Thomson Reuters Q3 2017 Revenues Up 2%, Operating Profits Up 21%

Thomson Reuters Q3 2017 revenues were US $ 2,792 million up 2% om constant currency.  Operating income was US$ 467 million up 21%.  Diluted EPS (including discontinuing operations) was $.46 up 28%.

“It is gratifying to see that the progress we have made over the last several years is continuing to pay off,” said Jim Smith, president and chief executive officer of Thomson Reuters. “And, despite lower than expected revenue growth for the quarter, margins continue to improve and our most promising growth initiatives are performing well. We will continue to manage the things within our control with the same rigor and discipline that has turned around our organization, in order to build maximum sustainable long-term profit growth. Our transformation efforts should continue to generate bottom-line growth and provide the added fuel we need to accelerate top-line growth in the future.”

Highlights by Business Units for Three Months Ended September 30
(Millions of U.S. dollars, except for adjusted EBITDA margins) (unaudited)

  Three Months Ended September 30, Change
 Revenues 2017 2016 Total Foreign Currency Constant Currency
Financial & Risk $1,542 $1,516 2% 1% 1%
Legal 843 835 1% 0% 1%
Tax & Accounting 341 323 6% 1% 5%
Corporate & Other (Reuters News) 73 73 0% 1% -1%
Eliminations  (7)  (3)
Revenues $2,792 $2,744 2% 1% 1%

 

Unless otherwise noted, all revenue growth comparisons by business unit 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.

Financial & Risk

Revenues increased 1% to $1.5 billion. Organic revenues were unchanged and acquisitions contributed 1%.

  • Revenues by type:
    • Recurring revenues grew 1% (77% of total)
    • Transactions revenues grew 7% (15% of total) due to increased revenue from Tradeweb and contributions from acquisitions.
    • Recoveries revenues decreased 4% (8% of total).
  • Revenues by geography:
    • Revenues were up 3% in the Americas, up 2% in Asia, and decreased 1% in Europe, Middle East and Africa (EMEA).

Adjusted EBITDA increased 8% to $495 million.

  • The margin increased to 32.1% from 30.3%. In constant currency, the margin increased 150 basis points primarily due to savings from the company’s simplification initiatives, including 2016 severance charges, and higher revenues.

Net sales were positive in the quarter.

Source: Thomson Reuters Press Release