- Revenues from ongoing businesses increased 1% (before currency) from the prior-year period driven by the Legal, Tax & Accounting and Intellectual Property & Science businesses, which grew 3% in aggregate.
- Adjusted EBITDA increased 2% from the prior-year period and the margin increased 160 basis points to 28.1%. Excluding the impact of currency in the quarter, adjusted EBITDA increased 7% and the margin was 160 basis points higher than the prior-year period.
- Underlying operating profit increased 7% from the prior-year period and the margin increased 190 basis points to 19.0%. Excluding the impact of currency, underlying operating profit increased 13% and the margin was 200 basis points higher than the prior-year period.
- Adjusted EPS was $0.52, up $0.07 from the prior-year period despite foreign currency having had a $0.04 negative impact.
Third quarter results were consistent with our expectations, and we reaffirmed our full-year business outlook in connection with announcing those results. Given the significant impact that fluctuations in foreign currency exchange rates continue to have on our results, we are providing additional information in this management’s discussion and analysis about our performance at constant currency rates.
Financial & Risk Segment: Revenues were unchanged compared to the prior-year period. Revenue growth exceeded 2% before the impact of lower recoveries revenues and pricing adjustments related to the migration of remaining legacy foreign exchange and buy-side customers onto Financial & Risk’s unified platform.
Legal Segment: Revenues increased 1%. Excluding US print, revenues grew 3%. Solutions businesses (46% of the segment’s revenues) grew 4%, slightly lower than the first half of the year due to timing factors. Revenue growth was driven by Elite, Serengeti, Pangea3 legal managed services, and the Investigations and Public Records business. Solutions businesses represent all of Legal’s revenues excluding US print and US online legal information. US online legal information (40% of the segment’s revenues) grew 2%, reflecting growth for the third consecutive quarter.
Tax & Accounting Segment: Revenues increased 8% driven by the Corporate, Professional and Knowledge Solutions businesses, partially offset by a decline in the Government business. Recurring revenues were up 9% organically.
Intellectual Property & Science Segment: Revenues were up 2% as subscription revenue (approximately 80% of the segment’s revenues) growth of 4% was partially offset by a 7% decline in transactions revenues as fewer one-time deals affected the growth rate in the quarter.
Corporate & Other (Including Reuters News): Reuters News revenues were $74 million, up 3% compared to the prior-year period. Corporate & Other costs were $74 million compared to $73 million in the prior-year period.
Source: Thomson Reuters Press Release