Revenues for Q2 were US$2,782bn vs US$2,769bn.   Operating profit was US$399 million vs $401 million.

“It is encouraging to see the continued improvement in underlying operating performance,” said Jim Smith, president and chief executive officer of Thomson Reuters. “Based on the solid start to the year, we are increasing full-year EPS guidance. Our execution focus is paying off, and we believe efforts to improve customer experience will keep the trend lines moving in the right direction.”

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

Financial & Risk: Revenues increased 2% to $1.5 billion. Organic revenues grew 1% and acquisitions contributed 1%.

  • Revenues by type:
    • Recurring revenues grew 1% (77% of total)
      • The increase was primarily due to an annual price increase and positive net sales.
    • Transactions revenues grew 8% (15% of total)
      • Growth was due to increased revenue from Tradeweb and the BETA brokerage processing business, as well as contributions from acquisitions. These increases were partially offset by the impact of lower foreign exchange trading revenues.
    • Recoveries revenues decreased 5% (8% of total). The company does not expect recoveries to have a significant impact on Financial & Risk’s revenue growth in the second half of the year.
  • Revenues by geography:
    • Revenues were up 3% in the Americas, up 1% in Europe, Middle East and Africa (EMEA) and were up slightly in Asia Pacific, despite the impact of lower recoveries revenues in each region.

Adjusted EBITDA increased 8% to $477 million.

  • The margin increased to 31.4% from 29.1%. In constant currency, the margin increased 180 basis points primarily due to savings from the company’s simplification initiatives, including the 2016 severance charges, and higher revenues.

Net sales were positive in the quarter.

Legal: Revenues increased 1% to $842 million.

  • Recurring revenues grew 4% (76% of total)
  • US Print revenues declined 8% (14% of total)
  • Transactions revenues declined 8% (10% of total)

Adjusted EBITDA increased 3% to $320 million.

  • The margin increased to 38.0% from 36.6%. In constant currency, the margin increased 110 basis points due to higher revenues, savings related to the fourth-quarter 2016 severance charges and ongoing simplification initiatives.

Tax & Accounting:  Revenues increased 8% to $350 million primarily due to higher recurring revenues and improved transactions revenues. Revenue growth also benefited from a favorable year-over-year comparison, as the Government business reported lower revenues in the prior-year period due to delays on certain contracts.

  • Recurring revenues grew 4% (84% of total)
  • Transactions revenues grew 36% (16% of total)

Adjusted EBITDA increased 26% to $103 million.

  • The margin increased to 29.4% from 25.3%. In constant currency, the margin increased 390 basis points due to higher revenues and savings related to the fourth-quarter 2016 severance charges.

Source: Thomson Reuters Earnings Release