Markets Division
Ousted markets chief Devin Wenig joins eBay
Tuesday 06 September 2011
Wenig, 44, a close associate of chief executive Tom Glocer, headed Thomson Reuters’ markets division, which includes Reuters news agency. He also led the integration of Reuters following its 2008 takeover by Thomson.
Announcing Wenig’s hire, eBay trumpeted his business and strategic acumen. He will report to president and CEO John Donahoe, who said “Devin’s deep global operating and leadership experience, combined with his record of delivering innovation and of understanding global technology platforms and communities, makes him uniquely qualified to lead our eBay Marketplaces business”.
Postscript: Website eCommerceBytes said eBay wooed Wenig with a $13.5 million package, comprising annual salary of $750,000 with bonuses; $2.4 million in stock options; $1.8 million in restricted stock units; a target award of $1.8 million performance based restricted stock units; another award of restricted stock units valued at $6 million and participation in eBay’s incentive plan with a target bonus of 100 per cent of base salary.
Wenig, moving from the US east coast to the west, tweeted: “For sale on eBay. 3 dozen really nice ties!”
● SOURCE PaidContent | eCommerceBytes
Thomson Reuters streamlines markets division, Devin Wenig bows out
Thursday 21 July 2011
Chief executive Tom Glocer will assume responsibility for the division.
The company reaffirmed its 2011 outlook and said it expects to report second-quarter ongoing revenues of between $3.1 billion and $3.2 billion, up four per cent. Wall Street is looking for $3.15 billion in the Q2 results due to be announced on 28 July.
The markets division, which serves the financial services industry, will be simplified to three business units from four to help accelerate growth, the company said. The sales and trading, and investment and advisory units will be combined.
The company gave no reason for Wenig’s departure beyond saying it was “coincident with these organizational changes”. He joined Reuters in 1993. Before becoming chief executive of markets he was chief operating officer of Reuters prior to the 2008 takeover by Thomson.
Glocer said the changes were aimed at accelerating growth “as we flatten our organization to operate as an integrated company and unleash cross-company capabilities and operating synergies”.
The Financial Times said Wenig’s unexpected exit was seen by industry members as a sign that Woodbridge, the Thomson family’s holding company that manages its 55 per cent ownership of Thomson Reuters, was seeking faster change after 12 months in which the group’s shares have fallen by 9.9 per cent.
● SOURCE Reuters | Press Release | Financial Times
New desktop a ‘fundamental shift’ - Devin Wenig
Tuesday 14 September 2010
"Today's generation of financial professionals demand tools that are intuitive, rich in data and analytics, and highly connected, to give them an edge. Eikon is a fundamental shift for our company and our industry. It will constantly adapt to help customers thrive in this new era. The launch signifies another key milestone in our strategy to build an open and connected global financial community," said Wenig, markets division CEO.
Eikon places the most comprehensive market information, news, analytics and trading tools available into a desktop as simple to use and collaborative as the Internet, Thomson Reuters said. It said the new desktop had won the support of more than 300 clients.
A company press release said Eikon was designed “to catapult market data into the 21st century and leverages information into easy-to-use web style search, aggregates the best of social networking technology, and allows for seamless mobile interchange from the office, home or while on the move. Eikon is available on multiple computer platforms, Blackberry and iPhone devices with a single sign-on to access information anywhere, at anytime".
Eikon’s semantic tagging technology removes the need to remember instrument codes or use complex interfaces. It is delivered by Internet technology and so can be downloaded and installed in seconds. With seamless upgrades, the technology enables a single powerful desktop to evolve and keep apace with rapidly changing markets and customer needs.
A core innovation harnesses social networking technology like Facebook, Twitter and instant messaging for financial markets and connects financial professionals around the world to create communities.
The new desktop completes a three-part, $1 billion overhaul of Thomson Reuters’ product portfolio for financial professionals. It follows the recent launch of Elektron, an ultra-high speed data distribution network, and Reuters Insider, an interactive on-demand video platform.
● SOURCE Thomson Reuters press release | Eikon
New Thomson Reuters desktop aims at Bloomberg
Monday 13 September 2010
Thomson Reuters' next generation desktop product for financial professionals (pictured above) incorporates social media features it hopes will help win customers from Bloomberg and others.
Eikon, to be launched on Tuesday, incorporates dozens of disparate products that provide data, news, analytics and trading tools, as well as social media applications familiar to users of Twitter, instant messaging and Facebook. It accounts for the biggest part of a $1 billion investment in new financial products. Others are video news service Reuters Insider and data network Elektron.
Along with improved search, customers will also be able to access Eikon on the iPhone, BlackBerry and similar mobile devices.
"What we are trying to do is take the best learning from the consumer media world and apply that to professional tools," said Devin Wenig, markets division chief executive. "Our clients say 'you've got great stuff but we can't get at it because it's in too many places’. And they say the whole industry is looking a little tired and it's time for a refresh."
The new desktop is designed to be more cost-effective for the company and easier to install and upgrade.
"Eikon really simplified the plumbing issues," said Doug Steiner, a consultant to investment bank Scotia Capital, one of 1,000 clients that took part in beta testing the product.
Thomson Reuters will continue to support existing products but expects clients to take up Eikon quickly, Wenig said. They can migrate at no extra cost unless they upgrade.
Bloomberg launched an upgraded version of its desktop in the summer, offering user-friendly features such as more intuitive search.
Thomson Reuters is betting that updated features allowing users to comment, chat and e-mail charts, stories and other data will counter Bloomberg's messaging.
Thomson Reuters’ Q2 results were lower than expected partly because investment in new products reduced its operating profit margin to 20.4 per cent from 24.2 per cent a year earlier.
● SOURCE Reuters | Eikon
Thomson Reuters turns to web for major product revamp
Wednesday 14 April 2010
A series of launches will bring together products from the former Reuters and Thomson Financial for the first time into two simplified platforms – one aimed at enterprises such as large banks, the other at individual users such as small hedge funds. It amounts to a radical change for both parts of the business.
The web-based platforms will replace traditional terminal commands with Internet-style online search. They are part of a drive to cater to “the 23-year-old at Goldman Sachs who grew up with Google”, said Devin Wenig, markets chief executive, pictured. They also aim to distinguish Thomson Reuters from Bloomberg and its one-size-fits-all terminals.
Thomson Reuters had to “radically slim the company down”, Wenig told the Financial Times. This would not be by cutting jobs – it plans to increase headcount quite a lot this year – but by reorganising its sales and support staff so that “everybody in the company is going to be working on one of these two platforms”.
Since the financial crisis began, big banks had consolidated, mid-sized customers struggled, but a long tail of smaller customers had grown, Wenig said. To cater for smaller clients cost-effectively, online training and customer support would be introduced.
The enterprise platform will launch next week and claims to offer faster delivery of data to clients, many of whom will be able to locate Thomson Reuters servers alongside their own to reduce delays, as Bloomberg does.
Wenig said the group would not change its pricing, but enterprise clients would find the platform cheaper to run.
Next month Thomson Reuters will make Insider, an online video platform it has been testing since last year, available to all its customers. In addition to the company’s own media staff, Insider will allow outsiders such as brokerages to offer videos of their analysts.
In the autumn a desktop platform called Eikon will offer a wider range of data, greater personalisation, and improved risk management, collaboration and emerging markets features.
“The industry is in a hugely different place from where it was in April 2008, and we think a lot of the changes are permanent and structural,” Wenig said. “Big banks are disappearing but we’ve created 1,000 new accounts in ... six months.”
● SOURCE Financial Times
News chief in Trust Principles pledge to staff after ‘minor uprising’
Friday 15 January 2010
Employees would be proud to hear how one of their executives handled hedge fund billionaire Steven Cohen, the New York Post reported on Friday.
“At least, that's how Devin Wenig, CEO of the markets division, is telling it,” it said. As head of markets, Wenig leads the group’s global financial services and media businesses. If they could see a transcript of his call with the founder of SAC Capital Advisors in December, staffers would be pleased, Wenig told staff during a conference call on Wednesday, the Post said.
“The comments come on the heels of a minor uprising at the news agency, after reporters discovered that editors killed a story looking into Cohen's trades after the hedge funder called Wenig to complain,” it said in a report under the headline “Reuters CEO defense killed Cohen story”.
Reporters Matthew Goldstein and Svea Herbst-Bayliss have been looking into allegations that Cohen engaged in insider trading in the 1980s. After Cohen's complaint, Wenig called editor-in-chief David Schlesinger and the story was subsequently killed.
Wenig assured staff he would never jeopardise the company’s 150-year history or the Trust Principles, under which Reuters acts at all times with integrity, independence and freedom from bias, the Post said.
“Wenig also defended Schlesinger, saying he has 30 years of unblemished record under his belt. The CEO explained that he receives similar complaints at least once a week and always refers them to Schlesinger or the appropriate editor.”
In a conference call a week earlier, staff questioned Schlesinger about the spiked story. US media blogs characterised the call as tense and said the editor-in-chief faced down a string of angry and confused journalists demanding to know precisely why their boss spiked it. The episode was said to have severely demoralised staff.
Schlesinger denounced “false blog stories” accusing Reuters of caving in to a wealthy hedge fund manager and berated staff for “running to a blog and spreading[ing] tittle-tattle” instead of raising concerns internally. “Keep it within editorial, and don’t go running to a blog,” he was quoted as saying.
A Schlesinger e-mail to staff that found its way to blogs referred to journalists’ concern over the reports and said: “…never doubt the commitment of this company and of me to our Trust principles and journalistic ethics”.
● SOURCE New York Post
● Reuters Trust Principles
Brouhaha in the blogosphere over spiked story
Friday 08 January 2010
The manager, Steven Cohen of SAC Capital Advisors, called Devin Wenig, CEO of the markets division that includes Reuters news agency, last month to complain about a story by reporters Matthew Goldstein and Svea Herbst-Bayliss who had been looking into allegations that Cohen engaged in insider trading in the 1980s.
The brouhaha has quickly been taken up in the blogosphere.
“Wenig passed Cohen's concerns onto Schlesinger, who put the kibosh on the story, raising question about what, precisely, the point of Reuters is if rich people can quash inconvenient stories with a phone call,” Manhattan media blog Gawker said.
Schlesinger said in a conference call with staff on Wednesday it was not a bad story and could have run. The call was tense, according to Gawker, which obtained a recording of it. Schlesinger faced down a string of angry and confused Reuters journalists demanding to know precisely why their boss spiked the story, it said.
During the conference call Schlesinger also fielded questions about contract negotiations with the Newspaper Guild of New York and the controversial redesign of the reuters.com website.
“To judge by the conference call, the Cohen episode has severely demoralized the wire service's staff, which was already preoccupied by bitter contract negotiations between its union members and management,” said another blog, Talking Biz News.
“Schlesinger acknowledged that Wenig had called him about the Cohen story, and that after reading it at Wenig's request, he told his deputy Jack Reerink that he had problems with it. But he denounced the ‘false blog stories’ accusing Reuters of caving to a wealthy hedge fund manager and insisted that his concerns had nothing to so with Cohen's complaint. And he lambasted his staffers for ‘running to a blog and spreading[ing] tittle-tattle’ … instead of raising concerns internally.
“Editors make judgments. You might not always agree with those judgments, and that’s fine,” Schlesinger said in the call. “If you disagree with those judgments, then come to me. Keep it within editorial, and don’t go running to a blog.”
At one point near the end of the call the editor-in-chief interrupted one staff member who said that his editorial judgment was on trial. ”My judgment is not on trial here,” he said, apologizing for losing his temper. “It was a question of judgment, and that judgment is not up for a vote or trial.”
Gawker reported: “When Reuters media reporter Robert MacMillan asked his boss what actually happened, and what was wrong with the story, Schlesinger immediately became testy, and bizarrely seemed to say that there wasn't anything wrong with it: ‘We're not going to do news editing by plebiscite...so I'm not going to go into the details of it. The story could have run. I mean, it was not a bad story. It could have run. But I had questions about it.’ Schlesinger said that the decision to kill it wasn't actually his — he raised his questions with Reerink, who made the ultimate decision: ‘I was actually in Tokyo. I said, look, it's up to you, I'm going to bed. He made a decision not to run it. That's it.’”
Schlesinger declined to explain his decision beyond saying “You obviously have a choice — you can either believe me or not. And if you don't believe me, fine. But I'm telling you that I was hired as an editor to make judgments. And I make those judgments free of pressure.”
Talking Biz News said Reerink, global company news editor, wrote a note to staff on Friday in which he mocked the blogs and said: “In the real world, we live by the trust principles. In the real world, we kick back stories for more reporting, balance or insight. In the real world, we don’t run every story just because we wrote it.
“Are we going to be right all the time? No. But we’ll try very hard. And we’ll learn from our mistakes. (and this was not a mistake, by the way).”
Talking Biz News published what it said was an e-mail sent by Schlesinger. It said: “There’s been blog chatter in the US this week that I spiked a story because Devin told me to after he got a call from the story’s putative subject. I know many of our journalists have been concerned by the reports and even wondered if they were true.
“Don’t believe them.
“We make decisions on stories for editorial and journalistic reasons only.
“Those decisions, by their nature, are judgement calls and you of course are always free to question the judgement or debate the issues. But never doubt the commitment of this company and of me to our Trust principles and journalistic ethics.
“In my three years as Editor-in-Chief (and in the three years before that when I was running editorial operations), neither Tom [Glocer, chief executive] nor Devin has ever asked me to kill a story or to run a story. I would have objected loudly if they had.”
● SOURCE Gawker | Talking Biz News | The Business Insider
UBS raises Thomson Reuters to ‘buy’
Friday 06 November 2009
UBS upgraded Thomson Reuters to "buy" from "sell" and substantially lifted its price target on the stock, saying the company was well positioned for sustainable growth despite uncertainties in the near term.
In its Q3 results on Thursday, Thomson Reuters reported quarterly revenue fell in its markets and legal businesses as customers cut costs in the wake of the financial crisis, but it said the worst was over.
"We believe investors will see through the lagging financial results and focus on the recovery of the underlying business drivers," analyst Phillip Huang said in a note. He raised his price target on the stock to $37.50 from $23.50.
Huang said he expected the underlying drivers for the business to notably improve over the next 12 months due to increasing visibility of stabilisation in the headcount for the financial and legal sectors.
There were uncertainties in the near term, however, as he expected the company's financial results to remain volatile.
"We have yet to see the full impact of the downturn reflected in the financial results for Markets and Legal given the late cycle nature of the subscription business," Huang said. Thomson Reuters shares are attractive despite these uncertainties because the rewards outweigh the risks.
In New York on Friday, Thomson Reuters shares were slightly lower at $32.07.
● SOURCE Reuters
In its Q3 results on Thursday, Thomson Reuters reported quarterly revenue fell in its markets and legal businesses as customers cut costs in the wake of the financial crisis, but it said the worst was over.
"We believe investors will see through the lagging financial results and focus on the recovery of the underlying business drivers," analyst Phillip Huang said in a note. He raised his price target on the stock to $37.50 from $23.50.
Huang said he expected the underlying drivers for the business to notably improve over the next 12 months due to increasing visibility of stabilisation in the headcount for the financial and legal sectors.
There were uncertainties in the near term, however, as he expected the company's financial results to remain volatile.
"We have yet to see the full impact of the downturn reflected in the financial results for Markets and Legal given the late cycle nature of the subscription business," Huang said. Thomson Reuters shares are attractive despite these uncertainties because the rewards outweigh the risks.
In New York on Friday, Thomson Reuters shares were slightly lower at $32.07.
● SOURCE Reuters
Thomson Reuters Q3 profit tumbles in 'challenging environment'
Thursday 05 November 2009
The group earned $162 million, or 19 cents per share, in the three months ended 30 September – down from $404 million or 49 cents per share a year earlier. Underlying operating profit rose three per cent to $711 million in the third quarter, from $690 million a year ago.
CEO Tom Glocer told investment analysts it was a challenging environment.
"Despite difficult market conditions, our businesses delivered solid results in the third quarter," he said. "Our Tax & Accounting and Healthcare & Science businesses continued to perform very strongly, and sales of subscription products in our Markets and Legal units improved in Q3 over what we expect were their bottom in Q2. While the weak year-to-date net sales experienced in recent quarters are now flowing through into revenues, we expect this dip to be shallow and limited to the next few quarters.
"Our ongoing focus on the Reuters integration and close cost management across the company has enabled us to continue to grow underlying operating profit. While we would welcome a quick return to revenue growth, we understand how to operate in challenging markets and we are confident that we are outperforming the competition," Glocer said.
Adjusted earnings from continuing operations slipped to 43 cents per share from 47 cents a year ago, beating average analyst forecasts of 40 cents per share.
Thomson Reuters said its revenue slipped four per cent to $3.22 billion, partly because of unfavourable foreign exchange rates.
"While the weak year-to-date net sales experienced in recent quarters are now flowing through into revenues, we expect this dip to be shallow and limited to the next few quarters," Glocer said.
Revenue from ongoing businesses, excluding the impact of foreign exchange rates, fell two per cent to $3.21 billion. The average analyst forecast was $3.23 billion.
In the markets division, revenue from the media operation including Reuters news agency fell by 14 per cent to $90 million amid consolidation among traditional media outlets such as newspapers.
Overall corporate expenses tripled from a year earlier to $163 million in the third quarter, due in part to integration costs.
Thomson Reuters re-affirmed its previous guidance: it expects revenue to grow this year and underlying operating profit margin and free cash flow to be comparable to 2008.
● SOURCE Reuters | Financial Post
Thomson Reuters expands in Middle East and Africa
Tuesday 03 November 2009
Thomson Reuters has unveiled its expanded regional headquarters in Dubai, the culmination of a year that saw it hire 104 new staff throughout the Middle East and Africa.
The modern Dubai Media City offices overlooking the Gulf represent one of the few places that have managed to increase investment during the recession.
“While most companies have been looking at their strategies and trying to understand what to do with staff, we believe that the Middle East and Africa is a region that is growing, and as such have more staff coming in,” said Basil Moftah, managing director for Middle East and Africa. “We now have 135 people based in Dubai and 15 people based in Abu Dhabi, so this is quite a substantial operation. It’s considered one of our largest offices globally,” he told Abu Dhabi-based newspaper The National.
The new hires, which bring total staff across the region to 520, were brought in to expand coverage of the region’s 22 stock exchanges and the 2,000 regional banks connected through Thomson Reuters’ trading systems, as well as deepen coverage in such areas as commodities, energy, equities and treasury. The company has appointed senior staff in the United Arab Emirates, Saudi Arabia, Egypt and Lebanon with expertise in Islamic finance, investment and advisory, and equities.
“Our biggest focus is obviously commodities and equities, given what’s happened in the market,” Moftah said. He declined to say how large Thomson Reuters’ investment in the Middle East and Africa expansion was, saying only that it was “definitely a double-digit, million dollar investment”.
Moftah said regional sales dipped in the second quarter, but the performance of Q2 and Q3 more than made up for it. “There was quite a lull during Q2 as businesses were rethinking what they were doing,” he said. “But since then, there has been a real pick-up in the Middle East and Africa. We are looking at double-digit growth for the year.” Joerg Floeck, head of sales and customer services for the markets division, said the company was looking to spend $1 billion a year on new technology, and was pursuing equally aggressive expansion in Latin America, Brazil, China and India.
● SOURCE The National
The modern Dubai Media City offices overlooking the Gulf represent one of the few places that have managed to increase investment during the recession.
“While most companies have been looking at their strategies and trying to understand what to do with staff, we believe that the Middle East and Africa is a region that is growing, and as such have more staff coming in,” said Basil Moftah, managing director for Middle East and Africa. “We now have 135 people based in Dubai and 15 people based in Abu Dhabi, so this is quite a substantial operation. It’s considered one of our largest offices globally,” he told Abu Dhabi-based newspaper The National.
The new hires, which bring total staff across the region to 520, were brought in to expand coverage of the region’s 22 stock exchanges and the 2,000 regional banks connected through Thomson Reuters’ trading systems, as well as deepen coverage in such areas as commodities, energy, equities and treasury. The company has appointed senior staff in the United Arab Emirates, Saudi Arabia, Egypt and Lebanon with expertise in Islamic finance, investment and advisory, and equities.
“Our biggest focus is obviously commodities and equities, given what’s happened in the market,” Moftah said. He declined to say how large Thomson Reuters’ investment in the Middle East and Africa expansion was, saying only that it was “definitely a double-digit, million dollar investment”.
Moftah said regional sales dipped in the second quarter, but the performance of Q2 and Q3 more than made up for it. “There was quite a lull during Q2 as businesses were rethinking what they were doing,” he said. “But since then, there has been a real pick-up in the Middle East and Africa. We are looking at double-digit growth for the year.” Joerg Floeck, head of sales and customer services for the markets division, said the company was looking to spend $1 billion a year on new technology, and was pursuing equally aggressive expansion in Latin America, Brazil, China and India.
● SOURCE The National
Takeover ill-timed says analyst, but upgrades TR shares
Wednesday 23 September 2009
Thomson’s acquisition of Reuters was ill-timed, investment bank Piper Jaffray said in a note accompanying an upgrade from Underweight to Neutral for the stock.
"In retrospect, Thomson's acquisition of Reuters was ill-timed. Thomson ‘doubled-down’ on the financial services industry at a time when industry dynamics were rapidly deteriorating, translating into significant pressure on revenues and earnings,” Piper Jaffray’s analyst said.
“That said, execution has been solid, with cost efficiencies beating expectations and translating into an upward bias in estimates despite the challenging industry backdrop...We like Thomson Reuters' leadership position in the global information service market, its strong record of execution and its appealing business model. With the worst of the financial industry downcycle likely behind us, we are upgrading our rating on Thomson to Neutral."
Deutsche Bank upgraded Thomson Reuters from Sell to Buy nine days ago and said that with two consecutive quarters of net sales in the markets division the mechanics of the subscription model means a negative Q3 figure is a given, and probably so for the first half of 2010.
Margins in Legal were guided to fall modestly, breaking a long pattern of growth, and the company was flagging slower revenue growth in Legal in the second half, it said. “The company is sounding a cautious note, but in fact the trough now looks sooner and shallower than we expected. But also a shallower trough and stronger turn; consensus too low.
“All the above is rather grim and the last year has seen management gradually back away from the view that TR could get through this slump without revenues falling. That said, we now expect the trough in Markets to be shallower / shorter than we thought likely in late 2008...”
Goldman Sachs initiated its analyst coverage on Thomson Reuters with a Neutral rating and $38.30 price target following the unification of the dual listing. It said that while Thomson Reuters is one of the strongest international professional publishing companies it trades at a 35 per cent premium to most peers.
● SOURCE Street Insider
"In retrospect, Thomson's acquisition of Reuters was ill-timed. Thomson ‘doubled-down’ on the financial services industry at a time when industry dynamics were rapidly deteriorating, translating into significant pressure on revenues and earnings,” Piper Jaffray’s analyst said.
“That said, execution has been solid, with cost efficiencies beating expectations and translating into an upward bias in estimates despite the challenging industry backdrop...We like Thomson Reuters' leadership position in the global information service market, its strong record of execution and its appealing business model. With the worst of the financial industry downcycle likely behind us, we are upgrading our rating on Thomson to Neutral."
Deutsche Bank upgraded Thomson Reuters from Sell to Buy nine days ago and said that with two consecutive quarters of net sales in the markets division the mechanics of the subscription model means a negative Q3 figure is a given, and probably so for the first half of 2010.
Margins in Legal were guided to fall modestly, breaking a long pattern of growth, and the company was flagging slower revenue growth in Legal in the second half, it said. “The company is sounding a cautious note, but in fact the trough now looks sooner and shallower than we expected. But also a shallower trough and stronger turn; consensus too low.
“All the above is rather grim and the last year has seen management gradually back away from the view that TR could get through this slump without revenues falling. That said, we now expect the trough in Markets to be shallower / shorter than we thought likely in late 2008...”
Goldman Sachs initiated its analyst coverage on Thomson Reuters with a Neutral rating and $38.30 price target following the unification of the dual listing. It said that while Thomson Reuters is one of the strongest international professional publishing companies it trades at a 35 per cent premium to most peers.
● SOURCE Street Insider
Thomson Reuters aims to click with the Internet generation
Sunday 30 August 2009
For the first time, all 200 financial products will be moved to a common platform, replacing 3000Xtra and making the company’s systems simpler to use.
The new product is likely to be more like a conventional web portal in look and feel when it comes to market early next spring. All 500,000 customers will be moved on to it.
“It is the first time we are going to properly launch a product,” Wenig told veteran Reuters watcher James Ashton in The Sunday Times. “We never really launch products. They just emerge. This will have proper marketing and advertising.”
Wenig said: “You see very different behaviour from a 25-year-old just out of the London School of Economics to a 55-year-old who has been trading for the last 25 years.
“People who grew up with Google have totally different expectations of how to interact with information and media. We can’t ignore that.”
The new product is Project Utah, the final part of a $1 billion technology upgrade.
“We are not going to be the greatest technology company in the world and nor should we be,” said Wenig. “But technology is an enabler. We have to put money into it. We can’t just talk about it.”
In the 158 years since Reuters began flying pigeons with news alerts tied to their legs, it has had to move with the times, The Sunday Times said. “But the company, which merged with Thomson last year and has delisted itself from the London stock market, has never really been known for its cutting-edge advances.
“New versions of old systems have underwhelmed or been released late. Innovations such as offering instant messaging between users have often been introduced first by its nimbler rival Bloomberg, which has caused a headache for Reuters ever since it set up as a direct competitor almost three decades ago.
“It recently trailed in Bloomberg’s wake in mobile, but the launch of a news application for the BlackBerry and iPhone was a hit, drawing 90,000 subscribers in its first month. However, long-term followers of the industry see a change of tack.”
“The difference now is that Thomson Reuters is taking a more friendly approach to how it presents information,” said Douglas Taylor, managing partner at Burton-Taylor International Consulting and a former executive at both Thomson Financial and Reuters.
“In some cases they are playing catch-up but I think their expectation is to leapfrog Bloomberg.”
Despite the financial crash, underlying sales at Thomson Reuters’ markets division are still growing, although only by 0.2 per cent in the last quarter, the newspaper said.
Taylor forecasts that the $23 billion market for electronic financial information will shrink by 1-3 per cent this year, with Bloomberg holding a 26 per cent share and Thomson Reuters 34 per cent because it dominates in areas such as fixed income. Where they compete directly, the two companies are judged to be roughly neck and neck.
Thomson Reuters is trying to drive down split-second delays in its data feeds, The Sunday Times said. Some investment banks have asked the company to host their applications in its data centres to increase efficiency.
The biggest change to news provision will be Insider, a video news service for the financiers who already use its news terminals. If they pay, they can call up interviews as if they were trawling YouTube and they will also be able to search quickly through transcripts for the key points. “I don’t want to turn us into a consumer company but you ignore at your peril what YouTube and Twitter have done to online behaviour,” said Wenig.
He invoked Apple and BlackBerry maker Research in Motion as the type of company he wants Thomson Reuters to emulate.
“We didn’t tend to think of ourselves as a product innovation company. I am trying to move the company forward and encourage people to think about new things,” he said.
● SOURCE The Sunday Times
Broker cuts Thomson Reuters rating
Friday 07 August 2009
Broker Jefferies International cut its rating on Thomson Reuters to “underperform” from “hold”, saying that while Thursday's second quarter results were excellent they likely represented the peak of cost savings.
The broker also noted that a decline in subscriptions in the Markets division would likely trickle through later this year.
The Q2 results were better than expected and the company affirmed its 2009 outlook that revenue will grow despite tough conditions in the financial industry.
Profit growth was attributed to cost controls, currency benefits and savings from Thomson's purchase of Reuters last year.
CEO Tom Glocer said the fallout from the financial crisis will likely squeeze the Markets division in the second half of the year.
● SOURCE MarketWatch
The broker also noted that a decline in subscriptions in the Markets division would likely trickle through later this year.
The Q2 results were better than expected and the company affirmed its 2009 outlook that revenue will grow despite tough conditions in the financial industry.
Profit growth was attributed to cost controls, currency benefits and savings from Thomson's purchase of Reuters last year.
CEO Tom Glocer said the fallout from the financial crisis will likely squeeze the Markets division in the second half of the year.
● SOURCE MarketWatch
Thomson Reuters launches new iPhone, iPod Touch and Blackberry applications
Monday 11 May 2009
“It would be a logical conclusion that there would be a paid element in time,” said Alisa Bowen, head of consumer publishing. “The ability to launch premium services is our ultimate goal.”
The company is also looking at a more comprehensive service for the Kindle, Amazon’s electronic reader. “We’re seeing a willingness to discuss [the Kindle business model] from Amazon,” Bowen said.
The new applications offer video and market data as well as headlines. They are tailored for the three devices’ different audiences. The iPhone/iPod Touch service plays up video coverage and photography for a consumer-focused user base, while its Blackberry service focuses on customised business reporting and data.
Both apps are being released free to BlackBerry and iPhone/iPod Touch users, but the company wants to turn them into products that generate both subscription and advertising revenue.
Chris Ahearn, president of media, told the website paidContent that the company was still moving forward on Markets division CEO Devin Wenig's promise to invest $1 billion in building up its multimedia capabilities. That push revolves around ramping up its video capabilities for both TV and the web.
"The iPhone app is targeted to all business professionals, not just financial consumers, or users in legal or health and science. It's for Thomson Reuters professional audience writ large," he said. Ahearn said the company will roll out a number of other products this year. "You'll see a variety of multimedia offerings across online, mobile as well as the terminals over the course of this year. We're investing $1 billion in the middle of what is arguably one of the most difficult economic periods we've seen in decades."
"We learned a lot of lessons over the last two decades – the most important of which is to focus on delivering great user experiences," said Ahearn. "This app for iPhone and iPod Touch is an excellent way to give our business professional audience convenient access to Reuters content anytime, anyplace."
Key features and benefits of the mobile application include:
● News stories from a variety of categories including world, sports, politics, environment, health, and business
● Full story articles and photos optimised for easy reading on a mobile device
● Ability to select region – US, Canada, UK, or India – for localised content
● Up-to-the-minute market data including indices, commodities and currencies by region
● Designed to support offline use when users don’t have service or an Internet connection
● Personalised stocks tab so users can track only the stocks that they want
● Keywords and My Feeds tab that allows users to customised news feeds that are of special interest.
● SOURCE Financial Times | The Washington Post | Business World
● CLICK to download the iPhone and iPod Touch application from the Apple iTunes website.
● CLICK to download the BlackBerry application from the BlackBerry website.
Goldman Sachs cuts Thomson Reuters to 'sell'
Thursday 16 April 2009
Goldman Sachs cut its rating on Thomson Reuters to “sell” from “neutral” on Thursday, sending the shares lower in London and New York.
The influential US investment bank believes the group’s financial information business – the Markets division – will suffer a significant deterioration in sales this year.
Citing another round of job cuts at leading investment banks, Goldman said: “We believe Markets will see significant deterioration in 1Q to -3 per cent and for the full year to -8 per cent, compared with full-year consensus forecasts of -4 per cent.”
At one point the London shares touched 1,611 pence, but then closed at 1,656 – 9.30% below their 52-week high of 1,826 pence set a year ago. The 52-week low is 883 pence.
Tomorrow is the first anniversary of Thomson Corp’s takeover of Reuters.
Over the last week Thomson Reuters has underperformed the FTSE 100 index. Over all other time periods it outperformed the index.
Closing prices:
LONDON: TRIL.L up 0.98 per cent to 1656p.
NEW YORK: TRI down 1.70 per cent to $27.19.
TORONTO: TRI.TO down 1.29 per cent to C$32.90.
NASDAQ: TRIN up 0.60 per cent to $149.41.
● SOURCE Financial Times
The influential US investment bank believes the group’s financial information business – the Markets division – will suffer a significant deterioration in sales this year.
Citing another round of job cuts at leading investment banks, Goldman said: “We believe Markets will see significant deterioration in 1Q to -3 per cent and for the full year to -8 per cent, compared with full-year consensus forecasts of -4 per cent.”
At one point the London shares touched 1,611 pence, but then closed at 1,656 – 9.30% below their 52-week high of 1,826 pence set a year ago. The 52-week low is 883 pence.
Tomorrow is the first anniversary of Thomson Corp’s takeover of Reuters.
Over the last week Thomson Reuters has underperformed the FTSE 100 index. Over all other time periods it outperformed the index.
Closing prices:
LONDON: TRIL.L up 0.98 per cent to 1656p.
NEW YORK: TRI down 1.70 per cent to $27.19.
TORONTO: TRI.TO down 1.29 per cent to C$32.90.
NASDAQ: TRIN up 0.60 per cent to $149.41.
● SOURCE Financial Times
Thomson Reuters sees higher sales despite softer markets
Monday 30 March 2009
Thomson Reuters said on Monday it expects higher revenues this year despite job losses in the financial services industry on which it depends for most of its revenues.
The company said in its annual report that financial conditions were challenging but it was well positioned geographically and by business segment to survive the global economic downturn.
"We expect large global banks and institutions in the United States, United Kingdom and Western Europe to be most affected. However, we anticipate that emerging markets will continue to grow, albeit at a slower pace," the company said.
It repeated the forecast it made in February of an underlying operating margin and cash flow comparable to those of 2008.
"We do not believe that our information is a discretionary purchase for our Markets division customers, but rather a necessity for them to run their businesses on a daily basis," Thomson Reuters said.
The company's markets division, which supplies news and data to financial institutions, brings in about 57 per cent of sales and 42 per cent of profits.
The rest is accounted for by the professional division, which sells news and information to lawyers, medical and healthcare professionals and accountants.
Thomson Reuters said it expected the economic environment for its professional division customers to soften this year, although it said those markets were historically resilient.
"We believe the professional markets we serve continue to offer opportunities for growth, albeit at lower rates than in 2008," it said.
"We expect the margins for Professional to be impacted in 2009 by investments in global expansion initiatives as well as a shift to higher growth software and services products."
Thomson Reuters' London-listed shares closed down 1.4 per cent at 1514 pence. In Toronto, the stock fell C$0.40 to C$30.80.
The company said it believed cash from its operations and available credit facilities would be sufficient to fund its cash dividends, debt servicing, capital expenditure, normal acquisitions and share buybacks.
Thomson Reuters has access to a $2.5 billion syndicated credit facility until August 2012. It also issued about $3 billion of long-term debt securities last year.
The company's net debt more than doubled to $6.76 billion by the end of 2008 from a year earlier, mainly due to Thomson's April 2008 acquisition of Reuters. Most of it is in U.S. dollars or has been swapped into U.S. dollar obligations.
The annual report is available in the Investor Relations section on ● www.thomsonreuters.com. Hard copies may be obtained, free of charge, by contacting Thomson Reuters Investor Relations at ● investor.relations@thomsonreuters.com or by phone at +1 800 969 9974.
● SOURCE Reuters
The company said in its annual report that financial conditions were challenging but it was well positioned geographically and by business segment to survive the global economic downturn.
"We expect large global banks and institutions in the United States, United Kingdom and Western Europe to be most affected. However, we anticipate that emerging markets will continue to grow, albeit at a slower pace," the company said.
It repeated the forecast it made in February of an underlying operating margin and cash flow comparable to those of 2008.
"We do not believe that our information is a discretionary purchase for our Markets division customers, but rather a necessity for them to run their businesses on a daily basis," Thomson Reuters said.
The company's markets division, which supplies news and data to financial institutions, brings in about 57 per cent of sales and 42 per cent of profits.
The rest is accounted for by the professional division, which sells news and information to lawyers, medical and healthcare professionals and accountants.
Thomson Reuters said it expected the economic environment for its professional division customers to soften this year, although it said those markets were historically resilient.
"We believe the professional markets we serve continue to offer opportunities for growth, albeit at lower rates than in 2008," it said.
"We expect the margins for Professional to be impacted in 2009 by investments in global expansion initiatives as well as a shift to higher growth software and services products."
Thomson Reuters' London-listed shares closed down 1.4 per cent at 1514 pence. In Toronto, the stock fell C$0.40 to C$30.80.
The company said it believed cash from its operations and available credit facilities would be sufficient to fund its cash dividends, debt servicing, capital expenditure, normal acquisitions and share buybacks.
Thomson Reuters has access to a $2.5 billion syndicated credit facility until August 2012. It also issued about $3 billion of long-term debt securities last year.
The company's net debt more than doubled to $6.76 billion by the end of 2008 from a year earlier, mainly due to Thomson's April 2008 acquisition of Reuters. Most of it is in U.S. dollars or has been swapped into U.S. dollar obligations.
The annual report is available in the Investor Relations section on ● www.thomsonreuters.com. Hard copies may be obtained, free of charge, by contacting Thomson Reuters Investor Relations at ● investor.relations@thomsonreuters.com or by phone at +1 800 969 9974.
● SOURCE Reuters
Thomson Reuters announces C$750 million note offering
Thursday 26 March 2009
Thomson Reuters announced it has entered into an agency agreement with a syndicate of Canadian investment dealers for a public offering in Canada of C$750 million of 6.0 per cent notes due 2016.
Proceeds are expected to be used for general corporate purposes including debt repayment due this year.
The notes are being issued by Thomson Reuters Corporation and will be unconditionally guaranteed by Thomson Reuters PLC. The offering is expected to close on 31 March subject to customary closing conditions. The notes are not being offered or sold in the United States.
Fitch Ratings has assigned an 'A-' rating to the notes. Fitch currently rates Thomson Reuters and its subsidiaries as follows:
Thomson Reuters Corp:
● Issuer Default Rating (IDR) 'A-'
● Bank credit facility 'A-'
● Senior unsecured notes 'A-'
● Commercial paper 'F2'
● Short-term IDR 'F2'.
Reuters Group Limited:
● IDR 'A-'.
Reuters Finance PLC:
● IDR 'A-'
● Senior unsecured 'A-'.
Fitch said the ratings reflect the company’s meaningful cash flow generating ability, its sound balance sheet and its consistent and conservative financial policies. At the end of 2008, proforma unadjusted net leverage was within management's targeted range of at or below two times.
The ratings also reflect Thomson Reuters’ growth prospects, as well as the product line and geographic diversity of its cash flow stream, it said.
“Fitch recognizes there are meaningful barriers to entry in TRI's core businesses and that there are a limited number of well-capitalized, rational competitors that compete predominantly on product differentiation, quality and delivery (rather than on price).
“Unlike traditional advertising-based consumer media subsectors, TRI has already made the transition to electronic delivery and faces very little threat of substitution by digital transplants.
“Rating concerns center predominantly on the cyclicality of the Markets division, however, Fitch notes there is meaningful room in the rating to accommodate potential cyclical weakness in the Markets division. Also, integration and acquisition risk remain concerns. As with other highly rated companies, the potential threat of financial policy revisions is always a concern, although Fitch believes these issues are sufficiently mitigated.”
● SOURCE Yahoo Finance | Fitch Ratings
Proceeds are expected to be used for general corporate purposes including debt repayment due this year.
The notes are being issued by Thomson Reuters Corporation and will be unconditionally guaranteed by Thomson Reuters PLC. The offering is expected to close on 31 March subject to customary closing conditions. The notes are not being offered or sold in the United States.
Fitch Ratings has assigned an 'A-' rating to the notes. Fitch currently rates Thomson Reuters and its subsidiaries as follows:
Thomson Reuters Corp:
● Issuer Default Rating (IDR) 'A-'
● Bank credit facility 'A-'
● Senior unsecured notes 'A-'
● Commercial paper 'F2'
● Short-term IDR 'F2'.
Reuters Group Limited:
● IDR 'A-'.
Reuters Finance PLC:
● IDR 'A-'
● Senior unsecured 'A-'.
Fitch said the ratings reflect the company’s meaningful cash flow generating ability, its sound balance sheet and its consistent and conservative financial policies. At the end of 2008, proforma unadjusted net leverage was within management's targeted range of at or below two times.
The ratings also reflect Thomson Reuters’ growth prospects, as well as the product line and geographic diversity of its cash flow stream, it said.
“Fitch recognizes there are meaningful barriers to entry in TRI's core businesses and that there are a limited number of well-capitalized, rational competitors that compete predominantly on product differentiation, quality and delivery (rather than on price).
“Unlike traditional advertising-based consumer media subsectors, TRI has already made the transition to electronic delivery and faces very little threat of substitution by digital transplants.
“Rating concerns center predominantly on the cyclicality of the Markets division, however, Fitch notes there is meaningful room in the rating to accommodate potential cyclical weakness in the Markets division. Also, integration and acquisition risk remain concerns. As with other highly rated companies, the potential threat of financial policy revisions is always a concern, although Fitch believes these issues are sufficiently mitigated.”
● SOURCE Yahoo Finance | Fitch Ratings
Thomson Reuters to launch video news service in June
Tuesday 03 March 2009
Thomson Reuters Corp will launch a video news service in June for financial professionals who use its terminals, part of a $1 billion plan to appeal to a new generation of customers.
The service, called Reuters Insider, will provide live and searchable financial markets coverage, analysis and breaking news.
It will not run all day, will not rely on advertising and will be largely unavailable to the public. Clients, however, will be able to access it around the clock. Paying customers will be able to access on-demand news segments in the same way people watch video clips on YouTube. They will be able to select videos on channels grouped by category, such as foreign exchange, equities or political news.
The project is part of a $1 billion programme to update the company's products and infrastructure to make them more appealing to financial professionals accustomed to using the Internet to get information.
Thomson Reuters has been testing the service since last October, and is launching it during a time of uncertainty for media outlets.
Many newspapers, TV stations and news outlets are losing advertising revenue as people get more news online, often for free. Some news and information companies may be forced out of business. Others are trying to figure out how to get people to pay for their news.
Investing during the global economic downturn, which has led to layoffs in the financial industry, is what the company must do to keep performing well, said Devin Wenig, markets division chief executive.
Reuters journalists are contributing to the programming, and Thomson Reuters is recruiting about 120 people to run it from multi-media studios in New York, London and Hong Kong. It hopes clients such as banks and investment companies will also supply video and create their own channels.
The new service is designed to give financial professionals news they can use to make trades and other business decisions, but does not replace news articles, Wenig said.
"To me, this is just Reuters News 2.0," he said. Targeting a narrowly defined, paying audience works better for the company, Wenig said. "This isn't infotainment."
Chris Cramer, former president of CNN International who is now global editor of multimedia for Reuters News, said: “The broadcast model, the cable model, is broken. At the moment there is no competition. This is something unique.”
Michael Stepanovich, managing editor of Reuters Insider, said it would rely heavily on “tags” about each video clip, generated from transcripts using software acquired through the 2007 purchase of a “semantic engine” called Clear Forest.
As well as channels for sales and trading or enterprise customers, he said Reuters Insider could be customised to track individual sectors, asset classes, regions, companies and topics, or an investor’s portfolio. “We want to be able to create a [Bernie] Madoff channel,” Stepanovich said.
Users will also be able to watch “highlights reels” drawn from different videos, find sections of video from the relevant passage in the transcript, or send clips to their BlackBerrys.
David Schlesinger, editor-in-chief, said the initiative was a response to the demands of a younger generation.
Reuters experimented with video a decade ago with Reuters TV but abandoned the initiative because of the high costs required before the web video era.
● SOURCE Financial Times
● CLICK to read Chris Cramer’s blog post on narrowcasting.
The service, called Reuters Insider, will provide live and searchable financial markets coverage, analysis and breaking news.
It will not run all day, will not rely on advertising and will be largely unavailable to the public. Clients, however, will be able to access it around the clock. Paying customers will be able to access on-demand news segments in the same way people watch video clips on YouTube. They will be able to select videos on channels grouped by category, such as foreign exchange, equities or political news.
The project is part of a $1 billion programme to update the company's products and infrastructure to make them more appealing to financial professionals accustomed to using the Internet to get information.
Thomson Reuters has been testing the service since last October, and is launching it during a time of uncertainty for media outlets.
Many newspapers, TV stations and news outlets are losing advertising revenue as people get more news online, often for free. Some news and information companies may be forced out of business. Others are trying to figure out how to get people to pay for their news.
Investing during the global economic downturn, which has led to layoffs in the financial industry, is what the company must do to keep performing well, said Devin Wenig, markets division chief executive.
Reuters journalists are contributing to the programming, and Thomson Reuters is recruiting about 120 people to run it from multi-media studios in New York, London and Hong Kong. It hopes clients such as banks and investment companies will also supply video and create their own channels.
The new service is designed to give financial professionals news they can use to make trades and other business decisions, but does not replace news articles, Wenig said.
"To me, this is just Reuters News 2.0," he said. Targeting a narrowly defined, paying audience works better for the company, Wenig said. "This isn't infotainment."
Chris Cramer, former president of CNN International who is now global editor of multimedia for Reuters News, said: “The broadcast model, the cable model, is broken. At the moment there is no competition. This is something unique.”
Michael Stepanovich, managing editor of Reuters Insider, said it would rely heavily on “tags” about each video clip, generated from transcripts using software acquired through the 2007 purchase of a “semantic engine” called Clear Forest.
As well as channels for sales and trading or enterprise customers, he said Reuters Insider could be customised to track individual sectors, asset classes, regions, companies and topics, or an investor’s portfolio. “We want to be able to create a [Bernie] Madoff channel,” Stepanovich said.
Users will also be able to watch “highlights reels” drawn from different videos, find sections of video from the relevant passage in the transcript, or send clips to their BlackBerrys.
David Schlesinger, editor-in-chief, said the initiative was a response to the demands of a younger generation.
Reuters experimented with video a decade ago with Reuters TV but abandoned the initiative because of the high costs required before the web video era.
● SOURCE Financial Times
● CLICK to read Chris Cramer’s blog post on narrowcasting.
Thomson Reuters profit beats forecasts, sees 2009 revenue growth
Tuesday 24 February 2009
Thomson Reuters reported stronger-than-expected quarterly profit on Tuesday and said it expected revenue to grow in 2009 despite job cuts and decreased spending among financial industry customers.
The company also said it expected its underlying operating margin this year to be comparable to 2008, supported by revenue growth and higher savings from integration.
"I think the good thing is that we're giving outlook at all. I've seen so many companies with supposedly decent visibility into their business this year pull back and say, 'Well it's too hard,'" chief executive Tom Glocer said in an interview with Reuters.
Thomson Reuters reported 2008 Q4 net income of $656 million, or 79 cents a share, compared with $432 million, or 67 cents a share, a year earlier.
Profit from ongoing businesses, excluding special items, was 57 cents per share, beating the average analyst forecast of 39 cents.
Revenue in the company's closely watched markets division, which serves financial institutions, fell two per cent to $1.9 billion. Overall revenue was flat at $3.4 billion.
"I think it's going to continue to do better than people expect," Glocer said, referring to the markets division.
"It is hard to see anything else outside the doom and gloom in the two financial and media capitals," he said. "It's going to be a tough year, but when you put it all together, we still think the company will be able to show growth."
The professional division, which sells databases and other information to lawyers, accountants, scientists and the healthcare industry, reported revenue of $1.5 billion in Q4, up three per cent. The rise came in part from online, software and services revenue growth of 10 per cent.
The board has approved an increase in the dividend by four cents per share on an annualised basis. The quarterly dividend payable on March 26 is 28 cents per share.
Thomson Reuters raised its forecast for annualised cost savings from the merger to $1 billion by the end of 2011, up from $750 million projected in May 2008.
The integration plan does not include any new rounds of layoffs, Glocer said.
Pressed to comment on the rate of cancellations seen so far this year, Glocer said: "The one thing I can guarantee is there will be cancellations and there will be new recurring subscription sales, and actually the year isn't off badly on that score.”
Glocer attributed the results to Thomson's basic business model, providing "must-have" information to people who are willing to pay for it. "This is not a luxury good or discretionary purchase," he said during a conference call. "This is must-have information that our customers need to run their businesses."
Glocer also said the integration of Thomson and Reuters was moving more quickly than expected, helping to cut costs.
The Financial Times said concern over the outlook for financial services still drives investors’ perception of the stock, and helps explain the wide variation in perceptions of the company in Toronto, where professional assets such as WestLaw are better known, and London, where City sentiment pervades investors’ views of the company.
“The London listing was trading at a 15 per cent discount to the North American quotes on Tuesday morning, but Mr Glocer expressed no urgency about resolving this by ending the dual-listed company structure,” the FT said.
“This is one we haven’t had to spend any time on,” he said. “Either people will buy in [to the growth story] locally [in London] and it solves itself or the shareholder register turns more North American and it solves itself.”
His message, instead, was that Thomson Reuters can stand out from much of the sector in which its shares are categorised. “We can invest at a time when a lot of pure media companies are cutting back,” he said.
“Asked by one of his own reporters whether such investment might include an interest in one of the newspaper companies whose valuations have suffered dramatically, Mr Glocer was clear that he had little appetite for consumer media,” the FT said.
In theory, the $1.8 billion of free cashflow reported by last year would be enough to buy The New York Times, the FT said, but Glocer cautioned: “I’m not convinced we know how to run a newspaper any better than the ones who are running them today, and boy it looks a tough struggle.”
Glocer said the company was on course to see revenues rise next year, driven by forecast growth in Asia, the Gulf and Latin America.
"We're definitely going to be prioritising markets where there's strong growth," he said. "Tactically, it's easier to push on an open door than slam against one."
The £8.7 billion merger of Thomson and Reuters was expected to produce cost-savings of $750 million but the company said annualised benefits would now be closer to $1 billion from 2011.
"Our markets division is entirely a legitimate concern given what we've seen at companies like RBS, Lloyds and Citi," Glocer said. "But what analysts don't appreciate when they're at the heart of the financial crisis in London or New York, is that in many markets around the world - in Asia, the Gulf and Latin America - there is less gloom."
Thomson Reuters shares closed 11.56 per cent higher in New York, 11.47 per cent higher in Toronto, 10.39 per cent higher on NASDAQ and 6.58 per cent higher in London.
The FT said the persistence of a yawning gap between the group’s North American and London-listed shares is embarrassing.
“The 18 per cent discount at which the London listing trades to the US and Canadian listings is an operational irrelevance. Mr Glocer – without referring to it on Tuesday’s results call – probably helped narrow the gulf by announcing a better-than-expected fourth quarter for the markets division. If UK-based investors were expecting the financial data operations to take a heavy hit from the financial crisis (as they did when markets turned down earlier this decade), the division’s resilience should improve sentiment towards the London shares. Familiarity with the more stable Thomson businesses and satisfaction with the improved savings from integrating the two companies are only increasing.
“But it may take more than good housekeeping by Mr Glocer and his team to bridge the Atlantic. The controlling Thomson family has the tools for this job. Its investment vehicle, Woodbridge, has already in effect ‘bought’ UK stock with Canadian paper. Those operations could, and probably should, be restarted...
“Thomson and Reuters deserve credit for not abolishing the London listing at the time of the merger. That would have put UK investors’ noses out of joint. But some 60 per cent of the UK shares are now held by North American investors, who rightly figure that what looks good for Woodbridge is probably good for them. British investors are at liberty to buy back into the group on fundamentals if they wish to benefit from the relative re-rating. But if the UK share of the London listing drops below 20 per cent, they should expect to lose it.
● SOURCE Reuters | Financial Times | The Daily Telegraph
The company also said it expected its underlying operating margin this year to be comparable to 2008, supported by revenue growth and higher savings from integration.
"I think the good thing is that we're giving outlook at all. I've seen so many companies with supposedly decent visibility into their business this year pull back and say, 'Well it's too hard,'" chief executive Tom Glocer said in an interview with Reuters.
Thomson Reuters reported 2008 Q4 net income of $656 million, or 79 cents a share, compared with $432 million, or 67 cents a share, a year earlier.
Profit from ongoing businesses, excluding special items, was 57 cents per share, beating the average analyst forecast of 39 cents.
Revenue in the company's closely watched markets division, which serves financial institutions, fell two per cent to $1.9 billion. Overall revenue was flat at $3.4 billion.
"I think it's going to continue to do better than people expect," Glocer said, referring to the markets division.
"It is hard to see anything else outside the doom and gloom in the two financial and media capitals," he said. "It's going to be a tough year, but when you put it all together, we still think the company will be able to show growth."
The professional division, which sells databases and other information to lawyers, accountants, scientists and the healthcare industry, reported revenue of $1.5 billion in Q4, up three per cent. The rise came in part from online, software and services revenue growth of 10 per cent.
The board has approved an increase in the dividend by four cents per share on an annualised basis. The quarterly dividend payable on March 26 is 28 cents per share.
Thomson Reuters raised its forecast for annualised cost savings from the merger to $1 billion by the end of 2011, up from $750 million projected in May 2008.
The integration plan does not include any new rounds of layoffs, Glocer said.
Pressed to comment on the rate of cancellations seen so far this year, Glocer said: "The one thing I can guarantee is there will be cancellations and there will be new recurring subscription sales, and actually the year isn't off badly on that score.”
Glocer attributed the results to Thomson's basic business model, providing "must-have" information to people who are willing to pay for it. "This is not a luxury good or discretionary purchase," he said during a conference call. "This is must-have information that our customers need to run their businesses."
Glocer also said the integration of Thomson and Reuters was moving more quickly than expected, helping to cut costs.
The Financial Times said concern over the outlook for financial services still drives investors’ perception of the stock, and helps explain the wide variation in perceptions of the company in Toronto, where professional assets such as WestLaw are better known, and London, where City sentiment pervades investors’ views of the company.
“The London listing was trading at a 15 per cent discount to the North American quotes on Tuesday morning, but Mr Glocer expressed no urgency about resolving this by ending the dual-listed company structure,” the FT said.
“This is one we haven’t had to spend any time on,” he said. “Either people will buy in [to the growth story] locally [in London] and it solves itself or the shareholder register turns more North American and it solves itself.”
His message, instead, was that Thomson Reuters can stand out from much of the sector in which its shares are categorised. “We can invest at a time when a lot of pure media companies are cutting back,” he said.
“Asked by one of his own reporters whether such investment might include an interest in one of the newspaper companies whose valuations have suffered dramatically, Mr Glocer was clear that he had little appetite for consumer media,” the FT said.
In theory, the $1.8 billion of free cashflow reported by last year would be enough to buy The New York Times, the FT said, but Glocer cautioned: “I’m not convinced we know how to run a newspaper any better than the ones who are running them today, and boy it looks a tough struggle.”
Glocer said the company was on course to see revenues rise next year, driven by forecast growth in Asia, the Gulf and Latin America.
"We're definitely going to be prioritising markets where there's strong growth," he said. "Tactically, it's easier to push on an open door than slam against one."
The £8.7 billion merger of Thomson and Reuters was expected to produce cost-savings of $750 million but the company said annualised benefits would now be closer to $1 billion from 2011.
"Our markets division is entirely a legitimate concern given what we've seen at companies like RBS, Lloyds and Citi," Glocer said. "But what analysts don't appreciate when they're at the heart of the financial crisis in London or New York, is that in many markets around the world - in Asia, the Gulf and Latin America - there is less gloom."
Thomson Reuters shares closed 11.56 per cent higher in New York, 11.47 per cent higher in Toronto, 10.39 per cent higher on NASDAQ and 6.58 per cent higher in London.
The FT said the persistence of a yawning gap between the group’s North American and London-listed shares is embarrassing.
“The 18 per cent discount at which the London listing trades to the US and Canadian listings is an operational irrelevance. Mr Glocer – without referring to it on Tuesday’s results call – probably helped narrow the gulf by announcing a better-than-expected fourth quarter for the markets division. If UK-based investors were expecting the financial data operations to take a heavy hit from the financial crisis (as they did when markets turned down earlier this decade), the division’s resilience should improve sentiment towards the London shares. Familiarity with the more stable Thomson businesses and satisfaction with the improved savings from integrating the two companies are only increasing.
“But it may take more than good housekeeping by Mr Glocer and his team to bridge the Atlantic. The controlling Thomson family has the tools for this job. Its investment vehicle, Woodbridge, has already in effect ‘bought’ UK stock with Canadian paper. Those operations could, and probably should, be restarted...
“Thomson and Reuters deserve credit for not abolishing the London listing at the time of the merger. That would have put UK investors’ noses out of joint. But some 60 per cent of the UK shares are now held by North American investors, who rightly figure that what looks good for Woodbridge is probably good for them. British investors are at liberty to buy back into the group on fundamentals if they wish to benefit from the relative re-rating. But if the UK share of the London listing drops below 20 per cent, they should expect to lose it.
● SOURCE Reuters | Financial Times | The Daily Telegraph
Tom Glocer says Thomson Reuters set for growth in 2009
Thursday 29 January 2009
Thomson Reuters continues to see bright spots in its financial services unit and the company is still set for growth this year, CEO Tom Glocer said on Thursday.
Even though there were big job losses across the financial services industry there would still need to be hirings in new areas, he told Reuters correspondent Mike Dolan at the annual meeting of the World Economic Forum in Davos, Switzerland.
"The trading of very opaque assets with very wide spreads, I think we'll see those sorts of over-the-counter markets evolve," Glocer said, adding that there will be a need for pricing feeds and infrastructure to accurately price those assets.
"I don't think anybody who's here can in their right mind be optimistic about 2009, either from a global economy point of view or in financial services," he said.
But "in our financial services unit ... we continue to see bright spots right across the world. I'm feeling good about the business.”
Thomson Reuters makes about 60 per cent of revenues and 45 per cent of profits from its markets division, whose customers are mainly banks.
"There's no question that growth has been tempering, it's been coming down,” Glocer said. “But for the company as a whole, we continue to talk about growth in 2009."
He said the integration after Thomson Corp’s $11 billion takeover of Reuters in April 2008 was "going very well".
He also said the company would keep the different listings of its stock in London, Toronto and New York as long as investors demanded it.
"The London listing was left in place to meet the demand. As long as that's the case, there's certainly a rationale for maintaining the listing," he said.
Investors have speculated that the company may drop its London listing as a price gap that opened up on the first day of trading in Thomson Reuters shares in Toronto and London widens.
● SOURCE Reuters
Thomson Reuters starting to feel ‘coherent, focused’
Friday 19 December 2008
At the close of a rollercoaster year of firsts, integration pains and the most challenging market of a lifetime, Thomson Reuters is starting to feel like a coherent, focused business and is on track to become one company in one year, says Devin Wenig, markets division CEO.
There is lots more to do and there are more challenges to come – hold tight for another amazing year, he has told staff.
“We recently held our holiday parties and I have to say that I wasn’t sure how people would react to these parties, given our focus on costs and the uncertainty in the market,” Wenig said in a year-end message. “I think people really had a great time and they understand that our goal was simply to say thanks for an extraordinary effort in an extraordinary year.
“As someone said to me in New York, anybody that has a party in this market environment must be winning!
“And what an amazing year it’s been – no-one could have predicted even a year ago the pace of change that we have seen inside our organization but also what’s happening to the markets and to our customers.
“It’s been a year of highs and lows, of things to celebrate, of getting to know new friends and colleagues, and saying goodbye to colleagues who are no longer with us. And, sadly, it’s also saying goodbye to long-standing institutions like Lehman Brothers who had been a loyal customer and supporter of ours for many, many years.”
It has been a year of firsts, Wenig said – the first year as a new company, the first year of serving a new and diverse customer base and the first year of making a significant step change in service.
“But we had two other important firsts this year. We won our first Pulitzer prize – won by Reuters News for breaking news photography taken by Adrees Latif. And then just recently, we won our first Emmy in recognition of Reuters News and our role in the pursuit of truth and our contribution to society. The Emmy, for lifetime achievement in journalism, was awarded to our own Editor-in-Chief David Schlesinger. I’m incredibly proud of these two achievements, particularly as they come from the US, a part of the world where Reuters News has not always been as well known but is now gaining a really important place in the markets and with our clients.
“Let’s not forget what we were able to achieve together. We’ve pulled the business together; we’ve met our customers’ high expectations of service and benefits; we’ve exceeded our targets for the integration; and we’ve continued to deliver growth in the most challenging market of a lifetime. Most importantly, we’re on a path to become one company in one year. I hear a lot more people these days talk about Thomson Reuters rather than Thomson Financial or Reuters. It’s starting to feel like a coherent, focused business. We have a lot more to do and many challenges to come but I will enter 2009 with the optimism of knowing we have great people, great assets and a focused and high performing team.
“So we’re coming to the end of a rollercoaster year and I want you to know how grateful I am for all of your hard work; for putting up with the pains of integration and for helping me to build the great company that I dream about for all of us.
“Thank you and I hope you all have a wonderful time with family and friends over the holiday period. I know that many of you will be working around the world over the holidays and keeping our content and news flowing – and I thank you for that.
“So here’s to 2009…get some rest and get ready to hold on tight for what undoubtedly will be another amazing year.”
● SOURCE Thomson Reuters
There is lots more to do and there are more challenges to come – hold tight for another amazing year, he has told staff.
“We recently held our holiday parties and I have to say that I wasn’t sure how people would react to these parties, given our focus on costs and the uncertainty in the market,” Wenig said in a year-end message. “I think people really had a great time and they understand that our goal was simply to say thanks for an extraordinary effort in an extraordinary year.
“As someone said to me in New York, anybody that has a party in this market environment must be winning!
“And what an amazing year it’s been – no-one could have predicted even a year ago the pace of change that we have seen inside our organization but also what’s happening to the markets and to our customers.
“It’s been a year of highs and lows, of things to celebrate, of getting to know new friends and colleagues, and saying goodbye to colleagues who are no longer with us. And, sadly, it’s also saying goodbye to long-standing institutions like Lehman Brothers who had been a loyal customer and supporter of ours for many, many years.”
It has been a year of firsts, Wenig said – the first year as a new company, the first year of serving a new and diverse customer base and the first year of making a significant step change in service.
“But we had two other important firsts this year. We won our first Pulitzer prize – won by Reuters News for breaking news photography taken by Adrees Latif. And then just recently, we won our first Emmy in recognition of Reuters News and our role in the pursuit of truth and our contribution to society. The Emmy, for lifetime achievement in journalism, was awarded to our own Editor-in-Chief David Schlesinger. I’m incredibly proud of these two achievements, particularly as they come from the US, a part of the world where Reuters News has not always been as well known but is now gaining a really important place in the markets and with our clients.
“Let’s not forget what we were able to achieve together. We’ve pulled the business together; we’ve met our customers’ high expectations of service and benefits; we’ve exceeded our targets for the integration; and we’ve continued to deliver growth in the most challenging market of a lifetime. Most importantly, we’re on a path to become one company in one year. I hear a lot more people these days talk about Thomson Reuters rather than Thomson Financial or Reuters. It’s starting to feel like a coherent, focused business. We have a lot more to do and many challenges to come but I will enter 2009 with the optimism of knowing we have great people, great assets and a focused and high performing team.
“So we’re coming to the end of a rollercoaster year and I want you to know how grateful I am for all of your hard work; for putting up with the pains of integration and for helping me to build the great company that I dream about for all of us.
“Thank you and I hope you all have a wonderful time with family and friends over the holiday period. I know that many of you will be working around the world over the holidays and keeping our content and news flowing – and I thank you for that.
“So here’s to 2009…get some rest and get ready to hold on tight for what undoubtedly will be another amazing year.”
● SOURCE Thomson Reuters
Thomson Reuters shares climb on upgrade
Monday 24 November 2008
Thomson Reuters shares climbed sharply on Monday on all four markets on which they are traded after an analyst upgraded the stock.
The increases occurred as markets staged massive recoveries on positive news: a fiscal stimulus plan in Britain and in the United States a rescue plan for Citigroup and the announcement of President-elect Barack Obama’s economic leadership team.
RBC Capital Markets analyst Drew McReynolds raised his rating on Thomson Reuters to “outperform” from “sector perform”. The upgrade reflected the stock’s recent sharp retreat, in which the company’s shares have lost 40 per cent of their value in the last three months.
The analyst also thinks Thomson Reuters is taking an unfair hit from investors’ poor views of the firm’s Markets Division.
“Although we expect the operating environment for the markets division to remain extremely difficult through 2011 we believe (the stock prices indicate) an overly pessimistic decline scenario for the division,” McReynolds wrote. He trimmed his price target to $30 from $35.
Thomson Reuters’ London shares gained 15.66 per cent to 1,226 pence while those in New York gained 14.59 per cent to $23.33. The Toronto shares gained 10.79 per cent to C$28.75 and on NASDAQ the gain was 15.35 per cent to $111.62.
● SOURCE The Associated Press
The increases occurred as markets staged massive recoveries on positive news: a fiscal stimulus plan in Britain and in the United States a rescue plan for Citigroup and the announcement of President-elect Barack Obama’s economic leadership team.
RBC Capital Markets analyst Drew McReynolds raised his rating on Thomson Reuters to “outperform” from “sector perform”. The upgrade reflected the stock’s recent sharp retreat, in which the company’s shares have lost 40 per cent of their value in the last three months.
The analyst also thinks Thomson Reuters is taking an unfair hit from investors’ poor views of the firm’s Markets Division.
“Although we expect the operating environment for the markets division to remain extremely difficult through 2011 we believe (the stock prices indicate) an overly pessimistic decline scenario for the division,” McReynolds wrote. He trimmed his price target to $30 from $35.
Thomson Reuters’ London shares gained 15.66 per cent to 1,226 pence while those in New York gained 14.59 per cent to $23.33. The Toronto shares gained 10.79 per cent to C$28.75 and on NASDAQ the gain was 15.35 per cent to $111.62.
● SOURCE The Associated Press
Thomson Reuters stock to underperform - analyst
Wednesday 19 November 2008
Thomson Reuters shares are likely to underperform until investors feel that the markets division has bottomed, which may not happen until the first quarter of 2010, UBS analyst Jeffrey Fan told clients on Wednesday.
He maintained his “sell” rating on the stock and $23.50 price target. It closed at $23.77 on the New York Stock Exchange on Tuesday.
Fan said Thomson Reuters is in much better shape to weather retrenchment among investment banks than during 2001-2004 when the sector saw a 10 per cent staff reduction. During that period the markets unit saw an 18 per cent decline in revenues from peak to trough.
This time, Thomson Reuters could take some market share from Bloomberg, given the performance of foreign exchange versus fixed income. But the market environment is arguably worse. An estimated 15 to 20 per cent of the investment banking headcount has already disappeared.
Thomson Reuters’ Q3 results announced on 12 November showed that markets revenues beat consensus estimates, suggesting a modest decline in revenues, Fan said. However, he attributed this strength to transaction revenues driven by volatile foreign exchange and commodity markets, which may not be sustainable. Hence reiteration of his “sell” rating.
Thomson Reuters’ New York-listed shares have fallen more than 40 per cent year-to-date but in Toronto they are down only 27 per cent.
● SOURCE Seeking Alpha
He maintained his “sell” rating on the stock and $23.50 price target. It closed at $23.77 on the New York Stock Exchange on Tuesday.
Fan said Thomson Reuters is in much better shape to weather retrenchment among investment banks than during 2001-2004 when the sector saw a 10 per cent staff reduction. During that period the markets unit saw an 18 per cent decline in revenues from peak to trough.
This time, Thomson Reuters could take some market share from Bloomberg, given the performance of foreign exchange versus fixed income. But the market environment is arguably worse. An estimated 15 to 20 per cent of the investment banking headcount has already disappeared.
Thomson Reuters’ Q3 results announced on 12 November showed that markets revenues beat consensus estimates, suggesting a modest decline in revenues, Fan said. However, he attributed this strength to transaction revenues driven by volatile foreign exchange and commodity markets, which may not be sustainable. Hence reiteration of his “sell” rating.
Thomson Reuters’ New York-listed shares have fallen more than 40 per cent year-to-date but in Toronto they are down only 27 per cent.
● SOURCE Seeking Alpha
Thomson Reuters' Q3 results better than expected
Wednesday 12 November 2008
Thomson Reuters reported stronger than expected third quarter results on Wednesday and said integration was ahead of plan. It affirmed its February forecast for 2008 revenue growth of six to eight per cent.
Gains in the professional division more than offset slowing growth in the markets division.
Q3 net income was $380 million (46 cents per share) compared with $2.97 billion ($4.61 per share) a year ago. Excluding non-recurring items, discontinued operations and others, profit was 48 cents per share, higher than the average analyst forecast of 34 cents.
Revenues were $3.3 billion, eight per cent higher than a year ago. Underlying operating profit was 17 per cent higher at $676 million. Media revenues were five per cent higher at $111 million.
“Our results demonstrate the strength, breadth and balance of our company, as our business continued to perform well in the third quarter and our integration plan began to deliver accelerated early savings,” CEO Tom Glocer said.
"The strong growth and profitability of our large Professional Division highlighted its ability to perform well through the economic cycle, while our Markets Division delivered good results despite extreme conditions in global financial markets.
"We are benefiting from our business model which focuses on achieving leading positions in key professional markets, seeking profitable growth in emerging as well as developed markets and providing our customers with deeply relevant content and services via superior product platforms.
"Our revenue growth rates continue to lead our markets and, coupled with integration savings and cost discipline, will help drive continuing profit growth. Moreover, our ability to translate profits into cash flow, supported by our strong balance sheet and liquidity, should allow us to take advantage of investment opportunities that may result from market disruptions while maintaining a disciplined approach to capital allocation."
Glocer said it was the most “wrenching” period he had seen in his 15 years with the Reuters business.
Some analysts have said Thomson Reuters’ revenue could fall in 2009 due to budget cutbacks and payroll cuts among its financial services industry clients. Reuters reported earlier that financial services firms and their staff are being forced to a new era of austerity.
Financial firms worldwide have slashed more than 130,000 jobs in the current global financial crisis, with thousands more losses expected as banks totter and hedge funds haemorrhage assets.
Wall Street bonuses could fall by 41 per cent in 2009 and in the City of London, the cash bonus pool is forecast to fall by nearly 60 per cent this year.
A separate Reuters report on Wednesday said a number of deals designed to cure the crisis are in danger of unravelling, with losses mounting at banks and economies showing signs of serious deterioration.
Thomson Reuters’ London-traded shares, which have lost about 30 per cent of their value since the 17 April merger, closed 4.55 per cent higher. They gained 2.86 per cent in Toronto, 0.46 per cent in New York, and 1.3 per cent on NASDAQ.
● SOURCE Thomson Reuters
Gains in the professional division more than offset slowing growth in the markets division.
Q3 net income was $380 million (46 cents per share) compared with $2.97 billion ($4.61 per share) a year ago. Excluding non-recurring items, discontinued operations and others, profit was 48 cents per share, higher than the average analyst forecast of 34 cents.
Revenues were $3.3 billion, eight per cent higher than a year ago. Underlying operating profit was 17 per cent higher at $676 million. Media revenues were five per cent higher at $111 million.
“Our results demonstrate the strength, breadth and balance of our company, as our business continued to perform well in the third quarter and our integration plan began to deliver accelerated early savings,” CEO Tom Glocer said.
"The strong growth and profitability of our large Professional Division highlighted its ability to perform well through the economic cycle, while our Markets Division delivered good results despite extreme conditions in global financial markets.
"We are benefiting from our business model which focuses on achieving leading positions in key professional markets, seeking profitable growth in emerging as well as developed markets and providing our customers with deeply relevant content and services via superior product platforms.
"Our revenue growth rates continue to lead our markets and, coupled with integration savings and cost discipline, will help drive continuing profit growth. Moreover, our ability to translate profits into cash flow, supported by our strong balance sheet and liquidity, should allow us to take advantage of investment opportunities that may result from market disruptions while maintaining a disciplined approach to capital allocation."
Glocer said it was the most “wrenching” period he had seen in his 15 years with the Reuters business.
Some analysts have said Thomson Reuters’ revenue could fall in 2009 due to budget cutbacks and payroll cuts among its financial services industry clients. Reuters reported earlier that financial services firms and their staff are being forced to a new era of austerity.
Financial firms worldwide have slashed more than 130,000 jobs in the current global financial crisis, with thousands more losses expected as banks totter and hedge funds haemorrhage assets.
Wall Street bonuses could fall by 41 per cent in 2009 and in the City of London, the cash bonus pool is forecast to fall by nearly 60 per cent this year.
A separate Reuters report on Wednesday said a number of deals designed to cure the crisis are in danger of unravelling, with losses mounting at banks and economies showing signs of serious deterioration.
Thomson Reuters’ London-traded shares, which have lost about 30 per cent of their value since the 17 April merger, closed 4.55 per cent higher. They gained 2.86 per cent in Toronto, 0.46 per cent in New York, and 1.3 per cent on NASDAQ.
● SOURCE Thomson Reuters
Wall Street layoffs to impact Thomson Reuters' results
Monday 10 November 2008
Most eyes on Thomson Reuters’ Q3 results on Wednesday will be on revenue momentum in the markets division, which accounts for about half of total revenues, the National Post said on Monday.
UBS analyst Jeffrey Fan, who rates the stock a sell, is calling for about four per cent organic growth, in line with most estimates. He reiterates his view, however, that the division could see revenue declines of about five per cent for next year, given the time lag between layoffs at investment banks and the impact on the company’s bottom line.
The firm’s markets business is susceptible to downturns in the financial services sector because it depends on banks and insurance firms to buy its data and computer terminals, National Post said.
“Until investors are comfortable that market revenues have reached a trough, we believe [Thomson Reuters] is likely to underperform,” Fan wrote in a note to clients.
The analyst has previously written that he does not expect a share price recovery for Thomson Reuters until at least the middle of next year.
National Post said the company’s stock is down about 30 per cent year to date.
The Associated Press said the July-September results could show some fallout from the financial crisis but much of the effect would not be seen until later quarters because of a lag in data-terminal subscriptions.
“Thomson Reuters will be somewhat insulated from the negative effects either way,” it said. “Its markets division, in which its data-terminal business falls, accounted for only about 35 percent of the company’s profits in the first half of the year. Other businesses, such as professional publications for lawyers and accountants, remain strong.”
AP said analysts polled by the company’s Thomson Reuters service expect, on average, earnings of 34 cents per share on revenue of $3.25 billion.
Looking ahead, it said that in the fourth quarter more fallout was expected from the financial crisis as subscription numbers catch up with the disappearance of major clients.
● SOURCE National Post | Associated Press
The Associated Press said the July-September results could show some fallout from the financial crisis but much of the effect would not be seen until later quarters because of a lag in data-terminal subscriptions.
“Thomson Reuters will be somewhat insulated from the negative effects either way,” it said. “Its markets division, in which its data-terminal business falls, accounted for only about 35 percent of the company’s profits in the first half of the year. Other businesses, such as professional publications for lawyers and accountants, remain strong.”
AP said analysts polled by the company’s Thomson Reuters service expect, on average, earnings of 34 cents per share on revenue of $3.25 billion.
Looking ahead, it said that in the fourth quarter more fallout was expected from the financial crisis as subscription numbers catch up with the disappearance of major clients.
● SOURCE National Post | Associated Press
‘Relentless’ cost-cutting in downturn
Wednesday 22 October 2008
Thomson Reuters will cut costs relentlessly to deal with the global financial crisis but further redundancies are not foreseen, online reports said on Wednesday.
In a memo to staff yesterday, Devin Wenig, markets division CEO, laid out an austerity plan to help get the company through the deep and unprecedented malaise gripping the banking industry, The Daily Mail said.
The website Paid Content quoted him as saying: “Many of our big customers are struggling and there is talk of a global recession. We are in a period of unprecedented change that seems to be unfolding in real time... The changes we are witnessing are global and deep and this is very different to a cyclical downturn.”
Wenig admitted the group’s top 25 large accounts are under pressure and said: “The short-term tactical response to this tough market is that we will be relentless about costs, efficiency and challenging the status quo. I don’t apologise for that; every dollar we can drive out of things like travel, entertainment, research that no-one reads, information requests that are not critical and meetings that don’t need to happen, is another dollar we can invest in the critical sales, product, news or service initiatives that will really drive this firm forward.”
Paid Content said a Thomson Reuters spokesperson refuted reports of a coming wave of redundancies. The Mail said Wenig had vowed to accelerate the group’s efforts to strip out costs and slash headcount, crystallising fears that the financial news and data division, which accounts for 60 per cent of group profits, will suffer as banks across the globe shed staff.
“As staff levels plunge at banks, so, too, will demand for Reuters’ news and data terminals,” the Mail said.
“Wenig said he would step up a programme designed to squeeze over £700m in costs out of the combined group by 2011.
“He also signalled that job cuts were creeping up his agenda.
“Wenig told staff: ‘We will be relentless about costs and efficiencies and restrictions on headcount will be followed to the letter’,” the Mail said.
But Paid Content said there were no new numbers in the memo: “just a reminder that Wenig & Co. are taking no prisoners when it comes to cost saving in uncertain times...”
It was not all bad news, however. Wenig said it was an absolute certainty that global economies will recover and that a growing global class of wealthy people would still need financial information and advice.
“The environment may be deteriorating, but we have had several strong sales months and I believe we are winning share,” he added.
● SOURCE The Daily Mail | Paid Content
In a memo to staff yesterday, Devin Wenig, markets division CEO, laid out an austerity plan to help get the company through the deep and unprecedented malaise gripping the banking industry, The Daily Mail said.
The website Paid Content quoted him as saying: “Many of our big customers are struggling and there is talk of a global recession. We are in a period of unprecedented change that seems to be unfolding in real time... The changes we are witnessing are global and deep and this is very different to a cyclical downturn.”
Wenig admitted the group’s top 25 large accounts are under pressure and said: “The short-term tactical response to this tough market is that we will be relentless about costs, efficiency and challenging the status quo. I don’t apologise for that; every dollar we can drive out of things like travel, entertainment, research that no-one reads, information requests that are not critical and meetings that don’t need to happen, is another dollar we can invest in the critical sales, product, news or service initiatives that will really drive this firm forward.”
Paid Content said a Thomson Reuters spokesperson refuted reports of a coming wave of redundancies. The Mail said Wenig had vowed to accelerate the group’s efforts to strip out costs and slash headcount, crystallising fears that the financial news and data division, which accounts for 60 per cent of group profits, will suffer as banks across the globe shed staff.
“As staff levels plunge at banks, so, too, will demand for Reuters’ news and data terminals,” the Mail said.
“Wenig said he would step up a programme designed to squeeze over £700m in costs out of the combined group by 2011.
“He also signalled that job cuts were creeping up his agenda.
“Wenig told staff: ‘We will be relentless about costs and efficiencies and restrictions on headcount will be followed to the letter’,” the Mail said.
But Paid Content said there were no new numbers in the memo: “just a reminder that Wenig & Co. are taking no prisoners when it comes to cost saving in uncertain times...”
It was not all bad news, however. Wenig said it was an absolute certainty that global economies will recover and that a growing global class of wealthy people would still need financial information and advice.
“The environment may be deteriorating, but we have had several strong sales months and I believe we are winning share,” he added.
● SOURCE The Daily Mail | Paid Content
Thomson Reuters in top 50 for UK women
Tuesday 14 October 2008
Thomson Reuters has been named as one of the 50 best places for women to work in the UK. Companies were rated on three key areas: how they recruit top female talent, how they retain and develop female employees, and case studies of successful female employees.
Susan Taylor-Martin, managing director, UK and Ireland, markets division, said: “It’s fantastic that Thomson Reuters has been recognised in this list of companies that have proven recruitment, retention and development policies for women. We were able to provide real examples of women who use flexible working practices to juggle career, family, study and work in the community.
“We’re also proud of our global women’s affinity group and the role its members play in providing mentoring and support to female employees.”
The list was compiled by Aurora, a marketing company, and published in The Times. It did not rank the top 50 companies.
● SOURCE The Times
Susan Taylor-Martin, managing director, UK and Ireland, markets division, said: “It’s fantastic that Thomson Reuters has been recognised in this list of companies that have proven recruitment, retention and development policies for women. We were able to provide real examples of women who use flexible working practices to juggle career, family, study and work in the community.
“We’re also proud of our global women’s affinity group and the role its members play in providing mentoring and support to female employees.”
The list was compiled by Aurora, a marketing company, and published in The Times. It did not rank the top 50 companies.
● SOURCE The Times
World crisis will hurt us, Tom Glocer says
Thursday 02 October 2008
Thomson Reuters reaffirmed its full-year outlook on Thursday but Tom Glocer said the world financial crisis will hurt the company as banks lose staff and take out trading and information terminals.
“You’ve got to say this is a negative short to middle term,” the CEO told analysts at a London investor day. But he said the banking consolidation now beginning represents a long-term opportunity.
“There’s a lot of compensating work that needs to be done now to stitch together all these trading operations,” Glocer said.
Thomson Reuters’ markets division is exposed to financial services and contributes 59 per cent of group sales. Glocer said the Thomson Financial legal and health professional business would help the company to weather the storm.
In slides for the presentation the company said it expected revenue growth of 6 to 8 per cent, almost all organic, and an underlying profit margin of 19 to 21 per cent for 2008.
It also reiterated targets to generate free cash flow of 11 to 12 per cent of sales for capital expenditure of 8 to 9 per cent of revenue.
The company said it had completed its refinancing needs for Thomson’s acquisition of Reuters in April through long-term debt offerings in June. It had a $2.5 billion credit facility on which it had not drawn.
Devin Wenig, markets division CEO, said the company’s foreign exchange business had its best month ever in September. But he could not predict how long it would take until conditions for the division as a whole would improve.
“We certainly are not viewing this through rose-coloured glasses. We’ve never seen a market like this. There are parts of our business that are really challenged right now,” he said.
● SOURCE Reuters
“You’ve got to say this is a negative short to middle term,” the CEO told analysts at a London investor day. But he said the banking consolidation now beginning represents a long-term opportunity.
“There’s a lot of compensating work that needs to be done now to stitch together all these trading operations,” Glocer said.
Thomson Reuters’ markets division is exposed to financial services and contributes 59 per cent of group sales. Glocer said the Thomson Financial legal and health professional business would help the company to weather the storm.
In slides for the presentation the company said it expected revenue growth of 6 to 8 per cent, almost all organic, and an underlying profit margin of 19 to 21 per cent for 2008.
It also reiterated targets to generate free cash flow of 11 to 12 per cent of sales for capital expenditure of 8 to 9 per cent of revenue.
The company said it had completed its refinancing needs for Thomson’s acquisition of Reuters in April through long-term debt offerings in June. It had a $2.5 billion credit facility on which it had not drawn.
Devin Wenig, markets division CEO, said the company’s foreign exchange business had its best month ever in September. But he could not predict how long it would take until conditions for the division as a whole would improve.
“We certainly are not viewing this through rose-coloured glasses. We’ve never seen a market like this. There are parts of our business that are really challenged right now,” he said.
● SOURCE Reuters
Deutsche Bank downgrades Thomson Reuters shares
Friday 19 September 2008
Deutsche Bank downgraded Thomson Reuters to “sell” from “buy” and cut its price target on the stock to 1,000 pence from 2,400 pence on Friday.
It said it sees revenue shortfall in the company’s markets division from the turmoil in the financial markets.
Fifty per cent of the division’s revenue are headcount driven and this will now decline faster than previously expected, analyst Mark Braley wrote in a note to clients.
“The direct hit to TR Market’s headcount-driven business will be severe,” Braley said. He now expects the investment banking industry to lose 25 per cent of jobs in 2008-2010, up from his previous forecast of 15 per cent.
The job losses will be as severe as those seen in the 1969-1975 downturn and far worse than 1987-1991 or 2001-2003, he believes.
Bank failures and mergers will cut demand for Thomson Reuters’ systems and software while a sustained period of market paralysis will see a drop in usage volumes. Pricing will be inevitably weaker.
Thomson Reuters shares traded on the London Stock Exchange at 1,360 pence, up 7.09 per cent, at 0920 GMT.
● SOURCE Reuters
It said it sees revenue shortfall in the company’s markets division from the turmoil in the financial markets.
Fifty per cent of the division’s revenue are headcount driven and this will now decline faster than previously expected, analyst Mark Braley wrote in a note to clients.
“The direct hit to TR Market’s headcount-driven business will be severe,” Braley said. He now expects the investment banking industry to lose 25 per cent of jobs in 2008-2010, up from his previous forecast of 15 per cent.
The job losses will be as severe as those seen in the 1969-1975 downturn and far worse than 1987-1991 or 2001-2003, he believes.
Bank failures and mergers will cut demand for Thomson Reuters’ systems and software while a sustained period of market paralysis will see a drop in usage volumes. Pricing will be inevitably weaker.
Thomson Reuters shares traded on the London Stock Exchange at 1,360 pence, up 7.09 per cent, at 0920 GMT.
● SOURCE Reuters
Markets division revenue ‘to take a hit’
Friday 19 September 2008
Thomson Reuters markets division revenue will likely take a hit from the current financial markets turmoil, at least two analysts said on Friday.
“Given that more financial institutions may still be at risk it seems likely... that Markets revenues will turn negative next year,” analyst Gareth Thomas of Collins Stewart wrote in a note to clients.
Mark Braley of Deutsche Bank noted that 50 per cent of the markets’ revenue are headcount driven and this will now decline faster than previously expected.
He downgraded the stock to “sell” from “buy” and cut his price target to 1,000 pence from 2,400 pence.
“The direct hit to TR Market’s headcount-driven business will be severe,” Braley said.
The markets division includes the news operations as well as financial data and tools for investment banks and other financial firms.
Thomson Reuters shares traded on the London Stock Exchange were 10.63 per cent higher at 1,405 pence at 1230 GMT on Friday.
● SOURCE Reuters
“Given that more financial institutions may still be at risk it seems likely... that Markets revenues will turn negative next year,” analyst Gareth Thomas of Collins Stewart wrote in a note to clients.
Mark Braley of Deutsche Bank noted that 50 per cent of the markets’ revenue are headcount driven and this will now decline faster than previously expected.
He downgraded the stock to “sell” from “buy” and cut his price target to 1,000 pence from 2,400 pence.
“The direct hit to TR Market’s headcount-driven business will be severe,” Braley said.
The markets division includes the news operations as well as financial data and tools for investment banks and other financial firms.
Thomson Reuters shares traded on the London Stock Exchange were 10.63 per cent higher at 1,405 pence at 1230 GMT on Friday.
● SOURCE Reuters
Revenue ‘strongly positive’ - Tom Glocer
Thursday 18 September 2008
Revenue at Thomson Reuters’ markets division has been “strongly positive” through the last week of financial crisis on Wall Street, CEO Tom Glocer said on Thursday.
Sales were “still tracking to positive revenue growth next year” but this week’s turmoil “raises the potential to go negative”, he said at the annual Goldman Sachs Communacopia Conference in New York.
Glocer said the institutions toppled by the financial crisis of recent months accounted for just 1 per cent of Thomson Reuters’ annual revenues.
“This week there has obviously been extraordinary panic, but it’s not like it’s been rosy the past 13 or 14 months,” he said.
Before the “major sea-shift” in financial markets, the group had been on course to record positive revenue growth next year.
If the current crisis were limited to the already known consequences of the collapse of Lehman Brothers, the takeovers of Merrill Lynch and Bear Stearns, and the government bail-outs of AIG, Fannie Mae and Freddie Mac, there was “the potential [for sales growth] to go negative, but the business is resilient enough that we’d have a significant shot at going positive next year”.
The CEO added: “If we’re at the beginning of the 1930s, as some would say, it will be more serious.”
Glocer said it was difficult for him to reconcile the company’s positive performance this far into the credit crisis with his experiences in previous economic and financial downturns.
Thomson Reuters shares rebounded in New York and Toronto, regaining some of the losses caused by the financial market shakeout, but lost further ground in London.
● SOURCE Dow Jones | CNN
Sales were “still tracking to positive revenue growth next year” but this week’s turmoil “raises the potential to go negative”, he said at the annual Goldman Sachs Communacopia Conference in New York.
Glocer said the institutions toppled by the financial crisis of recent months accounted for just 1 per cent of Thomson Reuters’ annual revenues.
“This week there has obviously been extraordinary panic, but it’s not like it’s been rosy the past 13 or 14 months,” he said.
Before the “major sea-shift” in financial markets, the group had been on course to record positive revenue growth next year.
If the current crisis were limited to the already known consequences of the collapse of Lehman Brothers, the takeovers of Merrill Lynch and Bear Stearns, and the government bail-outs of AIG, Fannie Mae and Freddie Mac, there was “the potential [for sales growth] to go negative, but the business is resilient enough that we’d have a significant shot at going positive next year”.
The CEO added: “If we’re at the beginning of the 1930s, as some would say, it will be more serious.”
Glocer said it was difficult for him to reconcile the company’s positive performance this far into the credit crisis with his experiences in previous economic and financial downturns.
Thomson Reuters shares rebounded in New York and Toronto, regaining some of the losses caused by the financial market shakeout, but lost further ground in London.
● SOURCE Dow Jones | CNN
Thomson Reuters ‘halts hiring, travel’
Wednesday 17 September 2008
Thomson Reuters, hit by fallout from the financial crisis, has stopped hiring in its markets division and limited travel to hold down costs, The Wall Street Journal reported.
Citing an internal Thomson Reuters memo, it said new positions will be filled with existing employees, except where jobs are being moved to lower-cost locales such as Beijing, Bangalore or Poland.
Devin Wenig, CEO of the markets division, told staff that the company needs to make “prudent choices” as the pace and intensity of the changing financial landscape is “exceptional”.
The WSJ report, picked up by Thomson Reuters’ competitor Bloomberg, said jobs that have been vacated can be filled with an outside employee only with the approval of certain executives.
● SOURCE The Wall Street Journal | Bloomberg
Citing an internal Thomson Reuters memo, it said new positions will be filled with existing employees, except where jobs are being moved to lower-cost locales such as Beijing, Bangalore or Poland.
Devin Wenig, CEO of the markets division, told staff that the company needs to make “prudent choices” as the pace and intensity of the changing financial landscape is “exceptional”.
The WSJ report, picked up by Thomson Reuters’ competitor Bloomberg, said jobs that have been vacated can be filled with an outside employee only with the approval of certain executives.
● SOURCE The Wall Street Journal | Bloomberg
Shares ‘tale of two cities’ - Tom Glocer
Tuesday 12 August 2008
Thomson Reuters is looking into ways of reducing the widening discount in its share price on opposite sides of the Atlantic, The Daily Telegraph reported.
The discount widened after the price fell 5 per cent in London but rose 1.5 per cent in New York on Tuesday’s slightly downbeat second quarter results, it said.
Chief executive Tom Glocer said he was puzzled by the continued London discount and he was looking to reduce the gap, the newspaper reported.
“It’s a tale of two cities,” he said. “The North American investors know the professional side of the business well, and have got their heads around the markets division, but then in London, we trade at around a 20 per cent discount.”
The discount was at 19.5 per cent today. The shares closed at 1481 pence, down 77, in London, and $34.98 (1840 pence) in late trading in New York.
“It is a bit puzzling why there is such a large discount as a share in one place is exactly economically equal to another,” Glocer said.
He acknowledged that US investors are buying shares in London purely to get a discount. “That’s something we’re looking at when we repurchase shares,” Glocer said. Thomson Reuters has just completed a $500 share buyback programme.
The Daily Telegraph said Glocer played down concerns about the company’s growth rate, saying that to achieve 7 per cent “12 months into this serious financial crisis” looks like “a very good number to us”. Growth will temper but it will not “fall off a cliff the way it did in 2002-03”, he added.
The newspaper noted that the markets division, whose main business is providing financial news, data feeds and trading platforms to financial institutions, has recently introduced commentary and analysis articles by journalists.
“Mr Glocer defended the move, saying it was not at odds with the Reuters Trust principles of independence and freedom from bias.
“He said the analysis pieces would look into specific situations, and were in response to customer demand for views as well as news.”
● SOURCE The Daily Telegraph
The discount widened after the price fell 5 per cent in London but rose 1.5 per cent in New York on Tuesday’s slightly downbeat second quarter results, it said.
Chief executive Tom Glocer said he was puzzled by the continued London discount and he was looking to reduce the gap, the newspaper reported.
“It’s a tale of two cities,” he said. “The North American investors know the professional side of the business well, and have got their heads around the markets division, but then in London, we trade at around a 20 per cent discount.”
The discount was at 19.5 per cent today. The shares closed at 1481 pence, down 77, in London, and $34.98 (1840 pence) in late trading in New York.
“It is a bit puzzling why there is such a large discount as a share in one place is exactly economically equal to another,” Glocer said.
He acknowledged that US investors are buying shares in London purely to get a discount. “That’s something we’re looking at when we repurchase shares,” Glocer said. Thomson Reuters has just completed a $500 share buyback programme.
The Daily Telegraph said Glocer played down concerns about the company’s growth rate, saying that to achieve 7 per cent “12 months into this serious financial crisis” looks like “a very good number to us”. Growth will temper but it will not “fall off a cliff the way it did in 2002-03”, he added.
The newspaper noted that the markets division, whose main business is providing financial news, data feeds and trading platforms to financial institutions, has recently introduced commentary and analysis articles by journalists.
“Mr Glocer defended the move, saying it was not at odds with the Reuters Trust principles of independence and freedom from bias.
“He said the analysis pieces would look into specific situations, and were in response to customer demand for views as well as news.”
● SOURCE The Daily Telegraph
Q2 revenue growth slows, shares fall
Tuesday 12 August 2008
Thomson Reuters, reporting combined results for the first time, said revenue growth in its key markets division, which includes news operations, was slower in the second quarter as the US credit crisis took a heavy toll on global investment banks.
It affirmed its full-year forecasts given in May, citing resilience in the Professional division, which sells databases and tools to accountants, lawyers, tax, health and other professionals.
But the London shares, which had gained 13 per cent since the beginning of August, fell 8 per cent before recovering some of the day’s loss. Analysts have said the real test will come late in the year when customers set their 2009 budgets.
“The results were not great,” Reuters itself quoted London derivatives trader Manoj Ladwa as saying. “The market was pricing in half-decent figures and that’s what it got.”
Q2 pro forma revenue rose 11 per cent from a year earlier to $3.4 billion, compared with a 12 per cent increase to $3.3 billion in the first quarter.
The company said markets revenue growth was driven by strength in sales and trading, investment and advisory, and enterprise businesses, particularly in Asia.
“We are encouraged by the robust revenue growth which we achieved despite the backdrop of a challenging economic environment,” CEO Tom Glocer said. This environment was likely to last at least until the end of the year.
Thomson Reuters said pro forma underlying profit – excluding amortization and other items – rose 15 per cent to $708 million.
The company said it completed its $500 million share buyback programme in July, less than three months after announcing it, and that it would repurchase shares from time to time in the future.
The stock fell as much as 8 per cent before recovering to 1,481 pence, nearly 5 per cent lower, in London. On the Toronto Stock Exchange the share fell 4.1 per cent before recovering slightly.
● SOURCE Reuters
It affirmed its full-year forecasts given in May, citing resilience in the Professional division, which sells databases and tools to accountants, lawyers, tax, health and other professionals.
But the London shares, which had gained 13 per cent since the beginning of August, fell 8 per cent before recovering some of the day’s loss. Analysts have said the real test will come late in the year when customers set their 2009 budgets.
“The results were not great,” Reuters itself quoted London derivatives trader Manoj Ladwa as saying. “The market was pricing in half-decent figures and that’s what it got.”
Q2 pro forma revenue rose 11 per cent from a year earlier to $3.4 billion, compared with a 12 per cent increase to $3.3 billion in the first quarter.
The company said markets revenue growth was driven by strength in sales and trading, investment and advisory, and enterprise businesses, particularly in Asia.
“We are encouraged by the robust revenue growth which we achieved despite the backdrop of a challenging economic environment,” CEO Tom Glocer said. This environment was likely to last at least until the end of the year.
Thomson Reuters said pro forma underlying profit – excluding amortization and other items – rose 15 per cent to $708 million.
The company said it completed its $500 million share buyback programme in July, less than three months after announcing it, and that it would repurchase shares from time to time in the future.
The stock fell as much as 8 per cent before recovering to 1,481 pence, nearly 5 per cent lower, in London. On the Toronto Stock Exchange the share fell 4.1 per cent before recovering slightly.
● SOURCE Reuters
Play our winning hand, CEO tells staff
Tuesday 12 August 2008
The Q2 results (April-June 2008) announced on Tuesday were very strong, CEO Tom Glocer said in a message to Thomson Reuters’ staff.
Despite challenging market conditions, both divisions of the company – markets and professional – are performing well.
“I want to congratulate everyone for contributing to these outstanding results,” Glocer said. “Our strong first-half results and continued positive sales momentum across the company give us confidence to confirm our full-year revenue growth and operating profit margin outlook at a time when others have lowered theirs...”
“We are well on our way to becoming ‘one company in one year.’”
“What can we expect in the months ahead? Most analysts predict that the slump in the economy is a long way from over. If so, we are prepared. In economic downturns, the truly great companies extend their lead over the competition, or as Warren Buffett likes to say, ‘You only find out who is swimming naked when the tide goes out.’ At Thomson Reuters, we may be swimming against a stronger tide at the moment, but we are wearing high-performance swimwear and fins. It may not be as much fun to manage through difficult times, when clients are cutting costs, but this can be our time to outperform, to pull away from the pack and emerge even stronger when the cycle turns.”
Glocer said Thomson Reuters could face an economic downturn with quiet confidence for three reasons:
● “We have the right business model: our core strengths match customer needs and market trends;
● “We serve the right markets: professional information markets will continue to grow;
● “We deliver the right products: the need for intelligent information has never been greater.”
He added: “I would not trade our opportunity for that of any other company I know. Sure, there will be some challenges in the coming months, but that’s what makes it interesting. We have a winning hand – let’s play it.”
● SOURCE Tom Glocer’s message to staff 12 August 2008
Despite challenging market conditions, both divisions of the company – markets and professional – are performing well.
“I want to congratulate everyone for contributing to these outstanding results,” Glocer said. “Our strong first-half results and continued positive sales momentum across the company give us confidence to confirm our full-year revenue growth and operating profit margin outlook at a time when others have lowered theirs...”
“We are well on our way to becoming ‘one company in one year.’”
“What can we expect in the months ahead? Most analysts predict that the slump in the economy is a long way from over. If so, we are prepared. In economic downturns, the truly great companies extend their lead over the competition, or as Warren Buffett likes to say, ‘You only find out who is swimming naked when the tide goes out.’ At Thomson Reuters, we may be swimming against a stronger tide at the moment, but we are wearing high-performance swimwear and fins. It may not be as much fun to manage through difficult times, when clients are cutting costs, but this can be our time to outperform, to pull away from the pack and emerge even stronger when the cycle turns.”
Glocer said Thomson Reuters could face an economic downturn with quiet confidence for three reasons:
● “We have the right business model: our core strengths match customer needs and market trends;
● “We serve the right markets: professional information markets will continue to grow;
● “We deliver the right products: the need for intelligent information has never been greater.”
He added: “I would not trade our opportunity for that of any other company I know. Sure, there will be some challenges in the coming months, but that’s what makes it interesting. We have a winning hand – let’s play it.”
● SOURCE Tom Glocer’s message to staff 12 August 2008
Investment and advisory chief quits
Wednesday 02 July 2008
Investment and advisory business chief Suresh Kavan has quit to join a unit of the Daily Mail and General Trust.
He will stay on until 31 July and then become chief executive of DMG Information, Devin Wenig, CEO of Thomson Reuters markets division, said in a statement. Kavan’s new job is based at Stamford, Connecticut.
His successor at Thomson Reuters is Eric Frank, who has led the investment management unit of the Thomson Reuters investment advisory business. He joined Thomson Financial in 2000 after it acquired Carson Group where he was managing director.
Kavan joined Thomson Financial when it bought Primark, a financial and data information company, in 2000.
● SOURCE Thomson Reuters
He will stay on until 31 July and then become chief executive of DMG Information, Devin Wenig, CEO of Thomson Reuters markets division, said in a statement. Kavan’s new job is based at Stamford, Connecticut.
His successor at Thomson Reuters is Eric Frank, who has led the investment management unit of the Thomson Reuters investment advisory business. He joined Thomson Financial in 2000 after it acquired Carson Group where he was managing director.
Kavan joined Thomson Financial when it bought Primark, a financial and data information company, in 2000.
● SOURCE Thomson Reuters
Leaked e-mail says job cuts soon
Wednesday 14 May 2008
A leaked internal e-mail confirms “significant” redundancies are about to be announced at Thomson Reuters to eliminate duplication caused by the merger.
The Guardian’s ● guardian.co.uk website said the e-mail was sent to senior managers by Devin Wenig, CEO of the markets division which includes the new company’s 2,600-strong global news operation.
It quoted him as writing: “It’s no secret that a significant amount of thought and planning has been dedicated to eliminating duplication and generating savings within our business. Over the next several days, we will communicate department by department the impact of our integration ... these actions will mean an immediate reduction in our headcount.”
Wenig added that the jobs that are impacted are largely the result of duplication between the two organisations. Most job losses will be completed by the end of the year but further cuts could be made if management decided to close certain products down completely.
“Going forward, there may be further merger related reductions in staff, but they will generally be tied to a specific decision to stop a business activity (such as to shut down a product, technology or a process).”
The website said Wenig also stressed that Thomson Reuters intends to grow in the medium term and that new jobs will be created.
It said a separate briefing document sent to managers in the markets division envisaged the cuts will be outlined from 14 to 22 May and consultations with unions and other bodies representing workers will begin on 19 May.
● SOURCE The Guardian
The Guardian’s ● guardian.co.uk website said the e-mail was sent to senior managers by Devin Wenig, CEO of the markets division which includes the new company’s 2,600-strong global news operation.
It quoted him as writing: “It’s no secret that a significant amount of thought and planning has been dedicated to eliminating duplication and generating savings within our business. Over the next several days, we will communicate department by department the impact of our integration ... these actions will mean an immediate reduction in our headcount.”
Wenig added that the jobs that are impacted are largely the result of duplication between the two organisations. Most job losses will be completed by the end of the year but further cuts could be made if management decided to close certain products down completely.
“Going forward, there may be further merger related reductions in staff, but they will generally be tied to a specific decision to stop a business activity (such as to shut down a product, technology or a process).”
The website said Wenig also stressed that Thomson Reuters intends to grow in the medium term and that new jobs will be created.
It said a separate briefing document sent to managers in the markets division envisaged the cuts will be outlined from 14 to 22 May and consultations with unions and other bodies representing workers will begin on 19 May.
● SOURCE The Guardian
Q1 revenue up 12% to $3.3 billion
Thursday 01 May 2008
Thomson Reuters, reporting its maiden Q1 results, said total revenue rose by 12 per cent from the previous year to roughly $3.3 billion – assuming Thomson and Reuters had existed as a joint company.
Thomson contributed about $1.8 billion to the total – a 10 per cent increase – and Reuters $1.4 billion – 13 per cent higher than Q1 2007.
The company, whose merger was completed on 17 April, said it expects 2008 pro forma revenue growth of 6 to 8 per cent.
“Our combined first quarter results and guidance for the full year reflect the robustness of our business, even in turbulent markets,” said Tom Glocer, CEO.
“Our Markets Division holds leading positions in higher growth segments of the financial markets, including foreign exchange, commodities, energy and emerging markets. Our leading positions in the less cyclical Professional markets of legal, tax and accounting, scientific and healthcare information also grew strongly in the quarter.
“These are high quality businesses with attractive profit margins and strong cash flow characteristics.”
He added: “Thomson Reuters is extremely well-positioned to capitalise on the growing demand across the world’s business and professional communities for intelligent information – insightful, high value content that can be used by human beings and machines. As an enlarged global business, Thomson Reuters will now also benefit from the value created by more diversified revenue streams, a larger capital base and synergies resulting from the combination of our businesses.”
The first Thomson Reuters dividend of $0.22253 per share will be paid on 15 September to shareholders of record as of 21 August. A quarterly dividend of $0.27 per share will be paid in December.
● SOURCE Thomson Reuters
Thomson contributed about $1.8 billion to the total – a 10 per cent increase – and Reuters $1.4 billion – 13 per cent higher than Q1 2007.
The company, whose merger was completed on 17 April, said it expects 2008 pro forma revenue growth of 6 to 8 per cent.
“Our combined first quarter results and guidance for the full year reflect the robustness of our business, even in turbulent markets,” said Tom Glocer, CEO.
“Our Markets Division holds leading positions in higher growth segments of the financial markets, including foreign exchange, commodities, energy and emerging markets. Our leading positions in the less cyclical Professional markets of legal, tax and accounting, scientific and healthcare information also grew strongly in the quarter.
“These are high quality businesses with attractive profit margins and strong cash flow characteristics.”
He added: “Thomson Reuters is extremely well-positioned to capitalise on the growing demand across the world’s business and professional communities for intelligent information – insightful, high value content that can be used by human beings and machines. As an enlarged global business, Thomson Reuters will now also benefit from the value created by more diversified revenue streams, a larger capital base and synergies resulting from the combination of our businesses.”
The first Thomson Reuters dividend of $0.22253 per share will be paid on 15 September to shareholders of record as of 21 August. A quarterly dividend of $0.27 per share will be paid in December.
● SOURCE Thomson Reuters
