RELX PLC (RELX): history, ownership, mission, how it works & makes money

A Brief History of RELX PLC (RELX)

Foundation and Early Years

RELX PLC, formerly known as Reed Elsevier, was established in 1903 as a publishing company. It traces its origins to the merger of the British publisher Reed International and the Dutch publisher Elsevier. Initially focused on the publishing of scientific and technical literature, the company expanded its portfolio significantly over the decades.

Expansion into Diverse Markets

By the late 20th century, RELX began diversifying its offerings, venturing into data analytics and electronic publishing, which shaped its future growth trajectory. The company acquired several businesses, including:

• Harcourt Science and Technology in 2001
• LexisNexis in 2004
• ChoicePoint in 2008 for $4.1 billion

State of the Company in 2020

As of December 31, 2020, RELX reported a revenue of £7.5 billion, with an operating profit of £2.6 billion. The company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at £3 billion. RELX employed approximately 33,000 people across its global operations.

Financial Performance in Recent Years

In 2022, RELX's financial performance demonstrated resilience and growth. The key figures included:

• Total Revenue: £8.2 billion
• Operating Profit: £2.9 billion
• Net Income: £1.8 billion
• Adjusted EPS: £1.33

Stock Performance

As of October 2023, RELX PLC's stock price was approximately £2,300 per share, with a market capitalization of around £45 billion. The company's shares were traded on the London Stock Exchange under the ticker symbol REL.

Business Segments

RELX operates through four main segments:

• Scientific, Technical & Medical
• Risk Solutions
• Legal
• Exhibitions

Global Presence

RELX has a significant global footprint, with operations in over 180 countries. The company’s revenue breakdown by region as of 2022 was:

Recent Developments

In 2023, RELX announced further investments in technology to enhance its offerings in the data analytics and risk solutions sectors, focusing on AI-driven innovations. The company allocated £300 million towards research and development in these areas.

Environmental, Social, and Governance (ESG) Initiatives

RELX has taken significant steps towards sustainability, with a goal to achieve net zero emissions by 2040. In 2022, the company reported that 71% of its electricity consumption came from renewable sources.

A Who Owns RELX PLC (RELX)

Company Overview

RELX PLC, a multinational information and analytics company, operates across multiple sectors. The company is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index. The market capitalization as of October 2023 is approximately £40 billion.

Major Shareholders

RELX has a diverse ownership structure, with significant stakes held by institutional investors, mutual funds, and individuals. The top shareholders are as follows:

Directors and Executive Ownership

Key executives and directors also hold shares, contributing to the company's ownership. The ownership details are as follows:

• CEO: Andrew E. McNaughton - 0.1% ownership
• CFO: Jonathon Smith - 0.02% ownership
• Non-Executive Directors - collectively hold 0.5% ownership

Geographical Distribution of Shares

RELX PLC has a global investor base. The geographical distribution of its shareholders is as follows:

Recent Share Performance

As of October 2023, the share price of RELX PLC stands at £22.75. The company's one-year performance shows a return of 12% compared to a 5-year return of 45%.

Dividend Information

RELX has a history of maintaining and growing dividends. The latest dividend declared is:

• Interim Dividend: £0.15 per share
• Annual Dividend Yield: 2.25%

Institutional Investor Trends

Institutional investors have shown a trend of increasing their stakes in RELX PLC.

Conclusion on Shareholder Influence

Given the significant influence of institutional investors, along with a solid retail investor base, RELX PLC's ownership profile suggests a well-rounded governance structure aiming for long-term stability and growth.

RELX PLC (RELX) Mission Statement

Corporate Purpose

The mission of RELX PLC is to provide advanced analytics, information, and services to professionals in multiple domains including healthcare, legal, and business sectors. Key focus areas include innovation, efficiency, and customer satisfaction.

Vision and Values

RELX is committed to creating a sustainable future by integrating environmental, social, and governance (ESG) factors into its business strategies. The core values include:

• Integrity
• Innovation
• Customer focus
• Collaboration

Financial Overview

As of the latest fiscal year ending December 31, 2022, RELX reported the following financial statistics:

Market Position

RELX is a global provider of information-based analytics and decision tools for professional and business customers. In 2022, the company held a market share of approximately 5% in the global information services market.

Stakeholder Engagement

RELX actively engages with stakeholders, focusing on transparency and accountability. The company conducts regular surveys and reports to measure stakeholder satisfaction and gather feedback.

Social Responsibility

RELX aligns its mission with various social initiatives and community support programs. In 2022, the company contributed £25 million to various charitable organizations.

Commitment to Sustainability

As part of its mission, RELX aims to achieve net-zero carbon emissions by 2040. In 2022, the company reported a 12% reduction in carbon emissions compared to the previous year.

Future Goals

RELX is dedicated to evolving its business practices to harness technology for enhanced productivity. The focus for the upcoming years includes:

• Investing £500 million in technology and innovation by 2025
• Expanding digital product offerings by 30% by 2024
• Enhancing customer experience through data analytics and AI solutions

How RELX PLC (RELX) Works

Business Segments

RELX PLC operates through four primary business segments:

• Scientific, Technical & Medical (STM)
• Risk & Business Analytics
• Legal
• Exhibitions

Revenue Breakdown

According to the latest financial report for the year ended December 31, 2022, RELX reported revenues of £2.9 billion from each segment:

Financial Performance

For the fiscal year 2022, RELX reported:

• Total revenue: £2.9 billion
• Operating profit: £900 million
• Net profit: £650 million

Market Capitalization

As of October 2023, the market capitalization of RELX PLC is approximately £44 billion.

Geographical Presence

RELX generates revenue from different geographical regions, with the following breakdown for 2022:

Key Services Offered

RELX provides various services, including:

• Research analytics for academic institutions
• Risk management solutions for financial institutions
• Legal information services for law professionals
• Organizing trade shows and exhibitions internationally

Strategic Initiatives

RELX's strategic initiatives focus on:

• Technology integration into service offerings
• Acquisitions to enhance business capabilities
• Investment in data analytics and AI solutions

Recent Acquisitions

In recent years, RELX has made several acquisitions to bolster its product offerings:

Investment in Technology

RELX has invested over £200 million in technology and innovation in the last two years, focusing on:

• Enhancing digital platforms
• Improving data analytics capabilities
• Developing AI-centered solutions

Sustainability and ESG Efforts

RELX is committed to sustainability, reporting a 20% reduction in carbon emissions since 2019.

Employee Data

As of October 2023, RELX employs approximately 33,000 people worldwide.

Dividend Policy

RELX has a consistent dividend policy, with a dividend per share of £0.98 declared for the fiscal year 2022, reflecting a yield of approximately 1.5% based on current share prices.

Stock Performance

As of October 2023, RELX shares are trading at around £24, with a year-to-date increase of 12%.

Outlook

The company projects a steady growth rate of 5-7% in revenue for the fiscal year 2023, driven primarily by its digital transformation efforts.

How RELX PLC (RELX) Makes Money

Overview of Business Segments

RELX PLC operates through four main business segments:

• Scientific, Technical & Medical (STM)
• Risk & Business Analytics
• Legal
• Exhibitions

Revenue Breakdown

For the fiscal year 2022, RELX reported total revenues of £2.33 billion. The revenue breakdown by segment is as follows:

Scientific, Technical & Medical (STM) Segment

The STM segment generates revenue primarily through:

• Subscriptions to journals, books, and digital content.
• Sales of scientific and medical research publications.
• Analytics and research tools provided to academic institutions and researchers.

In 2022, STM revenue was £1.63 billion, accounting for 69.9% of total revenue.

Risk & Business Analytics Segment

This segment focuses on providing data and analytics solutions for various industries. Key revenue sources include:

• Subscription-based access to data analytics platforms.
• Customized risk assessments and business intelligence.
• Data licenses for large organizations.

For the year 2022, the Risk & Business Analytics segment earned £0.52 billion, which is 22.3% of total revenue.

Legal Segment

The Legal segment profits through:

• Subscription services for legal research and case law databases.
• Online tools for attorneys and law firms.
• Customized legal analytics services.

Legal revenues in 2022 amounted to £0.14 billion, representing 6.0% of total revenue.

Exhibitions Segment

The Exhibitions segment offers revenue through:

• Organizing and hosting trade shows.
• Exhibitor fees and sponsorships.
• Ticket sales for attendees.

This segment generated £0.04 billion, which is 1.8% of total revenue in 2022.

Profitability and Margin

RELX PLC's profit margins indicate strong financial health:

• Operating profit for 2022 was £1.21 billion.
• Net profit margin stood at approximately 52%.
• Return on equity (ROE) for 2022 was 32%.

Investment in Technology

RELX consistently invests in technology to enhance revenue-generating capabilities:

• In 2022, the company invested £0.28 billion in research and development.
• Over 30% of revenue is generated from digital products.

Future Growth Strategies

RELX's growth strategies are focused on:

• Expanding digital offerings across all segments.
• Acquiring companies to enhance capabilities and market reach.
• Leveraging data analytics for customer insights.

The firm aims to achieve a compound annual growth rate (CAGR) of 5% to 7% in revenues over the next five years.