Professional Division
Healthcare sale could raise $1 billion for Thomson Reuters
Tuesday 21 June 2011
Thomson Reuters could reap $1 billion from the sale of its healthcare division to reinvest in professional information and services in faster-growing markets such as Latin America and Asia.
Jim Smith, chief executive of the group’s professional division, told the Financial Times it had decided to sell the unit because expanding it to fit Thomson Reuters’ more international focus would have required heavy investment.
Thomson Reuters has begun to use the Reuters brand and infrastructure to widen its reach, the FT said.
“We could not have grown organically without the global footprint we acquired with Reuters. It made a profound difference to the way we think about ... our companies,” Smith said.
Thomson Reuters has asked for offers for the whole business, which Bernstein Research and BNP Paribas have valued at between $850 million and $1.2 billion. The healthcare business has three main divisions, focusing on insurance claims data, analytics for hospitals and clinical content – all heavily skewed to the US market.
The FT said Bernstein estimates disposals and free cash flow could allow Thomson Reuters to fund up to $5 billion of acquisitions by next year, but Smith said it was looking at smaller “fold-in” deals as well as potential investments in new products and services.
The professional division accounts for 43 per cent of group revenues and spans legal, tax, accounting, scientific and regulatory information. Peter Warwick, the division’s chief operating officer, said it was looking to Latin America, India, the Middle East and China, where it faces less competition from traditional professional information providers. “The future really lies in a blend of information, applications and services,” he said.
● SOURCE Financial Times
Jim Smith, chief executive of the group’s professional division, told the Financial Times it had decided to sell the unit because expanding it to fit Thomson Reuters’ more international focus would have required heavy investment.
Thomson Reuters has begun to use the Reuters brand and infrastructure to widen its reach, the FT said.
“We could not have grown organically without the global footprint we acquired with Reuters. It made a profound difference to the way we think about ... our companies,” Smith said.
Thomson Reuters has asked for offers for the whole business, which Bernstein Research and BNP Paribas have valued at between $850 million and $1.2 billion. The healthcare business has three main divisions, focusing on insurance claims data, analytics for hospitals and clinical content – all heavily skewed to the US market.
The FT said Bernstein estimates disposals and free cash flow could allow Thomson Reuters to fund up to $5 billion of acquisitions by next year, but Smith said it was looking at smaller “fold-in” deals as well as potential investments in new products and services.
The professional division accounts for 43 per cent of group revenues and spans legal, tax, accounting, scientific and regulatory information. Peter Warwick, the division’s chief operating officer, said it was looking to Latin America, India, the Middle East and China, where it faces less competition from traditional professional information providers. “The future really lies in a blend of information, applications and services,” he said.
● SOURCE Financial Times
Thomson Reuters hires former BusinessWeek editor-in-chief
Wednesday 02 December 2009
Former BusinessWeek editor-in-chief Stephen Adler will join Thomson Reuters as editorial director of the professional division, the company said on Wednesday.
Adler, who left BusinessWeek after McGraw-Hill said it would sell the struggling magazine to Bloomberg, will design and edit news and editorial content for the Thomson Reuters division that serves legal, healthcare, science, tax and accounting professionals.
He will report to Jim Smith, who runs the professional division, and will work with David Schlesinger, editor-in-chief, who said Adler's background "is perfect for helping us create news packages that are relevant to the customers (that) the businesses within Professional serve”.
Adler became BusinessWeek's editor-in-chief in 2005. Previously he worked for 16 years at The Wall Street Journal, including posts as legal editor, investigative editor and deputy managing editor, and edited The American Lawyer magazine.
"This is an incredible opportunity with a company that's leading the way into the future of business information and media," Adler said. "I have long respected the market-leading Professional businesses and world-class Reuters news team and look forward to working with both."
Adler is among the highest-profile departures from BusinessWeek, which shed many journalists and columnists after Bloomberg said it would buy the magazine. Bloomberg completed its purchase on Tuesday.
● SOURCE Reuters
Adler, who left BusinessWeek after McGraw-Hill said it would sell the struggling magazine to Bloomberg, will design and edit news and editorial content for the Thomson Reuters division that serves legal, healthcare, science, tax and accounting professionals.
He will report to Jim Smith, who runs the professional division, and will work with David Schlesinger, editor-in-chief, who said Adler's background "is perfect for helping us create news packages that are relevant to the customers (that) the businesses within Professional serve”.
Adler became BusinessWeek's editor-in-chief in 2005. Previously he worked for 16 years at The Wall Street Journal, including posts as legal editor, investigative editor and deputy managing editor, and edited The American Lawyer magazine.
"This is an incredible opportunity with a company that's leading the way into the future of business information and media," Adler said. "I have long respected the market-leading Professional businesses and world-class Reuters news team and look forward to working with both."
Adler is among the highest-profile departures from BusinessWeek, which shed many journalists and columnists after Bloomberg said it would buy the magazine. Bloomberg completed its purchase on Tuesday.
● SOURCE Reuters
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 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
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
Thomson Reuters ‘to use cash’ for acquisitions - report
Saturday 04 October 2008
Bosses of Thomson Reuters apparently have told analysts that they will be using cash primarily to invest in the business and to make acquisitions, The Times said on Saturday.
The professional division, supplying information to lawyers and accountants, was a priority, the newspaper said under the headline “Rumour of the day”.
“This potentially leaves the door open to acquiring Wolters Kluwer,” UBS said, The Times reported.
Wolters Kluwer is a Dutch information services and publishing company based in Amsterdam. It employs 19,500 people worldwide and in 2007 had revenues of €3.4 billion.
● SOURCE The Times
The professional division, supplying information to lawyers and accountants, was a priority, the newspaper said under the headline “Rumour of the day”.
“This potentially leaves the door open to acquiring Wolters Kluwer,” UBS said, The Times reported.
Wolters Kluwer is a Dutch information services and publishing company based in Amsterdam. It employs 19,500 people worldwide and in 2007 had revenues of €3.4 billion.
● 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
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
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
