|
Three Months Ended December 31, (Millions of U.S. {dollars}, aside from adjusted EBITDA margin and EPS) (unaudited) |
||||
|
IFRS Financial Measures (1) |
2024 |
2023 |
Change |
Change at |
|
Revenues |
$1,909 |
$1,815 |
5 % |
|
|
Operating revenue |
$722 |
$558 |
29 % |
|
|
Diluted earnings per share (EPS) |
$1.30 |
$1.49 |
-13 % |
|
|
Net money offered by working actions |
$564 |
$705 |
-20 % |
|
|
Non-IFRS Financial Measures (1) |
||||
|
Revenues |
$1,909 |
$1,815 |
5 % |
5 % |
|
Adjusted EBITDA |
$718 |
$707 |
2 % |
1 % |
|
Adjusted EBITDA margin |
37.6 % |
38.9 % |
-130bp |
-160bp |
|
Adjusted EPS |
$1.01 |
$0.98 |
3 % |
1 % |
|
Free money movement |
$425 |
$613 |
-31 % |
|
|
(1) In addition to outcomes reported in accordance with International Financial Reporting Standards (IFRS), the corporate makes use of sure non-IFRS |
Revenues elevated 5% attributable to 7% development in recurring revenues (83% of complete revenues) partly offset by a 1% decline in transactions revenues and a 6% decline in Global Print. The web influence of acquisitions and disposals in addition to international forex on complete firm income development was not important.
- Organic revenues elevated 5% attributable to 8% development in recurring revenues partly offset by a 4% decline in transactions revenues and the decline in Global Print.
- The firm’s “Big 3” segments reported natural income development of 8% and collectively comprised 81% of complete revenues.
Operating revenue elevated 29% pushed from positive aspects on the sale of DiscoverLaw and different non-core companies.
- Adjusted EBITDA , which excludes positive aspects on the sale of companies, in addition to different gadgets, elevated 2% and the associated margin decreased to 37.6% from 38.9% within the prior-year interval. The enhance in revenues have been largely offset by increased prices reflecting continued investments within the enterprise, the influence of acquisitions and better incentive compensation. Foreign forex had a 30 foundation factors constructive influence on the year-over-year change in adjusted EBITDA margin.
Diluted EPS decreased to $1.30 in comparison with $1.49 within the prior-year interval as increased working revenue and forex advantages included in different finance revenue or prices have been greater than offset by increased tax expense, decrease outcomes from discontinued operations and a prior-year interval enhance within the worth of the corporate’s former funding in London Stock Exchange Group (LSEG).
- Adjusted EPS , which exclude positive aspects on the sale of companies, different finance revenue or prices, modifications in worth of the corporate’s former LSEG funding, discontinued operations, in addition to different changes, was $1.01 per share versus $0.98 per share within the prior-year interval.
Net money offered by working actions decreased by $141 million primarily attributable to sure part modifications in working capital.
- Free money movement decreased by $188 million primarily as a result of lower in money flows from working actions and better capital expenditures.
Highlights by Customer Segment – Three Months Ended December 31
|
(Millions of U.S. {dollars}, aside from adjusted EBITDA margins) (unaudited) |
|||||||
|
Three Months Ended |
|||||||
|
December 31, |
Change |
||||||
|
2024 |
2023 |
Total |
Constant |
Organic (1)(2) |
|||
|
Revenues |
|||||||
|
Legal Professionals |
$729 |
$700 |
4 % |
4 % |
7 % |
||
|
Corporates |
458 |
402 |
14 % |
15 % |
10 % |
||
|
Tax & Accounting Professionals |
366 |
344 |
6 % |
7 % |
7 % |
||
|
“Big 3” Segments Combined(1) |
1,553 |
1,446 |
7 % |
7 % |
8 % |
||
|
Reuters News |
218 |
220 |
-1 % |
-1 % |
-3 % |
||
|
Global Print |
144 |
154 |
-6 % |
-6 % |
-6 % |
||
|
Eliminations/Rounding |
(6) |
(5) |
|||||
|
Revenues |
$1,909 |
$1,815 |
5 % |
5 % |
5 % |
||
|
Adjusted EBITDA( 1) |
|||||||
|
Legal Professionals |
$299 |
$298 |
0 % |
-1 % |
|||
|
Corporates |
153 |
138 |
11 % |
8 % |
|||
|
Tax & Accounting Professionals |
196 |
188 |
4 % |
5 % |
|||
|
“Big 3” Segments Combined(1) |
648 |
624 |
4 % |
3 % |
|||
|
Reuters News |
45 |
61 |
-26 % |
-26 % |
|||
|
Global Print |
55 |
55 |
-1 % |
-1 % |
|||
|
Corporate prices |
(30) |
(33) |
n/a |
n/a |
|||
|
Adjusted EBITDA |
$718 |
$707 |
2 % |
1 % |
|||
|
Adjusted EBITDA Margin( 1) |
|||||||
|
Legal Professionals |
41.0 % |
42.5 % |
-150bp |
-200bp |
|||
|
Corporates |
33.5 % |
34.5 % |
-100bp |
-190bp |
|||
|
Tax & Accounting Professionals |
53.4 % |
54.6 % |
-120bp |
-90bp |
|||
|
“Big 3” Segments Combined(1) |
41.7 % |
43.1 % |
-140bp |
-190bp |
|||
|
Reuters News |
20.8 % |
27.9 % |
-710bp |
-670bp |
|||
|
Global Print |
38.2 % |
36.4 % |
180bp |
190bp |
|||
|
Adjusted EBITDA margin |
37.6 % |
38.9 % |
-130bp |
-160bp |
|||
|
(1) See the “Non-IFRS Financial Measures” part and the tables appended to this information launch for extra data on these and (2) Computed for income development solely. n/a: not relevant |
Unless in any other case famous, all income development comparisons by buyer section on this information launch are at fixed forex (which excludes the influence of international forex) as Thomson Reuters believes this supplies the very best foundation to measure efficiency.
Legal Professionals
Revenues elevated 4% to $729 million and included a detrimental influence from the divestiture of DiscoverLaw. Organic income development was 7%.
- Recurring revenues elevated 4% (97% of complete, 8% natural). Organic income development was primarily pushed by Westlaw, CoCounsel, Practical Law, and the section’s worldwide companies.
- Transactions revenues decreased 10% (3% of complete, decreased 4% natural).
Adjusted EBITDA was barely increased at $299 million.
- The margin decreased to 41.0% from 42.5% primarily pushed by increased investments.
Corporates
Revenues elevated 15% to $458 million, together with the acquisition influence of Pagero. Organic income development was 10%.
- Recurring revenues elevated 13% (88% of complete, 10% natural). Organic income development was primarily pushed by Practical Law, Indirect Tax, CLEAR and the section’s worldwide companies.
- Transactions revenues elevated 28% (12% of complete, 12% natural) pushed primarily by Pagero, Direct Tax and Trust.
Adjusted EBITDA elevated 11% to $153 million.
- The margin decreased to 33.5% from 34.5%, primarily pushed by the Pagero acquisition and better investments.
Tax & Accounting Professionals
Revenues elevated 7%, all natural, to $366 million.
- Recurring revenues elevated 5% (87% of complete, all natural). Organic income development was pushed by the section’s Latin America enterprise and ExtremelyTax merchandise.
- Transactions revenues elevated 21% (13% of complete, all natural) pushed by tax merchandise {and professional} providers.
Adjusted EBITDA elevated 4% to $196 million.
- The margin decreased to 53.4% from 54.6%, primarily pushed by increased investments.
The Tax & Accounting Professionals section is the corporate’s most seasonal enterprise with roughly 60% of full-year revenues sometimes generated within the first and fourth quarters. As a consequence, the margin efficiency of this section has been typically increased within the first and fourth quarters as prices are sometimes incurred in a extra linear style all year long.
Reuters News
Revenues of $218 million decreased 1% (decreased 3% natural) and included a constructive influence from acquisitions. The natural income decline primarily mirrored generative AI associated content material licensing income included within the prior-year interval that was largely transactional in nature, partially offset by increased company revenues and a contractual value enhance from our information settlement with the Data & Analytics enterprise of LSEG.
Adjusted EBITDA decreased 26% to $45 million primarily attributable to decrease transactions revenues and better prices together with editorial protection of key international occasions within the quarter.
Global Print
Revenues of $144 million decreased 6%, all natural, pushed by decrease cargo volumes and the migration of consumers from a Global Print product to Westlaw.
Adjusted EBITDA was $55 million, unchanged from the prior-year interval.
- The margin elevated to 38.2% from 36.4% primarily attributable to decrease prices.
Corporate Costs
Corporate prices have been $30 million in comparison with $33 million within the prior-year interval.
Consolidated Financial Highlights – Year Ended December 31
|
Year Ended December 31, (Millions of U.S. {dollars}, aside from adjusted EBITDA margin and EPS) (unaudited) |
||||
|
IFRS Financial Measures (1) |
2024 |
2023 |
Change |
Change at |
|
Revenues |
$7,258 |
$6,794 |
7 % |
|
|
Operating revenue |
$2,109 |
$2,332 |
-10 % |
|
|
Diluted EPS |
$4.89 |
$5.80 |
-16 % |
|
|
Net money offered by working actions |
$2,457 |
$2,341 |
5 % |
|
|
Non-IFRS Financial Measures (1) |
||||
|
Revenues |
$7,258 |
$6,794 |
7 % |
7 % |
|
Adjusted EBITDA |
$2,779 |
$2,678 |
4 % |
4 % |
|
Adjusted EBITDA margin |
38.2 % |
39.3 % |
-110bp |
-130bp |
|
Adjusted EPS |
$3.77 |
$3.51 |
7 % |
7 % |
|
Free money movement |
$1,828 |
$1,871 |
-2 % |
|
|
(1) In addition to outcomes reported in accordance with IFRS, the corporate makes use of sure non-IFRS monetary measures as supplemental |
Revenues elevated 7% attributable to 8% development in recurring revenues (81% of complete revenues) and 11% development in transactions revenues, partly offset by an 8% decline in Global Print. The web influence of acquisitions and disposals in addition to international forex on complete firm income development was not important.
- Organic revenues elevated 7% attributable to 8% development in recurring revenues and 10% development in transactions revenues. Global Print revenues decreased 7% organically.
- The firm’s “Big 3” segments reported natural income development of 9% and collectively comprised 82% of complete revenues.
Operating revenue decreased 10%, primarily attributable to decrease positive aspects from the gross sales of companies in comparison with the prior-year interval, which included the achieve from the sale of a majority stake in Elite.
- Adjusted EBITDA , which excludes positive aspects on the sale of companies, in addition to different gadgets, elevated 4% and the associated margin decreased to 38.2% from 39.3% within the prior-year interval. The development in revenues was partly offset by increased prices reflecting continued investments within the enterprise, the influence of acquisitions, and better incentive compensation. Foreign forex had a 20 foundation factors constructive influence on the year-over-year change in adjusted EBITDA margin.
Diluted EPS decreased to $4.89 in comparison with $5.80 within the prior-year interval as decrease revenue tax expense, which mirrored a present yr $468 million non-cash tax profit associated to tax laws enacted in Canada, and forex advantages included in different finance revenue or prices, have been greater than offset by a big prior-year interval enhance within the worth of the corporate’s former funding in LSEG in addition to decrease working revenue. In 2024, diluted EPS additionally benefited from a discount in weighted-average frequent shares excellent attributable to share repurchases and the corporate’s June 2023 return of capital transaction.
- Adjusted EPS , which excludes the non-cash tax profit, different finance revenue or prices, modifications in worth of the corporate’s former LSEG funding, positive aspects on gross sales of companies, in addition to different changes, elevated to $3.77 per share from $3.51 per share within the prior-year interval, attributable to increased adjusted EBITDA. In 2024, adjusted EPS additionally benefited from a discount in weighted-average frequent shares.
Net money offered by working actions elevated by $116 million as a result of money advantages from increased revenues that greater than offset increased funding spending.
- Free money movement decreased $43 million as increased money flows from working actions have been greater than offset by increased capital expenditures and decrease money flows from different investing actions.
Highlights by Customer Segment – Year Ended December 31
|
(Millions of U.S. {dollars}, aside from adjusted EBITDA margins) (unaudited) |
|||||||
|
Year Ended |
|||||||
|
December 31, |
Change |
||||||
|
2024 |
2023 |
Total |
Constant |
Organic (1)(2) |
|||
|
Revenues |
|||||||
|
Legal Professionals |
$2,922 |
$2,807 |
4 % |
4 % |
7 % |
||
|
Corporates |
1,844 |
1,620 |
14 % |
14 % |
10 % |
||
|
Tax & Accounting Professionals |
1,165 |
1,058 |
10 % |
11 % |
10 % |
||
|
“Big 3” Segments Combined(1) |
5,931 |
5,485 |
8 % |
8 % |
9 % |
||
|
Reuters News |
832 |
769 |
8 % |
8 % |
6 % |
||
|
Global Print |
519 |
562 |
-8 % |
-7 % |
-7 % |
||
|
Eliminations/Rounding |
(24) |
(22) |
|||||
|
Revenues |
$7,258 |
$6,794 |
7 % |
7 % |
7 % |
||
|
Adjusted EBITDA( 1) |
|||||||
|
Legal Professionals |
$1,302 |
$1,299 |
0 % |
0 % |
|||
|
Corporates |
671 |
619 |
8 % |
8 % |
|||
|
Tax & Accounting Professionals |
527 |
490 |
8 % |
9 % |
|||
|
“Big 3” Segments Combined(1) |
2,500 |
2,408 |
4 % |
4 % |
|||
|
Reuters News |
196 |
172 |
14 % |
16 % |
|||
|
Global Print |
188 |
213 |
-12 % |
-12 % |
|||
|
Corporate prices |
(105) |
(115) |
n/a |
n/a |
|||
|
Adjusted EBITDA |
$2,779 |
$2,678 |
4 % |
4 % |
|||
|
Adjusted EBITDA Margin( 1) |
|||||||
|
Legal Professionals |
44.6 % |
46.2 % |
-160bp |
-180bp |
|||
|
Corporates |
36.3 % |
38.1 % |
-180bp |
-220bp |
|||
|
Tax & Accounting Professionals |
45.2 % |
45.8 % |
-60bp |
-50bp |
|||
|
“Big 3” Segments Combined(1) |
42.1 % |
43.8 % |
-170bp |
-180bp |
|||
|
Reuters News |
23.6 % |
22.4 % |
120bp |
150bp |
|||
|
Global Print |
36.2 % |
38.0 % |
-180bp |
-180bp |
|||
|
Adjusted EBITDA margin |
38.2 % |
39.3 % |
-110bp |
-130bp |
|||
|
(1) See the “Non-IFRS Financial Measures” part and the tables appended to this information launch for extra data on these and (2) Computed for income development solely. n/a: not relevant |
2025 Outlook
The firm’s outlook for 2025 within the desk under assumes fixed forex charges and incorporates the latest SafeSend acquisition and the divestitures of DiscoverLaw and different non-core companies however excludes the influence of any future acquisitions or inclinations which will happen in the course of the the rest of the yr. Thomson Reuters believes that this sort of steering supplies helpful perception into the anticipated efficiency of its companies.
The firm expects its first-quarter 2025 natural income development to be within the vary of 5% to six% and its adjusted EBITDA margin to be roughly 40%.
The firm’s 2025 outlook and up to date 2026 monetary framework is forward-looking data that’s topic to dangers and uncertainties (see “Special Note Regarding Forward-Looking Statements, Material Risks and Material Assumptions”). In specific, the corporate continues to function in an unsure macroeconomic setting, reflecting ongoing geopolitical threat, uneven financial development and an evolving rate of interest and inflationary backdrop. Any worsening of the worldwide financial or enterprise setting, amongst different components, might influence the corporate’s capability to attain its outlook.
Reported Full-Year 2024 Results and Full-Year 2025 Outlook
|
Total Thomson Reuters |
FY 2024 Reported |
FY 2025 Outloo ok |
|
Total Revenue Growth |
7 % |
3.0 – 3.5% (2) |
|
Organic Revenue Growth(1) |
7 % |
7.0 – 7.5 % |
|
Adjusted EBITDA Margin(1) |
38.2 % |
~39% |
|
Corporate Costs |
$105 million |
$120 – $130 million |
|
Free Cash Flow(1) |
$1.8 billion |
~$1.9 billion |
|
Accrued Capex as % of Revenue(1) |
8.4 % |
~8% |
|
Depreciation & Amortization of Computer Software Depreciation & Amortization of Internally Developed Software Amortization of Acquired Software |
$731 million $584 million $147 million |
$835 – $855 million $635 – $655 million ~$200 million |
|
Interest Expense (P&L) |
$125 million |
~$150 million |
|
Effective Tax Rate on Adjusted Earnings(1) |
17.6 % |
~19% |
|
“Big 3” Segments(1) |
FY 2024 Reported |
FY 2025 Outlook |
|
Total Revenue Growth |
8 % |
~4% (2) |
|
Organic Revenue Growth |
9 % |
~9% |
|
Adjusted EBITDA Margin |
42.1 % |
~43% |
|
(1) |
Non-IFRS monetary measures. See the “Non-IFRS Financial Measures” part under in addition to the tables and footnotes appended to this information launch for extra data. |
|
(2) |
Total income development displays the influence of the divestitures of DiscoverLaw and different non-core companies in December 2024. |
Updated 2026 Financial Framework
For 2026, the corporate targets an natural income development vary of seven.5% – 8.0%, pushed by roughly 9.5% development for the “Big 3” segments. The firm targets adjusted EBITDA margin growth by no less than 50 foundation factors. It anticipates accrued capital expenditures as a share of revenues to be roughly 8%, and free money movement to vary from $2.0 – $2.1 billion, and an efficient tax charge of roughly 19%.
This monetary framework assumes fixed forex charges and incorporates the latest SafeSend acquisition however excludes the influence of any future acquisitions or inclinations which will happen throughout this time horizon.
The data on this part is forward-looking. Actual outcomes, which can embrace the influence of forex, future acquisitions and inclinations accomplished throughout 2025 and 2026, and macroeconomic occasions outdoors of the corporate’s management could differ materially from the corporate’s 2025 outlook and 2026 monetary framework. The data on this part also needs to be learn along side the part under entitled “Special Note Regarding Forward-Looking Statements, Material Risks and Material Assumptions.” The firm’s 2025 outlook and 2026 monetary framework are additionally based mostly on sure assumptions described within the cross-referenced part, which the corporate believes are cheap within the circumstances, and is topic to various dangers, together with these particularly recognized within the cross-referenced part and people going through the corporate typically.
Recent Acquisition
In January 2025, the corporate acquired cPaperless, LLC, doing enterprise as SafeSend, for $600 million in money. SafeSend is a U.S. based mostly cloud-native supplier of expertise for tax and accounting professionals. SafeSend automates the “last-mile” of the tax return, together with meeting, overview, taxpayer e-signature, and supply. This enterprise shall be considerably reported within the Tax & Accounting Professionals section.
Dividends and customary shares excellent
The firm introduced at the moment that its Board of Directors accredited a ten% or $0.22 per share annualized enhance within the dividend to $2.38 per frequent share, representing the 32nd consecutive yr of dividend will increase and the fourth consecutive 10% enhance. A quarterly dividend of $0.595 per share is payable on March 10, 2025 to frequent shareholders of report as of February 20, 2025.
As of February 4, 2025, Thomson Reuters had roughly 450.1 million frequent shares excellent.
Thomson Reuters
Thomson Reuters (NYSE / TSX: TRI) informs the best way ahead by bringing collectively the trusted content material and expertise that folks and organizations must make the suitable selections. The firm serves professionals throughout authorized, tax, accounting, compliance, authorities, and media. Its merchandise mix extremely specialised software program and insights to empower professionals with the info, intelligence, and options wanted to make knowledgeable selections, and to assist establishments of their pursuit of justice, fact and transparency. Reuters, a part of Thomson Reuters, is a world main supplier of trusted journalism and information. For extra data, go to tr .
NON-IFRS FINANCIAL MEASURES
Thomson Reuters prepares its monetary statements in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB).
This information launch consists of sure non-IFRS monetary measures, which embrace ratios that incorporate a number of non-IFRS monetary measures, equivalent to adjusted EBITDA (aside from on the buyer section degree) and the associated margin, free money movement, adjusted earnings and the efficient tax charge on adjusted earnings, adjusted EPS, accrued capital expenditures expressed as a share of revenues, web debt and leverage ratio of web debt to adjusted EBITDA, chosen measures excluding the influence of international forex, modifications in revenues computed on an natural foundation in addition to all monetary measures for the “Big 3” segments.
Thomson Reuters makes use of these non-IFRS monetary measures as supplemental indicators of its working efficiency and monetary place in addition to for inside planning functions and the corporate’s enterprise outlook and monetary framework. Additionally, Thomson Reuters makes use of non-IFRS measures as the idea for administration incentive packages. These measures shouldn’t have any standardized meanings prescribed by IFRS and subsequently are unlikely to be akin to the calculation of comparable measures utilized by different corporations and shouldn’t be considered as options to measures of monetary efficiency calculated in accordance with IFRS. Non-IFRS monetary measures are outlined and reconciled to essentially the most straight comparable IFRS measures within the appended tables.
The firm’s outlook and monetary framework comprise varied non-IFRS monetary measures. The firm believes that offering reconciliations of forward-looking non-IFRS monetary measures in its outlook and monetary framework could be doubtlessly deceptive and never sensible as a result of issue of projecting gadgets that aren’t reflective of ongoing operations in any future interval. The magnitude of these things could also be important. Consequently, for functions of its outlook and monetary framework solely, the corporate is unable to reconcile these non-IFRS measures to essentially the most straight comparable IFRS measures as a result of it can’t predict, with cheap certainty, the impacts of modifications in international change charges which influence (i) the interpretation of its outcomes reported at common international forex charges for the yr, and (ii) different finance revenue or expense associated to intercompany financing preparations. Additionally, the corporate can’t moderately predict the incidence or quantity of different working positive aspects and losses that typically come up from enterprise transactions that the corporate doesn’t presently anticipate.
ROUNDING
Other than EPS, the corporate experiences its leads to hundreds of thousands of U.S. {dollars}, however computes share modifications and margins utilizing complete {dollars} to be extra exact. As a consequence, percentages and margins calculated from reported quantities could differ from these introduced, and development elements could not complete attributable to rounding.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS, MATERIAL RISKS AND MATERIAL ASSUMPTIONS
Certain statements on this information launch, together with, however not restricted to, statements in Mr. Hasker’s feedback, the “2025 Outlook” part, the “Updated 2026 Financial Framework” part and the corporate’s expectations together with the influence of its latest acquisition of SafeSend, are forward-looking. The phrases “will”, “expect”, “believe”, “target”, “estimate”, “could”, “should”, “intend”, “predict”, “project” and related expressions establish forward-looking statements. While the corporate believes that it has an inexpensive foundation for making forward-looking statements on this information launch, they don’t seem to be a assure of future efficiency or outcomes and there’s no assurance that any of the opposite occasions described in any forward-looking assertion will materialize. Forward-looking statements are topic to various dangers, uncertainties and assumptions that would trigger precise outcomes or occasions to vary materially from present expectations. Many of those dangers, uncertainties and assumptions are past the corporate’s management and the consequences of them might be troublesome to foretell.
Some of the fabric threat components that would trigger precise outcomes or occasions to vary materially from these expressed in or implied by forward-looking statements on this information launch embrace, however usually are not restricted to, these mentioned on pages 19-35 within the “Risk Factors” part of the corporate’s 2023 annual report. These and different threat components are mentioned in supplies that Thomson Reuters from time-to-time information with, or furnishes to, the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission (SEC). Thomson Reuters’ annual and quarterly experiences are additionally accessible within the “Investor Relations” part of tr .
The firm’s enterprise 2025 outlook and up to date 2026 monetary framework are based mostly on data presently accessible to the corporate and is predicated on varied exterior and inside assumptions made by the corporate in mild of its expertise and notion of historic tendencies, present situations and anticipated future developments, in addition to different components that the corporate believes are acceptable below the circumstances. Material assumptions and materials dangers could trigger precise efficiency to vary from the corporate’s expectations underlying its enterprise outlook and monetary framework. In specific, the worldwide economic system has skilled substantial disruption attributable to considerations concerning financial results related to the macroeconomic backdrop and ongoing geopolitical dangers. The firm’s enterprise outlook and monetary framework assumes that unsure macroeconomic and geopolitical situations will proceed to disrupt the economic system and trigger intervals of volatility, nevertheless, these situations could final considerably longer than anticipated and any worsening of the worldwide financial or enterprise setting might influence the corporate’s capability to attain its outlook and have an effect on its outcomes and different expectations. Material assumptions associated to the corporate’s income outlook and monetary framework are that unsure macroeconomic and geopolitical situations will proceed to disrupt the economic system and trigger intervals of volatility; there shall be a continued want for trusted services and products that assist clients navigate evolving and complicated authorized, tax, accounting, regulatory, geopolitical and industrial modifications, developments and environments, and for cloud-based digital instruments that drive productiveness; Thomson Reuters can have a continued capability to ship modern merchandise that meet evolving buyer calls for; the corporate will purchase new clients via expanded and improved digital platforms, simplification of the product portfolio and thru different gross sales initiatives; and the corporate will enhance buyer retention via industrial simplification efforts and customer support enhancements. Material assumptions associated to the corporate’s adjusted EBITDA margin outlook and monetary framework are its capability to attain income development targets; the corporate’s enterprise combine continues to shift to higher-growth product choices; and integration bills related to latest acquisitions will cut back margins. Material assumptions associated to the corporate’s free money movement outlook and monetary framework are its capability to attain its income and adjusted EBITDA margin targets; and accrued capital expenditures approximate the proportion of revenues as set forth within the firm’s outlook and monetary framework. Material assumptions associated to the corporate’s efficient tax charge on adjusted earnings outlook and monetary framework are its capability to attain its adjusted EBITDA goal; the combo of taxing jurisdictions the place the corporate acknowledged pre-tax revenue or losses in 2024 doesn’t considerably change; no sudden modifications in tax legal guidelines or treaties throughout the jurisdictions the place the corporate operates; no important prices or advantages from the finalization of prior tax years; depreciation and amortization of internally developed laptop software program as set forth within the firm’s outlook; and curiosity expense as set forth within the firm’s outlook.
Material dangers associated to the corporate’s income outlook and monetary framework are that ongoing geopolitical instability and uncertainty concerning rates of interest and inflation, proceed to influence the worldwide economic system. The severity and period of anyone, or a mixture, of those situations might influence the worldwide economic system and result in decrease demand for our services and products (past our assumption that these disruptions will trigger intervals of volatility); uncertainty within the authorized regulatory regime regarding synthetic intelligence (AI) has made it troublesome for the corporate to foretell the dangers related to the usage of AI in its companies and merchandise. Future laws could make it tougher for the corporate to conduct its enterprise utilizing AI, result in regulatory fines or penalties, require it to alter its product choices or enterprise practices or stop or restrict its use of AI; demand for the corporate’s services and products could possibly be decreased by modifications in buyer shopping for patterns or in its incapacity to execute on key product design or buyer help initiatives; aggressive pricing actions and product innovation might influence the corporate’s revenues; and the corporate’s gross sales, industrial simplification and product initiatives could also be inadequate to retain clients or generate new gross sales. Material dangers associated to the corporate’s adjusted EBITDA margin outlook and monetary framework are the identical because the dangers above associated to the income outlook; increased than anticipated inflation could result in larger than anticipated enhance in labor prices, third-party provider prices and prices of print supplies; and acquisition and disposal exercise could dilute the corporate’s adjusted EBITDA margin. Material dangers associated to the corporate’s free money movement outlook and monetary framework are the identical because the dangers above associated to the income and adjusted EBITDA margin targets; a weaker macroeconomic setting might negatively influence working capital efficiency, together with the power of the corporate’s clients to pay; accrued capital expenditures could also be increased than presently anticipated; and the timing and quantity of tax funds to governments could differ from the corporate’s expectations. Material dangers associated to the corporate’s efficient tax charge on adjusted earnings outlook and monetary framework are the identical because the dangers above associated to adjusted EBITDA; a cloth change within the geographical mixture of the corporate’s pre-tax earnings and losses; a cloth change in present tax legal guidelines or treaties to which the corporate is topic, and didn’t anticipate; and depreciation and amortization of internally developed laptop software program in addition to curiosity expense could also be considerably increased or decrease than anticipated.
The firm has offered an outlook and monetary framework for the aim of presenting details about present expectations for the intervals introduced. This data will not be acceptable for different functions. You are cautioned to not place undue reliance on forward-looking statements which replicate expectations solely as of the date of this information launch.
Except as could also be required by relevant legislation, Thomson Reuters disclaims any obligation to replace or revise any forward-looking statements.
CONTACTS
|
MEDIA Gehna Singh Kareckas Senior Director, Corporate Affairs +1 613 979 4272 [email protected] |
INVESTORS Gary Bisbee, CFA Head of Investor Relations +1 646 540 3249 @tr |
Thomson Reuters will webcast a dialogue of its fourth-quarter and full-year 2024 outcomes and its 2025 enterprise outlook and up to date 2026 monetary framework at the moment starting at 8:00 a.m. Eastern Standard Time (EST). You can entry the webcast by visiting . An archive of the webcast shall be accessible following the presentation.
|
Thomson Reuters Corporation |
|||||
|
Consolidated Income Statement |
|||||
|
(hundreds of thousands of U.S. {dollars}, besides per share information) |
|||||
|
(unaudited) |
|||||
|
Three Months Ended |
Year Ended |
||||
|
December 31, |
December 31, |
||||
|
2024 |
2023 |
2024 |
2023 |
||
|
CONTINUING OPERATIONS |
|||||
|
Revenues |
$1,909 |
$1,815 |
$7,258 |
$6,794 |
|
|
Operating bills |
(1,183) |
(1,112) |
(4,471) |
(4,134) |
|
|
Depreciation |
(26) |
(29) |
(113) |
(116) |
|
|
Amortization of laptop software program |
(160) |
(135) |
(618) |
(512) |
|
|
Amortization of different identifiable intangible property |
(22) |
(25) |
(91) |
(97) |
|
|
Other working positive aspects, web |
204 |
44 |
144 |
397 |
|
|
Operating revenue |
722 |
558 |
2,109 |
2,332 |
|
|
Finance prices, web: |
|||||
|
Net curiosity expense |
(28) |
(31) |
(125) |
(152) |
|
|
Other finance revenue (prices) |
53 |
(117) |
45 |
(192) |
|
|
Income earlier than tax and fairness technique investments |
747 |
410 |
2,029 |
1,988 |
|
|
Share of post-tax (losses) earnings in fairness technique investments |
(5) |
260 |
40 |
1,075 |
|
|
Tax (expense) profit |
(135) |
(20) |
123 |
(417) |
|
|
Earnings from persevering with operations |
607 |
650 |
2,192 |
2,646 |
|
|
(Loss) earnings from discontinued operations, web of tax |
(20) |
28 |
15 |
49 |
|
|
Net earnings |
$587 |
$678 |
$2,207 |
$2,695 |
|
|
Earnings (loss) attributable to: |
|||||
|
Common shareholders |
$587 |
$678 |
$2,210 |
$2,695 |
|
|
Non-controlling pursuits |
– |
– |
(3) |
– |
|
|
Earnings per share: |
|||||
|
Basic earnings (loss) per share: |
|||||
|
From persevering with operations |
$1.35 |
$1.43 |
$4.86 |
$5.70 |
|
|
From discontinued operations |
(0.05) |
0.06 |
0.03 |
0.11 |
|
|
Basic earnings per share |
$1.30 |
$1.49 |
$4.89 |
$5.81 |
|
|
Diluted earnings (loss) per share: |
|||||
|
From persevering with operations |
$1.34 |
$1.43 |
$4.85 |
$5.69 |
|
|
From discontinued operations |
(0.04) |
0.06 |
0.04 |
0.11 |
|
|
Diluted earnings per share |
$1.30 |
$1.49 |
$4.89 |
$5.80 |
|
|
Basic weighted-average frequent shares |
450,077,127 |
454,510,754 |
450,609,712 |
463,175,043 |
|
|
Diluted weighted-average frequent shares |
450,600,114 |
455,173,945 |
451,239,490 |
463,970,070 |
|
Thomson Reuters Corporation |
|||
|
Consolidated Statement of Financial Position |
|||
|
(hundreds of thousands of U.S. {dollars}) |
|||
|
(unaudited) |
|||
|
December 31, |
December 31, |
||
|
2024 |
2023 |
||
|
Assets |
|||
|
Cash and money equivalents |
$1,968 |
$1,298 |
|
|
Trade and different receivables |
1,087 |
1,122 |
|
|
Other monetary property |
35 |
66 |
|
|
Prepaid bills and different present property |
400 |
435 |
|
|
Current property |
3,490 |
2,921 |
|
|
Property and tools, web |
386 |
447 |
|
|
Computer software program, web |
1,453 |
1,236 |
|
|
Other identifiable intangible property, web |
3,134 |
3,165 |
|
|
Goodwill |
7,262 |
6,719 |
|
|
Equity technique investments |
269 |
2,030 |
|
|
Other monetary property |
442 |
444 |
|
|
Other non-current property |
625 |
618 |
|
|
Deferred tax |
1,376 |
1,104 |
|
|
Total property |
$18,437 |
$18,684 |
|
|
Liabilities and fairness |
|||
|
Liabilities |
|||
|
Current indebtedness |
$973 |
$372 |
|
|
Payables, accruals and provisions |
1,091 |
1,114 |
|
|
Current tax liabilities |
197 |
248 |
|
|
Deferred income |
1,062 |
992 |
|
|
Other monetary liabilities |
113 |
507 |
|
|
Current liabilities |
3,436 |
3,233 |
|
|
Long-term indebtedness |
1,847 |
2,905 |
|
|
Provisions and different non-current liabilities |
675 |
692 |
|
|
Other monetary liabilities |
232 |
237 |
|
|
Deferred tax |
241 |
553 |
|
|
Total liabilities |
6,431 |
7,620 |
|
|
Equity |
|||
|
Capital |
3,498 |
3,405 |
|
|
Retained earnings |
9,699 |
8,680 |
|
|
Accumulated different complete loss |
(1,191) |
(1,021) |
|
|
Total fairness |
12,006 |
11,064 |
|
|
Total liabilities and fairness |
$18,437 |
$18,684 |
|
Thomson Reuters Corporation |
|||||
|
Consolidated Statement of Cash Flow |
|||||
|
(hundreds of thousands of U.S. {dollars}) |
|||||
|
(unaudited) |
|||||
|
Three Months Ended |
Year Ended |
||||
|
December 31, |
December 31, |
||||
|
2024 |
2023 |
2024 |
2023 |
||
|
Cash offered by (utilized in): |
|||||
|
Operating actions |
|||||
|
Earnings from persevering with operations |
$607 |
$650 |
$2,192 |
$2,646 |
|
|
Adjustments for: |
|||||
|
Depreciation |
26 |
29 |
113 |
116 |
|
|
Amortization of laptop software program |
160 |
135 |
618 |
512 |
|
|
Amortization of different identifiable intangible property |
22 |
25 |
91 |
97 |
|
|
Share of post-tax losses (earnings) in fairness technique investments |
5 |
(260) |
(40) |
(1,075) |
|
|
Net (positive aspects) losses on disposals of companies and investments |
(195) |
5 |
(192) |
(336) |
|
|
Deferred tax |
47 |
(19) |
(640) |
(388) |
|
|
Other |
(22) |
110 |
151 |
298 |
|
|
Changes in working capital and different gadgets |
(76) |
40 |
176 |
457 |
|
|
Operating money flows from persevering with operations |
574 |
715 |
2,469 |
2,327 |
|
|
Operating money flows from discontinued operations |
(10) |
(10) |
(12) |
14 |
|
|
Net money offered by working actions |
564 |
705 |
2,457 |
2,341 |
|
|
Investing actions |
|||||
|
Acquisitions, web of money acquired |
(130) |
(15) |
(622) |
(1,216) |
|
|
Proceeds associated to disposals of companies and investments |
297 |
– |
326 |
418 |
|
|
Proceeds from gross sales of LSEG shares |
– |
31 |
1,854 |
5,424 |
|
|
Capital expenditures |
(161) |
(132) |
(607) |
(544) |
|
|
Other investing actions |
40 |
55 |
46 |
137 |
|
|
Taxes paid on gross sales of LSEG shares and disposals of companies |
(115) |
(162) |
(317) |
(705) |
|
|
Investing money flows from persevering with operations |
(69) |
(223) |
680 |
3,514 |
|
|
Investing money flows from discontinued operations |
– |
– |
– |
(1) |
|
|
Net money (utilized in) offered by investing actions |
(69) |
(223) |
680 |
3,513 |
|
|
Financing actions |
|||||
|
Repayments of debt |
– |
(600) |
(290) |
(600) |
|
|
Net repayments below short-term mortgage services |
– |
(513) |
(139) |
(956) |
|
|
Payments of lease principal |
(17) |
(14) |
(63) |
(58) |
|
|
Payments for return of capital on frequent shares |
– |
– |
– |
(2,045) |
|
|
Repurchases of frequent shares |
– |
(361) |
(639) |
(1,079) |
|
|
Dividends paid on choice shares |
(1) |
(1) |
(5) |
(5) |
|
|
Dividends paid on frequent shares |
(236) |
(215) |
(944) |
(887) |
|
|
Purchase of non-controlling pursuits |
– |
– |
(384) |
– |
|
|
Other financing actions |
2 |
2 |
5 |
4 |
|
|
Net money utilized in financing actions |
(252) |
(1,702) |
(2,459) |
(5,626) |
|
|
Translation changes |
(6) |
2 |
(8) |
1 |
|
|
Increase (lower) in money and money equivalents |
237 |
(1,218) |
670 |
229 |
|
|
Cash and money equivalents at starting of interval |
1,731 |
2,516 |
1,298 |
1,069 |
|
|
Cash and money equivalents at finish of interval |
$1,968 |
$1,298 |
$1,968 |
$1,298 |
|
Thomson Reuters Corporation |
|||||
|
Reconciliation of Earnings from Continuing Operations to Adjusted EBITDA (1) |
|||||
|
(hundreds of thousands of U.S. {dollars}, aside from margins) |
|||||
|
(unaudited) |
|||||
|
Three Months Ended |
Year Ended |
||||
|
December 31, |
December 31, |
||||
|
2024 |
2023 |
2024 |
2023 |
||
|
Earnings from persevering with operations |
$607 |
$650 |
$2,192 |
$2,646 |
|
|
Adjustments to take away: |
|||||
|
Tax expense (profit) |
135 |
20 |
(123) |
417 |
|
|
Other finance (revenue) prices |
(53) |
117 |
(45) |
192 |
|
|
Net curiosity expense |
28 |
31 |
125 |
152 |
|
|
Amortization of different identifiable intangible property |
22 |
25 |
91 |
97 |
|
|
Amortization of laptop software program |
160 |
135 |
618 |
512 |
|
|
Depreciation |
26 |
29 |
113 |
116 |
|
|
EBITDA |
$925 |
$1,007 |
$2,971 |
$4,132 |
|
|
Adjustments to take away: |
|||||
|
Share of post-tax losses (earnings) in fairness technique investments |
5 |
(260) |
(40) |
(1,075) |
|
|
Other working positive aspects, web |
(204) |
(44) |
(144) |
(397) |
|
|
Fair worth changes* |
(8) |
4 |
(8) |
18 |
|
|
Adjusted EBITDA(1) |
$718 |
$707 |
$2,779 |
$2,678 |
|
|
Adjusted EBITDA margin(1) |
37.6 % |
38.9 % |
38.2 % |
39.3 % |
|
* Fair worth changes primarily symbolize positive aspects or losses attributable to modifications in international forex change charges on intercompany balances that come up within the atypical course of enterprise, that are a part of working bills, in addition to changes associated to acquired deferred income. |
|
Thomson Reuters Corporation |
|||||
|
Reconciliation of Net Cash Provided By Operating Activities to Free Cash Flow(1) |
|||||
|
(hundreds of thousands of U.S. {dollars}) |
|||||
|
(unaudited) |
|||||
|
Three Months Ended |
Year Ended |
||||
|
December 31, |
December 31, |
||||
|
2024 |
2023 |
2024 |
2023 |
||
|
Net money offered by working actions |
$564 |
$705 |
$2,457 |
$2,341 |
|
|
Capital expenditures |
(161) |
(132) |
(607) |
(544) |
|
|
Other investing actions |
40 |
55 |
46 |
137 |
|
|
Payments of lease principal |
(17) |
(14) |
(63) |
(58) |
|
|
Dividends paid on choice shares |
(1) |
(1) |
(5) |
(5) |
|
|
Free money movement(1)) |
$425 |
$613 |
$1,828 |
$1,871 |
|
Thomson Reuters Corporation |
|
|
Reconciliation of Capital Expenditures to Accrued Capital Expenditures (1) |
|
|
(hundreds of thousands of U.S. {dollars}) |
|
|
(unaudited) |
|
|
Year Ended |
|
|
December 31, |
|
|
2024 |
|
|
Capital expenditures |
$607 |
|
Remove: IFRS adjustment to money foundation |
2 |
|
Accrued capital expenditures (1) |
$609 |
|
Accrued capital expenditures as a share of revenues(1) |
8.4 % |
|
(1) Refer to web page 23 for extra data on non-IFRS monetary 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) |
|||||
|
(hundreds of thousands of U.S. {dollars}, aside from share and per share information) |
|||||
|
(unaudited) |
|||||
|
Three Months Ended |
Year Ended |
||||
|
December 31, |
December 31, |
||||
|
2024 |
2023 |
2024 |
2023 |
||
|
Net earnings |
$587 |
$678 |
$2,207 |
$2,695 |
|
|
Adjustments to take away: |
|||||
|
Fair worth changes* |
(8) |
4 |
(8) |
18 |
|
|
Amortization of acquired laptop software program |
38 |
24 |
147 |
72 |
|
|
Amortization of different identifiable intangible property |
22 |
25 |
91 |
97 |
|
|
Other working positive aspects, web |
(204) |
(44) |
(144) |
(397) |
|
|
Interest profit impacting comparability(2) |
– |
– |
– |
(12) |
|
|
Other finance (revenue) prices |
(53) |
117 |
(45) |
192 |
|
|
Share of post-tax losses (earnings) in fairness technique investments |
5 |
(260) |
(40) |
(1,075) |
|
|
Tax on above gadgets(1) |
36 |
38 |
(9) |
265 |
|
|
Tax gadgets impacting comparability(1) (2) |
5 |
(108) |
(478) |
(172) |
|
|
Loss (earnings) from discontinued operations, web of tax |
20 |
(28) |
(15) |
(49) |
|
|
Interim interval efficient tax charge normalization(1) |
7 |
1 |
– |
– |
|
|
Dividends declared on choice shares |
(1) |
(1) |
(5) |
(5) |
|
|
Adjusted earnings(1) (3) |
$454 |
$446 |
$1,701 |
$1,629 |
|
|
Adjusted EPS(1) (3) |
$1.01 |
$0.98 |
$3.77 |
$3.51 |
|
|
Total change |
3 % |
7 % |
|||
|
Foreign forex |
2 % |
1 % |
|||
|
Constant forex |
1 % |
7 % |
|||
|
Diluted weighted-average frequent shares (hundreds of thousands) |
450.6 |
455.2 |
451.2 |
464.0 |
|
Reconciliation of Effective Tax Rate on Adjusted Earnings(1) |
Year-ended |
|
December 31, |
|
|
2024 |
|
|
Adjusted earnings |
$1,701 |
|
Plus: Dividends declared on choice shares |
5 |
|
Plus: Tax expense on adjusted earnings |
364 |
|
Pre-tax adjusted earnings |
$2,070 |
|
IFRS Tax profit |
$(123) |
|
Remove tax associated to: |
|
|
Amortization of acquired laptop software program |
33 |
|
Amortization of different identifiable intangible property |
22 |
|
Share of post-tax earnings in fairness technique investments |
(7) |
|
Other finance revenue |
19 |
|
Other working positive aspects, web |
(56) |
|
Other gadgets |
(2) |
|
Subtotal – Remove tax profit on pre-tax gadgets faraway from adjusted earnings |
9 |
|
Remove: Tax gadgets impacting comparability |
478 |
|
Total – Remove all gadgets impacting comparability |
487 |
|
Tax expense on adjusted earnings |
$364 |
|
Effective tax charge on adjusted earnings |
17.6 % |
|
*Fair worth changes primarily symbolize positive aspects or losses attributable to modifications in international forex change charges on intercompany balances that come up within the atypical course of enterprise, that are a part of working bills, in addition to changes associated to acquired deferred income. |
|
(1) |
Refer to web page 23 for extra data on non-IFRS monetary measures. |
|
(2) |
The yr ended December 31, 2023 included the discharge of tax and curiosity reserves as a result of expiration of statutes of limitation. |
|
(3) |
The adjusted earnings influence of non-controlling pursuits, which was relevant solely to the yr ended December 31, 2024, was not materials. |
|
Thomson Reuters Corporation |
|||||||||
|
Reconciliation of Changes in Revenues to Changes in Revenues on a Constant Currency (1) and Organic Basis (1) |
|||||||||
|
(hundreds of thousands of U.S. {dollars}) |
|||||||||
|
(unaudited) |
|||||||||
|
Three Months Ended |
|||||||||
|
December 31, |
Change |
||||||||
|
2024 |
2023 |
Total |
Foreign |
SUBTOTAL |
Net Acquisitions/ |
Organic |
|||
|
Total Revenues |
|||||||||
|
Legal Professionals |
$729 |
$700 |
4 % |
0 % |
4 % |
-4 % |
7 % |
||
|
Corporates |
458 |
402 |
14 % |
-1 % |
15 % |
5 % |
10 % |
||
|
Tax & Accounting Professionals |
366 |
344 |
6 % |
0 % |
7 % |
0 % |
7 % |
||
|
“Big 3” Segments Combined (1) |
1,553 |
1,446 |
7 % |
0 % |
7 % |
-1 % |
8 % |
||
|
Reuters News |
218 |
220 |
-1 % |
0 % |
-1 % |
1 % |
-3 % |
||
|
Global Print |
144 |
154 |
-6 % |
0 % |
-6 % |
0 % |
-6 % |
||
|
Eliminations/Rounding |
(6) |
(5) |
|||||||
|
Revenues |
$1,909 |
$1,815 |
5 % |
0 % |
5 % |
0 % |
5 % |
||
|
Recurring Revenues |
|||||||||
|
Legal Professionals |
$707 |
$674 |
5 % |
0 % |
4 % |
-4 % |
8 % |
||
|
Corporates |
401 |
358 |
12 % |
0 % |
13 % |
3 % |
10 % |
||
|
Tax & Accounting Professionals |
319 |
305 |
4 % |
-1 % |
5 % |
0 % |
5 % |
||
|
“Big 3” Segments Combined (1) |
1,427 |
1,337 |
7 % |
0 % |
7 % |
-1 % |
8 % |
||
|
Reuters News |
173 |
157 |
10 % |
0 % |
10 % |
2 % |
8 % |
||
|
Eliminations/Rounding |
(6) |
(5) |
|||||||
|
Total Recurring Revenues |
$1,594 |
$1,489 |
7 % |
0 % |
7 % |
-1 % |
8 % |
||
|
Transactions Revenues |
|||||||||
|
Legal Professionals |
$22 |
$26 |
-11 % |
-1 % |
-10 % |
-5 % |
-4 % |
||
|
Corporates |
57 |
44 |
25 % |
-3 % |
28 % |
17 % |
12 % |
||
|
Tax & Accounting Professionals |
47 |
39 |
22 % |
1 % |
21 % |
0 % |
21 % |
||
|
“Big 3” Segments Combined (1) |
126 |
109 |
16 % |
-1 % |
17 % |
5 % |
11 % |
||
|
Reuters News |
45 |
63 |
-29 % |
1 % |
-29 % |
1 % |
-30 % |
||
|
Total Transactions Revenues |
$171 |
$172 |
-1 % |
-1 % |
0 % |
3 % |
-4 % |
|
Growth percentages are computed utilizing complete {dollars}. As a consequence, percentages calculated from reported quantities could differ from these introduced, and development elements could not complete attributable to rounding. |
|
(1) |
Refer to web page 23 for extra data on non-IFRS monetary measures. |
|
Thomson Reuters Corporation |
|||||||||
|
Reconciliation of Changes in Revenues to Changes in Revenues on a Constant Currency (1) and Organic Basis (1) |
|||||||||
|
(hundreds of thousands of U.S. {dollars}) |
|||||||||
|
(unaudited) |
|||||||||
|
Year Ended |
|||||||||
|
December 31, |
Change |
||||||||
|
2024 |
2023 |
Total |
Foreign |
SUBTOTAL |
Net Acquisitions/ |
Organic |
|||
|
Total Revenues |
|||||||||
|
Legal Professionals |
$2,922 |
$2,807 |
4 % |
0 % |
4 % |
-3 % |
7 % |
||
|
Corporates |
1,844 |
1,620 |
14 % |
0 % |
14 % |
4 % |
10 % |
||
|
Tax & Accounting Professionals |
1,165 |
1,058 |
10 % |
-1 % |
11 % |
1 % |
10 % |
||
|
“Big 3” Segments Combined (1) |
5,931 |
5,485 |
8 % |
0 % |
8 % |
0 % |
9 % |
||
|
Reuters News |
832 |
769 |
8 % |
0 % |
8 % |
2 % |
6 % |
||
|
Global Print |
519 |
562 |
-8 % |
0 % |
-7 % |
0 % |
-7 % |
||
|
Eliminations/Rounding |
(24) |
(22) |
|||||||
|
Revenues |
$7,258 |
$6,794 |
7 % |
0 % |
7 % |
0 % |
7 % |
||
|
Recurring Revenues |
|||||||||
|
Legal Professionals |
$2,828 |
$2,674 |
6 % |
0 % |
6 % |
-2 % |
8 % |
||
|
Corporates |
1,543 |
1,373 |
12 % |
0 % |
13 % |
3 % |
10 % |
||
|
Tax & Accounting Professionals |
867 |
808 |
7 % |
-2 % |
9 % |
0 % |
9 % |
||
|
“Big 3” Segments Combined (1) |
5,238 |
4,855 |
8 % |
0 % |
8 % |
0 % |
9 % |
||
|
Reuters News |
668 |
625 |
7 % |
-1 % |
7 % |
2 % |
5 % |
||
|
Eliminations/Rounding |
(24) |
(22) |
|||||||
|
Total Recurring Revenues |
$5,882 |
$5,458 |
8 % |
0 % |
8 % |
0 % |
8 % |
||
|
Transactions Revenues |
|||||||||
|
Legal Professionals |
$94 |
$133 |
-29 % |
-2 % |
-28 % |
-25 % |
-2 % |
||
|
Corporates |
301 |
247 |
22 % |
-1 % |
22 % |
11 % |
11 % |
||
|
Tax & Accounting Professionals |
298 |
250 |
19 % |
0 % |
19 % |
5 % |
14 % |
||
|
“Big 3” Segments Combined (1) |
693 |
630 |
10 % |
-1 % |
11 % |
0 % |
10 % |
||
|
Reuters News |
164 |
144 |
14 % |
1 % |
13 % |
4 % |
9 % |
||
|
Total Transactions Revenues |
$857 |
$774 |
11 % |
-1 % |
11 % |
1 % |
10 % |
|
Growth percentages are computed utilizing complete {dollars}. As a consequence, percentages calculated from reported quantities could differ from these introduced, and development elements could not complete attributable to rounding. |
|
(1) |
Refer to web page 23 for extra data on non-IFRS monetary measures. |
|
Thomson Reuters Corporation |
|||||||
|
Reconciliation of Changes in Adjusted EBITDA (1) and Related Margin (1) to Changes on a Constant Currency Basis (1) |
|||||||
|
(hundreds of thousands of U.S. {dollars}, aside from margins) |
|||||||
|
(unaudited) |
|||||||
|
Three Months Ended |
|||||||
|
December 31, |
Change |
||||||
|
2024 |
2023 |
Total |
Foreign Currency |
Constant Currency |
|||
|
Adjusted EBITDA (1) |
|||||||
|
Legal Professionals |
$299 |
$298 |
0 % |
2 % |
-1 % |
||
|
Corporates |
153 |
138 |
11 % |
2 % |
8 % |
||
|
Tax & Accounting Professionals |
196 |
188 |
4 % |
-1 % |
5 % |
||
|
“Big 3” Segments Combined (1) |
648 |
624 |
4 % |
1 % |
3 % |
||
|
Reuters News |
45 |
61 |
-26 % |
-1 % |
-26 % |
||
|
Global Print |
55 |
55 |
-1 % |
0 % |
-1 % |
||
|
Corporate prices |
(30) |
(33) |
n/a |
n/a |
n/a |
||
|
Adjusted EBITDA |
$718 |
$707 |
2 % |
1 % |
1 % |
||
|
Adjusted EBITDA Margin (1) |
|||||||
|
Legal Professionals |
41.0 % |
42.5 % |
-150bp |
50bp |
-200bp |
||
|
Corporates |
33.5 % |
34.5 % |
-100bp |
90bp |
-190bp |
||
|
Tax & Accounting Professionals |
53.4 % |
54.6 % |
-120bp |
-30bp |
-90bp |
||
|
“Big 3” Segments Combined (1) |
41.7 % |
43.1 % |
-140bp |
50bp |
-190bp |
||
|
Reuters News |
20.8 % |
27.9 % |
-710bp |
-40bp |
-670bp |
||
|
Global Print |
38.2 % |
36.4 % |
180bp |
-10bp |
190bp |
||
|
Adjusted EBITDA margin |
37.6 % |
38.9 % |
-130bp |
30bp |
-160bp |
|
Thomson Reuters Corporation |
|||||||
|
Reconciliation of Changes in Adjusted EBITDA (1) and Related Margin (1) to Changes on a Constant Currency Basis (1) |
|||||||
|
(hundreds of thousands of U.S. {dollars}, aside from margins) |
|||||||
|
(unaudited) |
|||||||
|
Year Ended |
|||||||
|
December 31, |
Change |
||||||
|
2024 |
2023 |
Total |
Foreign Currency |
Constant Currency |
|||
|
Adjusted EBITDA (1) |
|||||||
|
Legal Professionals |
$1,302 |
$1,299 |
0 % |
0 % |
0 % |
||
|
Corporates |
671 |
619 |
8 % |
1 % |
8 % |
||
|
Tax & Accounting Professionals |
527 |
490 |
8 % |
-1 % |
9 % |
||
|
“Big 3” Segments Combined (1) |
2,500 |
2,408 |
4 % |
0 % |
4 % |
||
|
Reuters News |
196 |
172 |
14 % |
-2 % |
16 % |
||
|
Global Print |
188 |
213 |
-12 % |
0 % |
-12 % |
||
|
Corporate prices |
(105) |
(115) |
n/a |
n/a |
n/a |
||
|
Adjusted EBITDA |
$2,779 |
$2,678 |
4 % |
0 % |
4 % |
||
|
Adjusted EBITDA Margin (1) |
|||||||
|
Legal Professionals |
44.6 % |
46.2 % |
-160bp |
20bp |
-180bp |
||
|
Corporates |
36.3 % |
38.1 % |
-180bp |
40bp |
-220bp |
||
|
Tax & Accounting Professionals |
45.2 % |
45.8 % |
-60bp |
-10bp |
-50bp |
||
|
“Big 3” Segments Combined (1) |
42.1 % |
43.8 % |
-170bp |
10bp |
-180bp |
||
|
Reuters News |
23.6 % |
22.4 % |
120bp |
-30bp |
150bp |
||
|
Global Print |
36.2 % |
38.0 % |
-180bp |
0bp |
-180bp |
||
|
Adjusted EBITDA margin |
38.2 % |
39.3 % |
-110bp |
20bp |
-130bp |
|
n/a: not relevant |
|
Growth percentages and margins are computed utilizing complete {dollars}. As a consequence, percentages and margins calculated from reported quantities could differ from these introduced, and development elements could not complete attributable to rounding. |
|
(1) |
Refer to web page 23 for extra data on non-IFRS monetary measures. |
Reconciliation of adjusted EBITDA margin (1)
To compute section and consolidated adjusted EBITDA margin, the corporate excludes honest worth changes associated to acquired deferred income from its IFRS revenues. The charts under reconcile IFRS revenues to revenues used within the calculation of adjusted EBITDA margin, which excludes honest worth changes associated to acquired deferred income.
|
Three months ended December 31, 2024 |
||||||
|
IFRS revenues |
Remove honest worth |
Revenues excluding |
Adjusted EBITDA |
Adjusted EBITDA |
||
|
Legal Professionals |
$729 |
– |
$729 |
$299 |
41.0 % |
|
|
Corporates |
458 |
$1 |
459 |
153 |
33.5 % |
|
|
Tax & Accounting Professionals |
366 |
– |
366 |
196 |
53.4 % |
|
|
“Big 3” Segments Combined |
1,553 |
1 |
1,554 |
648 |
41.7 % |
|
|
Reuters News |
218 |
– |
218 |
45 |
20.8 % |
|
|
Global Print |
144 |
– |
144 |
55 |
38.2 % |
|
|
Eliminations/ Rounding |
(6) |
– |
(6) |
– |
n/a |
|
|
Corporate prices |
– |
– |
– |
(30) |
n/a |
|
|
Consolidated totals |
$1,909 |
$1 |
$1,910 |
$718 |
37.6 % |
|
|
Year ended December 31, 2024 |
||||||
|
IFRS revenues |
Remove honest worth |
Revenues excluding |
Adjusted EBITDA |
Adjusted EBITDA |
||
|
Legal Professionals |
$2,922 |
$1 |
$2,923 |
$1,302 |
44.6 % |
|
|
Corporates |
1,844 |
6 |
1,850 |
671 |
36.3 % |
|
|
Tax & Accounting Professionals |
1,165 |
– |
1,165 |
527 |
45.2 % |
|
|
“Big 3” Segments Combined |
5,931 |
7 |
5,938 |
2,500 |
42.1 % |
|
|
Reuters News |
832 |
2 |
834 |
196 |
23.6 % |
|
|
Global Print |
519 |
– |
519 |
188 |
36.2 % |
|
|
Eliminations/ Rounding |
(24) |
– |
(24) |
– |
n/a |
|
|
Corporate prices |
– |
– |
– |
(105) |
n/a |
|
|
Consolidated totals |
$7,258 |
$9 |
$7,267 |
$2,779 |
38.2 % |
|
|
Three months ended December 31, 2023 |
||||||
|
IFRS revenues |
Remove honest worth |
Revenues excluding |
Adjusted EBITDA |
Adjusted EBITDA |
||
|
Legal Professionals |
$700 |
$1 |
$701 |
$298 |
42.5 % |
|
|
Corporates |
402 |
– |
402 |
138 |
34.5 % |
|
|
Tax & Accounting Professionals |
344 |
– |
344 |
188 |
54.6 % |
|
|
“Big 3” Segments Combined |
1,446 |
1 |
1,447 |
624 |
43.1 % |
|
|
Reuters News |
220 |
– |
220 |
61 |
27.9 % |
|
|
Global Print |
154 |
– |
154 |
55 |
36.4 % |
|
|
Eliminations/ Rounding |
(5) |
– |
(5) |
– |
n/a |
|
|
Corporate prices |
– |
– |
– |
(33) |
n/a |
|
|
Consolidated totals |
$1,815 |
$1 |
$1,816 |
$707 |
38.9 % |
|
n/a: not relevant |
|
Margins are computed utilizing complete {dollars}, consequently, margins calculated from reported quantities could differ from these introduced attributable to rounding. |
|
(1) |
Refer to web page 23 for extra data on non-IFRS monetary measures. |
Reconciliation of adjusted EBITDA margin(1)
|
Year ended December 31, 2023 |
||||||
|
IFRS revenues |
Remove honest worth |
Revenues excluding |
Adjusted EBITDA |
Adjusted EBITDA |
||
|
Legal Professionals |
$2,807 |
$1 |
$2,808 |
$1,299 |
46.2 % |
|
|
Corporates |
1,620 |
3 |
1,623 |
619 |
38.1 % |
|
|
Tax & Accounting Professionals |
1,058 |
11 |
1,069 |
490 |
45.8 % |
|
|
“Big 3” Segments Combined |
5,485 |
15 |
5,500 |
2,408 |
43.8 % |
|
|
Reuters News |
769 |
1 |
770 |
172 |
22.4 % |
|
|
Global Print |
562 |
– |
562 |
213 |
38.0 % |
|
|
Eliminations/ Rounding |
(22) |
– |
(22) |
– |
n/a |
|
|
Corporate prices |
– |
– |
– |
(115) |
n/a |
|
|
Consolidated totals |
$6,794 |
$16 |
$6,810 |
$2,678 |
39.3 % |
|
n/a: not relevant |
|
Margins are computed utilizing complete {dollars}, consequently, margins calculated from reported quantities could differ from these introduced attributable to rounding. |
|
Thomson Reuters Corporation |
|||
|
Reconciliation of Net Debt (1) and Leverage Ratio of Net Debt to Adjusted EBITDA(1) |
|||
|
(hundreds of thousands of U.S. {dollars}) |
|||
|
(unaudited) |
|||
|
December 31, |
December 31, |
||
|
2024 |
2023 |
||
|
Current indebtedness |
$973 |
$372 |
|
|
Long-term indebtedness |
1,847 |
2,905 |
|
|
Total debt |
2,820 |
3,277 |
|
|
Swaps |
21 |
(65) |
|
|
Total debt after swaps |
2,841 |
3,212 |
|
|
Remove honest worth changes for hedges |
5 |
2 |
|
|
Total debt after forex hedging preparations |
2,846 |
3,214 |
|
|
Remove transaction prices, premiums or reductions included within the carrying worth of debt |
22 |
26 |
|
|
Add: Lease liabilities (present and non-current) |
256 |
265 |
|
|
Less: Cash and money equivalents |
(1,968) |
(1,298) |
|
|
Net debt |
$1,156 |
$2,207 |
|
|
Leverage ratio of web debt to adjusted EBITDA |
|||
|
Adjusted EBITDA |
$2,779 |
$2,678 |
|
|
Net debt/adjusted EBITDA |
0.4:1 |
0.8:1 |
|
(1) |
Refer to web page 23 for extra data on non-IFRS monetary measures. |
|
Non-IIFRS Financial |
Definition |
Why Useful to the Company and Investors |
|
Adjusted EBITDA and the associated margin |
Represents earnings or losses from persevering with operations earlier than tax expense or profit, web curiosity expense, different finance prices or revenue, depreciation, amortization of laptop software program and different identifiable intangible property, Thomson Reuters share of post-tax earnings or losses in fairness technique investments, different working positive aspects and losses, sure asset impairment prices and honest worth changes, together with these associated to acquired deferred income. The associated margin is adjusted EBITDA expressed as a share of revenues. For functions of this calculation, revenues are earlier than honest worth changes to acquired deferred income. |
Provides a constant foundation to judge working profitability and efficiency tendencies by excluding gadgets that the corporate doesn’t contemplate to be controllable actions for this goal. Also, represents a measure generally reported and extensively utilized by buyers as a valuation metric, in addition to to evaluate the corporate’s capability to incur and repair debt. |
|
Adjusted earnings and adjusted EPS |
Net earnings or loss together with dividends declared on choice shares however excluding the post-tax impacts of honest worth changes, together with these associated to acquired deferred income, amortization of acquired intangible property (attributable to different identifiable intangible property and bought laptop software program), different working positive aspects and losses, sure asset impairment prices, different finance prices or revenue, Thomson Reuters share of post-tax earnings or losses in fairness technique investments, discontinued operations and different gadgets affecting comparability. Acquired intangible property contribute to the era of revenues from acquired corporations, that are included within the firm’s computation of adjusted earnings. The post-tax quantity of every merchandise is excluded from adjusted earnings based mostly on the particular tax guidelines and tax charges related to the character and jurisdiction of every merchandise. Adjusted EPS is calculated from adjusted earnings utilizing diluted weighted-average shares and doesn’t symbolize precise earnings or loss per share attributable to shareholders. |
Provides a extra comparable foundation to investigate earnings. These measures are generally utilized by shareholders to measure efficiency. |
|
Effective tax charge on adjusted earnings |
Adjusted tax expense divided by pre-tax adjusted earnings. Adjusted tax expense is computed as revenue tax (profit) expense plus or minus the revenue tax impacts of all gadgets impacting adjusted earnings (as described above), and different tax gadgets impacting comparability. In interim intervals, the corporate additionally makes an adjustment to replicate revenue taxes based mostly on the estimated full-year efficient tax charge. Earnings or losses for interim intervals below IFRS replicate revenue taxes based mostly on the estimated efficient tax charges of every of the jurisdictions wherein Thomson Reuters operates. The non-IFRS adjustment reallocates estimated full-year revenue taxes between interim intervals however has no impact on full-year revenue taxes. |
Provides a foundation to investigate the efficient tax charge related to adjusted earnings. The firm’s efficient tax charge computed in accordance with IFRS could also be extra unstable by quarter as a result of the geographical mixture of pre-tax earnings and losses in interim intervals could also be totally different from that for the total yr. Therefore, the corporate believes that utilizing the anticipated full-year efficient tax charge supplies extra comparability amongst interim intervals. |
|
Free money movement |
Net money offered by working actions and different investing actions, much less capital expenditures, funds of lease principal and dividends paid on the corporate’s choice shares. |
Helps assess the corporate’s capability, over the long run, to create worth for its shareholders because it represents money accessible to repay debt, pay frequent dividends, fund share repurchases and acquisitions. |
|
Changes earlier than the influence of international forex or at “constant currency” |
The modifications in revenues, adjusted EBITDA and the associated margin, and adjusted EPS earlier than forex (at fixed forex or excluding the consequences of forex) are decided by changing the present and equal prior interval’s native forex outcomes utilizing the identical international forex change charge. |
Provides higher comparability of enterprise tendencies from interval to interval. |
|
Changes in revenues computed on an “organic” foundation |
Represent modifications in revenues of the corporate’s current companies at fixed forex. The metric excludes the distortive impacts of acquisitions and inclinations from not proudly owning the enterprise in each comparable intervals. |
Provides additional perception into the efficiency of the corporate’s current companies by excluding distortive impacts and serves as a greater measure of the corporate’s capability to develop its enterprise over the long run. |
|
Accrued capital expenditures as a share of revenues |
Accrued capital expenditures divided by revenues, the place accrued capital expenditures embrace quantities that stay unpaid on the finish of the reporting interval. For functions of this calculation, revenues are earlier than honest worth changes to acquired deferred income. |
Reflects the idea on which the corporate manages capital expenditures for inside budgeting functions. |
|
“Big 3” segments |
The firm’s mixed Legal Professionals, Corporates and Tax & Accounting Professionals segments. All measures reported for the “Big 3” segments are non-IFRS monetary measures. |
The “Big 3” segments comprised roughly 80% of revenues and symbolize the core of the corporate’s enterprise data service product choices. |
|
Net debt and leverage ratio of web debt to adjusted EBITDA |
Net debt is complete indebtedness (excluding the related unamortized transaction prices and premiums or low cost) plus the forex associated honest worth of related hedging devices, and lease liabilities much less money and money equivalents. Net debt to adjusted EBITDA is web debt divided by adjusted EBITDA for the earlier twelve-month interval ending with the present fiscal quarter. |
Provides a generally used measure of an organization’s leverage and its capability to pay its debt. Given that the corporate hedges a few of its debt to cut back threat, the corporate consists of hedging devices because it believes it supplies a greater measure of the full obligation related to its excellent debt. However, as a result of the corporate intends to carry its debt and associated hedges to maturity, the corporate doesn’t contemplate the curiosity elements of the related honest worth of hedges in its measurements. The firm reduces gross indebtedness by money and money equivalents. The firm’s non-IFRS measure is aligned with the calculation of its inside goal and is extra conservative than the utmost ratio allowed below the contractual covenants in its credit score facility. |
|
Please seek advice from reconciliations for essentially the most straight comparable IFRS monetary measures. |
SOURCE Thomson Reuters
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