Thomson Reuters Reports Third-Quarter 2016 Results

TORONTO, Nov. 1, 2016

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"It is encouraging to see our continued progress flow through in the third-quarter numbers," said Jim Smith, president and chief executive officer of Thomson Reuters. "Our core subscription businesses are moving in the right direction, our cost controls are working and we are increasingly confident in our execution capability. That is why we are going to pick up the pace of our transformation efforts."

Consolidated Financial Highlights - Third Quarter
(All amounts are from continuing operations, except cash flow measures)

IFRS Financial Measures

	Three Months Ended September 30,  (Millions of U.S. dollars, except earnings per share (EPS) and margins) ARIVA.DE Börsen-Geflüster Kurse Thomson Reuters 154,40 $ +1,20%
IFRS Financial Measures		2016	2015(1)	Change
Revenues		$2,744	$2,747	0%
Operating profit		$385	$386	0%
Diluted EPS		$0.34	$0.32	6%
Cash flow from operations (includes discontinued operations)		$758	$680	11%

• Revenues were essentially unchanged as growth in subscription revenues was offset by the impact of foreign currency and a decline in low margin recoveries revenues
• Operating profit was essentially unchanged as higher subscription revenues were offset by the impact of foreign currency, which included unfavorable fair value adjustments associated with foreign currency derivatives embedded in certain customer contracts
• Diluted EPS increased 6% to $0.34, with the increase driven by the benefit of lower common shares outstanding
• Cash flow from operations, which includes discontinued operations, increased 11% to $758 million, primarily due to favorable timing of working capital

Non-IFRS Financial Measures ⁽²⁾

(1) Unless otherwise indicated, results exclude the Intellectual Property & Science (IP & Science) business, which was sold in October 2016. IP & Science was classified as a discontinued operation for 2016 reporting purposes through the closing date of sale. 2015 amounts (except cash flow measures) are restated to conform to the current year's presentation.

(2) In addition to results reported in accordance with International Financial Reporting Standards (IFRS), the company uses certain non-IFRS financial measures as supplemental indicators of its operating performance and financial position. These and other non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in the tables appended to this news release. Additional information is provided in the explanatory footnotes to the appended tables.

• Revenues were unchanged. Before currency, revenues increased 1%
  • Excluding recoveries, revenues increased 2% (before currency)
• Adjusted EBITDA increased 4% to $814 million, and the margin increased 120 basis points to 29.7% from 28.5% in the prior-year period. Excluding currency, the margin increased 20 basis points
• Underlying operating profit increased 7% to $559 million, and the margin increased 130 basis points to 20.4% from 19.1% in the prior-year period. Excluding currency, the margin increased 30 basis points
• Adjusted EPS increased 20% to $0.54, an increase of $0.09 per share. Currency had a $0.03 favorable impact

Planned Charge in Fourth-Quarter 2016 and Updated Full-Year 2016 Outlook

• Thomson Reuters today announced that it plans to record a charge of approximately $200 million to $250 million to be incurred in the fourth quarter of 2016. This charge is intended to accelerate the pace of the company's Transformation program by further simplifying and streamlining the business.  The majority of the charges will be taken in Financial & Risk and the Enterprise, Technology & Operations Group that was created in January 2016. The resulting run-rate cash savings in 2017 are estimated to be of a similar magnitude to the planned charge, with some of the savings to be reinvested in the business.
• The company updated its 2016 full-year outlook to reflect the planned charge, as outlined in the Business Outlook section of this news release.

Sale of IP & Science Business

The IP & Science business was sold for $3.55 billion in cash on October 3, 2016. The net proceeds from the sale will be approximately $3.2 billion. The company utilized $1.7 billion of the proceeds to repay commercial paper during October and it plans to use the remaining proceeds primarily to buy back shares under its current $1.5 billion share repurchase program, further pay down debt and for reinvestment in the business.

Highlights by Business Unit

Unless otherwise noted, all revenue growth comparisons in this news release are before the impact of foreign currency (constant currency) as Thomson Reuters believes this provides the best basis to measure the performance of its business.

Financial & Risk

• Revenues increased 1%. Revenues grew approximately 2% excluding the impact of some temporary items, primarily the impact of lower recoveries revenues and commercial pricing adjustments related to the migration of certain customers to new platforms.
  • Recurring revenues (77% of the segment's revenues in the quarter) were up 2%, primarily due to the impact of an annual price increase and a positive net sales trend, partly offset by lower revenues resulting from the pricing adjustments referred to above and macro-economic conditions impacting large European banks and banks in several emerging markets.
  • Transactions revenues (15% of the segment's revenues in the quarter) were up 4% due to increased revenue from Tradeweb, BETA brokerage processing and transactional revenues from the Risk business. This increase was offset by the impact of lower foreign exchange trading volumes.
  • Low-margin recoveries revenues (8% of the segment's revenues in the quarter) decreased 12% as some third-party partners continue to move to direct billing with their customers. The rate of decline in these revenues is expected to lessen again in the fourth quarter.
    • Recoveries represent revenues for content or services provided by third parties and distributed through Financial & Risk's platform. Reductions in recoveries revenue have no impact on the unit's EBITDA or operating profit.
• By geography, revenues in the Americas were up 3% (up 4% excluding recoveries). Revenues in Europe, Middle East and Africa (EMEA) were unchanged (up 2% excluding recoveries). Revenues in Asia were unchanged (up 1% excluding recoveries).
• EBITDA increased 10% to $460 million and the margin increased 260 basis points to 30.3% from 27.7% in the prior-year period. Excluding the impact of currency, the margin increased 160 basis points. The increase in the margin was primarily due to higher revenues and savings related to efficiency initiatives and platform closures in 2015.
• Operating profit increased 15% to $313 million and the margin increased 270 basis points to 20.6% from 17.9% in the prior-year period. Excluding the impact of currency, the margin increased 160 basis points. The operating profit margin improvement reflected the same factors that impacted EBITDA.
• Net sales were positive in all regions, marking the tenth consecutive quarter of positive total net sales.

Legal

• Revenues were unchanged from the prior-year period. Excluding US print, revenues grew 1%.
  • Solutions businesses (45% of the segment's revenues in the quarter) grew 1%. Solutions subscription revenue growth of 5% was offset by a 9% reduction in transactional revenues. 
  • US Online Legal Information (42% of the segment's revenues in the quarter) grew 2%, marking the seventh consecutive quarter of growth.
  • US Print (13% of the segment's revenues in the quarter) declined 8%.
• Subscription revenues (75% of the segment's revenues in the quarter) grew 3%. However, transactional revenues (12% of the segment's revenues in the quarter) declined 8% due to lower Legal Managed Services and Elite transactional revenues.
• EBITDA declined 2% to $328 million and the margin increased 10 basis points to 39.3% from 39.2% in the prior-year period. Excluding the impact of currency, the margin declined 30 basis points.
• Operating profit decreased 3% to $264 million and the margin decreased 20 basis points to 31.6% from 31.8% in the prior-year period. Excluding the impact of currency, the margin declined 40 basis points.  

Tax & Accounting

• Revenues increased 6%, driven by the Corporate, Professional and Knowledge Solutions businesses, partially offset by a decline in the Government business. Recurring revenues (90% of the segment's revenues in the quarter) increased 11%.
• EBITDA increased 10% to $87 million and the margin increased 120 basis points to 26.9% from 25.7% in the prior-year period. Excluding the impact of currency, the margin increased 70 basis points.
• Operating profit increased 18% to $59 million and the margin increased 200 basis points to 18.3% from 16.3% in the prior-year period. Excluding the impact of currency, the margin increased 120 basis points.
• The timing of revenues and expenses can impact margins in any given quarter for the Tax & Accounting business. Full-year margins are more reflective of the segment's underlying performance.

Corporate & Other (Including Reuters News)

• Reuters News revenues were $73 million, down 1% compared to the prior-year period.
• Corporate & Other costs were $77 million compared to $68 million in the prior-year period.

Consolidated Financial Highlights - Nine Months
(All amounts are from continuing operations, except cash flow measures)

IFRS Financial Measures

	Nine Months Ended September 30,  (Millions of U.S. dollars, except EPS and margins)
		2016	2015(1)	Change
Revenues		$8,306	$8,370	-1%
Operating profit		$1,096	$1,093	0%
Diluted EPS		$0.99	$0.91	9%
Cash flow from operations (includes discontinued operations)		$1,986 Werbung Mehr Nachrichten zur Thomson Reuters Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 26.04.24 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Wincanton Plc 26.04.24 - PR Newswire Moonpig Group Plc - Directorate Change 26.04.24 - PR Newswire Stellar Asset Management Ltd - Form 8.3 - Equals Group Plc Sehen Sie sich dieses Unternehmen an:    Foto: andreas160578 - Pixabay Rasanter Aufstieg, Branchenrevolution und Jahresumsatz von 50 Mio. $ weiterlesen» Anzeige wo-site-teaser-box-16764_site-teaser-box_2024-04-26_09%253A00%253A00_2024-04-27_09%253A00%253A59