TORONTO, May 2, 2024
/PRNewswire/ -- Thomson Reuters (TSX/NYSE: TRI) today reported
results for the first quarter ended March
31, 2024:
- Revenue momentum continued in the first quarter
- Total company revenues up 8% / organic revenues up 9%
- Organic revenues up 10% for the "Big 3" segments (Legal
Professionals, Corporates and Tax & Accounting
Professionals)
- Based on Q1 performance, moderately raised 2024 outlook for
total and organic revenue growth
- Maintained guidance on all other metrics
- Sold 10.1 million shares of London Stock Exchange Group (LSEG)
in the first quarter for gross proceeds of $1.2 billion
- Raised annual common dividend by 10% to $2.16
- Repurchased over $350 million of
the company's common shares in the first quarter
- Current $1.0 billion share
buyback program expected to conclude by end of the second quarter
of 2024
"We have delivered an encouraging start to 2024, underscored by
a strong financial performance and raised outlook, building on the
momentum of the past year," said Steve
Hasker, President and CEO of Thomson Reuters. "As we chart
our course through 2024, we remain committed to investing in
content-driven technology that helps professionals make complex
decisions with confidence. With an exciting AI product roadmap and
strategic acquisitions shaping our core operations, we are
confident we will continue to lead the way in transforming
professional work."
Mr. Hasker added, "Looking ahead, we remain focused on
continuing our track record of solid execution, as we work to
accelerate Thomson Reuters' growth potential. This includes a
continued focus on allocating capital to drive sustainable
long-term value creation."
Consolidated Financial Highlights - Three Months Ended
March 31
Three Months Ended
March 31,
(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
|
$1,885
|
$1,738
|
8 %
|
|
Operating
profit
|
$557
|
$508
|
10 %
|
|
Diluted earnings per
share (EPS)
|
$1.06
|
$1.59
|
-33 %
|
|
Net cash provided by
operating activities
|
$432
|
$267
|
60 %
|
|
Non-IFRS Financial
Measures(1)
|
|
|
|
|
Revenues
|
$1,885
|
$1,738
|
8 %
|
8 %
|
Adjusted
EBITDA
|
$806
|
$677
|
19 %
|
19 %
|
Adjusted EBITDA
margin
|
42.7 %
|
38.8 %
|
390bp
|
390bp
|
Adjusted EPS
|
$1.11
|
$0.84(2)
|
32 %
|
32 %
|
Free cash
flow
|
$271
|
$133
|
101 %
|
|
(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.
(2) As of September 2023,
we amended our definition of adjusted earnings to exclude
amortization from acquired computer software. The
comparative 2023 period has been revised to reflect the current
period presentation. For additional information, see the
"Non-IFRS
Financial Measures" section of this news release.
|
Revenues increased 8%, driven by growth in recurring
and transactions revenues. Net divestitures had a 1% negative
impact on revenues and foreign currency had no impact.
- Organic revenues increased 9%, driven by 9% growth in recurring
revenues (76% of total revenues) and 22% growth in transactions
revenues. Global Print revenues decreased 10% organically.
- The company's "Big 3" segments reported organic revenue growth
of 10% and collectively comprised 83% of total revenues.
Operating profit increased 10%, primarily reflecting
higher revenues.
- Adjusted EBITDA increased 19%, also reflecting higher revenues.
The related margin increased to 42.7% from 38.8% in the prior-year
period. Foreign currency had no impact on the adjusted EBITDA
margin.
Diluted EPS decreased to $1.06 compared to $1.59 in the prior-year period as the prior-year
period included a significant increase in the value of our
investment in LSEG. In the first quarter of 2024, diluted EPS
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 changes in value of the
company's LSEG investment, as well as other adjustments, increased
to $1.11 per share from $0.84 per share in the prior-year period,
primarily due to higher adjusted EBITDA. Adjusted EPS also
benefited from a reduction in weighted-average common shares.
Net cash provided by operating activities increased by
$165 million due to the cash benefits
from higher operating profit. The prior-year period also included
$63 million of payments associated
with the company's Change Program, which was completed at the end
of 2022.
- Free cash flow increased $138 million primarily due to the same factors as
above.
Highlights by Customer Segment – Three Months Ended
March 31
(Millions of U.S.
dollars, except for adjusted EBITDA margins)
(unaudited)
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
March
31,
|
|
Change
|
|
|
2024
|
2023
|
|
Total
|
Constant
Currency(1)
|
Organic(1)(2)
|
Revenues
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$721
|
$714
|
|
1 %
|
1 %
|
7 %
|
Corporates
|
|
507
|
435
|
|
17 %
|
16 %
|
12 %
|
Tax &
Accounting Professionals
|
|
328
|
282
|
|
16 %
|
17 %
|
14 %
|
"Big 3" Segments
Combined(1)
|
|
1,556
|
1,431
|
|
9 %
|
9 %
|
10 %
|
Reuters
News
|
|
210
|
175
|
|
20 %
|
21 %
|
17 %
|
Global
Print
|
|
124
|
138
|
|
-10 %
|
-10 %
|
-10 %
|
Eliminations/Rounding
|
|
(5)
|
(6)
|
|
|
|
|
Revenues
|
|
$1,885
|
$1,738
|
|
8 %
|
8 %
|
9 %
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$342
|
$318
|
|
7 %
|
8 %
|
|
Corporates
|
|
193
|
154
|
|
26 %
|
25 %
|
|
Tax &
Accounting Professionals
|
|
181
|
149
|
|
21 %
|
22 %
|
|
"Big 3" Segments
Combined(1)
|
|
716
|
621
|
|
15 %
|
16 %
|
|
Reuters
News
|
|
60
|
29
|
|
105 %
|
109 %
|
|
Global
Print
|
|
47
|
50
|
|
-6 %
|
-7 %
|
|
Corporate
costs
|
|
(17)
|
(23)
|
|
n/a
|
n/a
|
|
Adjusted
EBITDA
|
|
$806
|
$677
|
|
19 %
|
19 %
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin(1)
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
47.4 %
|
44.6 %
|
|
280 bp
|
310 bp
|
|
Corporates
|
|
37.8 %
|
35.1 %
|
|
270 bp
|
260 bp
|
|
Tax &
Accounting Professionals
|
|
55.0 %
|
51.4 %
|
|
360 bp
|
360 bp
|
|
"Big 3" Segments
Combined(1)
|
|
45.8 %
|
43.1 %
|
|
270 bp
|
290 bp
|
|
Reuters
News
|
|
28.3 %
|
16.6 %
|
|
1170 bp
|
1190 bp
|
|
Global
Print
|
|
38.2 %
|
36.5 %
|
|
170 bp
|
130 bp
|
|
Adjusted EBITDA
margin
|
|
42.7 %
|
38.8 %
|
|
390
bp
|
390
bp
|
|
|
|
|
|
|
|
|
|
(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 constant
currency (or exclude the impact of foreign currency) as
Thomson Reuters believes this provides the best basis to measure
their performance.
Legal Professionals
Revenues increased 1% to $721
million, as organic revenue growth of 7% was largely offset
by the negative impact from net divestitures.
- Recurring revenues increased 4% (97% of total, 7% organic).
Organic growth was primarily driven by Westlaw, Practical Law,
CoCounsel, HighQ and the segment's international businesses.
- Transactions revenues decreased 44% (3% of total, increased 4%
organic).
Adjusted EBITDA increased 7% to $342 million.
- The margin increased to 47.4% from 44.6% driven by higher
revenues and lower costs.
Corporates
Revenues increased 16% to $507 million, including the acquisition impact of
Pagero. Organic revenues increased 12%.
- Recurring revenues increased 13% (73% of total, 11% organic).
Organic growth was primarily driven by Practical Law, Indirect Tax,
Pagero and the segment's international businesses.
- Transactions revenues increased 26% (27% of total, 16%
organic). Organic growth was primarily driven by strong seasonal
demand at Trust and Confirmation.
Adjusted EBITDA increased 26% to $193 million.
- The margin increased to 37.8% from 35.1%, driven by higher
revenues.
Tax & Accounting Professionals
Revenues increased 17% to $328 million. Organic revenues increased 14%.
- Recurring revenues increased 14% (61% of total, all organic).
Organic growth was driven by the segment's Latin America business and UltraTax.
- Transactions revenues increased 23% (39% of total, 15% organic)
primarily due to seasonal strength at SurePrep, UltraTax and
Confirmation.
Adjusted EBITDA increased 21% to $181 million.
- The margin increased to 55.0% from 51.4%, primarily driven by
higher revenues.
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 $210
million increased 21% (17% organic) driven primarily by
Generative AI related content licensing revenue that was largely
transactional in nature.
Adjusted EBITDA increased 105% to $60 million driven by higher revenues.
Global Print
Revenues of $124
million decreased 10% on an organic basis, impacted in part
by the migration of customers from a Global Print product to
Westlaw.
Adjusted EBITDA decreased 6% to $47
million.
- The margin increased to 38.2% from 36.5%, reflecting lower
costs.
Corporate Costs
Corporate costs were $17
million, compared to $23
million in the prior-year period.
2024 Outlook
The company moderately raised its 2024 outlook for total and
organic revenue growth due its strong performance in the first
quarter and maintained all other measures in its outlook.
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 second-quarter 2024 organic revenue
growth to be approximately 6% and its adjusted EBITDA margin to be
approximately 36%.
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
|
Total Revenue
Growth
|
3 %
|
~ 6.5%
|
6.5% - 7.0%
|
Organic Revenue Growth
(1)
|
6 %
|
~ 6%
|
6.0% - 6.5%
|
Adjusted EBITDA Margin
(1)
|
39.3 %
|
~ 38%
|
Unchanged
|
Corporate
Costs
|
$115 million
|
$120 - $130
million
|
Unchanged
|
Free Cash Flow
(1)
|
$1.9 billion
|
~ $1.8
billion
|
Unchanged
|
Accrued Capex as % of
Revenue (1)
|
7.8 %
|
~ 8.5%
|
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
|
Interest Expense
(P&L) (2)
|
$164 million
(2)
|
$150 - $170
million
|
Unchanged
|
Effective Tax Rate on
Adjusted Earnings (1)
|
16.5 %
|
~ 18%
|
Unchanged
|
"Big 3" Segments
(1)
|
FY
2023
Reported
|
FY
2024
Outlook
2/8/2024
|
FY
2024
Outlook
5/2/2024
|
Total Revenue Growth
|
3 %
|
~ 8%
|
8.0% - 8.5%
|
Organic Revenue
Growth
|
7 %
|
~ 7.5%
|
7.5% - 8.0%
|
Adjusted EBITDA
Margin
|
43.8 %
|
~ 43%
|
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."
Acquisitions
In first quarter of 2024, the company acquired 99.58% of Pagero
Group AB (Pagero) for $767 million.
Pagero is a global leader in e-invoicing and indirect tax
solutions, which it delivers through its Smart Business Network.
Pagero links customers, suppliers, and institutions, allowing for
the automated, compliant, and secure exchange of digital orders,
invoices, and other business documents.
In January 2024, the company also
acquired World Business Media Limited, a cross-platform,
subscription-based provider of editorial coverage for the global
P&C and specialty (re)insurance industry. This acquisition is
in line with Reuters' strategic priority to provide must-have news
and insight for new customer markets and professional
verticals.
Dividends
In February 2024, the company
announced a 10% or $0.20 per share
annualized increase in the dividend to $2.16 per common share, representing the
31st consecutive year of dividend increases. A quarterly
dividend of $0.54 per share is
payable on June 10, 2024 to common
shareholders of record as of May 16,
2024.
Share Repurchases – Update on $1.0
Billion Buyback Program
In November 2023, Thomson Reuters
announced its plans to repurchase up to $1.0
billion of its common shares.
From November 2023 through
April 30, 2024, the company
repurchased approximately 5.6 million of its common shares under
this buyback program, for a total spend of $819 million. As of April
30, 2024, Thomson Reuters had approximately 450.7 million
common shares outstanding.
Subject to market conditions, the company anticipates completing
the $1.0 billion program by the end
of the second quarter of 2024.
LSEG Ownership Interest
Thomson Reuters indirectly owns LSEG shares through an entity
that it jointly owns with Blackstone's consortium. During the first
quarter of 2024, the company sold 10.1 million shares that it
indirectly owned and received $1.2
billion of gross proceeds.
On May 1, 2024, the company agreed
to sell to LSEG approximately 1.6 million LSEG shares that it
indirectly owned for approximately $175
million in an off-market purchase pursuant to the terms of a
buyback contract that was approved by LSEG's shareholders on
April 25, 2024. In order to enable
the off-market purchase, LSEG agreed to a limited variation of the
contractual lock-up provisions previously agreed between LSEG and
the Blackstone consortium/Thomson Reuters entities that hold the
LSEG shares.
As of May 1, 2024, after the
completion of the above transaction, Thomson Reuters indirectly
owned approximately 4.3 million LSEG shares, which had a market
value of approximately $0.5 billion
based on LSEG's closing share price on that day. These shares are
subject to amended lock-up provisions that allow our company to
sell all of the remaining shares after January 29, 2025.
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.
As of September 30, 2023,
Thomson Reuters amended its definition of adjusted earnings to
exclude amortization from acquired computer software. While
the company has always excluded amortization from acquired
identifiable intangible assets other than computer software from
its definition of adjusted earnings, this change aligns its
treatment of amortization for all acquired intangible assets. Prior
period amounts were revised for comparability.
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 and foreign exchange
contracts. Additionally, the company cannot reasonably predict
(i) its share of post-tax earnings or losses in equity
method investments, which is subject to changes in the stock
price of LSEG or (ii) 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 the statements regarding the company's anticipated
completion of its buyback program in the second quarter of
2024, 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 67 of the company's 2023 annual report. The
company's 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
MEDIA
Gehna Singh
Kareckas
Senior Director,
Corporate Affairs
+1 613 979
4272
gehna.singhkareckas@tr.com
|
INVESTORS
Gary Bisbee,
CFA
Head of Investor
Relations
+1 646 540
3249
gary.bisbee@tr.com
|
Thomson Reuters will webcast a discussion of its
first-quarter 2024 results and its 2024 business outlook today
beginning at 9:00 a.m. Eastern Daylight
Time (EDT). You can access the webcast by visiting
ir.tr.com. An archive of the webcast will be available following
the presentation.
Thomson Reuters
Corporation
Consolidated Income
Statement
(millions of U.S.
dollars, except per share data)
(unaudited)
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
|
2024
|
2023
|
CONTINUING
OPERATIONS
|
|
|
|
|
|
Revenues
|
|
|
|
$1,885
|
$1,738
|
Operating
expenses
|
|
|
|
(1,081)
|
(1,074)
|
Depreciation
|
|
|
|
(28)
|
(30)
|
Amortization of
computer software
|
|
|
|
(153)
|
(118)
|
Amortization of other
identifiable intangible assets
|
|
|
|
(25)
|
(25)
|
Other operating
(losses) gains, net
|
|
|
|
(41)
|
17
|
Operating
profit
|
|
|
|
557
|
508
|
Finance costs,
net:
|
|
|
|
|
|
Net interest
expense
|
|
|
|
(40)
|
(55)
|
Other finance income
(costs)
|
|
|
|
22
|
(90)
|
Income before tax and
equity method investments
|
|
|
|
539
|
363
|
Share of post-tax
(losses) earnings in equity method investments
|
|
|
|
(8)
|
570
|
Tax expense
|
|
|
|
(67)
|
(196)
|
Earnings from
continuing operations
|
|
|
|
464
|
737
|
Earnings from
discontinued operations, net of tax
|
|
|
|
14
|
19
|
Net earnings
|
|
|
|
$478
|
$756
|
Earnings (loss)
attributable to:
|
|
|
|
|
|
Common
shareholders
|
|
|
|
$481
|
$756
|
Non-controlling
interests
|
|
|
|
(3)
|
-
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
Basic earnings per
share:
|
|
|
|
|
|
From
continuing operations
|
|
|
|
$1.03
|
$1.56
|
From
discontinued operations
|
|
|
|
0.03
|
0.04
|
Basic earnings per
share
|
|
|
|
$1.06
|
$1.60
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
|
|
From
continuing operations
|
|
|
|
$1.03
|
$1.55
|
From
discontinued operations
|
|
|
|
0.03
|
0.04
|
Diluted earnings per
share
|
|
|
|
$1.06
|
$1.59
|
|
|
|
|
|
|
Basic weighted-average
common shares
|
|
|
|
452,126,329
|
473,269,056
|
Diluted
weighted-average common shares
|
|
|
|
452,827,063
|
474,162,799
|
Thomson Reuters
Corporation
Consolidated
Statement of Financial Position
(millions of U.S.
dollars)
(unaudited)
|
|
|
March
31,
|
|
December
31,
|
2024
|
|
2023
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$1,901
|
|
$1,298
|
Trade and other
receivables
|
1,040
|
|
1,122
|
Other financial
assets
|
18
|
|
66
|
Prepaid expenses and
other current assets
|
464
|
|
435
|
Current
assets
|
3,423
|
|
2,921
|
|
|
|
|
Property and equipment,
net
|
451
|
|
447
|
Computer software,
net
|
1,500
|
|
1,236
|
Other identifiable
intangible assets, net
|
3,199
|
|
3,165
|
Goodwill
|
7,285
|
|
6,719
|
Equity method
investments
|
836
|
|
2,030
|
Other financial
assets
|
426
|
|
444
|
Other non-current
assets
|
629
|
|
618
|
Deferred tax
|
1,067
|
|
1,104
|
Total
assets
|
$18,816
|
|
$18,684
|
|
|
|
|
Liabilities and
equity
|
|
|
|
Liabilities
|
|
|
|
Current
indebtedness
|
$941
|
|
$372
|
Payables, accruals and
provisions
|
922
|
|
1,114
|
Current tax
liabilities
|
354
|
|
248
|
Deferred
revenue
|
928
|
|
992
|
Other financial
liabilities
|
390
|
|
507
|
Current
liabilities
|
3,535
|
|
3,233
|
|
|
|
|
Long-term
indebtedness
|
2,879
|
|
2,905
|
Provisions and other
non-current liabilities
|
689
|
|
692
|
Other financial
liabilities
|
253
|
|
237
|
Deferred tax
|
425
|
|
553
|
Total
liabilities
|
7,781
|
|
7,620
|
|
|
|
|
Equity
|
|
|
|
Capital
|
3,400
|
|
3,405
|
Retained
earnings
|
8,712
|
|
8,680
|
Accumulated other
comprehensive loss
|
(1,077)
|
|
(1,021)
|
Total
equity
|
11,035
|
|
11,064
|
Total liabilities
and equity
|
$18,816
|
|
$18,684
|
Thomson Reuters
Corporation
Consolidated
Statement of Cash Flow
(millions of U.S.
dollars)
(unaudited)
|
|
|
|
|
Three Months
Ended
March
31,
|
|
|
|
|
2024
|
2023(1)
|
Cash provided by
(used in):
|
|
|
|
|
|
Operating
activities
|
|
|
|
|
|
Earnings from
continuing operations
|
|
|
|
$464
|
$737
|
Adjustments
for:
|
|
|
|
|
|
Depreciation
|
|
|
|
28
|
30
|
Amortization of
computer software
|
|
|
|
153
|
118
|
Amortization of other
identifiable intangible assets
|
|
|
|
25
|
25
|
Share of post-tax
losses (earnings) in equity method investments
|
|
|
|
8
|
(570)
|
Deferred
tax
|
|
|
|
(150)
|
(127)
|
Other
|
|
|
|
48
|
132
|
Changes in working
capital and other items
|
|
|
|
(143)
|
(80)
|
Operating cash flows
from continuing operations
|
|
|
|
433
|
265
|
Operating cash flows
from discontinued operations
|
|
|
|
(1)
|
2
|
Net cash provided by
operating activities
|
|
|
|
432
|
267
|
Investing
activities
|
|
|
|
|
|
Acquisitions, net of
cash acquired
|
|
|
|
(436)
|
(490)
|
Payments related to
disposals of businesses and investments
|
|
|
|
(4)
|
-
|
Proceeds from sales of
LSEG shares
|
|
|
|
1,244
|
2,293
|
Capital
expenditures
|
|
|
|
(145)
|
(140)
|
Other investing
activities
|
|
|
|
-
|
23
|
Taxes paid on sales of
LSEG shares and disposals of businesses
|
|
|
|
(16)
|
(18)
|
Net cash provided by
investing activities
|
|
|
|
643
|
1,668
|
Financing
activities
|
|
|
|
|
|
Repayments of
debt
|
|
|
|
(48)
|
-
|
Net borrowings
(repayments) under short-term loan facilities
|
|
|
|
564
|
(361)
|
Payments of lease
principal
|
|
|
|
(15)
|
(16)
|
Repurchases of common
shares
|
|
|
|
(352)
|
(718)
|
Dividends paid on
preference shares
|
|
|
|
(1)
|
(1)
|
Dividends paid on
common shares
|
|
|
|
(237)
|
(224)
|
Purchase of
non-controlling interests
|
|
|
|
(380)
|
-
|
Other financing
activities
|
|
|
|
(1)
|
5
|
Net cash used in
financing activities
|
|
|
|
(470)
|
(1,315)
|
Translation
adjustments
|
|
|
|
(2)
|
1
|
Increase in cash and
cash equivalents
|
|
|
|
603
|
621
|
Cash and cash
equivalents at beginning of period
|
|
|
|
1,298
|
1,069
|
Cash and cash
equivalents at end of period
|
|
|
|
$1,901
|
$1,690
|
(1) Amounts
have been reclassified to reflect the current
presentation.
|
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
|
|
Year
Ended
|
|
March
31,
|
|
December
31,
|
|
|
2024
|
2023
|
|
|
|
2023
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
$464
|
$737
|
|
|
|
$2,646
|
|
Adjustments to
remove:
|
|
|
|
|
|
|
|
Tax expense
|
67
|
196
|
|
|
|
417
|
|
Other finance (income)
costs
|
(22)
|
90
|
|
|
|
192
|
|
Net interest
expense
|
40
|
55
|
|
|
|
152
|
|
Amortization of other
identifiable intangible assets
|
25
|
25
|
|
|
|
97
|
|
Amortization of
computer software
|
153
|
118
|
|
|
|
512
|
|
Depreciation
|
28
|
30
|
|
|
|
116
|
|
EBITDA
|
$755
|
$1,251
|
|
|
|
$4,132
|
|
Adjustments to
remove:
|
|
|
|
|
|
|
|
Share of post-tax
losses (earnings) in equity method investments
|
8
|
(570)
|
|
|
|
(1,075)
|
|
Other operating losses
(gains), net
|
41
|
(17)
|
|
|
|
(397)
|
|
Fair value
adjustments*
|
2
|
13
|
|
|
|
18
|
|
Adjusted
EBITDA(1)
|
$806
|
$677
|
|
|
|
$2,678
|
|
Adjusted EBITDA
margin(1)
|
42.7 %
|
38.8 %
|
|
|
|
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
|
|
Year
Ended
|
|
March
31,
|
|
December
31,
|
|
|
2024
|
2023
|
|
|
2023
|
|
Net cash provided by
operating activities
|
$432
|
$267
|
|
|
$2,341
|
|
Capital
expenditures
|
(145)
|
(140)
|
|
|
(544)
|
|
Other investing
activities
|
-
|
23
|
|
|
137
|
|
Payments of lease
principal
|
(15)
|
(16)
|
|
|
(58)
|
|
Dividends paid on
preference shares
|
(1)
|
(1)
|
|
|
(5)
|
|
Free cash
flow(1)
|
$271
|
$133
|
|
|
$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 18 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
March
31,
|
Year
Ended
December 31,
|
|
|
2024
|
2023
|
|
|
2023
|
Net
earnings
|
$478
|
$756
|
|
|
$2,695
|
Adjustments to
remove:
|
|
|
|
|
|
Fair value
adjustments*
|
2
|
13
|
|
|
18
|
Amortization of
acquired computer software
|
38
|
7
|
|
|
72
|
Amortization of other
identifiable intangible assets
|
25
|
25
|
|
|
97
|
Other operating losses
(gains), net
|
41
|
(17)
|
|
|
(397)
|
Interest benefit
impacting comparability(2)
|
-
|
-
|
|
|
(12)
|
Other finance (income)
costs
|
(22)
|
90
|
|
|
192
|
Share of post-tax
losses (earnings) in equity method investments
|
8
|
(570)
|
|
|
(1,075)
|
Tax on above
items(1)
|
(32)
|
110
|
|
|
265
|
Tax items impacting
comparability(1)(2)
|
(11)
|
-
|
|
|
(172)
|
Earnings from
discontinued operations, net of tax
|
(14)
|
(19)
|
|
|
(49)
|
Interim period
effective tax rate normalization(1)
|
(9)
|
2
|
|
|
-
|
Dividends declared on
preference shares
|
(1)
|
(1)
|
|
|
(5)
|
Adjusted
earnings(1)(3)
|
$503
|
$396
|
|
|
$1,629
|
Adjusted
EPS(1)(3)
|
$1.11
|
$0.84
|
|
|
|
Total
change
|
32 %
|
|
|
|
|
Foreign
currency
|
0 %
|
|
|
|
|
Constant
currency
|
32 %
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted-average common shares (millions)
|
452.8
|
474.2
|
|
|
|
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 18 for
additional information on non-IFRS financial
measures.
|
(2)
|
The year ended December
31, 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 three-month period ended March 31, 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
|
|
|
|
|
|
|
|
|
March
31,
|
|
Change
|
|
|
2024
|
2023
|
|
Total
|
Foreign
Currency
|
SUBTOTAL
Constant
Currency
|
Net
Acquisitions/
(Divestitures)
|
Organic
|
|
Total
Revenues
|
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$721
|
$714
|
|
1 %
|
0 %
|
1 %
|
-6 %
|
7 %
|
|
Corporates
|
|
507
|
435
|
|
17 %
|
1 %
|
16 %
|
4 %
|
12 %
|
|
Tax &
Accounting Professionals
|
|
328
|
282
|
|
16 %
|
-1 %
|
17 %
|
3 %
|
14 %
|
|
"Big 3" Segments
Combined(1)
|
|
1,556
|
1,431
|
|
9 %
|
0 %
|
9 %
|
-1 %
|
10 %
|
|
Reuters
News
|
|
210
|
175
|
|
20 %
|
0 %
|
21 %
|
4 %
|
17 %
|
|
Global
Print
|
|
124
|
138
|
|
-10 %
|
0 %
|
-10 %
|
0 %
|
-10 %
|
|
Eliminations/Rounding
|
|
(5)
|
(6)
|
|
|
|
|
|
|
|
Revenues
|
|
$1,885
|
$1,738
|
|
8 %
|
0 %
|
8 %
|
-1 %
|
9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring
Revenues
|
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$698
|
$672
|
|
4 %
|
0 %
|
4 %
|
-4 %
|
7 %
|
|
Corporates
|
|
370
|
326
|
|
13 %
|
1 %
|
13 %
|
2 %
|
11 %
|
|
Tax &
Accounting Professionals
|
|
199
|
176
|
|
13 %
|
-1 %
|
14 %
|
0 %
|
14 %
|
|
"Big 3" Segments
Combined(1)
|
|
1,267
|
1,174
|
|
8 %
|
0 %
|
8 %
|
-2 %
|
9 %
|
|
Reuters
News
|
|
164
|
155
|
|
6 %
|
-1 %
|
7 %
|
3 %
|
4 %
|
|
Eliminations/Rounding
|
|
(5)
|
(6)
|
|
|
|
|
|
|
|
Total Recurring
Revenues
|
|
$1,426
|
$1,323
|
|
8 %
|
0 %
|
8 %
|
-1 %
|
9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions
Revenues
|
|
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$23
|
$42
|
|
-46 %
|
-2 %
|
-44 %
|
-49 %
|
4 %
|
|
Corporates
|
|
137
|
109
|
|
26 %
|
0 %
|
26 %
|
10 %
|
16 %
|
|
Tax &
Accounting Professionals
|
|
129
|
106
|
|
22 %
|
-1 %
|
23 %
|
8 %
|
15 %
|
|
"Big 3" Segments
Combined(1)
|
|
289
|
257
|
|
13 %
|
-1 %
|
13 %
|
-1 %
|
14 %
|
|
Reuters
News
|
|
46
|
20
|
|
127 %
|
1 %
|
126 %
|
16 %
|
110 %
|
|
Total Transactions
Revenues
|
|
$335
|
$277
|
|
21 %
|
-1 %
|
22 %
|
0 %
|
22 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. The three
months ended March 31, 2023 reflects a revision of $3 million
between recurring and transactions revenues within
the Corporates segment.
|
|
|
(1) Refer
to page 18 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
Currency Basis(1)
|
(millions of
U.S. dollars, except for
margins)
|
(unaudited)
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
March
31,
|
|
Change
|
|
|
|
2024
|
2023
|
|
Total
|
Foreign
Currency
|
Constant
Currency
|
|
Adjusted
EBITDA(1)
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
$342
|
$318
|
|
7 %
|
-1 %
|
8 %
|
|
Corporates
|
|
193
|
154
|
|
26 %
|
1 %
|
25 %
|
|
Tax &
Accounting Professionals
|
|
181
|
149
|
|
21 %
|
-1 %
|
22 %
|
|
"Big 3" Segments
Combined(1)
|
|
716
|
621
|
|
15 %
|
0 %
|
16 %
|
|
Reuters
News
|
|
60
|
29
|
|
105 %
|
-4 %
|
109 %
|
|
Global
Print
|
|
47
|
50
|
|
-6 %
|
1 %
|
-7 %
|
|
Corporate
costs
|
|
(17)
|
(23)
|
|
n/a
|
n/a
|
n/a
|
|
Adjusted
EBITDA
|
|
$806
|
$677
|
|
19 %
|
0 %
|
19 %
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin(1)
|
|
|
|
|
|
|
|
|
Legal
Professionals
|
|
47.4 %
|
44.6 %
|
|
280 bp
|
-30 bp
|
310 bp
|
|
Corporates
|
|
37.8 %
|
35.1 %
|
|
270 bp
|
10 bp
|
260 bp
|
|
Tax &
Accounting Professionals
|
|
55.0 %
|
51.4 %
|
|
360 bp
|
0 bp
|
360 bp
|
|
"Big 3" Segments
Combined(1)
|
|
45.8 %
|
43.1 %
|
|
270 bp
|
-20 bp
|
290 bp
|
|
Reuters
News
|
|
28.3 %
|
16.6 %
|
|
1170 bp
|
-20 bp
|
1190 bp
|
|
Global
Print
|
|
38.2 %
|
36.5 %
|
|
170 bp
|
40 bp
|
130 bp
|
|
Adjusted EBITDA
margin
|
|
42.7 %
|
38.8 %
|
|
390
bp
|
0 bp
|
390
bp
|
|
Reconciliation of adjusted EBITDA
margin(1)
To compute segment and consolidated
adjusted EBITDA margin, we exclude fair value adjustments related
to acquired deferred revenue from our 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, March 31, 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
|
$721
|
-
|
$721
|
$342
|
47.4 %
|
|
Corporates
|
507
|
$3
|
510
|
193
|
37.8 %
|
|
Tax & Accounting
Professionals
|
328
|
-
|
328
|
181
|
55.0 %
|
|
"Big 3" Segments
Combined
|
1,556
|
3
|
1,559
|
716
|
45.8 %
|
|
Reuters News
|
210
|
1
|
211
|
60
|
28.3 %
|
|
Global Print
|
124
|
-
|
124
|
47
|
38.2 %
|
|
Eliminations/
Rounding
|
(5)
|
-
|
(5)
|
-
|
n/a
|
|
Corporate
costs
|
-
|
-
|
-
|
(17)
|
n/a
|
|
Consolidated
totals
|
$1,885
|
$4
|
$1,889
|
$806
|
42.7 %
|
|
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 18 for additional information on non-IFRS financial
measures.
|
Three months
ended, March 31, 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
|
$714
|
-
|
$714
|
$318
|
44.6 %
|
|
Corporates
|
435
|
$2
|
437
|
154
|
35.1 %
|
|
Tax & Accounting
Professionals
|
282
|
7
|
289
|
149
|
51.4 %
|
|
"Big 3" Segments
Combined
|
1,431
|
9
|
1,440
|
621
|
43.1 %
|
|
Reuters News
|
175
|
-
|
175
|
29
|
16.6 %
|
|
Global Print
|
138
|
-
|
138
|
50
|
36.5 %
|
|
Eliminations/
Rounding
|
(6)
|
-
|
(6)
|
-
|
n/a
|
|
Corporate
costs
|
-
|
-
|
-
|
(23)
|
n/a
|
|
Consolidated
totals
|
$1,738
|
$9
|
$1,747
|
$677
|
38.8 %
|
|
Margins are computed
using whole dollars, as a result, margins calculated from reported
amounts may differ from those presented due to
rounding.
|
|
n/a: not
applicable
|
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 %
|
|
|
|
|
|
|
|
|
|
|
(1) Refer
to page 18 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 our 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, we
also make 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.
Because the
geographical mix of pre-tax profits and losses in interim periods
may be different from that for the full year, our effective tax
rate computed in accordance with IFRS may be more volatile by
quarter. Therefore, we believe 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