Thomson Reuters (TSX/NYSE: TRI) today reported results for the third quarter ended September 30, 2020.
“I’m very pleased to report our markets and businesses continue to prove resilient in the face of a challenging broader macro-environment. Our third-quarter results were above our expectations across the group from the top line to the bottom line. Our customers are adapting to a new cadence in this environment, and we continue to adapt to support them in their evolving ways of working,” said Steve Hasker, President and CEO of Thomson Reuters.
“We exceeded each of the revenue guidance metrics previously provided on a consolidated basis and for our Big 3 segments – Legal Professionals, Corporates and Tax & Accounting Professionals. Based on our performance for the first nine months of the year, I’m confident we will continue to effectively manage through this challenging environment and build on this performance in 2021.”
“And, our organization is now approaching an exciting crossroads as we begin the transition from a holding company to an operating company. I view the direction we are headed in as a logical progression for our organization as we seek to continually strengthen our businesses, elevate our value proposition, enhance the customer experience and maximize our performance, which I believe will present substantive opportunities to further fuel our growth and realize efficiencies.”
Revenues increased 2% as growth in both recurring and transactions revenues was partly offset by a decline in Global Print revenues and a negative impact from foreign currency that reduced revenues by $6 million (approximately 1%).
*As expected, organic revenues increased 2%, driven by 4% growth in both recurring revenues, which comprised 80% of total revenues, and transactions revenues.
*The company’s “Big 3” segments (Legal Professionals, Corporates and Tax & Accounting Professionals), which collectively comprised 79% of total revenues, reported organic revenue growth of 5%.
Operating profit increased primarily due to lower costs and higher revenues. Lower costs reflected the completion of the repositioning of the company in 2019 following the separation from the Financial & Risk (F&R) business and lower expenses from the company’s COVID-19-related efforts to mitigate 2020 annual costs by $100 million. Lower costs were partly offset by higher depreciation and amortization and a lower benefit from the revaluation of warrants that the company holds in Refinitiv relating to the proposed sale of Refinitiv to London Stock Exchange Group plc (LSEG), which is discussed later in this news release.
Cash flow from operations increased to $581 million from $264 million due to significantly higher costs and investments in the prior-year period to reposition the company following the separation of F&R, savings from the company’s COVID-19-related cost mitigation efforts and lower tax payments.
Free cash flow increased primarily due to higher cash flows from operations.
details at: https://www.thomsonreuters.com/en/press-releases/2020/november/thomson-reuters-reports-third-quarter-2020-results.html