TORONTO, Nov. 5, 2024 /PRNewswire/ -- Thomson Reuters (TSX/NYSE: TRI) today reported results for the third quarter ended September 30, 2024:
- Good revenue momentum continued in the third quarter
- Total company revenues up 8%, organic revenues up 7%
- Organic revenues up 9% for the "Big 3" segments (Legal Professionals, Corporates and Tax & Accounting Professionals)
- Raised total company full-year organic revenue growth outlook to approximately 7%
- Raised organic revenue growth outlook for "Big 3" to approximately 8.5%
- Announced agreement to sell its FindLaw business
"We saw good momentum continue in the third quarter, with revenue and margins moderately ahead of our expectations" said Steve Hasker, President and CEO of Thomson Reuters.
"We remain focused on driving innovation across our portfolio and markets to best serve our customers, demonstrated by our investment in AI now increasing to more than $200 million in 2024. We continue to make progress against our "Build, Partner, Buy" strategy, including launching several new AI product capabilities and making exciting enhancements to CoCounsel, our professional-grade GenAI assistant. In addition, we have closed on the strategic acquisitions of Safe Sign Technologies and Materia, which complement our product roadmap and further accelerate our provision of GenAI tools for professionals."
Mr. Hasker added, "As we look ahead, we are committed to taking a balanced capital allocation approach, focusing on delivering sustained value creation through a long-term investment strategy."
Consolidated Financial Highlights - Three Months Ended September 30
|
Three Months Ended September 30,
(Millions of U.S. dollars, except for adjusted EBITDA margin and EPS)
(unaudited)
|
|
IFRS Financial Measures(1)
|
2024
|
2023
|
Change
|
Change at
Constant
Currency
|
|
Revenues
|
$1,724
|
$1,594
|
8 %
|
|
|
Operating profit
|
$415
|
$441
|
-6 %
|
|
|
Diluted earnings per share (EPS)
|
$0.67
|
$0.80
|
-16 %
|
|
|
Net cash provided by operating activities
|
$756
|
$674
|
12 %
|
|
|
Non-IFRS Financial Measures(1)
|
|
|
|
|
|
Revenues
|
$1,724
|
$1,594
|
8 %
|
9 %
|
|
Adjusted EBITDA
|
$609
|
$632
|
-4 %
|
-4 %
|
|
Adjusted EBITDA margin
|
35.3 %
|
39.6 %
|
-430bp
|
-450bp
|
|
Adjusted EPS
|
$0.80
|
$0.82
|
-2 %
|
-2 %
|
|
Free cash flow
|
$591
|
$529
|
12 %
|
|
|
(1) 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. See the "Non-IFRS Financial
Measures" section and the tables appended to this news release for additional information on these and other non-IFRS financial
measures, including how they are defined and reconciled to the most directly comparable IFRS measures.
|
Revenues increased 8%, driven by growth in recurring and transactions revenues. Acquisitions had a 1% positive impact and foreign currency had a slightly negative impact on revenue growth.
- Organic revenues increased 7%, driven by 8% growth in recurring revenues (84% of total revenues) and 12% growth in transactions revenues. Global Print revenues decreased 6% organically.
- The company's "Big 3" segments reported organic revenue growth of 9% and collectively comprised 81% of total revenues.
Operating profit decreased 6% as higher revenues were more than offset by higher costs which included growth investments and the impact of acquisitions.
- Adjusted EBITDA decreased 4% primarily due to the same factors that impacted operating profit. The related margin decreased to 35.3% from 39.6% in the prior-year period. Foreign currency had a 20 basis points positive impact on the year-over-year change in adjusted EBITDA margin.
Diluted EPS decreased to $0.67 compared to $0.80 in the prior-year period primarily reflecting higher tax expense, as the prior-year period included the release of certain tax reserves.
- Adjusted EPS, which excludes the release of certain tax reserves, as well as other adjustments, decreased to $0.80 per share from $0.82 per share in the prior-year period as lower adjusted EBITDA and higher income taxes more than offset lower interest expense.
Net cash provided by operating activities increased by $82 million in the third quarter, primarily due to certain component changes in working capital.
- Free cash flow increased $62 million primarily due to the increase in cash flow from operating activities.
Highlights by Customer Segment – Three Months Ended September 30
|
(Millions of U.S. dollars, except for adjusted EBITDA margins)
(unaudited)
|
|
|
Three Months Ended
|
|
|
|
|
September 30,
|
|
Change
|
|
|
2024
|
2023
|
|
Total
|
Constant
Currency(1)
|
Organic(1)(2)
|
|
Revenues
|
|
|
|
|
|
|
|
|
Legal Professionals
|
|
$745
|
$688
|
|
8 %
|
8 %
|
7 %
|
|
Corporates
|
|
437
|
391
|
|
12 %
|
12 %
|
10 %
|
|
Tax & Accounting Professionals
|
|
221
|
203
|
|
9 %
|
11 %
|
10 %
|
|
"Big 3" Segments Combined(1)
|
|
1,403
|
1,282
|
|
9 %
|
10 %
|
9 %
|
|
Reuters News
|
|
199
|
180
|
|
10 %
|
10 %
|
8 %
|
|
Global Print
|
|
128
|
137
|
|
-7 %
|
-6 %
|
-6 %
|
|
Eliminations/Rounding
|
|
(6)
|
(5)
|
|
|
|
|
|
Revenues
|
|
$1,724
|
$1,594
|
|
8 %
|
9 %
|
7 %
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA(1)
|
|
|
|
|
|
|
|
|
Legal Professionals
|
|
$334
|
$338
|
|
-1 %
|
-1 %
|
|
|
Corporates
|
|
162
|
164
|
|
-1 %
|
-2 %
|
|
|
Tax & Accounting Professionals
|
|
59
|
64
|
|
-7 %
|
-5 %
|
|
|
"Big 3" Segments Combined(1)
|
|
555
|
566
|
|
-2 %
|
-2 %
|
|
|
Reuters News
|
|
40
|
37
|
|
10 %
|
14 %
|
|
|
Global Print
|
|
43
|
55
|
|
-22 %
|
-21 %
|
|
|
Corporate costs
|
|
(29)
|
(26)
|
|
n/a
|
n/a
|
|
|
Adjusted EBITDA
|
|
$609
|
$632
|
|
-4 %
|
-4 %
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Margin(1)
|
|
|
|
|
|
|
|
|
Legal Professionals
|
|
44.9 %
|
49.1 %
|
|
-420bp
|
-430bp
|
|
|
Corporates
|
|
36.8 %
|
41.9 %
|
|
-510bp
|
-520bp
|
|
|
Tax & Accounting Professionals
|
|
26.8 %
|
31.2 %
|
|
-440bp
|
-430bp
|
|
|
"Big 3" Segments Combined(1)
|
|
39.5 %
|
44.0 %
|
|
-450bp
|
-460bp
|
|
|
Reuters News
|
|
20.4 %
|
20.4 %
|
|
0bp
|
70bp
|
|
|
Global Print
|
|
33.1 %
|
39.6 %
|
|
-650bp
|
-640bp
|
|
|
Adjusted EBITDA margin
|
|
35.3 %
|
39.6 %
|
|
-430bp
|
-450bp
|
|
|
|
(1) See the "Non-IFRS Financial Measures" section and the tables appended to this news release for additional information on these and
other non-IFRS financial measures. To compute segment and consolidated adjusted EBITDA margin, the company excludes fair value
adjustments related to acquired deferred revenue.
(2) Computed for revenue growth only.
n/a: not applicable
|
Unless otherwise noted, all revenue growth comparisons by customer segment in this news release are at constantcurrency (or exclude the impact of foreign currency) as Thomson Reuters believes this provides the best basis to measure their performance.
Legal Professionals
Revenues increased 8% to $745 million and included a positive impact from acquisitions. Organic revenue growth was 7%.
- Recurring revenues increased 9% (97% of total, 8% organic). Organic growth was primarily driven by Westlaw, CoCounsel, Practical Law and the segment's international businesses.
- Transactions revenues decreased 11% (3% of total, all organic).
Adjusted EBITDA decreased 1% to $334 million.
- The margin decreased to 44.9% from 49.1% primarily driven by higher investments.
Corporates
Revenues increased 12% to $437 million, including the acquisition impact of Pagero. Organic revenue growth was 10%.
- Recurring revenues increased 12% (89% of total, 9% organic). Organic growth was primarily driven by Practical Law, Direct and Indirect Tax, Clear and the segment's international businesses.
- Transactions revenues increased 12% (11% of total, 13% organic) driven primarily by Trust, Direct Tax and segment's international businesses.
Adjusted EBITDA decreased 1% to $162 million.
- The margin decreased to 36.8% from 41.9%, primarily driven by the Pagero acquisition and higher investments.
Tax & Accounting Professionals
Revenues increased 11% to $221 million. Organic revenue growth was 10%.
- Recurring revenues increased 10% (77% of total, all organic). Organic growth was driven by the segment's Latin America business and UltraTax products.
- Transactions revenues increased 16% (23% of total, 13% organic) primarily due to UltraTax, Confirmation and the segment's international businesses.
Adjusted EBITDA decreased 7% to $59 million.
- The margin decreased to 26.8% from 31.2%, primarily driven by higher investments.
The Tax & Accounting Professionals segment is the company's most seasonal business with approximately 60% of full-year revenues typically generated in the first and fourth quarters. As a result, the margin performance of this segment has been generally higher in the first and fourth quarters as costs are typically incurred in a more linear fashion throughout the year.
Reuters News
Revenues of $199 million increased 10% (8% organic) which included a positive impact from acquisitions. Organic revenue growth was driven primarily by Generative AI related content licensing revenue that was largely transactional in nature and by a contractual price increase from our news agreement with the Data & Analytics business of LSEG.
Adjusted EBITDA increased 10% to $40 million driven by higher revenues.
Global Print
Revenues of $128 million decreased 6%, all organic, driven in part by the migration of customers from a Global Print product to Westlaw.
Adjusted EBITDA decreased 22% to $43 million.
- The margin decreased to 33.1% from 39.6% primarily due to lower revenues.
Corporate Costs
Corporate costs were $29 million compared to $26 million in the prior-year period.
Consolidated Financial Highlights – Nine Months Ended September 30
|
Nine Months Ended September 30,
(Millions of U.S. dollars, except for adjusted EBITDA margin and EPS)
(unaudited)
|
|
IFRS Financial Measures(1)
|
2024
|
2023
|
Change
|
Change at
Constant
Currency
|
|
Revenues
|
$5,349
|
$4,979
|
7 %
|
|
|
Operating profit
|
$1,387
|
$1,774
|
-22 %
|
|
|
Diluted EPS
|
$3.59
|
$4.31
|
-17 %
|
|
|
Net cash provided by operating activities
|
$1,893
|
$1,636
|
16 %
|
|
|
Non-IFRS Financial Measures(1)
|
|
|
|
|
|
Revenues
|
$5,349
|
$4,979
|
7 %
|
8 %
|
|
Adjusted EBITDA
|
$2,061
|
$1,971
|
5 %
|
5 %
|
|
Adjusted EBITDA margin
|
38.5 %
|
39.5 %
|
-100bp
|
-120bp
|
|
Adjusted EPS
|
$2.76
|
$2.53
|
9 %
|
9 %
|
|
Free cash flow
|
$1,403
|
$1,258
|
12 %
|
|
|
(1) In addition to results reported in accordance with IFRS, the company uses certain non-IFRS financial measures as supplemental
indicators of its operating performance and financial position. See the "Non-IFRS Financial Measures" section and the tables appended
to this news release for additional information on these and other non-IFRS financial measures, including how they are defined and
reconciled to the most directly comparable IFRS measures.
|
Revenues increased 7%, driven by growth in recurring and transactions revenues. Foreign currency had a slightly negative impact on revenue growth.
- Organic revenues increased 8%, driven by 8% growth in recurring revenues (80% of total revenues) and 14% growth in transactions revenues. Global Print revenues decreased 8% organically.
- The company's "Big 3" segments reported organic revenue growth of 9% and collectively comprised 82% of total revenues.
Operating profit decreased 22%, primarily because the 2023 period included a gain on the sale of a majority stake in the company's Elite business.
- Adjusted EBITDA, which excludes the gain on sale of Elite, as well as other items, increased 5% as higher revenues more than offset growth investments and the impact of acquisitions. The related margin decreased to 38.5% from 39.5% in the prior-year period. Foreign currency had a 20 basis points positive impact on the year-over-year change in adjusted EBITDA margin.
Diluted EPS decreased to $3.59 compared to $4.31 in the prior-year period. The current period reflected lower operating profit and included a $468 million non-cash tax benefit related to tax legislation enacted in Canada. The prior-year period included a significant increase in the value of the company's investment in LSEG. In 2024, diluted EPS also benefited from a reduction in weighted-average common shares outstanding due to share repurchases and the company's June 2023 return of capital transaction.
- Adjusted EPS, which excludes the gain on sale of Elite, the changes in value of the company's LSEG investment, the non-cash tax benefit, as well as other adjustments, increased to $2.76 per share from $2.53 per share in the prior-year period, primarily due to higher adjusted EBITDA. In 2024, adjusted EPS also benefited from a reduction in weighted-average common shares.
Net cash provided by operating activities increased by $257 million due to the cash benefits from higher revenues that more than offset investment spending. The prior-year period also included $80 million of payments associated with the company's Change Program, which was completed at the end of 2022.
- Free cash flow increased $145 million as higher cash flows from operating activities more than offset higher capital expenditures and lower cash flows from other investing activities.
Highlights by Customer Segment - Nine Months Ended September 30
|
(Millions of U.S. dollars, except for adjusted EBITDA margins)
(unaudited)
|
|
|
Nine Months Ended
|
|
|
|
|
|
|
September 30,
|
|
Change
|
|
|
2024
|
2023
|
|
Total
|
Constant
Currency(1)
|
Organic(1)(2)
|
|
Revenues
|
|
|
|
|
|
|
|
|
Legal Professionals
|
|
$2,193
|
$2,107
|
|
4 %
|
4 %
|
7 %
|
|
Corporates
|
|
1,386
|
1,218
|
|
14 %
|
14 %
|
10 %
|
|
Tax & Accounting Professionals
|
|
799
|
714
|
|
12 %
|
14 %
|
12 %
|
|
"Big 3" Segments Combined(1)
|
|
4,378
|
4,039
|
|
8 %
|
9 %
|
9 %
|
|
Reuters News
|
|
614
|
549
|
|
12 %
|
12 %
|
9 %
|
|
Global Print
|
|
375
|
408
|
|
-8 %
|
-8 %
|
-8 %
|
|
Eliminations/Rounding
|
|
(18)
|
(17)
|
|
|
|
|
|
Revenues
|
|
$5,349
|
$4,979
|
|
7 %
|
8 %
|
8 %
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA(1)
|
|
|
|
|
|
|
|
|
Legal Professionals
|
|
$1,003
|
$1,001
|
|
0 %
|
0 %
|
|
|
Corporates
|
|
518
|
481
|
|
8 %
|
7 %
|
|
|
Tax & Accounting Professionals
|
|
331
|
302
|
|
10 %
|
11 %
|
|
|
"Big 3" Segments Combined(1)
|
|
1,852
|
1,784
|
|
4 %
|
4 %
|
|
|
Reuters News
|
|
151
|
111
|
|
37 %
|
39 %
|
|
|
Global Print
|
|
133
|
158
|
|
-16 %
|
-16 %
|
|
|
Corporate costs
|
|
(75)
|
(82)
|
|
n/a
|
n/a
|
|
|
Adjusted EBITDA
|
|
$2,061
|
$1,971
|
|
5 %
|
5 %
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Margin(1)
|
|
|
|
|
|
|
|
|
Legal Professionals
|
|
45.7 %
|
47.5 %
|
|
-180bp
|
-180bp
|
|
|
Corporates
|
|
37.2 %
|
39.4 %
|
|
-220bp
|
-230bp
|
|
|
Tax & Accounting Professionals
|
|
41.5 %
|
41.6 %
|
|
-10bp
|
-20bp
|
|
|
"Big 3" Segments Combined(1)
|
|
42.3 %
|
44.0 %
|
|
-170bp
|
-180bp
|
|
|
Reuters News
|
|
24.6 %
|
20.1 %
|
|
450bp
|
460bp
|
|
|
Global Print
|
|
35.5 %
|
38.6 %
|
|
-310bp
|
-330bp
|
|
|
Adjusted EBITDA margin
|
|
38.5 %
|
39.5 %
|
|
-100bp
|
-120bp
|
|
|
|
(1) See the "Non-IFRS Financial Measures" section and the tables appended to this news release for additional information on these and
other non-IFRS financial measures. To compute segment and consolidated adjusted EBITDA margin, the company excludes fair value
adjustments related to acquired deferred revenue.
(2) Computed for revenue growth only.
n/a: not applicable
|
2024 Outlook
The company raised its 2024 outlook for organic revenue growth to reflect strong year-to-date performance. All other measures in the outlook were maintained.
The company's outlook for 2024 in the table below assumes constant currency rates and excludes the impact of any future acquisitions or dispositions that may occur during the remainder of the year. Thomson Reuters believes that this type of guidance provides useful insight into the anticipated performance of its businesses.
The company expects its fourth-quarter 2024 organic revenue growth to be approximately 5% and its adjusted EBITDA margin to be approximately 37%.
The company continues to operate in an uncertain macroeconomic environment, reflecting ongoing geopolitical risk, uneven economic growth and an evolving interest rate and inflationary backdrop. Any worsening of the global economic or business environment, among other factors, could impact the company's ability to achieve its outlook.
Reported Full-Year 2023 Results and Full-Year 2024 Outlook
|
Total Thomson Reuters
|
FY 2023
Reported
|
FY 2024
Outlook
2/8/2024
|
FY 2024
Outlook
5/2/2024
|
FY 2024
Outlook
8/1/2024
|
FY 2024
Outlook
11/5/2024
|
|
Total Revenue Growth
|
3 %
|
~ 6.5%
|
6.5% - 7.0%
|
~ 7.0%
|
Unchanged
|
|
Organic Revenue Growth(1)
|
6 %
|
~ 6%
|
6.0% - 6.5%
|
~ 6.5%
|
~7.0%
|
|
Adjusted EBITDA Margin(1)
|
39.3 %
|
~ 38%
|
Unchanged
|
Unchanged
|
Unchanged
|
|
Corporate Costs
|
$115 million
|
$120 - $130 million
|
Unchanged
|
Unchanged
|
Unchanged
|
|
Free Cash Flow(1)
|
$1.9 billion
|
~ $1.8 billion
|
Unchanged
|
Unchanged
|
Unchanged
|
|
Accrued Capex as % of Revenues(1)
|
7.8 %
|
~ 8.5%
|
Unchanged
|
Unchanged
|
Unchanged
|
|
Depreciation & Amortization of Computer Software
Depreciation & Amortization of Internally
Developed Software
Amortization of Acquired Software
|
$628 million
$556 million
$72 million
|
$730 - $750 million
$595 - $615 million
~ $135 million
|
Unchanged
Unchanged
Unchanged
|
Unchanged
$580 - $600 million
~ $150 million
|
Unchanged
Unchanged
Unchanged
|
|
Interest Expense (P&L)(2)
|
$164 million(2)
|
$150 - $170 million
|
Unchanged
|
$125 - $145
million
|
Unchanged
|
|
Effective Tax Rate on Adjusted Earnings(1)
|
16.5 %
|
~ 18%
|
Unchanged
|
Unchanged
|
Unchanged
|
|
"Big 3" Segments(1)
|
FY 2023
Reported
|
FY 2024
Outlook
2/8/2024
|
FY 2024
Outlook
5/2/2024
|
FY 2024
Outlook
8/1/2024
|
FY 2024
Outlook
11/5/2024
|
|
Total Revenue Growth
|
3 %
|
~ 8%
|
8.0% - 8.5%
|
~ 8.5%
|
Unchanged
|
|
Organic Revenue Growth
|
7 %
|
~ 7.5%
|
7.5% - 8.0%
|
~ 8.0%
|
~8.5%
|
|
Adjusted EBITDA Margin
|
43.8 %
|
~ 43%
|
Unchanged
|
Unchanged
|
Unchanged
|
|
|
|
(1)
|
Non-IFRS financial measures. See the "Non-IFRS Financial Measures" section below as well as the tables and footnotes appended to this news release for more information.
|
|
(2)
|
Full-year 2023 interest expense excludes a $12 million benefit associated with the release of a tax reserve that is removed from adjusted earnings.
|
The information in this section is forward-looking. Actual results, which will include the impact of currency and future acquisitions and dispositions completed during 2024 may differ materially from the company's 2024 outlook. The information in this section should also be read in conjunction with the section below entitled "Special Note Regarding Forward-Looking Statements, Material Risks and Material Assumptions."
Dividends and common shares outstanding
A quarterly dividend of $0.54 per share is payable on December 10, 2024 to common shareholders of record as of November 21, 2024.
As of October 31, 2024, Thomson Reuters had approximately 449.9 million common shares outstanding.
Acquisitions
In August 2024, the company acquired Safe Sign Technologies, a U.K-based startup that is developing legal-specific large language models (LLMs).
In October 2024, the company acquired Materia, a US-based startup that has developed an agentic AI assistant for the tax, audit and accounting profession.
Sale agreement
In October 2024, the company announced the signing of a definitive agreement to sell its FindLaw business. FindLaw operates an online legal directory and provides website creation and hosting services, law firm marketing solutions, and peer rating services. The sale is expected to close in the fourth quarter of 2024 contingent on receiving regulatory approvals and satisfaction of other customary closing conditions.
Thomson Reuters
Thomson Reuters (NYSE / TSX: TRI) informs the way forward by bringing together the trusted content and technology that people and organizations need to make the right decisions. The company serves professionals across legal, tax, accounting, compliance, government, and media. Its products combine highly specialized software and insights to empower professionals with the data, intelligence, and solutions needed to make informed decisions, and to help institutions in their pursuit of justice, truth and transparency. Reuters, part of Thomson Reuters, is a world leading provider of trusted journalism and news. For more information, visit tr.com.
NON-IFRS FINANCIAL MEASURES
Thomson Reuters prepares its financial statements in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB).
This news release includes certain non-IFRS financial measures, which include ratios that incorporate one or more non-IFRS financial measures, such as adjusted EBITDA (other than at the customer segment level) and the related margin, free cash flow, adjusted earnings and the effective tax rate on adjusted earnings, adjusted EPS, accrued capital expenditures expressed as a percentage of revenues, selected measures excluding the impact of foreign currency, changes in revenues computed on an organic basis as well as all financial measures for the "Big 3" segments.
Thomson Reuters uses these non-IFRS financial measures as supplemental indicators of its operating performance and financial position as well as for internal planning purposes and the company's business outlook. Additionally, Thomson Reuters uses non-IFRS measures as the basis for management incentive programs. These measures do not have any standardized meanings prescribed by IFRS and therefore are unlikely to be comparable to the calculation of similar measures used by other companies and should not be viewed as alternatives to measures of financial performance calculated in accordance with IFRS. Non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in the appended tables.
The company's outlook contains various non-IFRS financial measures. The company believes that providing reconciliations of forward-looking non-IFRS financial measures in its outlook would be potentially misleading and not practical due to the difficulty of projecting items that are not reflective of ongoing operations in any future period. The magnitude of these items may be significant. Consequently, for outlook purposes only, the company is unable to reconcile these non-IFRS measures to the most directly comparable IFRS measures because it cannot predict, with reasonable certainty, the impacts of changes in foreign exchange rates which impact (i) the translation of its results reported at average foreign currency rates for the year, and (ii) other finance income or expense related to intercompany financing arrangements. Additionally, the company cannot reasonably predict the occurrence or amount of other operating gains and losses that generally arise from business transactions that the company does not currently anticipate.
ROUNDING
Other than EPS, the company reports its results in millions of U.S. dollars, but computes percentage changes and margins using whole dollars to be more precise. As a result, percentages and margins calculated from reported amounts may differ from those presented, and growth components may not total due to rounding.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS, MATERIAL RISKS AND MATERIAL ASSUMPTIONS
Certain statements in this news release, including, but not limited to, statements in Mr. Hasker's comments, the "2024 Outlook" section, and statements relating to the sale of the company's FindLaw business, are forward-looking. The words "will", "expect", "believe", "target", "estimate", "could", "should", "intend", "predict", "project" and similar expressions identify forward-looking statements. While the company believes that it has a reasonable basis for making forward-looking statements in this news release, they are not a guarantee of future performance or outcomes and there is no assurance that any of the other events described in any forward-looking statement will materialize. Forward-looking statements are subject to a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from current expectations. Many of these risks, uncertainties and assumptions are beyond the company's control and the effects of them can be difficult to predict.
Some of the material risk factors that could cause actual results or events to differ materially from those expressed in or implied by forward-looking statements in this news release include, but are not limited to, those discussed on pages 19-35 in the "Risk Factors" section of the company's 2023 annual report. These and other risk factors are discussed in materials that Thomson Reuters from time-to-time files with, or furnishes to, the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission (SEC). Thomson Reuters annual and quarterly reports are also available in the "Investor Relations" section of tr.com.
The company's business outlook is based on information currently available to the company and is based on various external and internal assumptions made by the company in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that the company believes are appropriate under the circumstances. Material assumptions and material risks may cause actual performance to differ from the company's expectations underlying its business outlook. In particular, the global economy has experienced substantial disruption due to concerns regarding economic effects associated with the macroeconomic backdrop and ongoing geopolitical risks. The company's business outlook assumes that uncertain macroeconomic and geopolitical conditions will continue to disrupt the economy and cause periods of volatility, however, these conditions may last substantially longer than expected and any worsening of the global economic or business environment could impact the company's ability to achieve its outlook and affect its results and other expectations. For a discussion of material assumptions and material risks related to the company's 2024 outlook see page 19 of the company's second-quarter management's discussion and analysis (MD&A) for the period ended June 30, 2024. The company's quarterly MD&A and annual report was filed with, or furnished to, the Canadian securities regulatory authorities and the U.S. SEC and are also available in the "Investor Relations" section of tr.com.
The company has provided an outlook for the purpose of presenting information about current expectations for the period presented. This information may not be appropriate for other purposes. You are cautioned not to place undue reliance on forward-looking statements which reflect expectations only as of the date of this news release.
Except as may be required by applicable law, Thomson Reuters disclaims any obligation to update or revise any forward-looking statements.
CONTACTS
Thomson Reuters will webcast a discussion of its third-quarter 2024 results and its 2024 business outlook today beginning at 8:30 a.m. Eastern Standard Time (EST). You can access the webcast by visiting ir.tr.com. An archive of the webcast will be available following the presentation.
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Thomson Reuters Corporation
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|
Consolidated Income Statement
|
|
(millions of U.S. dollars, except per share data)
|
|
(unaudited)
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
September 30,
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September 30,
|
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2024
|
2023
|
|
2024
|
2023
|
|
CONTINUING OPERATIONS
|
|
|
|
|
|
|
Revenues
|
$1,724
|
$1,594
|
|
$5,349
|
$4,979
|
|
Operating expenses
|
(1,117)
|
(958)
|
|
(3,288)
|
(3,022)
|
|
Depreciation
|
(30)
|
(28)
|
|
(87)
|
(87)
|
|
Amortization of computer software
|
(151)
|
(132)
|
|
(458)
|
(377)
|
|
Amortization of other identifiable intangible assets
|
(21)
|
(24)
|
|
(69)
|
(72)
|
|
Other operating gains (losses), net
|
10
|
(11)
|
|
(60)
|
353
|
|
Operating profit
|
415
|
441
|
|
1,387
|
1,774
|
|
Finance costs, net:
|
|
|
|
|
|
|
Net interest expense
|
(21)
|
(32)
|
|
(97)
|
(121)
|
|
Other finance (costs) income
|
(32)
|
117
|
|
(8)
|
(75)
|
|
Income before tax and equity method investments
|
362
|
526
|
|
1,282
|
1,578
|
|
Share of post-tax (losses) earnings in equity method
investments
|
(8)
|
(174)
|
|
45
|
815
|
|
Tax (expense) benefit
|
(77)
|
18
|
|
258
|
(397)
|
|
Earnings from continuing operations
|
277
|
370
|
|
1,585
|
1,996
|
|
Earnings (loss) from discontinued operations, net of tax
|
24
|
(3)
|
|
35
|
21
|
|
Net earnings
|
$301
|
$367
|
|
$1,620
|
$2,017
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|
Earnings (loss) attributable to:
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|
|
|
|
|
|
Common shareholders
|
$301
|
$367
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|
$1,623
|
$2,017
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Non-controlling interests
|
-
|
-
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(3)
|
-
|
|
|
|
|
|
|
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Earnings per share:
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|
|
|
|
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Basic earnings (loss) per share:
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|
|
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From continuing operations
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$0.61
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$0.81
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|
$3.51
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$4.27
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From discontinued operations
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0.06
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(0.01)
|
|
0.08
|
0.05
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Basic earnings per share
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$0.67
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$0.80
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|
$3.59
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$4.32
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|
|
|
|
|
|
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Diluted earnings (loss) per share:
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|
|
|
|
|
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From continuing operations
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$0.61
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$0.81
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|
$3.51
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$4.27
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|
From discontinued operations
|
0.06
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(0.01)
|
|
0.08
|
0.04
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|
Diluted earnings per share
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$0.67
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$0.80
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|
$3.59
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$4.31
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|
|
|
|
|
|
|
Basic weighted-average common shares
|
449,886,792
|
455,458,515
|
|
450,788,536
|
466,078,377
|
|
Diluted weighted-average common shares
|
450,458,885
|
456,062,363
|
|
451,424,716
|
466,838,142
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Thomson Reuters Corporation
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Consolidated Statement of Financial Position
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(millions of U.S. dollars)
|
|
(unaudited)
|
|
|
September 30,
|
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December 31,
|
|
2024
|
|
2023
|
|
Assets
|
|
|
|
|
Cash and cash equivalents
|
$1,731
|
|
$1,298
|
|
Trade and other receivables
|
1,011
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|
1,122
|
|
Other financial assets
|
54
|
|
66
|
|
Prepaid expenses and other current assets
|
394
|
|
435
|
|
Current assets excluding assets held for sale
|
3,190
|
|
2,921
|
|
Assets held for sale
|
168
|
|
-
|
|
Current assets
|
3,358
|
|
2,921
|
|
|
|
|
|
Property and equipment, net
|
430
|
|
447
|
|
Computer software, net
|
1,430
|
|
1,236
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|
Other identifiable intangible assets, net
|
3,165
|
|
3,165
|
|
Goodwill
|
7,342
|
|
6,719
|
|
Equity method investments
|
277
|
|
2,030
|
|
Other financial assets
|
380
|
|
444
|
|
Other non-current assets
|
623
|
|
618
|
|
Deferred tax
|
1,426
|
|
1,104
|
|
Total assets
|
$18,431
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|
$18,684
|
|
|
|
|
|
Liabilities and equity
|
|
|
|
|
Liabilities
|
|
|
|
|
Current indebtedness
|
$1,036
|
|
$372
|
|
Payables, accruals and provisions
|
1,063
|
|
1,114
|
|
Current tax liabilities
|
296
|
|
248
|
|
Deferred revenue
|
1,044
|
|
992
|
|
Other financial liabilities
|
100
|
|
507
|
|
Current liabilities excluding liabilities associated with assets held for sale
|
3,539
|
|
3,233
|
|
Liabilities associated with assets held for sale
|
22
|
|
-
|
|
Current liabilities
|
3,561
|
|
3,233
|
|
|
|
|
|
Long-term indebtedness
|
1,847
|
|
2,905
|
|
Provisions and other non-current liabilities
|
670
|
|
692
|
|
Other financial liabilities
|
243
|
|
237
|
|
Deferred tax
|
237
|
|
553
|
|
Total liabilities
|
6,558
|
|
7,620
|
|
|
|
|
|
Equity
|
|
|
|
|
Capital
|
3,462
|
|
3,405
|
|
Retained earnings
|
9,370
|
|
8,680
|
|
Accumulated other comprehensive loss
|
(959)
|
|
(1,021)
|
|
Total equity
|
11,873
|
|
11,064
|
|
Total liabilities and equity
|
$18,431
|
|
$18,684
|
|
Thomson Reuters Corporation
|
|
Consolidated Statement of Cash Flow
|
|
(millions of U.S. dollars)
|
|
(unaudited)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2024
|
2023
|
|
2024
|
2023
|
|
Cash provided by (used in):
|
|
|
|
|
|
|
Operating activities
|
|
|
|
|
|
|
Earnings from continuing operations
|
$277
|
$370
|
|
$1,585
|
$1,996
|
|
Adjustments for:
|
|
|
|
|
|
|
Depreciation
|
30
|
28
|
|
87
|
87
|
|
Amortization of computer software
|
151
|
132
|
|
458
|
377
|
|
Amortization of other identifiable intangible assets
|
21
|
24
|
|
69
|
72
|
|
Share of post-tax losses (earnings) in equity method investments
|
8
|
174
|
|
(45)
|
(815)
|
|
Net (gains) losses on disposals of businesses and investments
|
(1)
|
6
|
|
3
|
(341)
|
|
Deferred tax
|
8
|
(251)
|
|
(687)
|
(369)
|
|
Other
|
56
|
(89)
|
|
173
|
188
|
|
Changes in working capital and other items
|
206
|
257
|
|
252
|
417
|
|
Operating cash flows from continuing operations
|
756
|
651
|
|
1,895
|
1,612
|
|
Operating cash flows from discontinued operations
|
-
|
23
|
|
(2)
|
24
|
|
Net cash provided by operating activities
|
756
|
674
|
|
1,893
|
1,636
|
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
|
|
Acquisitions, net of cash acquired
|
(25)
|
(678)
|
|
(492)
|
(1,201)
|
|
Proceeds related to disposals of businesses and investments
|
33
|
-
|
|
29
|
418
|
|
Proceeds from sales of LSEG shares
|
-
|
1,517
|
|
1,854
|
5,393
|
|
Capital expenditures
|
(149)
|
(145)
|
|
(446)
|
(412)
|
|
Other investing activities
|
-
|
14
|
|
6
|
82
|
|
Taxes paid on sales of LSEG shares and disposals of businesses
|
(65)
|
(273)
|
|
(202)
|
(543)
|
|
Investing cash flows from continuing operations
|
(206)
|
435
|
|
749
|
3,737
|
|
Investing cash flows from discontinued operations
|
-
|
-
|
|
-
|
(1)
|
|
Net cash (used in) provided by investing activities
|
(206)
|
435
|
|
749
|
3,736
|
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
|
|
Repayments of debt
|
(242)
|
-
|
|
(290)
|
-
|
|
Net repayments under short-term loan facilities
|
-
|
(1,214)
|
|
(139)
|
(443)
|
|
Payments of lease principal
|
(15)
|
(13)
|
|
(46)
|
(44)
|
|
Payments for return of capital on common shares
|
-
|
-
|
|
-
|
(2,045)
|
|
Repurchases of common shares
|
-
|
-
|
|
(639)
|
(718)
|
|
Dividends paid on preference shares
|
(1)
|
(1)
|
|
(4)
|
(4)
|
|
Dividends paid on common shares
|
(236)
|
(218)
|
|
(708)
|
(672)
|
|
Purchase of non-controlling interests
|
-
|
-
|
|
(384)
|
-
|
|
Other financing activities
|
2
|
(3)
|
|
3
|
2
|
|
Net cash used in financing activities
|
(492)
|
(1,449)
|
|
(2,207)
|
(3,924)
|
|
Translation adjustments
|
3
|
(2)
|
|
(2)
|
(1)
|
|
Increase (decrease) in cash and cash equivalents
|
61
|
(342)
|
|
433
|
1,447
|
|
Cash and cash equivalents at beginning of period
|
1,670
|
2,858
|
|
1,298
|
1,069
|
|
Cash and cash equivalents at end of period
|
$1,731
|
$2,516
|
|
$1,731
|
$2,516
|
|
Thomson Reuters Corporation
|
|
Reconciliation of Earnings from Continuing Operations to Adjusted EBITDA(1)
|
|
(millions of U.S. dollars, except for margins)
|
|
(unaudited)
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Year Ended
|
|
September 30,
|
|
September 30,
|
|
December 31,
|
|
2024
|
2023
|
|
2024
|
2023
|
|
2023
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
$277
|
$370
|
|
$1,585
|
$1,996
|
|
$2,646
|
|
Adjustments to remove:
|
|
|
|
|
|
|
|
|
Tax expense (benefit)
|
77
|
(18)
|
|
(258)
|
397
|
|
417
|
|
Other finance costs (income)
|
32
|
(117)
|
|
8
|
75
|
|
192
|
|
Net interest expense
|
21
|
32
|
|
97
|
121
|
|
152
|
|
Amortization of other identifiable intangible assets
|
21
|
24
|
|
69
|
72
|
|
97
|
|
Amortization of computer software
|
151
|
132
|
|
458
|
377
|
|
512
|
|
Depreciation
|
30
|
28
|
|
87
|
87
|
|
116
|
|
EBITDA
|
$609
|
$451
|
|
$2,046
|
$3,125
|
|
$4,132
|
|
Adjustments to remove:
|
|
|
|
|
|
|
|
|
Share of post-tax losses (earnings) in equity method
investments
|
8
|
174
|
|
(45)
|
(815)
|
|
(1,075)
|
|
Other operating (gains) losses, net
|
(10)
|
11
|
|
60
|
(353)
|
|
(397)
|
|
Fair value adjustments*
|
2
|
(4)
|
|
-
|
14
|
|
18
|
|
Adjusted EBITDA(1)
|
$609
|
$632
|
|
$2,061
|
$1,971
|
|
$2,678
|
|
Adjusted EBITDA margin(1)
|
35.3 %
|
39.6 %
|
|
38.5 %
|
39.5 %
|
|
39.3 %
|
|
|
* Fair value adjustments primarily represent gains or losses on intercompany balances that arise in the ordinary course of business due to changes in foreign currency exchange rates, which are a component of operating expenses, as well as adjustments related to acquired deferred revenue.
|
|
Thomson Reuters Corporation
|
|
Reconciliation of Net Cash Provided By Operating Activities to Free Cash Flow(1)
|
|
(millions of U.S. dollars)
|
|
(unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Year Ended
|
|
September 30,
|
|
September 30,
|
|
December 31,
|
|
2024
|
2023
|
|
2024
|
2023
|
|
2023
|
|
Net cash provided by operating activities
|
$756
|
$674
|
|
$1,893
|
$1,636
|
|
$2,341
|
|
Capital expenditures
|
(149)
|
(145)
|
|
(446)
|
(412)
|
|
(544)
|
|
Other investing activities
|
-
|
14
|
|
6
|
82
|
|
137
|
|
Payments of lease principal
|
(15)
|
(13)
|
|
(46)
|
(44)
|
|
(58)
|
|
Dividends paid on preference shares
|
(1)
|
(1)
|
|
(4)
|
(4)
|
|
(5)
|
|
Free cash flow(1)
|
$591
|
$529
|
|
$1,403
|
$1,258
|
|
$1,871
|
|
Thomson Reuters Corporation
|
|
Reconciliation of Capital Expenditures to Accrued Capital Expenditures(1)
|
|
(millions of U.S. dollars)
|
|
(unaudited)
|
|
|
Year Ended
|
|
December 31,
|
|
|
2023
|
|
Capital expenditures
|
|
$544
|
|
Remove: IFRS adjustment to cash basis
|
|
(12)
|
|
Accrued capital expenditures (1)
|
|
$532
|
|
Accrued capital expenditures as a percentage of revenues(1)
|
|
7.8 %
|
|
|
|
(1)
|
Refer to page 22 for additional information on non-IFRS financial measures.
|
|
Thomson Reuters Corporation
|
|
Reconciliation of Net Earnings to Adjusted Earnings(1)
|
|
Reconciliation of Total Change in Adjusted EPS to Change in Constant Currency(1)
|
|
(millions of U.S. dollars, except for share and per share data)
|
|
(unaudited)
|
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
Year Ended
|
|
December 31,
|
|
2024
|
2023
|
|
2024
|
2023
|
|
2023
|
|
Net earnings
|
$301
|
$367
|
|
$1,620
|
$2,017
|
|
$2,695
|
|
Adjustments to remove:
|
|
|
|
|
|
|
|
|
Fair value adjustments*
|
2
|
(4)
|
|
-
|
14
|
|
18
|
|
Amortization of acquired computer software
|
34
|
21
|
|
109
|
48
|
|
72
|
|
Amortization of other identifiable intangible assets
|
21
|
24
|
|
69
|
72
|
|
97
|
|
Other operating (gains) losses, net
|
(10)
|
11
|
|
60
|
(353)
|
|
(397)
|
|
Interest benefit impacting comparability(2)
|
-
|
(12)
|
|
-
|
(12)
|
|
(12)
|
|
Other finance costs (income)
|
32
|
(117)
|
|
8
|
75
|
|
192
|
|
Share of post-tax losses (earnings) in equity method
investments
|
8
|
174
|
|
(45)
|
(815)
|
|
(1,075)
|
|
Tax on above items(1)
|
(5)
|
(31)
|
|
(45)
|
227
|
|
265
|
|
Tax items impacting comparability(1) (2)
|
(2)
|
(62)
|
|
(483)
|
(64)
|
|
(172)
|
|
(Earnings) loss from discontinued operations, net of tax
|
(24)
|
3
|
|
(35)
|
(21)
|
|
(49)
|
|
Interim period effective tax rate normalization(1)
|
3
|
2
|
|
(7)
|
(1)
|
|
-
|
|
Dividends declared on preference shares
|
(1)
|
(1)
|
|
(4)
|
(4)
|
|
(5)
|
|
Adjusted earnings(1) (3)
|
$359
|
$375
|
|
$1,247
|
$1,183
|
|
$1,629
|
|
Adjusted EPS(1) (3)
|
$0.80
|
$0.82
|
|
$2.76
|
$2.53
|
|
|
|
Total change
|
-2 %
|
|
|
9 %
|
|
|
|
|
Foreign currency
|
0 %
|
|
|
0 %
|
|
|
|
|
Constant currency
|
-2 %
|
|
|
9 %
|
|
|
|
|
Diluted weighted-average common shares (millions)
|
450.5
|
456.1
|
|
451.4
|
466.8
|
|
|
|
|
Reconciliation of Effective Tax Rate on Adjusted Earnings(1)
|
Year-ended
December 31,
|
|
2023
|
|
Adjusted earnings
|
$1,629
|
|
Plus: Dividends declared on preference shares
|
5
|
|
Plus: Tax expense on adjusted earnings
|
324
|
|
Pre-tax adjusted earnings
|
$1,958
|
|
|
|
IFRS Tax expense
|
$417
|
|
Remove tax related to:
|
|
|
Amortization of acquired computer software
|
17
|
|
Amortization of other identifiable intangible assets
|
22
|
|
Share of post-tax earnings in equity method investments
|
(253)
|
|
Other finance costs
|
31
|
|
Other operating gains, net
|
(81)
|
|
Other items
|
(1)
|
|
Subtotal – Remove tax expense on pre-tax items removed from adjusted earnings
|
(265)
|
|
Remove: Tax items impacting comparability
|
172
|
|
Total - Remove all items impacting comparability
|
(93)
|
|
Tax expense on adjusted earnings
|
$324
|
|
Effective tax rate on adjusted earnings
|
16.5 %
|
|
|
|
*Fair value adjustments primarily represent gains or losses on intercompany balances that arise in the ordinary course of business due to changes in foreign currency exchange rates, which are a component of operating expenses, as well as adjustments related to acquired deferred revenue.
|
|
|
|
(1)
|
Refer to page 22 for additional information on non-IFRS financial measures.
|
|
(2)
|
All periods of 2023 included the release of tax and interest reserves due to the expiration of statutes of limitation.
|
|
(3)
|
The adjusted earnings impact of non-controlling interests, which was applicable only to the nine months ended September 30, 2024, was not material.
|
|
Thomson Reuters Corporation
|
|
Reconciliation of Changes in Revenues to Changes in Revenues on a Constant Currency(1) and Organic Basis(1)
|
|
(millions of U.S. dollars)
|
|
(unaudited)
|
|
|
|
Three Months Ended
|
|
|
|
|
September 30,
|
|
Change
|
|
|
2024
|
2023
|
|
Total
|
Foreign
Currency
|
SUBTOTAL
Constant
Currency
|
Net
Acquisitions/
(Divestitures)
|
Organic
|
|
Total Revenues
|
|
|
|
|
|
|
|
|
|
|
Legal Professionals
|
|
$745
|
$688
|
|
8 %
|
0 %
|
8 %
|
1 %
|
7 %
|
|
Corporates
|
|
437
|
391
|
|
12 %
|
0 %
|
12 %
|
2 %
|
10 %
|
|
Tax & Accounting Professionals
|
|
221
|
203
|
|
9 %
|
-2 %
|
11 %
|
1 %
|
10 %
|
|
"Big 3" Segments Combined(1)
|
|
1,403
|
1,282
|
|
9 %
|
0 %
|
10 %
|
1 %
|
9 %
|
|
Reuters News
|
|
199
|
180
|
|
10 %
|
0 %
|
10 %
|
2 %
|
8 %
|
|
Global Print
|
|
128
|
137
|
|
-7 %
|
0 %
|
-6 %
|
0 %
|
-6 %
|
|
Eliminations/Rounding
|
|
(6)
|
(5)
|
|
|
|
|
|
|
|
Revenues
|
|
$1,724
|
$1,594
|
|
8 %
|
0 %
|
9 %
|
1 %
|
7 %
|
|
|
|
|
|
|
|
|
|
|
|
Recurring Revenues
|
|
|
|
|
|
|
|
|
|
|
Legal Professionals
|
|
$721
|
$661
|
|
9 %
|
0 %
|
9 %
|
1 %
|
8 %
|
|
Corporates
|
|
390
|
349
|
|
12 %
|
0 %
|
12 %
|
3 %
|
9 %
|
|
Tax & Accounting Professionals
|
|
170
|
160
|
|
7 %
|
-3 %
|
10 %
|
0 %
|
10 %
|
|
"Big 3" Segments Combined(1)
|
|
1,281
|
1,170
|
|
10 %
|
0 %
|
10 %
|
1 %
|
9 %
|
|
Reuters News
|
|
167
|
158
|
|
6 %
|
0 %
|
6 %
|
2 %
|
4 %
|
|
Eliminations/Rounding
|
|
(6)
|
(5)
|
|
|
|
|
|
|
|
Total Recurring Revenues
|
|
$1,442
|
$1,323
|
|
9 %
|
0 %
|
10 %
|
1 %
|
8 %
|
|
|
|
|
|
|
|
|
|
|
|
Transactions Revenues
|
|
|
|
|
|
|
|
|
|
|
Legal Professionals
|
|
$24
|
$27
|
|
-12 %
|
-2 %
|
-11 %
|
0 %
|
-11 %
|
|
Corporates
|
|
47
|
42
|
|
12 %
|
0 %
|
12 %
|
-1 %
|
13 %
|
|
Tax & Accounting Professionals
|
|
51
|
43
|
|
16 %
|
-1 %
|
16 %
|
3 %
|
13 %
|
|
"Big 3" Segments Combined(1)
|
|
122
|
112
|
|
8 %
|
-1 %
|
8 %
|
1 %
|
8 %
|
|
Reuters News
|
|
32
|
22
|
|
45 %
|
3 %
|
41 %
|
7 %
|
35 %
|
|
Total Transactions Revenues
|
|
$154
|
$134
|
|
14 %
|
0 %
|
14 %
|
2 %
|
12 %
|
|
|
|
Growth percentages are computed using whole dollars. As a result, percentages calculated from reported amounts may differ from those presented, and growth components may not total due to rounding.
|
|
|
|
(1)
|
Refer to page 22 for additional information on non-IFRS financial measures.
|
|
Thomson Reuters Corporation
|
|
Reconciliation of Changes in Revenues to Changes in Revenues on a Constant Currency(1) and Organic Basis(1)
|
|
(millions of U.S. dollars)
|
|
(unaudited)
|
|
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
Change
|
|
|
2024
|
2023
|
|
Total
|
Foreign
Currency
|
SUBTOTAL
Constant
Currency
|
Net
Acquisitions/
(Divestitures)
|
Organic
|
|
Total Revenues
|
|
|
|
|
|
|
|
|
|
|
Legal Professionals
|
|
$2,193
|
$2,107
|
|
4 %
|
0 %
|
4 %
|
-3 %
|
7 %
|
|
Corporates
|
|
1,386
|
1,218
|
|
14 %
|
0 %
|
14 %
|
4 %
|
10 %
|
|
Tax & Accounting Professionals
|
|
799
|
714
|
|
12 %
|
-2 %
|
14 %
|
2 %
|
12 %
|
|
"Big 3" Segments Combined(1)
|
|
4,378
|
4,039
|
|
8 %
|
0 %
|
9 %
|
0 %
|
9 %
|
|
Reuters News
|
|
614
|
549
|
|
12 %
|
-1 %
|
12 %
|
3 %
|
9 %
|
|
Global Print
|
|
375
|
408
|
|
-8 %
|
0 %
|
-8 %
|
0 %
|
-8 %
|
|
Eliminations/Rounding
|
|
(18)
|
(17)
|
|
|
|
|
|
|
|
Revenues
|
|
$5,349
|
$4,979
|
|
7 %
|
0 %
|
8 %
|
0 %
|
8 %
|
|
|
|
|
|
|
|
|
|
|
|
Recurring Revenues
|
|
|
|
|
|
|
|
|
|
|
Legal Professionals
|
|
$2,121
|
$2,000
|
|
6 %
|
0 %
|
6 %
|
-2 %
|
8 %
|
|
Corporates
|
|
1,142
|
1,015
|
|
12 %
|
0 %
|
12 %
|
3 %
|
10 %
|
|
Tax & Accounting Professionals
|
|
548
|
503
|
|
9 %
|
-2 %
|
11 %
|
0 %
|
11 %
|
|
"Big 3" Segments Combined(1)
|
|
3,811
|
3,518
|
|
8 %
|
0 %
|
9 %
|
0 %
|
9 %
|
|
Reuters News
|
|
495
|
468
|
|
6 %
|
-1 %
|
6 %
|
2 %
|
4 %
|
|
Eliminations/Rounding
|
|
(18)
|
(17)
|
|
|
|
|
|
|
|
Total Recurring Revenues
|
|
$4,288
|
$3,969
|
|
8 %
|
0 %
|
8 %
|
0 %
|
8 %
|
|
|
|
|
|
|
|
|
|
|
|
Transactions Revenues
|
|
|
|
|
|
|
|
|
|
|
Legal Professionals
|
|
$72
|
$107
|
|
-33 %
|
-2 %
|
-32 %
|
-30 %
|
-1 %
|
|
Corporates
|
|
244
|
203
|
|
21 %
|
0 %
|
21 %
|
10 %
|
11 %
|
|
Tax & Accounting Professionals
|
|
251
|
211
|
|
19 %
|
-1 %
|
19 %
|
6 %
|
13 %
|
|
"Big 3" Segments Combined(1)
|
|
567
|
521
|
|
9 %
|
-1 %
|
9 %
|
-1 %
|
10 %
|
|
Reuters News
|
|
119
|
81
|
|
47 %
|
0 %
|
47 %
|
7 %
|
39 %
|
|
Total Transactions Revenues
|
|
$686
|
$602
|
|
14 %
|
-1 %
|
14 %
|
0 %
|
14 %
|
|
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
Change
|
|
|
2023
|
2022
|
|
Total
|
Foreign
Currency
|
SUBTOTAL
Constant
Currency
|
Net
Acquisitions/
(Divestitures)
|
Organic
|
|
Total Revenues
|
|
|
|
|
|
|
|
|
|
|
Legal Professionals
|
|
$2,807
|
$2,803
|
|
0 %
|
0 %
|
0 %
|
-6 %
|
6 %
|
|
Corporates
|
|
1,620
|
1,536
|
|
5 %
|
0 %
|
5 %
|
-2 %
|
7 %
|
|
Tax & Accounting Professionals
|
|
1,058
|
986
|
|
7 %
|
-2 %
|
9 %
|
-1 %
|
10 %
|
|
"Big 3" Segments Combined(1)
|
|
5,485
|
5,325
|
|
3 %
|
0 %
|
4 %
|
-4 %
|
7 %
|
|
Reuters News
|
|
769
|
733
|
|
5 %
|
0 %
|
5 %
|
1 %
|
4 %
|
|
Global Print
|
|
562
|
592
|
|
-5 %
|
-1 %
|
-4 %
|
-1 %
|
-3 %
|
|
Eliminations/Rounding
|
|
(22)
|
(23)
|
|
|
|
|
|
|
|
Revenues
|
|
$6,794
|
$6,627
|
|
3 %
|
0 %
|
3 %
|
-3 %
|
6 %
|
|
|
|
Growth percentages are computed using whole dollars. As a result, percentages calculated from reported amounts may differ from those presented, and growth components may not total due to rounding.
|
|
|
|
(1)
|
Refer to page 22 for additional information on non-IFRS financial measures.
|
|
Thomson Reuters Corporation
|
|
Reconciliation of Changes in Adjusted EBITDA(1) and Related Margin(1) to Changes on a Constant CurrencyBasis(1)
|
|
(millions of U.S. dollars, except for margins)
|
|
(unaudited)
|
|
|
|
|
Three Months Ended
|
|
|
|
|
September 30,
|
|
Change
|
|
|
2024
|
2023
|
|
Total
|
Foreign
Currency
|
Constant
Currency
|
|
Adjusted EBITDA(1)
|
|
|
|
|
|
|
|
|
Legal Professionals
|
|
$334
|
$338
|
|
-1 %
|
0 %
|
-1 %
|
|
Corporates
|
|
162
|
164
|
|
-1 %
|
0 %
|
-2 %
|
|
Tax & Accounting Professionals
|
|
59
|
64
|
|
-7 %
|
-3 %
|
-5 %
|
|
"Big 3" Segments Combined(1)
|
|
555
|
566
|
|
-2 %
|
0 %
|
-2 %
|
|
Reuters News
|
|
40
|
37
|
|
10 %
|
-4 %
|
14 %
|
|
Global Print
|
|
43
|
55
|
|
-22 %
|
0 %
|
-21 %
|
|
Corporate costs
|
|
(29)
|
(26)
|
|
n/a
|
n/a
|
n/a
|
|
Adjusted EBITDA
|
|
$609
|
$632
|
|
-4 %
|
0 %
|
-4 %
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Margin(1)
|
|
|
|
|
|
|
|
|
Legal Professionals
|
|
44.9 %
|
49.1 %
|
|
-420bp
|
10bp
|
-430bp
|
|
Corporates
|
|
36.8 %
|
41.9 %
|
|
-510bp
|
10bp
|
-520bp
|
|
Tax & Accounting Professionals
|
|
26.8 %
|
31.2 %
|
|
-440bp
|
-10bp
|
-430bp
|
|
"Big 3" Segments Combined(1)
|
|
39.5 %
|
44.0 %
|
|
-450bp
|
10bp
|
-460bp
|
|
Reuters News
|
|
20.4 %
|
20.4 %
|
|
0bp
|
-70bp
|
70bp
|
|
Global Print
|
|
33.1 %
|
39.6 %
|
|
-650bp
|
-10bp
|
-640bp
|
|
Adjusted EBITDA margin
|
|
35.3 %
|
39.6 %
|
|
-430bp
|
20bp
|
-450bp
|
|
Thomson Reuters Corporation
|
|
Reconciliation of Changes in Adjusted EBITDA(1) and Related Margin(1) to Changes on a Constant CurrencyBasis(1)
|
|
(millions of U.S. dollars, except for margins)
|
|
(unaudited)
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
Change
|
|
|
2024
|
2023
|
|
Total
|
Foreign
Currency
|
Constant
Currency
|
|
Adjusted EBITDA(1)
|
|
|
|
|
|
|
|
|
Legal Professionals
|
|
$1,003
|
$1,001
|
|
0 %
|
0 %
|
0 %
|
|
Corporates
|
|
518
|
481
|
|
8 %
|
0 %
|
7 %
|
|
Tax & Accounting Professionals
|
|
331
|
302
|
|
10 %
|
-2 %
|
11 %
|
|
"Big 3" Segments Combined(1)
|
|
1,852
|
1,784
|
|
4 %
|
0 %
|
4 %
|
|
Reuters News
|
|
151
|
111
|
|
37 %
|
-2 %
|
39 %
|
|
Global Print
|
|
133
|
158
|
|
-16 %
|
0 %
|
-16 %
|
|
Corporate costs
|
|
(75)
|
(82)
|
|
n/a
|
n/a
|
n/a
|
|
Adjusted EBITDA
|
|
$2,061
|
$1,971
|
|
5 %
|
0 %
|
5 %
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Margin(1)
|
|
|
|
|
|
|
|
|
Legal Professionals
|
|
45.7 %
|
47.5 %
|
|
-180bp
|
0bp
|
-180bp
|
|
Corporates
|
|
37.2 %
|
39.4 %
|
|
-220bp
|
10bp
|
-230bp
|
|
Tax & Accounting Professionals
|
|
41.5 %
|
41.6 %
|
|
-10bp
|
10bp
|
-20bp
|
|
"Big 3" Segments Combined(1)
|
|
42.3 %
|
44.0 %
|
|
-170bp
|
10bp
|
-180bp
|
|
Reuters News
|
|
24.6 %
|
20.1 %
|
|
450bp
|
-10bp
|
460bp
|
|
Global Print
|
|
35.5 %
|
38.6 %
|
|
-310bp
|
20bp
|
-330bp
|
|
Adjusted EBITDA margin
|
|
38.5 %
|
39.5 %
|
|
-100bp
|
20bp
|
-120bp
|
|
|
|
n/a: not applicable
|
|
|
|
Growth percentages and margins are computed using whole dollars. As a result, percentages and margins calculated from reported amounts may differ from those presented, and growth components may not total due to rounding.
|
|
|
|
(1)
|
Refer to page 22 for additional information on non-IFRS financial measures.
|
Reconciliation of adjusted EBITDA margin(1)
To compute segment and consolidated adjusted EBITDA margin, the company excludes fair value adjustments related to acquired deferred revenue from its IFRS revenues. The chart below reconciles IFRS revenues to revenues used in the calculation of adjusted EBITDA margin, which excludes fair value adjustments related to acquired deferred revenue.
|
Three months ended September 30, 2024
|
|
IFRS revenues
|
Remove fair value
adjustments to
acquired deferred
revenue
|
Revenues excluding
fair value
adjustments to
acquired deferred
revenue
|
Adjusted EBITDA
|
Adjusted EBITDA
Margin
|
|
Legal Professionals
|
$745
|
-
|
$745
|
$334
|
44.9 %
|
|
Corporates
|
437
|
$2
|
439
|
162
|
36.8 %
|
|
Tax & Accounting Professionals
|
221
|
-
|
221
|
59
|
26.8 %
|
|
"Big 3" Segments Combined
|
1,403
|
2
|
1,405
|
555
|
39.5 %
|
|
Reuters News
|
199
|
-
|
199
|
40
|
20.4 %
|
|
Global Print
|
128
|
-
|
128
|
43
|
33.1 %
|
|
Eliminations/ Rounding
|
(6)
|
-
|
(6)
|
-
|
n/a
|
|
Corporate costs
|
-
|
-
|
-
|
(29)
|
n/a
|
|
Consolidated totals
|
$1,724
|
$2
|
$1,726
|
$609
|
35.3 %
|
|
|
Nine months ended September 30, 2024
|
|
IFRS revenues
|
Remove fair value
adjustments to
acquired deferred
revenue
|
Revenues excluding
fair value
adjustments to
acquired deferred
revenue
|
Adjusted EBITDA
|
Adjusted EBITDA
Margin
|
|
Legal Professionals
|
$2,193
|
$1
|
$2,194
|
$1,003
|
45.7 %
|
|
Corporates
|
1,386
|
6
|
1,392
|
518
|
37.2 %
|
|
Tax & Accounting Professionals
|
799
|
-
|
799
|
331
|
41.5 %
|
|
"Big 3" Segments Combined
|
4,378
|
7
|
4,385
|
1,852
|
42.3 %
|
|
Reuters News
|
614
|
1
|
615
|
151
|
24.6 %
|
|
Global Print
|
375
|
-
|
375
|
133
|
35.5 %
|
|
Eliminations/ Rounding
|
(18)
|
-
|
(18)
|
-
|
n/a
|
|
Corporate costs
|
-
|
-
|
-
|
(75)
|
n/a
|
|
Consolidated totals
|
$5,349
|
$8
|
$5,357
|
$2,061
|
38.5 %
|
|
|
Three months ended September 30, 2023
|
|
IFRS revenues
|
Remove fair value
adjustments to
acquired deferred
revenue
|
Revenues excluding
fair value
adjustments to
acquired deferred
revenue
|
Adjusted EBITDA
|
Adjusted EBITDA
Margin
|
|
Legal Professionals
|
$688
|
$1
|
$689
|
$338
|
49.1 %
|
|
Corporates
|
391
|
-
|
391
|
164
|
41.9 %
|
|
Tax & Accounting Professionals
|
203
|
1
|
204
|
64
|
31.2 %
|
|
"Big 3" Segments Combined
|
1,282
|
2
|
1,284
|
566
|
44.0 %
|
|
Reuters News
|
180
|
-
|
180
|
37
|
20.4 %
|
|
Global Print
|
137
|
-
|
137
|
55
|
39.6 %
|
|
Eliminations/ Rounding
|
(5)
|
-
|
(5)
|
-
|
n/a
|
|
Corporate costs
|
-
|
-
|
-
|
(26)
|
n/a
|
|
Consolidated totals
|
$1,594
|
$2
|
$1,596
|
$632
|
39.6 %
|
|
|
|
n/a: not applicable
|
|
|
|
Margins are computed using whole dollars, as a result, margins calculated from reported amounts may differ from those presented due to rounding.
|
|
|
|
(1)
|
Refer to page 22 for additional information on non-IFRS financial measures.
|
|
Reconciliation of adjusted EBITDA margin(1)
|
|
|
Nine months ended September 30, 2023
|
|
IFRS revenues
|
Remove fair value
adjustments to
acquired deferred
revenue
|
Revenues excluding
fair value
adjustments to
acquired deferred
revenue
|
Adjusted EBITDA
|
Adjusted EBITDA
Margin
|
|
Legal Professionals
|
$2,107
|
$1
|
$2,108
|
$1,001
|
47.5 %
|
|
Corporates
|
1,218
|
3
|
1,221
|
481
|
39.4 %
|
|
Tax & Accounting Professionals
|
714
|
11
|
725
|
302
|
41.6 %
|
|
"Big 3" Segments Combined
|
4,039
|
15
|
4,054
|
1,784
|
44.0 %
|
|
Reuters News
|
549
|
-
|
549
|
111
|
20.1 %
|
|
Global Print
|
408
|
-
|
408
|
158
|
38.6 %
|
|
Eliminations/ Rounding
|
(17)
|
-
|
(17)
|
-
|
n/a
|
|
Corporate costs
|
-
|
-
|
-
|
(82)
|
n/a
|
|
Consolidated totals
|
$4,979
|
$15
|
$4,994
|
$1,971
|
39.5 %
|
|
Thomson Reuters Corporation
|
|
"Big 3" Segments and Consolidated Adjusted EBITDA(1) and the Related Margins(1)
|
|
(millions of U.S. dollars, except for margins)
|
|
(unaudited)
|
|
|
|
|
Year Ended
|
|
|
December 31,
2023
|
|
|
|
2023
|
|
Adjusted EBITDA(1)
|
|
|
|
|
Legal Professionals
|
|
|
$1,299
|
|
Corporates
|
|
|
619
|
|
Tax & Accounting Professionals
|
|
|
490
|
|
"Big 3" Segments Combined(1)
|
|
|
2,408
|
|
Reuters News
|
|
|
172
|
|
Global Print
|
|
|
213
|
|
Corporate costs
|
|
|
(115)
|
|
Adjusted EBITDA
|
|
|
$2,678
|
|
|
|
|
|
"Big 3" Segments Combined(1)
|
|
|
|
|
Adjusted EBITDA
|
|
|
$2,408
|
|
Revenues, excluding $15 million of fair value adjustments to acquired deferred revenue
|
|
|
$5,500
|
|
Adjusted EBITDA margin
|
|
|
43.8 %
|
|
|
|
|
|
Consolidated(1)
|
|
|
|
|
Adjusted EBITDA
|
|
|
$2,678
|
|
Revenues, excluding $16 million of fair value adjustments to acquired deferred revenue
|
|
|
$6,810
|
|
Adjusted EBITDA margin
|
|
|
39.3 %
|
|
|
|
n/a: not applicable
|
|
|
|
Margins are computed using whole dollars, as a result, margins calculated from reported amounts may differ from those presented due to rounding.
|
|
|
|
(1)
|
Refer to page 22 for additional information on non-IFRS financial measures.
|
|
Non-IFRS Financial
Measures
|
Definition
|
Why Useful to the Company and Investors
|
|
Adjusted EBITDA
and the related
margin
|
Represents earnings or losses from continuing operations before tax expense or
benefit, net interest expense, other finance costs or income, depreciation,
amortization of computer software and other identifiable intangible assets,
Thomson Reuters share of post-tax earnings or losses in equity method
investments, other operating gains and losses, certain asset impairment charges
and fair value adjustments, including those related to acquired deferred revenue.
The related margin is adjusted EBITDA expressed as a percentage of revenues. For
purposes of this calculation, revenues are before fair value adjustments to
acquired deferred revenue.
|
Provides a consistent basis to evaluate operating profitability and
performance trends by excluding items that the company does not
consider to be controllable activities for this purpose.
Also, represents a measure commonly reported and widely used by
investors as a valuation metric, as well as to assess the company's
ability to incur and service debt.
|
|
Adjusted earnings
and adjusted EPS
|
Net earnings or loss including dividends declared on preference shares but
excluding the post-tax impacts of fair value adjustments, including those related
to acquired deferred revenue, amortization of acquired intangible assets
(attributable to other identifiable intangible assets and acquired computer
software), other operating gains and losses, certain asset impairment charges,
other finance costs or income, Thomson Reuters share of post-tax earnings or
losses in equity method investments, discontinued operations and other items
affecting comparability. Acquired intangible assets contribute to the generation
of revenues from acquired companies, which are included in the company's
computation of adjusted earnings.
The post-tax amount of each item is excluded from adjusted earnings based on
the specific tax rules and tax rates associated with the nature and jurisdiction of
each item.
Adjusted EPS is calculated from adjusted earnings using diluted weighted-average
shares and does not represent actual earnings or loss per share attributable to
shareholders.
|
Provides a more comparable basis to analyze earnings.
These measures are commonly used by shareholders to measure
performance.
|
|
Effective tax rate on
adjusted earnings
|
Adjusted tax expense divided by pre-tax adjusted earnings. Adjusted tax expense
is computed as income tax (benefit) expense plus or minus the income tax
impacts of all items impacting adjusted earnings (as described above), and other
tax items impacting comparability.
In interim periods, the company also makes an adjustment to reflect income
taxes based on the estimated full-year effective tax rate. Earnings or losses for
interim periods under IFRS reflect income taxes based on the estimated effective
tax rates of each of the jurisdictions in which Thomson Reuters operates. The
non-IFRS adjustment reallocates estimated full-year income taxes between
interim periods but has no effect on full-year income taxes.
|
Provides a basis to analyze the effective tax rate associated with
adjusted earnings.
The company's effective tax rate computed in accordance with IFRS
may be more volatile by quarter because the geographical mix of
pre-tax profits and losses in interim periods may be different from
that for the full year. Therefore, the company believes that using
the expected full-year effective tax rate provides more
comparability among interim periods.
|
|
Free cash flow
|
Net cash provided by operating activities and other investing activities, less
capital expenditures, payments of lease principal and dividends paid on the
company's preference shares.
|
Helps assess the company's ability, over the long term, to create
value for its shareholders as it represents cash available to repay
debt, pay common dividends and fund share repurchases and
acquisitions.
|
|
Changes before the
impact of foreign
currency or at
"constant currency"
|
The changes in revenues, adjusted EBITDA and the related margin, and adjusted
EPS before currency (at constant currency or excluding the effects of currency)
are determined by converting the current and equivalent prior period's local
currency results using the same foreign currency exchange rate.
|
Provides better comparability of business trends from period to
period.
|
|
Changes in
revenues computed
on an "organic"
basis
|
Represent changes in revenues of the company's existing businesses at constant
currency. The metric excludes the distortive impacts of acquisitions and
dispositions from not owning the business in both comparable periods.
|
Provides further insight into the performance of the company's
existing businesses by excluding distortive impacts and serves as a
better measure of the company's ability to grow its business over
the long term.
|
|
Accrued capital
expenditures as a
percentage of
revenues
|
Accrued capital expenditures divided by revenues, where accrued capital
expenditures include amounts that remain unpaid at the end of the reporting
period. For purposes of this calculation, revenues are before fair value
adjustments to acquired deferred revenue.
|
Reflects the basis on which the company manages capital
expenditures for internal budgeting purposes.
|
|
"Big 3" segments
|
The company's combined Legal Professionals, Corporates and Tax & Accounting
Professionals segments. All measures reported for the "Big 3" segments are non-
IFRS financial measures.
|
The "Big 3" segments comprised approximately 80% of revenues
and represent the core of the company's business information
service product offerings.
|
|
|
Please refer to reconciliations for the most directly comparable IFRS financial measures.
|
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SOURCE Thomson Reuters
