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 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 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
|
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
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.
|
Thomson Reuters
Corporation
|
|
Consolidated Income
Statement
|
|
(millions of U.S.
dollars, except per share data)
|
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
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
|
|
Earnings (loss)
attributable to:
|
|
|
|
|
|
|
Common
shareholders
|
$301
|
$367
|
|
$1,623
|
$2,017
|
|
Non-controlling
interests
|
-
|
-
|
|
(3)
|
-
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
Basic earnings (loss)
per share:
|
|
|
|
|
|
|
From
continuing operations
|
$0.61
|
$0.81
|
|
$3.51
|
$4.27
|
|
From
discontinued operations
|
0.06
|
(0.01)
|
|
0.08
|
0.05
|
|
Basic earnings per
share
|
$0.67
|
$0.80
|
|
$3.59
|
$4.32
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per share:
|
|
|
|
|
|
|
From
continuing operations
|
$0.61
|
$0.81
|
|
$3.51
|
$4.27
|
|
From
discontinued operations
|
0.06
|
(0.01)
|
|
0.08
|
0.04
|
|
Diluted earnings per
share
|
$0.67
|
$0.80
|
|
$3.59
|
$4.31
|
|
|
|
|
|
|
|
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
|
|
Thomson Reuters
Corporation
|
|
Consolidated
Statement of Financial Position
|
|
(millions of U.S.
dollars)
|
|
(unaudited)
|
|
|
September
30,
|
|
December
31,
|
|
2024
|
|
2023
|
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
$1,731
|
|
$1,298
|
|
Trade and other
receivables
|
1,011
|
|
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
|
|
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
|
|
$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
Currency Basis(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
Currency Basis(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