reuters) -European information provider Relx said underlying growth this year would be ahead of historical trends due to demand for analytics and machine-learning tools from clients across its risk, science and legal divisions.

The British company, previously called Reed Elsevier (LON:REL), has been one of the most stable and predictable companies on the FTSE 100 after it moved from being a volatile ad-supported media group to focus on the world of data analytics and AI.

It is now in a position to help companies predict risk, such as spotting fraud by confirming customer identities, tools that took on greater importance during the pandemic, while also analysing mass data sets to enable clients to make decisions.

Having grown revenues by around an annual 4% prior to the pandemic, it saw 7% growth in 2021 and said it expected revenue and profit growth to remain above the historical trends in 2022.

Relx said it would propose a full-year dividend up 6% and would relaunch a 500 million pound ($677 million) share buyback.

Its shares slipped 3% in early trade, however, as analysts said it slightly missed its 2021 operating profit forecast, taking the steam out of a stock that is up 26% in the last year, making it Britain's biggest TMT company with a market cap before Thursday's update of 45 billion pounds ($61 billion).

"We believe that this improved growth trajectory is a reflection of our ongoing strategy of focusing on the organic development of increasingly sophisticated analytics and decision tools that deliver enhanced value to our customers across market segments," CEO Erik Engstrom said.

Across its divisions, its Risk unit which provides the fraud prevention and identity solutions tools, posted underlying revenue growth of 9%, while its much smaller division of Exhibitions rebounded with 44% growth after the pandemic.

For 2021, it posted adjusted operating profit up 13% to 2.21 billion pounds. Citi analysts had been expecting 2.27 billion pounds.

($1 = 0.7378 pounds)

Relx shares slide after 13% profit growth disappoints

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
Sign up with Email