RELX to Suspend Share Buyback, Withdraws Guidance Due to Coronavirus Hit
By Adria Calatayud
RELX PLC said Wednesday that it will suspend its share-buyback
program and has withdrawn guidance for 2020 as the coronavirus
pandemic has hit its exhibitions business and created uncertainty
for the group's three remaining segments.
The FTSE 100-listed information and analytics group said it will
complete the first phase of its buyback on April 22, deploying 150
million pounds ($184.7 million) of the planned full-year total of
GBP400 million. However, the company has decided that it won't
continue with the next tranche of the buyback at this time and will
review it later in the year.
The company behind the Lancet medical journal and the London
Book Fair said its exhibitions business has been significantly hurt
by the pandemic in the first quarter of 2020, and that its outlook
for the rest of the year is highly uncertain.
In the first quarter, RELX's three other segments achieved a
rate of underlying revenue growth slightly higher than in the same
period of the prior year.
RELX had previously said it expected to "deliver another year of
underlying growth in revenue and in adjusted operating profit,
together with growth in adjusted earnings per share on a constant
basis" in 2020.
The company also said a search process to identify a successor
to Chairman Anthony Habgood may take longer than originally
anticipated, including potentially extending into next year. Mr.
Habgood is willing to continue in his role until a successor has
been appointed, the company said.
Write to Adria Calatayud at firstname.lastname@example.org
(END) Dow Jones Newswires
April 08, 2020 02:42 ET (06:42 GMT)
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