Shares
Sell Thomson Reuters, Goldman Sachs tells investors
Thursday 26 January 2012
A Sell recommendation put Thomson Reuters shares under pressure on Thursday after Goldman Sachs cited concerns that job cuts at banking and financial customers will hurt results through this year. The New York-based investment bank downgraded the stock from Neutral.
Thomson Reuters’ financial services clients account for nearly 50 per cent of its revenues and Goldman believes the job cuts could amount to a three to five per cent drop in the number of users for the group’s desktop products in 2012.
“Thomson Reuters operates on a subscription model that means events from one year tend to impact the following year more profoundly, meaning deterioration from late last year will flow throughout 2012 results,” said Brian Karimzad, who is rated as a five-star analyst for the accuracy of his earnings estimates on Thomson Reuters. He also believes operating expense pressure at banks will limit the company’s pricing power.
The downgrade was the first analyst recommendation on TRI since chief operating officer James Smith replaced Tom Glocer as chief executive on 1 January.
“While we have confidence in Thomson Reuters’ new management team, we see few ‘quick fixes’ addressing deteriorating market share resulting from misdirected product development in the space,” Karimzad said.
He is in the minority of analysts urging investors to sell. Of the 19 analysts covering the stock, three rate it Sell, 13 have a Hold and three a Buy or a Strong Buy recommendation.
Goldman cut its six-month price target on the stock by $3 to $25.
● SOURCE The Globe and Mail
Thomson Reuters’ financial services clients account for nearly 50 per cent of its revenues and Goldman believes the job cuts could amount to a three to five per cent drop in the number of users for the group’s desktop products in 2012.
“Thomson Reuters operates on a subscription model that means events from one year tend to impact the following year more profoundly, meaning deterioration from late last year will flow throughout 2012 results,” said Brian Karimzad, who is rated as a five-star analyst for the accuracy of his earnings estimates on Thomson Reuters. He also believes operating expense pressure at banks will limit the company’s pricing power.
The downgrade was the first analyst recommendation on TRI since chief operating officer James Smith replaced Tom Glocer as chief executive on 1 January.
“While we have confidence in Thomson Reuters’ new management team, we see few ‘quick fixes’ addressing deteriorating market share resulting from misdirected product development in the space,” Karimzad said.
He is in the minority of analysts urging investors to sell. Of the 19 analysts covering the stock, three rate it Sell, 13 have a Hold and three a Buy or a Strong Buy recommendation.
Goldman cut its six-month price target on the stock by $3 to $25.
● SOURCE The Globe and Mail
Analysts lower TRI price target to $26
Thursday 15 December 2011
Equities research analysts at Piper Jaffray lowered their price target on Thomson Reuters shares to $26.00 on Thursday in a research note issued to investors.
TRI opened at $26.18 in New York. Thomson Reuters has a 52-week low of $25.58 and a 52-week high of $42.15. The stock’s 50-day moving average is $27.87 and its 200-day moving average is $31.20. The company’s market capitalisation is $21.665 billion and price-to-earnings ratio 15.68.
● SOURCE Localized
TRI opened at $26.18 in New York. Thomson Reuters has a 52-week low of $25.58 and a 52-week high of $42.15. The stock’s 50-day moving average is $27.87 and its 200-day moving average is $31.20. The company’s market capitalisation is $21.665 billion and price-to-earnings ratio 15.68.
● SOURCE Localized
Thomson Reuters stock plumbs new 52-week low ahead of Thanksgiving
Wednesday 23 November 2011
Thomson Reuters shares plumbed a new 52-week low in New York on Wednesday as markets headed into the US Thanksgiving Day holiday. The stock traded at $25.75, below its previous 52-week low of $26.11, before recovering slightly to close 2.40 per cent down at $26.06.
TRI’s average volume has been 1.3 million shares over the past 30 days. Over the past 52 weeks, the shares have traded between today’s low of $25.75 and a high of $42.15.
Financial News Network said the stock has potential upside of 27.1 per cent. Analysts’ consensus price target is $32.86.
● SOURCE The Street | Financial News Network
TRI’s average volume has been 1.3 million shares over the past 30 days. Over the past 52 weeks, the shares have traded between today’s low of $25.75 and a high of $42.15.
Financial News Network said the stock has potential upside of 27.1 per cent. Analysts’ consensus price target is $32.86.
● SOURCE The Street | Financial News Network
Analyst cuts price target on TR stock
Wednesday 02 November 2011
A Canadian analyst cut his price target for Thomson Reuters shares by $5 to $35 on Wednesday following the company's third quarter results.
Robert Bek of Toronto investment bank CIBC said Tuesday’s results – a higher-than-expected rise in third-quarter profit and revenue – were “decent”. But he noted chief executive Tom Glocer’s forecast that growth in its key markets division will likely have to wait until 2013 as restructuring efforts announced in July play out.
“As such, we believe the Street will discount numbers further while waiting on execution,” Bek said. He maintained a “sector performer” rating on the stock.
Thomson Reuters shares traded 0.24 per cent higher at $29.09 in New York on Wednesday. In Toronto the stock was 0.57 per cent lower at C$29.53.
● SOURCE The Globe and Mail
Robert Bek of Toronto investment bank CIBC said Tuesday’s results – a higher-than-expected rise in third-quarter profit and revenue – were “decent”. But he noted chief executive Tom Glocer’s forecast that growth in its key markets division will likely have to wait until 2013 as restructuring efforts announced in July play out.
“As such, we believe the Street will discount numbers further while waiting on execution,” Bek said. He maintained a “sector performer” rating on the stock.
Thomson Reuters shares traded 0.24 per cent higher at $29.09 in New York on Wednesday. In Toronto the stock was 0.57 per cent lower at C$29.53.
● SOURCE The Globe and Mail
Thomson Reuters Q3 earnings beat estimates
Tuesday 01 November 2011
Thomson Reuters’ third-quarter profit rose by 10 per cent, higher than expected, as strength in its professional division offset weakness in the markets business.
The company, in Q3 results announced on Tuesday, reaffirmed its outlook for 2011 as its margins improved.
In September the company said it would merge the professional division, which serves mainly lawyers and accountants, with the struggling markets division, which targets banks and other financial institutions.
“We expect the benefit of these changes will improve sales performance in 2012 and benefit 2013 revenue growth,” chief executive Tom Glocer said in a statement.
Markets accounts for about 58 per cent of overall group revenue. The division posted revenue growth of just one per cent as banks continued to slash jobs and costs.
The company has also been hurt by the slow uptake of its new Eikon desktop product for traders and analysts, Reuters reported. It sold or migrated 32,000 Eikons by the end of September, up from 28,000 three months earlier.
“Conditions were challenging in some of our markets, but that’s not a good enough excuse as various competitors were still able to grow their businesses,” Glocer said in a memo to staff. The company would grow by driving sales in fast-growing markets and taking share in slower ones, he said.
In July Reuters reported sources familiar with board thinking saying Glocer was under pressure from directors and the company’s controlling shareholder, Canada’s Thomson family, to improve performance. At that time, sources said he had about a year to make that happen.
James Smith, former head of the professional division, was elevated to the new role of chief operating officer in September, putting him in a strong position to succeed Glocer.
Thomson Reuters reported third-quarter revenue of $3.26 billion, up five per cent before currency changes. Analysts had expected $3.23 billion.
Revenue in the professional division, which accounts for 42 per cent of overall revenue, increased 10 per cent after growing eight per cent in the second quarter. The one per cent revenue growth in markets was unchanged from the second quarter.
Adjusted earnings per share rose to 56 cents from 45 cents in the same quarter last year. Analysts had expected 53 cents.
Thomson Reuters said it still expects revenue to grow by a mid-single-digit percentage rate in 2011.
The company’s underlying operating margin improved to 22 per cent, from 21.2 per cent a year earlier.
Thomson Reuters shares have fallen 20 per cent this year, worse than the market at large.
● SOURCE Reuters
The company, in Q3 results announced on Tuesday, reaffirmed its outlook for 2011 as its margins improved.
In September the company said it would merge the professional division, which serves mainly lawyers and accountants, with the struggling markets division, which targets banks and other financial institutions.
“We expect the benefit of these changes will improve sales performance in 2012 and benefit 2013 revenue growth,” chief executive Tom Glocer said in a statement.
Markets accounts for about 58 per cent of overall group revenue. The division posted revenue growth of just one per cent as banks continued to slash jobs and costs.
The company has also been hurt by the slow uptake of its new Eikon desktop product for traders and analysts, Reuters reported. It sold or migrated 32,000 Eikons by the end of September, up from 28,000 three months earlier.
“Conditions were challenging in some of our markets, but that’s not a good enough excuse as various competitors were still able to grow their businesses,” Glocer said in a memo to staff. The company would grow by driving sales in fast-growing markets and taking share in slower ones, he said.
In July Reuters reported sources familiar with board thinking saying Glocer was under pressure from directors and the company’s controlling shareholder, Canada’s Thomson family, to improve performance. At that time, sources said he had about a year to make that happen.
James Smith, former head of the professional division, was elevated to the new role of chief operating officer in September, putting him in a strong position to succeed Glocer.
Thomson Reuters reported third-quarter revenue of $3.26 billion, up five per cent before currency changes. Analysts had expected $3.23 billion.
Revenue in the professional division, which accounts for 42 per cent of overall revenue, increased 10 per cent after growing eight per cent in the second quarter. The one per cent revenue growth in markets was unchanged from the second quarter.
Adjusted earnings per share rose to 56 cents from 45 cents in the same quarter last year. Analysts had expected 53 cents.
Thomson Reuters said it still expects revenue to grow by a mid-single-digit percentage rate in 2011.
The company’s underlying operating margin improved to 22 per cent, from 21.2 per cent a year earlier.
Thomson Reuters shares have fallen 20 per cent this year, worse than the market at large.
● SOURCE Reuters
TRI hits new 52-week low in New York
Wednesday 07 September 2011
Thomson Reuters shares hit a new 52-week low as they traded at $28.75, below the previous 52-week low of $28.91. Average volume has been 1.1 million shares over the past 30 days.
The stock closed at $28.90 in New York and C$28.59 in Toronto on Tuesday.
US financial blog The Street said the shares were down 19.8 per cent year to date as of the close of trading on Friday.
The Street Ratings recently downgraded Thomson Reuters to hold from buy. It cited strengths in multiple areas, such as compelling growth in net income, revenue growth and impressive record of earnings per share growth. “However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally poor debt management and poor profit margins.”
● SOURCE The Street
The stock closed at $28.90 in New York and C$28.59 in Toronto on Tuesday.
US financial blog The Street said the shares were down 19.8 per cent year to date as of the close of trading on Friday.
The Street Ratings recently downgraded Thomson Reuters to hold from buy. It cited strengths in multiple areas, such as compelling growth in net income, revenue growth and impressive record of earnings per share growth. “However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally poor debt management and poor profit margins.”
● SOURCE The Street
Thomson Reuters shares downgraded to hold from buy
Monday 29 August 2011
Thomson Reuters has been downgraded by TheStreet Ratings to hold from buy.
The US digital financial media firm said the company’s strengths can be seen in multiple areas, such as compelling growth in net income, revenue growth and impressive record of earnings per share growth.
“However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally poor debt management and poor profit margins.”
TheStreet noted net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the media industry, but revenue growth trails the industry average.
It said the company has underperformed the S&P 500 Index, declining 12.88 per cent from its price level a year ago. “Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve.”
Thomson Reuters shares were 1.69 per cent higher at $30.64 in New York and 1.66 per cent higher at C$30.03 in Toronto.
● SOURCE The Street
The US digital financial media firm said the company’s strengths can be seen in multiple areas, such as compelling growth in net income, revenue growth and impressive record of earnings per share growth.
“However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally poor debt management and poor profit margins.”
TheStreet noted net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the media industry, but revenue growth trails the industry average.
It said the company has underperformed the S&P 500 Index, declining 12.88 per cent from its price level a year ago. “Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve.”
Thomson Reuters shares were 1.69 per cent higher at $30.64 in New York and 1.66 per cent higher at C$30.03 in Toronto.
● SOURCE The Street
Thomson Reuters shares to go ex-dividend
Monday 15 August 2011
Thomson Reuters shares go ex-dividend on 16 August. Owners of shares at market close in New York and Toronto on 15 August are eligible for a dividend of 31 cents per share. At a price of $31.76 on 14 August, the dividend yield is 3.9 per cent.
Over the past 30 days, the average traded volume for the stock has been just under one million shares per day at 964,000. The group’s market capitalisation is $26.4 billion. As of the close of trading on Friday, the shares were down 15.4 per cent year to date.
TheStreet Ratings rates Thomson Reuters as a buy. It says the company’s strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, impressive record of earnings per share growth, good cash flow from operations and notable return on equity. “We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.”
● SOURCE The Street
Over the past 30 days, the average traded volume for the stock has been just under one million shares per day at 964,000. The group’s market capitalisation is $26.4 billion. As of the close of trading on Friday, the shares were down 15.4 per cent year to date.
TheStreet Ratings rates Thomson Reuters as a buy. It says the company’s strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, impressive record of earnings per share growth, good cash flow from operations and notable return on equity. “We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.”
● SOURCE The Street
Broker cuts Thomson Reuters for second time in four days
Tuesday 26 July 2011
For the second time in four days, a Canadian brokerage has downgraded Thomson Reuters’ price target. Royal Bank of Canada's brokerage RBC Dominion Securities also removed its outperform rating and said the group’s markets division may not deliver five per cent revenue growth next year.
“We now view the stock as largely range-bound, pending better visibility on the growth outlook for Markets,” analyst Drew McReynolds wrote in a research report. The company is likely to provide guidance with its fourth-quarter results in February 2012. “In the meantime, we expect sluggish 1 per cent to 2 per cent growth from Markets to be a headwind for the stock.”
RBC downgraded its rating to sector perform and dropped its price target to US$42. It had cut the target from $48 to $46 on Friday. The stock is down 12 per cent since the end of April, and McReynolds suggests investors wait for a “more timely” entry point.
● SOURCE The Globe and Mail
“We now view the stock as largely range-bound, pending better visibility on the growth outlook for Markets,” analyst Drew McReynolds wrote in a research report. The company is likely to provide guidance with its fourth-quarter results in February 2012. “In the meantime, we expect sluggish 1 per cent to 2 per cent growth from Markets to be a headwind for the stock.”
RBC downgraded its rating to sector perform and dropped its price target to US$42. It had cut the target from $48 to $46 on Friday. The stock is down 12 per cent since the end of April, and McReynolds suggests investors wait for a “more timely” entry point.
● SOURCE The Globe and Mail
Thomson Reuters shares cross moving average
Tuesday 21 June 2011
Thomson Reuters shares have crossed bullishly above their 10-day moving average of $37.10 in New York, Financial News Network reported. Such a crossover often suggests higher prices in the near term, which may be confirmed by a close above this moving average level.
TRI reached $37.39 on Tuesday before closing at $37.07, up 10 cents or 0.27 per cent.
Thomson Reuters share prices have moved between a 52-week high of $42.15 and a 52-week low of $33.68 and are now trading 11 per cent above that low price at $37.32 per share. Over the last five market days, the 200-day moving average has remained constant while the 50-day moving average has declined 0.41 per cent.
● SOURCE Financial News Network
TRI reached $37.39 on Tuesday before closing at $37.07, up 10 cents or 0.27 per cent.
Thomson Reuters share prices have moved between a 52-week high of $42.15 and a 52-week low of $33.68 and are now trading 11 per cent above that low price at $37.32 per share. Over the last five market days, the 200-day moving average has remained constant while the 50-day moving average has declined 0.41 per cent.
● SOURCE Financial News Network
Thomson Reuters shares go ex-dividend
Monday 16 May 2011
Thomson Reuters shares go ex-dividend on Tuesday 17 May. Owners of shares at market close today will be eligible for a dividend of 31 cents per share.
Over the past 30 days the average daily volume for trading Thomson Reuters shares has been 654,100. The shares are up 4.5 per cent year to date as of the close of trading on Friday. The company has a p/e ratio of 31.7, below the computer software & services industry average of 31.9 and above the S&P 500 ratio of 17.7.
TheStreet Ratings rates Thomson Reuters as a buy. It said the company's strengths can be seen in multiple areas, such as compelling growth in net income, revenue growth, impressive record of earnings per share growth and notable return on equity. “We feel these strengths outweigh the fact that the company shows weak operating cash flow.”
● SOURCE The Street
Over the past 30 days the average daily volume for trading Thomson Reuters shares has been 654,100. The shares are up 4.5 per cent year to date as of the close of trading on Friday. The company has a p/e ratio of 31.7, below the computer software & services industry average of 31.9 and above the S&P 500 ratio of 17.7.
TheStreet Ratings rates Thomson Reuters as a buy. It said the company's strengths can be seen in multiple areas, such as compelling growth in net income, revenue growth, impressive record of earnings per share growth and notable return on equity. “We feel these strengths outweigh the fact that the company shows weak operating cash flow.”
● SOURCE The Street
Thomson Reuters urged to work with EU anti-trust regulators
Monday 16 May 2011
The European Union’s anti-trust chief urged Thomson Reuters on Monday to work with regulators to resolve an investigation into its instrument codes for shares.
The European Commission opened an investigation into the codes, used to identify specific stocks, in November 2009, saying the company may have breached EU rules on abuse of a dominant market position.
“I take this opportunity to encourage the company to work with us for a speedy resolution of the case,” EU competition commissioner Joaquin Almunia said in the text of a speech prepared for the Cass Business School in London. He said it was time for regulators to examine the control and dissemination of market data to establish whether there was abusive behaviour by owners seeking to leverage privileged access to information to foreclose rivals or distort the market. Almunia said he was against any one group controlling essential infrastructure such as trading, clearing or pre-trading platform.
Thomson Reuters markets division chief executive Devin Wenig told a panel at the same conference that he would not comment on directly on Almunia’s request, but he expressed optimism that the issue would be resolved. “For a hundred and fifty years we have worked cooperatively with regulators and we believe that we’ll reach an efficient solution this time as well,” Wenig said.
● SOURCE Interactive Investor
The European Commission opened an investigation into the codes, used to identify specific stocks, in November 2009, saying the company may have breached EU rules on abuse of a dominant market position.
“I take this opportunity to encourage the company to work with us for a speedy resolution of the case,” EU competition commissioner Joaquin Almunia said in the text of a speech prepared for the Cass Business School in London. He said it was time for regulators to examine the control and dissemination of market data to establish whether there was abusive behaviour by owners seeking to leverage privileged access to information to foreclose rivals or distort the market. Almunia said he was against any one group controlling essential infrastructure such as trading, clearing or pre-trading platform.
Thomson Reuters markets division chief executive Devin Wenig told a panel at the same conference that he would not comment on directly on Almunia’s request, but he expressed optimism that the issue would be resolved. “For a hundred and fifty years we have worked cooperatively with regulators and we believe that we’ll reach an efficient solution this time as well,” Wenig said.
● SOURCE Interactive Investor
Thomson Reuters stock tops five leading publishers
Friday 15 April 2011
Thomson Reuters is ranked top among the five leading companies in the publishing industry as measured by relative performance, stock analyst SmarTrend said on Friday. Its analysis of stocks that have the potential to outperform was based on Thursday's trading activity.
SmarTrend gave the following ranking:
1. Thomson Reuters – 0.28 per cent gain
2. McGraw-Hill – 1.35 per cent loss
3. Gannett – 2.29 per cent loss
4. Meredith – 2.49 per cent loss
5. The New York Times – 3.93 per cent loss.
● SOURCE SmarTrend
SmarTrend gave the following ranking:
1. Thomson Reuters – 0.28 per cent gain
2. McGraw-Hill – 1.35 per cent loss
3. Gannett – 2.29 per cent loss
4. Meredith – 2.49 per cent loss
5. The New York Times – 3.93 per cent loss.
● SOURCE SmarTrend
Thomson Reuters stock upgraded
Thursday 17 March 2011
Thomson Reuters shares have been upgraded by TheStreet Ratings to Buy from Hold.
The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, growth in earnings per share, good cash flow from operations and notable return on equity, it said. “We feel these strengths outweigh the fact that the company shows low profit margins.”
● SOURCE The Street
The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, growth in earnings per share, good cash flow from operations and notable return on equity, it said. “We feel these strengths outweigh the fact that the company shows low profit margins.”
● SOURCE The Street
Thomson Reuters shares raised to 'sector outperformer'
Monday 31 January 2011
Investment bank CIBC raised its rating on Thomson Reuters to “sector outperformer” from “sector performer”, saying it sees signs of a more concrete recovery for the group.
With growth prospects on the horizon, product investments and Reuters synergy efforts, analyst Robert Bek said he expects the company to increase its revenue.
“We expect Thomson Reuters to soon post outsized revenue gains, material operating leverage benefits, and large free cash flow generation,” he wrote in a note to clients. “The current valuation does not yet reflect this potential.”
The company has invested $1 billion in initiatives including online financial video news service Reuters Insider and Eikon, a desktop trading terminal for financial professionals.
The analyst said the company still trades light of its longer-term trends. He added that he sees room for reversion towards historical ranges as fundamentals firm up.
“We continue to believe that Thomson Reuters should be a core holding for investors, with a handful of evidence pointing to a more concrete recovery and a fourth-quarter dividend increase expected,” said Bek, who raised his price target on the stock to $45 from $41.
Thomson Reuters shares have gained about 12 per cent since mid-November, closing at just over $40 on Monday. Results for 2010 Q4 and full year are due to be announced on 10 February.
● SOURCE Reuters
With growth prospects on the horizon, product investments and Reuters synergy efforts, analyst Robert Bek said he expects the company to increase its revenue.
“We expect Thomson Reuters to soon post outsized revenue gains, material operating leverage benefits, and large free cash flow generation,” he wrote in a note to clients. “The current valuation does not yet reflect this potential.”
The company has invested $1 billion in initiatives including online financial video news service Reuters Insider and Eikon, a desktop trading terminal for financial professionals.
The analyst said the company still trades light of its longer-term trends. He added that he sees room for reversion towards historical ranges as fundamentals firm up.
“We continue to believe that Thomson Reuters should be a core holding for investors, with a handful of evidence pointing to a more concrete recovery and a fourth-quarter dividend increase expected,” said Bek, who raised his price target on the stock to $45 from $41.
Thomson Reuters shares have gained about 12 per cent since mid-November, closing at just over $40 on Monday. Results for 2010 Q4 and full year are due to be announced on 10 February.
● SOURCE Reuters
Citigroup downgrades Thomson Reuters to ‘Hold’
Friday 21 January 2011
Equities research analysts at Citigroup downgraded shares of Thomson Reuters to a hold rating from a buy in a research note to clients and investors on Thursday.
Zack Investment Research reiterated a neutral rating late last month.
Thomson Reuters has a 52-week range of $31.60-$39.31. The stock’s 50-day moving average is $37.38 and its 200-day moving average is $37.26. On Friday the TRI closed at $38.64, up 1.36 per cent, in New York while in Toronto TRI.TO was C$38.39, up 0.95 per cent.
On average, analysts predict Thomson Reuters will post $0.47 earnings per share next quarter. The company has a market capitalisation of $31.727 billion and a price-to-earnings ratio of 36.76.
● SOURCE American Banking News
Zack Investment Research reiterated a neutral rating late last month.
Thomson Reuters has a 52-week range of $31.60-$39.31. The stock’s 50-day moving average is $37.38 and its 200-day moving average is $37.26. On Friday the TRI closed at $38.64, up 1.36 per cent, in New York while in Toronto TRI.TO was C$38.39, up 0.95 per cent.
On average, analysts predict Thomson Reuters will post $0.47 earnings per share next quarter. The company has a market capitalisation of $31.727 billion and a price-to-earnings ratio of 36.76.
● SOURCE American Banking News
Analysts expect $0.45 per share on TRI Q3 results
Monday 25 October 2010
Analysts, on average, expect Thomson Reuters to report earnings of $0.45 per share on sales of $3.2 billion when the company announces third quarter results on Thursday, stock analysis and trend trading system SmarTrend reported.
For the full year, analysts expect earnings per share of $1.77. In the year-ago period, EPS was $0.31 on sales of $3.2 billion. In the previous quarter, the company reported EPS of $0.47, missing consensus estimates of $0.49.
In an earnings alert, SmarTrend said it is bullish on TRI shares. It alerted its subscribers to Buy on 3 September at $36.49. Since then the stock has risen 5.4 per cent, closing on Monday at $38.50.
● SOURCE SmarTrend
For the full year, analysts expect earnings per share of $1.77. In the year-ago period, EPS was $0.31 on sales of $3.2 billion. In the previous quarter, the company reported EPS of $0.47, missing consensus estimates of $0.49.
In an earnings alert, SmarTrend said it is bullish on TRI shares. It alerted its subscribers to Buy on 3 September at $36.49. Since then the stock has risen 5.4 per cent, closing on Monday at $38.50.
● SOURCE SmarTrend
Broker reiterates neutral rating on TRI, sets $40 target
Thursday 21 October 2010
Goldman Sachs reiterated its neutral rating on Thomson Reuters shares and $40 price target going into the company's Q3 results at the end of this month.
In a note to clients, the broker said it expected the third quarter results on 28 October to pace in line with expectations as top line growth improves owing to steady, but not accelerating progress in end-market fundamentals and easier year-on-year comparisons at the Markets division.
It forecast earnings of $0.55 per share, in line with consensus, and expects 2010 revenue and operating income guidance to remain unchanged.
● SOURCE Bezinga
In a note to clients, the broker said it expected the third quarter results on 28 October to pace in line with expectations as top line growth improves owing to steady, but not accelerating progress in end-market fundamentals and easier year-on-year comparisons at the Markets division.
It forecast earnings of $0.55 per share, in line with consensus, and expects 2010 revenue and operating income guidance to remain unchanged.
● SOURCE Bezinga
Thomson Reuters shares top five leading publishers
Thursday 16 September 2010
Thomson Reuters tops a list of the five leading companies in the publishing industry as measured by their shares’ relative performance, the website SmarTrend said on Thursday.
Its ranking was based on Wednesday's trading activity in SmarTrend’s search for stocks that have the potential to outperform. SmarTrend uses stock analysis software to scrutinise more than 5,000 securities traded on major US exchanges in real-time to predict future trend direction.
Thomson Reuters shares closed on Wednesday at $37.59 in New York and C$38.59 in Toronto.
Rankings:
● Thomson Reuters - 0.48 per cent gain
● Gannett - 0.45 per cent loss
● McGraw-Hill - 0.56 per cent loss
● The New York Times - 0.72 per cent loss
● Valassis Communications - 1.36 loss.
● SOURCE SmarTrend
Its ranking was based on Wednesday's trading activity in SmarTrend’s search for stocks that have the potential to outperform. SmarTrend uses stock analysis software to scrutinise more than 5,000 securities traded on major US exchanges in real-time to predict future trend direction.
Thomson Reuters shares closed on Wednesday at $37.59 in New York and C$38.59 in Toronto.
Rankings:
● Thomson Reuters - 0.48 per cent gain
● Gannett - 0.45 per cent loss
● McGraw-Hill - 0.56 per cent loss
● The New York Times - 0.72 per cent loss
● Valassis Communications - 1.36 loss.
● SOURCE SmarTrend
Academic data project sends TR shares higher
Wednesday 08 September 2010
Thomson Reuters’ New York shares were up around 1.9 per cent to about $36.90 before easing slightly on Wednesday after the company announced a global institutions and research facilities project.
The company said it has collected data on hundreds of such facilities. The result is the Global Institutional Profiles Project, described as "the most advanced data-driven view of globally significant universities and research institutions available".
"We've developed a data and analysis system that provides the best informed and most effective resource to build profiles of universities and institutions around the world," said Jonathan Adams, director of research evaluation. "Providing institutions with a rounded profile of their activity allows them to compare themselves with peers rather than global averages. This converts data into truly useful management information."
The data will allow universities and research organisations' administrators to change their approach to institutional comparisons.
The Times Higher Education weekly magazine is the first to use a customised dataset from the project to produce an improved version of their annual World University Rankings to be published on 16 September.
● SOURCE The Street | Thomson Reuters | Global Institutional Profiles Project
The company said it has collected data on hundreds of such facilities. The result is the Global Institutional Profiles Project, described as "the most advanced data-driven view of globally significant universities and research institutions available".
"We've developed a data and analysis system that provides the best informed and most effective resource to build profiles of universities and institutions around the world," said Jonathan Adams, director of research evaluation. "Providing institutions with a rounded profile of their activity allows them to compare themselves with peers rather than global averages. This converts data into truly useful management information."
The data will allow universities and research organisations' administrators to change their approach to institutional comparisons.
The Times Higher Education weekly magazine is the first to use a customised dataset from the project to produce an improved version of their annual World University Rankings to be published on 16 September.
● SOURCE The Street | Thomson Reuters | Global Institutional Profiles Project
Thomson Reuters New York shares cross critical 50-day moving average
Friday 03 September 2010
Thomson Reuters shares traded in New York have crossed above the critical 50-day moving average of $36.51.
The location of a stock price when analyzed against the moving average can aid in predicting future short term momentum, the website Market Intellisearch reported. Trading activity for the shares may indicate that TRI may head higher assuming that the moving average continues upward direction. The volume of shares exchanging hands is less than average daily volume of 1,236,350 of shares.
Other relevant figures to examine are the support and resistance levels for TRI. Thomson Reuters settled at $36.61 $0.61 (+1.69%), based on the pivot points, the current support and resistance levels are $36.15 and $36.99 respectively. If the resistance point price is broken in an upward movement, then the bullish trend is likely to continue and vice versa.
● SOURCE Market Intellisearch
The location of a stock price when analyzed against the moving average can aid in predicting future short term momentum, the website Market Intellisearch reported. Trading activity for the shares may indicate that TRI may head higher assuming that the moving average continues upward direction. The volume of shares exchanging hands is less than average daily volume of 1,236,350 of shares.
Other relevant figures to examine are the support and resistance levels for TRI. Thomson Reuters settled at $36.61 $0.61 (+1.69%), based on the pivot points, the current support and resistance levels are $36.15 and $36.99 respectively. If the resistance point price is broken in an upward movement, then the bullish trend is likely to continue and vice versa.
● SOURCE Market Intellisearch
Thomson Reuters tipped to outperform
Monday 23 August 2010
Thomson Reuters heads a list of five US publishing industry companies with the best relative performance, the stock analysis website SmarTrend said.
The top five with potential to outperform are Thomson Reuters, Valassis Communications, Meredith, Gannett and McGraw-Hill.
SmarTrend says its stock analysis software can identify when US shares are beginning a major trend, up or down.
● SOURCE SmarTrend
The top five with potential to outperform are Thomson Reuters, Valassis Communications, Meredith, Gannett and McGraw-Hill.
SmarTrend says its stock analysis software can identify when US shares are beginning a major trend, up or down.
● SOURCE SmarTrend
Deutsche Bank downgrades Thomson Reuters
Friday 06 August 2010
The markets division serves financial services and corporate professionals globally, with Reuters media serving professional and consumer media markets. It delivers critical information, supporting technology and infrastructure to a diverse set of customers.
TRI shares trading in New York were down more than two per cent on Friday, hitting $36.78.
● SOURCE American Banking & Marketing News
Volume spike detected as Thomson Reuters shares move higher
Monday 14 June 2010
Above average volume of trading in Thomson Reuters shares on Monday may signal a potential turning point, stock analysis website SmarTrend said.
The New York shares traded up 1.79 per cent to $37.43 on above average volume of 943,314 compared with average 30-day volume of 357,000 shares. Spikes in volume can validate a breakout or signify a potential turning point, SmarTrend said, adding it will continue to monitor TRI to see if this bullish momentum continues.
In Toronto, Thomson Reuters closed at C$38.66, some 75 cents or 1.98 per cent higher.
SmarTrend is bullish on Thomson Reuters and on 10 June alerted its subscribers to buy at $36.33, since when the stock has risen more than three per cent.
● SOURCE SmarTrend
The New York shares traded up 1.79 per cent to $37.43 on above average volume of 943,314 compared with average 30-day volume of 357,000 shares. Spikes in volume can validate a breakout or signify a potential turning point, SmarTrend said, adding it will continue to monitor TRI to see if this bullish momentum continues.
In Toronto, Thomson Reuters closed at C$38.66, some 75 cents or 1.98 per cent higher.
SmarTrend is bullish on Thomson Reuters and on 10 June alerted its subscribers to buy at $36.33, since when the stock has risen more than three per cent.
● SOURCE SmarTrend
TRI shares hit 52-week highs in New York and Toronto
Wednesday 12 May 2010
Thomson Reuters reached 52-week highs on the New York and Toronto stock exchanges, closing up 1.2 per cent at $38.88 on NYSE and 0.76 per cent at C$39.60 on TSX.
In New York, TRI shares have risen 7.4 per cent in the past month and 32 per cent in the past year, more than the S&P 500.
Of researchers following Thomson Reuters, ten rate the stock buy, 11 hold and two sell. Royal Bank of Canada projects a target of $45, Bank of America expects the stock to climb to $41.
● SOURCE The Street
In New York, TRI shares have risen 7.4 per cent in the past month and 32 per cent in the past year, more than the S&P 500.
Of researchers following Thomson Reuters, ten rate the stock buy, 11 hold and two sell. Royal Bank of Canada projects a target of $45, Bank of America expects the stock to climb to $41.
● SOURCE The Street
TRI shares reach 52-week high in Toronto
Thursday 06 May 2010
Thomson Reuters shares set a new 52-week high in Toronto on Thursday, reaching C$39.56 before slipping back to close 2.21 per cent higher on the day at C$38.86. TRI.TO’s lowest price on the Toronto Stock Exchange over the past 12 months is C$32.11.Morgan Stanley earlier raised its price target for the stock to C$39 from C$36.
In New York, TRI reached $38.11 but closed 0.43 per cent lower at $36.84 after Wall Street suffered a sharp correction over worries about European sovereign debt.
On Tuesday, Thomson Reuters reported lower first-quarter profit but reiterated that net sales would strengthen throughout this year and that 2010 revenue would grow again in the second half.
● SOURCE Reuters
Reuters shares in £2.5 million insider dealing case
Thursday 22 April 2010
Reuters shares traded in the run-up to the 2008 takeover by Thomson were among those involved in a £2.5 million insider dealing investigation, Britain's largest, a London court heard on Thursday.
Prosecutors said seven defendants were charged with 13 counts of insider dealing investigated by the Financial Services Agency in an operation codenamed Tabernula, Latin for “little shop”.
The seven are accused of using confidential information gleaned from the London printers of Swiss Bank UBS and UK brokerage Cazenove, in a case dubbed Saturn. The FSA is seeking the extradition of an eighth suspect.
The prosecution said it had discovered documents that contained evidence the defendants had tried to crack the codes used by the banks to protect their clients’ names using Internet search engines such as Google.
The court set 3 May 2011 as the start date for the trial, which could last three to four months. The men face up to seven years in jail if found guilty.
● SOURCE Toronto Star
Prosecutors said seven defendants were charged with 13 counts of insider dealing investigated by the Financial Services Agency in an operation codenamed Tabernula, Latin for “little shop”.
The seven are accused of using confidential information gleaned from the London printers of Swiss Bank UBS and UK brokerage Cazenove, in a case dubbed Saturn. The FSA is seeking the extradition of an eighth suspect.
The prosecution said it had discovered documents that contained evidence the defendants had tried to crack the codes used by the banks to protect their clients’ names using Internet search engines such as Google.
The court set 3 May 2011 as the start date for the trial, which could last three to four months. The men face up to seven years in jail if found guilty.
● SOURCE Toronto Star
Thomson Reuters shares cut by Morgan Stanley
Monday 12 April 2010
Thomson Reuters shares were cut to equalweight from overweight by Morgan Stanley. The broker cut its rating on the group’s extra investment plans and a still sluggish legal market.
TRI was unchanged on NYSE at $36.21. In Toronto, TRI.TO fell 1.04 per cent to C$36.29.
● SOURCE The Wall Street Journal
TRI was unchanged on NYSE at $36.21. In Toronto, TRI.TO fell 1.04 per cent to C$36.29.
● SOURCE The Wall Street Journal
TRI rated buy and 5th best media stock
Wednesday 03 March 2010
The rating by markets website The Street is based on a ranking of fundamentals and performance.
It noted that the stock has advanced 52 per cent over the past year, trailing major US indices. TRI trades at a price-to-book ratio of 1.5, a discount to media peers. The shares offer a 3.2 per cent dividend yield with an excessive payout ratio of 113 per cent. The Street’s ranking of best media stocks is:
1. Daily Journal Co
2. Interactive Data
3. DreamWorks Animation
4. John Wiley & Sons
5. Thomson Reuters.
● SOURCE The Street
TRI downgraded to underweight from neutral
Thursday 25 February 2010
Thomson Reuters shares were downgraded to underweight from neutral on Thursday, a day after the company reported sharply lower 2009 Q4 profit and signalled revenue growth would not return until the second half of this year.
Investment bank Piper Jaffray issued the downgrade and cut its price target for the share to $31 from $33. Thomson Reuters closed on Wednesday at $34.51 on volume of 656,288 shares, above the average daily volume of 390,839. The stock is currently above its 50-day moving average of $33.25 and above its 200-day moving average of $32.04.
Piper’s analyst said: “Increased investment spending, higher integration costs associated with Reuters, and still anemic revenue trends will translate into lackluster earnings on a near-term basis. We see limited catalysts for the share over the next six months given the uninspiring earnings outlook and, accordingly, lower our rating to Underweight from Neutral. We still like Thomson Reuters’ franchise, management team, and long-term growth prognosis, but within our coverage universe we see more attractive opportunities elsewhere within the next six months.”
The website SmarTrend, reporting the downgrade, said it was bullish on Thomson Reuters. SmarTrend alerted its subscribers to watch for a reversal of this month’s 2.6 per cent increase in the value of the stock since an Uptrend alert on 1 February at $33.63.
● SOURCE SmarTrend | Street Insider
Investment bank Piper Jaffray issued the downgrade and cut its price target for the share to $31 from $33. Thomson Reuters closed on Wednesday at $34.51 on volume of 656,288 shares, above the average daily volume of 390,839. The stock is currently above its 50-day moving average of $33.25 and above its 200-day moving average of $32.04.
Piper’s analyst said: “Increased investment spending, higher integration costs associated with Reuters, and still anemic revenue trends will translate into lackluster earnings on a near-term basis. We see limited catalysts for the share over the next six months given the uninspiring earnings outlook and, accordingly, lower our rating to Underweight from Neutral. We still like Thomson Reuters’ franchise, management team, and long-term growth prognosis, but within our coverage universe we see more attractive opportunities elsewhere within the next six months.”
The website SmarTrend, reporting the downgrade, said it was bullish on Thomson Reuters. SmarTrend alerted its subscribers to watch for a reversal of this month’s 2.6 per cent increase in the value of the stock since an Uptrend alert on 1 February at $33.63.
● SOURCE SmarTrend | Street Insider
TR Q4 earnings down 68%, more revenue pain expected this year
Wednesday 24 February 2010
But the company also said on Wednesday net sales were positive from October to December, and it forecast a return to revenue growth in the second half of this year. The impact of net sales on revenue is delayed because of the company's subscription model.
"We've already seen the net sales picture improve significantly through the last quarter and into the first quarter of this year," chief executive Tom Glocer said in a Reuters interview.
The company earned $177 million in the three months from October to December, down from $560 million a year earlier. It forecast 2010 revenue to be flat or slightly lower, and underlying free cash flow to be slightly down from 2009 as it continues to invest in new products and platforms. Fourth quarter underlying profit fell 16 per cent to $661 million. Adjusted earnings per share slipped to 44 cents from 50 cents a year earlier, but this was a cent above the average Wall Street estimate.
For the year as a whole, revenue from ongoing businesses rose one per cent to $3.35 billion, slightly above the average analyst forecast of $3.32 billion. Excluding the impact of foreign exchange rates, revenue fell three per cent.
"I am pleased with the resilient performance of the company in 2009,” Glocer said in a prepared statement. “Despite the worst global operating environment any of us has faced, Thomson Reuters was able to hold or improve on our prior-year results, with revenues comparable to 2008 and underlying operating margin and free cash flow up on the prior year. I am also pleased that our net sales performance improved significantly through the year, with the fourth quarter recording positive net sales for the company as a whole."
Glocer said he was confident 2009 was the bottom of the sales cycle. "I expect that we will return to revenue growth in the second half of 2010," he said, and 2010 would be the final year of heavy integration spending in the markets division.
Annualised savings from the merger between Thomson and Reuters reached $1.1 billion last year, $300 million more than the company estimated when it closed the deal in April 2008. The company raised its 2011 annualised savings target by $200 million to $1.6 billion. It said $1.2 billion of that would come from the savings of integrating the company, and the rest from older savings programmes.
The board approved a four cents increase in the annual dividend to $1.16 per share.
Thomson Reuters’ US shares have risen about nine per cent so far this year, closing at $35.06 on the New York Stock Exchange on Tuesday. After today’s results announcement the shares lost nearly four per cent of their value before closing down 1.57 per cent in New York and 1.83 per cent in Toronto.
● SOURCE Reuters | PR Newswire | Washington Post/The Associated Press
TRI uptrend spotted, moving averages set to climb
Sunday 21 February 2010
An uptrend in Thomson Reuters shares has been spotted, a US website that analyses trading patterns has told its subscribers. Moving averages are set to climb to confirm the group's upward momentum.
SmarTrend said it identified the upward trajectory using automated pattern recognition technology at $33.63 on 1 February and in the following three weeks Thomson Reuters shares returned 5.8 per cent as of the latest price on the New York Stock Exchange, $35.59.
TRI is currently above its 50-day moving average of $33.03 and above its 200-day moving average of $31.95, SmarTrend said, adding "Look for these moving averages to climb to confirm the company's upward momentum”. The shares hit a 52-week high of $36.07 last week. Thomson Reuters is due to report its 2009 Q4 and full year results on Wednesday.
● SOURCE Fox Business
SmarTrend said it identified the upward trajectory using automated pattern recognition technology at $33.63 on 1 February and in the following three weeks Thomson Reuters shares returned 5.8 per cent as of the latest price on the New York Stock Exchange, $35.59.
TRI is currently above its 50-day moving average of $33.03 and above its 200-day moving average of $31.95, SmarTrend said, adding "Look for these moving averages to climb to confirm the company's upward momentum”. The shares hit a 52-week high of $36.07 last week. Thomson Reuters is due to report its 2009 Q4 and full year results on Wednesday.
● SOURCE Fox Business
TRI shares hit 52-week high in New York
Wednesday 17 February 2010
Thomson Reuters hit a 52-week high of $36.07 on the New York Stock Exchange, but closed down 0.1 per cent. The last trade of the day was $35.60, down two cents or 0.06 per cent.
TRI has increased 6.2 per cent during the past month. The company is scheduled to report its 2009 fourth quarter and full year results on 24 February.
In Toronto, Thomson Reuters shares closed at C$37.25, up 0.16 per cent on the day.
US website TheStreet.com rated Thomson Reuters buy and noted the stock soared 51 per cent during the past year, beating US benchmarks. "The shares are undervalued relative to those of media peers based on projected earnings and book value. They are costly based on sales and cash flow," it said.
● SOURCE TheStreet
TRI has increased 6.2 per cent during the past month. The company is scheduled to report its 2009 fourth quarter and full year results on 24 February.
In Toronto, Thomson Reuters shares closed at C$37.25, up 0.16 per cent on the day.
US website TheStreet.com rated Thomson Reuters buy and noted the stock soared 51 per cent during the past year, beating US benchmarks. "The shares are undervalued relative to those of media peers based on projected earnings and book value. They are costly based on sales and cash flow," it said.
● SOURCE TheStreet
Citigroup raises Thomson Reuters to buy
Monday 25 January 2010
Citigroup raised Thomson Reuters to buy from hold. Among 27 analysts following Thomson Reuters, three now rate the stock a buy, seven outperform, 11 hold, three sell and three have no opinion.
TRI.N closed at $32.37, 1.98 per cent higher, TRI.TO at C$34.22, up 1.85 per cent.
The upgrade coincided with the launch of a new service aimed at high-frequency traders in London and Chicago. Thomson Reuters NewsScope Direct will provide the fastest access to market-moving machine readable news content. The company said its microsecond delivery enables clients to buy and sell financial instruments before the information moves the market.
● SOURCE Citigroup
TRI.N closed at $32.37, 1.98 per cent higher, TRI.TO at C$34.22, up 1.85 per cent.
The upgrade coincided with the launch of a new service aimed at high-frequency traders in London and Chicago. Thomson Reuters NewsScope Direct will provide the fastest access to market-moving machine readable news content. The company said its microsecond delivery enables clients to buy and sell financial instruments before the information moves the market.
● SOURCE Citigroup
Bank of America initiates TRI coverage, sees $39
Wednesday 06 January 2010
Bank of America initiated analyst coverage on Thomson Reuters with a Buy rating and set a price target of $39.
In November, Barclays initiated coverage with an “equal weight” rating.
TRI.N traded three per cent higher at $33.35 in New York on Wednesday. In Toronto the share was 2.5 per cent higher at C$34.47.
● SOURCE Street Insider
In November, Barclays initiated coverage with an “equal weight” rating.
TRI.N traded three per cent higher at $33.35 in New York on Wednesday. In Toronto the share was 2.5 per cent higher at C$34.47.
● SOURCE Street Insider
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 in $600 million debt refinancing
Tuesday 22 September 2009
Thomson Reuters said it will buy back debt securities with $600 million total face value and fund the redemption by issuing new debt securities or from cash on hand.
After the close of markets, the group said it would offer $500 million in new notes that will pay 4.7 per cent and be due in 2019 to help pay for the refinancing. The offering is expected to close on 29 September.
It is redeeming all 6.85 per cent medium-term notes that expire on 1 June 2011, all 4.75 per cent notes maturing on 28 May 2010 and all of its 7.74 per cent notes due on 22 December 2010.
The three issues have C$400 million, US$250 million and US$75 million of principal outstanding, respectively.
The group said it will pay the applicable early repayment premiums as well as accrued and unpaid interest through the redemption dates.
Thomson Reuters shares closed 2.27 per cent higher at $34.30 in New York and 1.58 per cent higher at C$36.72 in Toronto.
● SOURCE Thomson Reuters
After the close of markets, the group said it would offer $500 million in new notes that will pay 4.7 per cent and be due in 2019 to help pay for the refinancing. The offering is expected to close on 29 September.
It is redeeming all 6.85 per cent medium-term notes that expire on 1 June 2011, all 4.75 per cent notes maturing on 28 May 2010 and all of its 7.74 per cent notes due on 22 December 2010.
The three issues have C$400 million, US$250 million and US$75 million of principal outstanding, respectively.
The group said it will pay the applicable early repayment premiums as well as accrued and unpaid interest through the redemption dates.
Thomson Reuters shares closed 2.27 per cent higher at $34.30 in New York and 1.58 per cent higher at C$36.72 in Toronto.
● SOURCE Thomson Reuters
Thomson Reuters upgraded, sets new 52-week high on NYSE
Monday 14 September 2009
Thomson Reuters was upgraded to Buy from Sell at Deutsche Bank and set a new 52-week high during Monday's New York trading session when it reached $35.88.
Over this period, the share price is up 18.40 per cent.
The stock closed on Friday at $33.82 on volume of 409,400 shares, above average daily volume of 352,100.
Thomson Reuters – New York Stock Exchange symbol TRI – is currently above its 50-day moving average of $31.42 and above its 200-day moving average of $28.03.
Online broker SmarTrend said it is bullish on the shares. Its subscribers received an Uptrend alert on 10 September at $33.38, which has returned 1.3 per cent to date. It alerted investors to watch for continuation of the technical uptrend.
● SOURCE Trading Markets
Over this period, the share price is up 18.40 per cent.
The stock closed on Friday at $33.82 on volume of 409,400 shares, above average daily volume of 352,100.
Thomson Reuters – New York Stock Exchange symbol TRI – is currently above its 50-day moving average of $31.42 and above its 200-day moving average of $28.03.
Online broker SmarTrend said it is bullish on the shares. Its subscribers received an Uptrend alert on 10 September at $33.38, which has returned 1.3 per cent to date. It alerted investors to watch for continuation of the technical uptrend.
● SOURCE Trading Markets
Thomson Reuters completes DLC unification
Thursday 10 September 2009
Thomson Reuters announced it completed unification of its dual listed company structure on Thursday. Each Thomson Reuters PLC ordinary share was exchanged for one Thomson Reuters Corporation common share, and each Thomson Reuters PLC American Depositary Share (ADS) was exchanged for six Thomson Reuters Corporation common shares.
The company’s common shares are now listed on the Toronto Stock Exchange and the New York Stock Exchange. The symbol on both is TRI. The last trading day for the company's shares on the London Stock Exchange and ADSs on NASDAQ was yesterday.
A company announcement said: "To facilitate the holding of shares in the UK through CREST (the UK electronic settlement system), former Thomson Reuters PLC shareholders were issued Depositary Interests (DIs). DIs represent entitlements to Thomson Reuters Corporation common shares and have the same voting and economic interests as common shares. However, DIs are not traded on the TSX or NYSE. Effective today, former Thomson Reuters PLC shareholders who received DIs are able to convert their DIs into common shares by contacting Computershare in Canada and the United States by phone at +1 877 624 5999 or by e-mail at ● globaltransactionteam@computershare.com, and in the United Kingdom and elsewhere outside Canada and the United States by phone at +44 870 702 0003, ext. 1075, or by e-mail at ● allukglobaltransactionteam@computershare.co.uk."
Thomson Reuters will pay all applicable conversion fees between 10 September and 10 December 2009. Additional information about the DIs is available in the Investor Relations section of ● www.thomsonreuters.com. Thomson Reuters expects settlement of newly-issued common shares and DIs to occur on 14 September.
Thomson Reuters shareholders of record on 21 August are entitled to a dividend of US$0.28 per share on 15 September. Due to the timing of the closing of the unification, Thomson Reuters PLC shareholders who previously enrolled in the company’s dividend reinvestment plan (DRIP) will receive this dividend in cash. Enrollment information for the Thomson Reuters Corporation DRIP is available in the Investor Relations section of ● www.thomsonreuters.com.
● SOURCE Thomson Reuters
● EDITORIAL: End of an era
The company’s common shares are now listed on the Toronto Stock Exchange and the New York Stock Exchange. The symbol on both is TRI. The last trading day for the company's shares on the London Stock Exchange and ADSs on NASDAQ was yesterday.
A company announcement said: "To facilitate the holding of shares in the UK through CREST (the UK electronic settlement system), former Thomson Reuters PLC shareholders were issued Depositary Interests (DIs). DIs represent entitlements to Thomson Reuters Corporation common shares and have the same voting and economic interests as common shares. However, DIs are not traded on the TSX or NYSE. Effective today, former Thomson Reuters PLC shareholders who received DIs are able to convert their DIs into common shares by contacting Computershare in Canada and the United States by phone at +1 877 624 5999 or by e-mail at ● globaltransactionteam@computershare.com, and in the United Kingdom and elsewhere outside Canada and the United States by phone at +44 870 702 0003, ext. 1075, or by e-mail at ● allukglobaltransactionteam@computershare.co.uk."
Thomson Reuters will pay all applicable conversion fees between 10 September and 10 December 2009. Additional information about the DIs is available in the Investor Relations section of ● www.thomsonreuters.com. Thomson Reuters expects settlement of newly-issued common shares and DIs to occur on 14 September.
Thomson Reuters shareholders of record on 21 August are entitled to a dividend of US$0.28 per share on 15 September. Due to the timing of the closing of the unification, Thomson Reuters PLC shareholders who previously enrolled in the company’s dividend reinvestment plan (DRIP) will receive this dividend in cash. Enrollment information for the Thomson Reuters Corporation DRIP is available in the Investor Relations section of ● www.thomsonreuters.com.
● SOURCE Thomson Reuters
● EDITORIAL: End of an era
Thomson Reuters no longer a titan
Monday 07 September 2009
Thomson Reuters is losing its titan status. Dow Jones Indexes announced that the group will be removed from the Dow Jones Media Titans 30 and Dow Jones U.K. Titans 50 indexes.
Thomson Reuters is being removed due to its delisting from the London Stock Exchange. The changes will be effective before the open of trading on Thursday 10 September.
Its replacements are, respectively, French media company Publicis Groupe S.A. and British energy company Tullow Oil PLC.
Separately, UK index compiler FTSE said Thomson Reuters will be replaced by luxury goods group Burberry in the FTSE 100 index in London.
Thomson Reuters is delisting from the FTSE 100 because it wants to simplify its capital structure and eliminate the persistent discount at which the London shares have traded to North American shares, Reuters reported.
● SOURCE Trading Markets | Reuters
Thomson Reuters is being removed due to its delisting from the London Stock Exchange. The changes will be effective before the open of trading on Thursday 10 September.
Its replacements are, respectively, French media company Publicis Groupe S.A. and British energy company Tullow Oil PLC.
Separately, UK index compiler FTSE said Thomson Reuters will be replaced by luxury goods group Burberry in the FTSE 100 index in London.
Thomson Reuters is delisting from the FTSE 100 because it wants to simplify its capital structure and eliminate the persistent discount at which the London shares have traded to North American shares, Reuters reported.
● SOURCE Trading Markets | Reuters
Thomson Reuters obtains final approval for shares de-listing
Tuesday 25 August 2009
Thomson Reuters announced on Tuesday it has obtained UK court approval to unify its dual listed company structure. Shareholders overwhelmingly approved the unification on 7 August and no additional approvals are required.
The last day of trading in Thomson Reuters PLC ordinary shares on the London Stock Exchange and American Depositary Shares (ADSs) on NASDAQ will be 9 September, and the unification will close on 10 September. Thomson Reuters Corporation common shares will continue to trade on the Toronto Stock Exchange and the New York Stock Exchange.
On 10 September former Thomson Reuters PLC shareholders who receive Depository Interests representing entitlements to common shares will be able to convert them into those shares by calling Computershare in Canada and the United States at +1 877 624 5999 or by sending an e-mail to ● globaltransactionteam@computershare.com. In the United Kingdom and elsewhere outside Canada and the United States call +44 870 702 0003 extension 1075, or send an e-mail to ● allukglobaltransactionteam@computershare.co.uk. Thomson Reuters will pay all applicable conversion fees between 10 September and 10 December 10. Additional information about the Depository Interests is available in the Investor Relations section of ● www.thomsonreuters.com.
Thomson Reuters expects settlement of newly-issued common shares and DIs to occur on or about 14 September.
Holders of Thomson Reuters shares as of 21 August are entitled to receive a dividend of 28 cents per share on 15 September. Due to the timing of the closing of the unification, Thomson Reuters PLC shareholders who previously enrolled in the company's dividend reinvestment plan will receive this dividend in cash. Enrollment information for the Thomson Reuters Corporation plan is available in the Investor Relations section of ● www.thomsonreuters.com.
● SOURCE Thomson Reuters
The last day of trading in Thomson Reuters PLC ordinary shares on the London Stock Exchange and American Depositary Shares (ADSs) on NASDAQ will be 9 September, and the unification will close on 10 September. Thomson Reuters Corporation common shares will continue to trade on the Toronto Stock Exchange and the New York Stock Exchange.
On 10 September former Thomson Reuters PLC shareholders who receive Depository Interests representing entitlements to common shares will be able to convert them into those shares by calling Computershare in Canada and the United States at +1 877 624 5999 or by sending an e-mail to ● globaltransactionteam@computershare.com. In the United Kingdom and elsewhere outside Canada and the United States call +44 870 702 0003 extension 1075, or send an e-mail to ● allukglobaltransactionteam@computershare.co.uk. Thomson Reuters will pay all applicable conversion fees between 10 September and 10 December 10. Additional information about the Depository Interests is available in the Investor Relations section of ● www.thomsonreuters.com.
Thomson Reuters expects settlement of newly-issued common shares and DIs to occur on or about 14 September.
Holders of Thomson Reuters shares as of 21 August are entitled to receive a dividend of 28 cents per share on 15 September. Due to the timing of the closing of the unification, Thomson Reuters PLC shareholders who previously enrolled in the company's dividend reinvestment plan will receive this dividend in cash. Enrollment information for the Thomson Reuters Corporation plan is available in the Investor Relations section of ● www.thomsonreuters.com.
● SOURCE Thomson Reuters
Tom Glocer and Devin Wenig unload shares
Friday 14 August 2009
Glocer, chief executive, and Wenig, CEO of the markets division, both made the sale to rebalance their portfolios. Glocer sold 200,000 shares at £20.11 and now holds about 1.34 million shares. Wenig sold 100,000 shares at £19.78 and now owns about 650,000. Both men joined Reuters in 1993.
"After second quarter results that were significantly better than expected, investors may be concerned that management are calling a near-term peak to the share price," Phillip Huang, UBS analyst, said in a note.
"Thomson Reuters merits a premium based on the results it has delivered, but an end to the cyclical market rally, particularly in financials, could lead to profit taking in Thomson and lead to the relative premium contracting," he said.
The company currently trades on a 16x multiple of its 2010 expected earnings per share, compared with 10x multiples in its peers.
UBS maintains a "sell" rating on Thomson Reuters with a $23.50 target price.
● SOURCE National Post
Shareholders vote to quit London Stock Exchange
Friday 07 August 2009
Twenty-five years after Reuters floated on the London Stock Exchange, Thomson Reuters shareholders voted on Friday to delist, distancing Reuters further from its British roots.
The vote at an extraordinary general meeting in London was 97.4 per cent in favour of quitting the LSE. At a simultaneous EGM in Toronto the figure was 99.6 per cent. Fewer than 100 shareholders attended the London meeting, with a similar number in Toronto.
The Canadian vote was decided by Thomson's family holding company, Woodbridge, which owns about two-thirds of the outstanding shares in Thomson Reuters Corp and had already committed to vote in favour of the move.
It will also delist from NASDAQ, remaining on the main New York and Toronto exchanges.
The delistings are expected to take place on 10 September, subject to UK court approval.
Shareholders in Thomson Reuters PLC are entitled to receive one Thomson Reuters Corp share for every PLC share they hold, while holders of American Depository Shares will receive six Thomson Reuters Corp shares per ADS.
Thomson Reuters, formed in 2008 when Canadian data publisher Thomson bought Reuters, has said it wants to simplify its capital structure and eliminate the persistent discount at which the London shares have traded to the Canadian shares.
The UK shares have traded at a discount to the Canadian shares since the April 2008 merger. The gap has narrowed to 2 per cent from 13.6 per cent before the company announced its plan in June to delist the London shares.
"I expect that a more straightforward capital structure will ensure that the focus of investors will remain firmly on the company itself and not on its capital structure," chief executive Tom Glocer told shareholders in London.
Not all shareholders agreed with the decision. "This country is a link to Europe. It looks like everything is going to shift to America and I'm a bit nervous about that," Allan Ferguson, who holds about 686 Thomson Reuters shares, told the London meeting. "I feel that we're just going to be another outpost."
Glocer has moved his base to New York from London, which remains the company's second-biggest base. Thomson Reuters made 58 per cent of its revenue in the Americas, 32 per cent in Europe, the Middle East and Africa and 10 per cent in Asia last year.
Paul Julius Reuter opened his news and stock-quote service in London in 1851. It became a global news service and in 1984 became a public company with shares listed in London and New York.
Thomson Reuters says UK shareholders own only about a quarter of its London-listed shares, down from about 58 per cent in 2007, and hold only 5 per cent of the company's total outstanding shares.
Some analysts say London investors were influenced by memories of Reuters' poor performance during the last downturn, and were not convinced of the more defensive qualities of Thomson's products aimed at legal, health and tax professionals.
On Thursday, Thomson Reuters reported a better than expected quarterly profit helped by cost cuts, and said it expected 2009 revenue to grow as the financial industry recovered and banks started hiring again.
Credit Suisse, Bernstein and RBC raised their target price on the shares on Friday, but Jefferies downgraded the stock, saying it expected some UK shareholders to take profits rather than convert into Canadian shares.
● SOURCE Reuters
The vote at an extraordinary general meeting in London was 97.4 per cent in favour of quitting the LSE. At a simultaneous EGM in Toronto the figure was 99.6 per cent. Fewer than 100 shareholders attended the London meeting, with a similar number in Toronto.
The Canadian vote was decided by Thomson's family holding company, Woodbridge, which owns about two-thirds of the outstanding shares in Thomson Reuters Corp and had already committed to vote in favour of the move.
It will also delist from NASDAQ, remaining on the main New York and Toronto exchanges.
The delistings are expected to take place on 10 September, subject to UK court approval.
Shareholders in Thomson Reuters PLC are entitled to receive one Thomson Reuters Corp share for every PLC share they hold, while holders of American Depository Shares will receive six Thomson Reuters Corp shares per ADS.
Thomson Reuters, formed in 2008 when Canadian data publisher Thomson bought Reuters, has said it wants to simplify its capital structure and eliminate the persistent discount at which the London shares have traded to the Canadian shares.
The UK shares have traded at a discount to the Canadian shares since the April 2008 merger. The gap has narrowed to 2 per cent from 13.6 per cent before the company announced its plan in June to delist the London shares.
"I expect that a more straightforward capital structure will ensure that the focus of investors will remain firmly on the company itself and not on its capital structure," chief executive Tom Glocer told shareholders in London.
Not all shareholders agreed with the decision. "This country is a link to Europe. It looks like everything is going to shift to America and I'm a bit nervous about that," Allan Ferguson, who holds about 686 Thomson Reuters shares, told the London meeting. "I feel that we're just going to be another outpost."
Glocer has moved his base to New York from London, which remains the company's second-biggest base. Thomson Reuters made 58 per cent of its revenue in the Americas, 32 per cent in Europe, the Middle East and Africa and 10 per cent in Asia last year.
Paul Julius Reuter opened his news and stock-quote service in London in 1851. It became a global news service and in 1984 became a public company with shares listed in London and New York.
Thomson Reuters says UK shareholders own only about a quarter of its London-listed shares, down from about 58 per cent in 2007, and hold only 5 per cent of the company's total outstanding shares.
Some analysts say London investors were influenced by memories of Reuters' poor performance during the last downturn, and were not convinced of the more defensive qualities of Thomson's products aimed at legal, health and tax professionals.
On Thursday, Thomson Reuters reported a better than expected quarterly profit helped by cost cuts, and said it expected 2009 revenue to grow as the financial industry recovered and banks started hiring again.
Credit Suisse, Bernstein and RBC raised their target price on the shares on Friday, but Jefferies downgraded the stock, saying it expected some UK shareholders to take profits rather than convert into Canadian shares.
● SOURCE Reuters
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
Cost cuts help Q2 results beat forecasts
Thursday 06 August 2009
Thomson Reuters reported a better-than-expected quarterly profit on Thursday, helped by cost cuts, and affirmed its 2009 outlook that revenue will grow despite tough conditions in the financial industry.
Q2 underlying operating profit rose 11 per cent to $793 million, or 58 cents per share, from $713 million, or 39 cents per share, in the same quarter a year ago. Analysts had expected earnings of 43 cents per share on that basis, according to Reuters Estimates.
The company attributed the profit growth to cost controls, currency benefits and savings from Thomson's purchase of Reuters last year. It expects $1 billion of annual savings by the end of 2009. The target is $1.4 billion by 2011.
Revenue from ongoing businesses, excluding the impact of foreign exchange rates, rose two per cent to $3.28 billion.
The company stuck to its forecast that revenue would grow this year and that underlying operating margin and free cash flow would be comparable to 2008, even as customers cut staff and budgets in the wake of the financial crisis.
"Quite a few banks are saying, 'Oh, we cut too deeply and we're finding business is so good, we need to hire people to handle the volume,'" CEO Tom Glocer said in a Reuters interview. "I couldn't imagine six months ago that people would be talking about guaranteed bonuses over multiple years to hire people," he said.
Nevertheless, the fallout from the financial crisis will likely squeeze the Markets division, Glocer said. "It's only logical to assume that in the second half of the year, the (division's) reported revenue growth will go below the zero line rather than above it."
Thomson Reuters shares on the London Stock Exchange traded 6.44 per cent higher at 2000 pence after the release of the results, smashing through the previous 52-week high.
Shareholders will vote at extraordinary general meetings in London and Toronto on Friday on a proposal to delist the company's shares in London. They will continue to trade in New York and Toronto.
● SOURCE Reuters | Transcript of analysts’ conference call
Q2 underlying operating profit rose 11 per cent to $793 million, or 58 cents per share, from $713 million, or 39 cents per share, in the same quarter a year ago. Analysts had expected earnings of 43 cents per share on that basis, according to Reuters Estimates.
The company attributed the profit growth to cost controls, currency benefits and savings from Thomson's purchase of Reuters last year. It expects $1 billion of annual savings by the end of 2009. The target is $1.4 billion by 2011.
Revenue from ongoing businesses, excluding the impact of foreign exchange rates, rose two per cent to $3.28 billion.
The company stuck to its forecast that revenue would grow this year and that underlying operating margin and free cash flow would be comparable to 2008, even as customers cut staff and budgets in the wake of the financial crisis.
"Quite a few banks are saying, 'Oh, we cut too deeply and we're finding business is so good, we need to hire people to handle the volume,'" CEO Tom Glocer said in a Reuters interview. "I couldn't imagine six months ago that people would be talking about guaranteed bonuses over multiple years to hire people," he said.
Nevertheless, the fallout from the financial crisis will likely squeeze the Markets division, Glocer said. "It's only logical to assume that in the second half of the year, the (division's) reported revenue growth will go below the zero line rather than above it."
Thomson Reuters shares on the London Stock Exchange traded 6.44 per cent higher at 2000 pence after the release of the results, smashing through the previous 52-week high.
Shareholders will vote at extraordinary general meetings in London and Toronto on Friday on a proposal to delist the company's shares in London. They will continue to trade in New York and Toronto.
● SOURCE Reuters | Transcript of analysts’ conference call
Analysts' expectations of Q2 results
Wednesday 05 August 2009
Thomson Reuters reports its Q2 results on Thursday, but analysts are already weighing in on what they expect. The market consensus is C$3.3 billion in revenue and C$.43 earnings per share.
● Drew McReynolds, RBC Capital Markets analyst, has pegged revenue for the quarter at C$3.28 billion with cash EPS of C$.44. He expects a less severe trough in organic revenue growth in markets in the first half of 2010 of -6.9 per cent from -8.5 per cent and further improvement in financial sector sentiment, keeping a “outperform” rating on the company by raising the price target to $37 from $34.
● Phillip Huang, UBS analyst, says the key focus should be on the Markets division, which is "late cycle" and should move into negative territory after flat growth in the first quarter. "Thomson Reuters has rallied due to the consolidation," he said in a note to clients. "However, we believe organic revenue growth for Thomson Reuters is later cycle than the market expects." He expects an EPS at 40 cents and maintains a “sell” rating on the company, with a price target of $23.50.
● Paul Steep, analyst with Scotia Capital, is far more bullish despite believing the second quarter of 2009 could be the company's "most challenging quarter since the credit crisis began" as IT budgets have been frozen in the first half of the year. "Our estimates remain significantly ahead of consensus, reflecting the significant upside of integration synergies in 2011 and beyond," he said in a note. "We continue to expect the firm to build on the quick integration wins delivered in 2008." He also forecasts revenues of C$3.2 billion and EPS of C$.44, but has a target price of C$47 on a “sector outperform” rating.
● SOURCE Seeking Alpha
● Drew McReynolds, RBC Capital Markets analyst, has pegged revenue for the quarter at C$3.28 billion with cash EPS of C$.44. He expects a less severe trough in organic revenue growth in markets in the first half of 2010 of -6.9 per cent from -8.5 per cent and further improvement in financial sector sentiment, keeping a “outperform” rating on the company by raising the price target to $37 from $34.
● Phillip Huang, UBS analyst, says the key focus should be on the Markets division, which is "late cycle" and should move into negative territory after flat growth in the first quarter. "Thomson Reuters has rallied due to the consolidation," he said in a note to clients. "However, we believe organic revenue growth for Thomson Reuters is later cycle than the market expects." He expects an EPS at 40 cents and maintains a “sell” rating on the company, with a price target of $23.50.
● Paul Steep, analyst with Scotia Capital, is far more bullish despite believing the second quarter of 2009 could be the company's "most challenging quarter since the credit crisis began" as IT budgets have been frozen in the first half of the year. "Our estimates remain significantly ahead of consensus, reflecting the significant upside of integration synergies in 2011 and beyond," he said in a note. "We continue to expect the firm to build on the quick integration wins delivered in 2008." He also forecasts revenues of C$3.2 billion and EPS of C$.44, but has a target price of C$47 on a “sector outperform” rating.
● SOURCE Seeking Alpha
Reuters trustees to continue after de-listing
Wednesday 22 July 2009
Directors of Reuters Founders Share Company take a vigorous and active interest in Thomson Reuters and in editorial and will continue after the company ends its listing on the London Stock Exchange, editor-in-chief David Schlesinger said on Wednesday.
Concern had been raised that the Founders Share directors, known as trustees, would lose their power.
“There is a very interesting and immensely important statement in the management information circular about the changing share structure of Thomson Reuters,” Michael Reupke, former editor-in-chief and general manager, said.
“That statement is: ‘Thomson Reuters will seek to redeem and cancel the Reuters Founders share in the capital of Thomson Reuters PLC.’ That share is the only tool the directors of the Founders Share Company, whom we used to refer to as the trustees, have to do anything whatever,” he wrote in a letter to The Baron.
“I hope I can set a predecessor's mind at ease,” Schlesinger responded. “When Thomson Reuters was created, it was created as a dual listed company. Thomson Reuters Corp is domiciled in Toronto and Thomson Reuters PLC has been in London. There has been one Reuters Founders Share in each of the two companies. Obviously if one of the two companies in the dual structure goes away so too will its founders share, but the other remains. I can assure all that from my perspective as Editor-in-Chief, the current Reuters Founders Share Company directors take a vigorous and active interest in the company and in editorial. That interest and engagement has, if anything, increased in the months before and after the consummation of the deal, particularly if I compare it to, say, a decade earlier.”
Shareholder meetings on unifying Thomson Reuters’ dual-listed company structure are scheduled to take place in Toronto and London on 7 August.
CEO Tom Glocer said last month the company’s decision to end its stock exchange listing in London and on NASDAQ in New York would not affect the operations, customers, strategy or financial position of the business.
“Unification would benefit shareholders by creating a single deep, global pool of liquidity and a simpler, more transparent capital structure,” he told staff.
“Our shares are currently listed on four different stock exchanges [London, New York, NASDAQ and Toronto], which has fragmented the trading in our shares and deterred certain large global investors from buying our shares. Unification would also reduce costs and complexity across the company.
“Our commitment to customers, employees and other stakeholders in London, the United Kingdom and Europe is unchanged by where we list our shares. London is a vital global capital for the markets we serve and home to more than 5,000 of our employees.
“The Founders Share Company has indicated it will support unification as this will in no way diminish our adherence to the Reuters Trust Principles.”
Concern had been raised that the Founders Share directors, known as trustees, would lose their power.
“There is a very interesting and immensely important statement in the management information circular about the changing share structure of Thomson Reuters,” Michael Reupke, former editor-in-chief and general manager, said.
“That statement is: ‘Thomson Reuters will seek to redeem and cancel the Reuters Founders share in the capital of Thomson Reuters PLC.’ That share is the only tool the directors of the Founders Share Company, whom we used to refer to as the trustees, have to do anything whatever,” he wrote in a letter to The Baron.
“I hope I can set a predecessor's mind at ease,” Schlesinger responded. “When Thomson Reuters was created, it was created as a dual listed company. Thomson Reuters Corp is domiciled in Toronto and Thomson Reuters PLC has been in London. There has been one Reuters Founders Share in each of the two companies. Obviously if one of the two companies in the dual structure goes away so too will its founders share, but the other remains. I can assure all that from my perspective as Editor-in-Chief, the current Reuters Founders Share Company directors take a vigorous and active interest in the company and in editorial. That interest and engagement has, if anything, increased in the months before and after the consummation of the deal, particularly if I compare it to, say, a decade earlier.”
Shareholder meetings on unifying Thomson Reuters’ dual-listed company structure are scheduled to take place in Toronto and London on 7 August.
CEO Tom Glocer said last month the company’s decision to end its stock exchange listing in London and on NASDAQ in New York would not affect the operations, customers, strategy or financial position of the business.
“Unification would benefit shareholders by creating a single deep, global pool of liquidity and a simpler, more transparent capital structure,” he told staff.
“Our shares are currently listed on four different stock exchanges [London, New York, NASDAQ and Toronto], which has fragmented the trading in our shares and deterred certain large global investors from buying our shares. Unification would also reduce costs and complexity across the company.
“Our commitment to customers, employees and other stakeholders in London, the United Kingdom and Europe is unchanged by where we list our shares. London is a vital global capital for the markets we serve and home to more than 5,000 of our employees.
“The Founders Share Company has indicated it will support unification as this will in no way diminish our adherence to the Reuters Trust Principles.”
How Reuters convinced unions about Geneva HQ, by Michael Nelson
Saturday 27 June 2009
A Reuters plan to relocate to Geneva from London 30 years ago had nothing to do with internationalism but with British trade unionism, Michael Nelson, general manager at the time, said.
The company devised a stratagem to convince the unions that it would leave London, its headquarters since Paul Julius Reuter founded the business in 1851, if it could not get a deal with them during what became known as the 1979 “winter of discontent”.
The plan worked, and Reuters remained at 85 Fleet Street.
On Wednesday, the Financial Times reported in an article on Thomson Reuters’ decision to end trading of its shares on the London Stock Exchange: “If there is concern about the decision in London, it won't be on patriotic grounds. Reuters had been a global company for years before the Thomson deal (although according to a history of the group, Peter Job, managing director, dismissed a 1980 suggestion to relocate its HQ to Geneva as "pallid internationalism").”
The FT’s Lombard columnist, publishing Nelson’s clarification under the headline “Reuters’ Swiss solution”, said on Saturday:
“Thomson Reuters’ decision to scrap its London listing should not upset patriots because Reuters has always been a global company. But my parenthetical reference this week to an abortive plan to move the group’s headquarters to Geneva – mentioned in Donald Read’s history of Reuters, The Power of News – prompted a fascinating clarification from Michael Nelson, who was general manager of Reuters at the time.
“He says this had ‘nothing to do with internationalism but with British trade unionism’. In 1979, the year of the ‘winter of discontent’, Mr Nelson suggested Reuters build a data centre in the Swiss city as an alternative to London if a deal could not be struck with the unions.
“Union representatives were periodically flown out, given a tour of the empty building, ‘a good lunch on Lake Geneva’, and a warning ‘that if we could not get what we wanted in London, we would move to Geneva’.
“The ploy worked and, as Reuters expanded, the building was used to serve continental clients, eventually becoming the headquarters for Europe.”
Five years earlier, union officials and Reuters’ union representatives had been flown at company expense to study video editing in operation in New York. Kevin Garry, in charge of staff relations, “hinted that, if London refused to follow New York, the whole Fleet Street editorial operation might be moved outside the United Kingdom”, according to the company’s official history. Agreement was reached in mid-1975 but the introduction of video editing in London with journalists’ right to by-pass telegraphists and transmit news directly to line was delayed for technical reasons until the end of 1979.
Unions are again threatening strikes and (erroneous) parallels are being drawn with the situation 30 years ago, the FT said. But the story is a timely reminder of how much heavier the pressure was in the late 1970s; of the lengths employers went to in order to hedge their bets; and of how Reuters, a media pioneer in so many other ways, came close to showing the way forward to Eddie Shah and Rupert Murdoch. As Mr Nelson points out: “Geneva was not Reuters’ Wapping, but might have been.”
● SOURCE Financial Times
The company devised a stratagem to convince the unions that it would leave London, its headquarters since Paul Julius Reuter founded the business in 1851, if it could not get a deal with them during what became known as the 1979 “winter of discontent”.
The plan worked, and Reuters remained at 85 Fleet Street.
On Wednesday, the Financial Times reported in an article on Thomson Reuters’ decision to end trading of its shares on the London Stock Exchange: “If there is concern about the decision in London, it won't be on patriotic grounds. Reuters had been a global company for years before the Thomson deal (although according to a history of the group, Peter Job, managing director, dismissed a 1980 suggestion to relocate its HQ to Geneva as "pallid internationalism").”
The FT’s Lombard columnist, publishing Nelson’s clarification under the headline “Reuters’ Swiss solution”, said on Saturday:
“Thomson Reuters’ decision to scrap its London listing should not upset patriots because Reuters has always been a global company. But my parenthetical reference this week to an abortive plan to move the group’s headquarters to Geneva – mentioned in Donald Read’s history of Reuters, The Power of News – prompted a fascinating clarification from Michael Nelson, who was general manager of Reuters at the time.
“He says this had ‘nothing to do with internationalism but with British trade unionism’. In 1979, the year of the ‘winter of discontent’, Mr Nelson suggested Reuters build a data centre in the Swiss city as an alternative to London if a deal could not be struck with the unions.
“Union representatives were periodically flown out, given a tour of the empty building, ‘a good lunch on Lake Geneva’, and a warning ‘that if we could not get what we wanted in London, we would move to Geneva’.
“The ploy worked and, as Reuters expanded, the building was used to serve continental clients, eventually becoming the headquarters for Europe.”
Five years earlier, union officials and Reuters’ union representatives had been flown at company expense to study video editing in operation in New York. Kevin Garry, in charge of staff relations, “hinted that, if London refused to follow New York, the whole Fleet Street editorial operation might be moved outside the United Kingdom”, according to the company’s official history. Agreement was reached in mid-1975 but the introduction of video editing in London with journalists’ right to by-pass telegraphists and transmit news directly to line was delayed for technical reasons until the end of 1979.
Unions are again threatening strikes and (erroneous) parallels are being drawn with the situation 30 years ago, the FT said. But the story is a timely reminder of how much heavier the pressure was in the late 1970s; of the lengths employers went to in order to hedge their bets; and of how Reuters, a media pioneer in so many other ways, came close to showing the way forward to Eddie Shah and Rupert Murdoch. As Mr Nelson points out: “Geneva was not Reuters’ Wapping, but might have been.”
● SOURCE Financial Times
Reuters' many flags - FT
Wednesday 24 June 2009
Thomson Reuters’ decision to end its London Stock Exchange listing will deny British index funds and those institutions with an outdated mandate to invest only in UK-listed companies the opportunity to share in future growth of the business, the Financial Times said on Wednesday.
Something has gone a bit awry when UK investors keep their exposure to London-listed Kazakh miners that are part of the FTSE 100 index but lose their stake in a global media business with deep roots in Britain, it said in a report under the headline “Reuters' many flags”.
But Thomson Reuters’ experience does not necessary rule out a dual-listed structure the next time somebody wants to mount a cross-border takeover using shares, rather than cash, the FT said.
Companies as diverse as Thomson Reuters' competitor Reed Elsevier, cruise company Carnival, and miner Rio Tinto maintain a dual listing.
“But the structure is an impediment when raising funds - or defending against a hostile bid - it imposes an additional running cost ($10 million a year in Thomson Reuters' case), and it adds complexity when simplicity is in fashion.”
The FT quoted a 1915 leaflet celebrating the 50th anniversary of Reuter's Telegram Company: "Reuter's Agency has always been recognised as a British institution representing the English point of view. [Its managing director] is in all respects an Englishman. The Directors, the Editorial Staff, and the correspondents are British pure and simple, and so, with the exception of a score, are the 1,200 shareholders."
Reuters once had to defend itself against allegations of undue German influence during the First World War, the FT said. “Times have changed. No one will accuse Thomson Reuters of treasonable behaviour for ending its London listing. The media group has recognised the inevitable reality and UK-based shareholders have voted with their feet. Since last year's deal with Canada's Thomson, the proportion of Thomson Reuters PLC's shares held in London has dropped from 58 per cent to less than 25 per cent. The balance of shareholder power has inexorably shifted to New York and Toronto.
“If there is concern about the decision in London, it won't be on patriotic grounds. Reuters had been a global company for years before the Thomson deal (although according to a history of the group, Sir Peter Job, managing director, dismissed a 1980 suggestion to relocate its HQ to Geneva as "pallid internationalism").”
The FT noted that “Paul Julius Reuter, the agency's founder, had two names (he was born Israel Beer Josaphat), two nationalities (German and English) and two religions (Jewish and Christian), so you wouldn't bet against Thomson Reuters adding another listing in future (Shanghai, perhaps). But, barring takeover or break-up, London is, regrettably, unlikely to be one of them.”
● SOURCE Financial Times
Something has gone a bit awry when UK investors keep their exposure to London-listed Kazakh miners that are part of the FTSE 100 index but lose their stake in a global media business with deep roots in Britain, it said in a report under the headline “Reuters' many flags”.
But Thomson Reuters’ experience does not necessary rule out a dual-listed structure the next time somebody wants to mount a cross-border takeover using shares, rather than cash, the FT said.
Companies as diverse as Thomson Reuters' competitor Reed Elsevier, cruise company Carnival, and miner Rio Tinto maintain a dual listing.
“But the structure is an impediment when raising funds - or defending against a hostile bid - it imposes an additional running cost ($10 million a year in Thomson Reuters' case), and it adds complexity when simplicity is in fashion.”
The FT quoted a 1915 leaflet celebrating the 50th anniversary of Reuter's Telegram Company: "Reuter's Agency has always been recognised as a British institution representing the English point of view. [Its managing director] is in all respects an Englishman. The Directors, the Editorial Staff, and the correspondents are British pure and simple, and so, with the exception of a score, are the 1,200 shareholders."
Reuters once had to defend itself against allegations of undue German influence during the First World War, the FT said. “Times have changed. No one will accuse Thomson Reuters of treasonable behaviour for ending its London listing. The media group has recognised the inevitable reality and UK-based shareholders have voted with their feet. Since last year's deal with Canada's Thomson, the proportion of Thomson Reuters PLC's shares held in London has dropped from 58 per cent to less than 25 per cent. The balance of shareholder power has inexorably shifted to New York and Toronto.
“If there is concern about the decision in London, it won't be on patriotic grounds. Reuters had been a global company for years before the Thomson deal (although according to a history of the group, Sir Peter Job, managing director, dismissed a 1980 suggestion to relocate its HQ to Geneva as "pallid internationalism").”
The FT noted that “Paul Julius Reuter, the agency's founder, had two names (he was born Israel Beer Josaphat), two nationalities (German and English) and two religions (Jewish and Christian), so you wouldn't bet against Thomson Reuters adding another listing in future (Shanghai, perhaps). But, barring takeover or break-up, London is, regrettably, unlikely to be one of them.”
● SOURCE Financial Times
Delisting disappoints UK investors and analysts
Tuesday 23 June 2009
UK investors and analysts are disappointed at Thomson Reuters' plan to cancel its London Stock Exchange listing, Reuters reported.
Monday’s board decision prompted a jump in the shares on Tuesday, but the rally was tempered by fears some large British shareholders will have to cut or sell their stakes.
Chief executive Tom Glocer said he hoped UK shareholders – only five per cent of the company's combined shareholder base – would retain their investments after the reorganisation, but major institutional investors are likely to sell many or all of their shares, given the funds they manage are UK focused.
Reuters reported: "Tom Glocer was good enough to come and see me yesterday afternoon together with the two other remaining institutional shareholders in London, and I am bitterly disappointed," said one top-10 institutional investor who wished to remain anonymous.
The fund manager said he had hoped the company would leave it five years before reaching a decision on its listings.
"The dozy old UK institutions and sell-side analysts are only just realising that Thomson Reuters is a much better company than they thought," he said. "I think investors would have really come back to this one ... It's a real shame."
The company said the fragmentation in its share structure was deterring some investors.
Analysts at Numis Securities said they could see the benefits the simpler shareholder structure would bring but that they too were disappointed by the move.
"We have been firm supporters of the group, which was one of our key picks in Media 2009, and are therefore greatly saddened to see the delisting," they wrote, adding that many UK institutional investors would likely have to sell their stakes.
Numis had a “hold” rating on the London-listed stock prior to news of the reorganisation but upgraded it to “add” in order to reflect the discount relative to the US shares.
UBS analysts said any upside to the shares may be capped by the fact some institutional shareholders would have to sell stock and were less enthusiastic about the company's prospects, retaining a "sell" rating.
"We continue to believe the the fundamental value of the group overall remains too high," UBS analyst Phillip Huang said in a note. "We would expect to see evidence of deteriorating momentum near future, which combined with imminent increased liquidity, could put pressure on the Corp valuation."
Meanwhile, the longstanding valuation spread between the stocks has already dropped to less than four per cent from 9.3 per cent and will continue to narrow, Huang said.
"[There] may be some offset from PLC holders selling if unable to hold Corp," he said.
In any event, London shares are likely to be driven down in value by virtue of the delisting announcement alone, so Huang has reiterated his "sell" rating and kept his price target of $23.50.
Todd Bourell, a partner at hedge fund ValueAct Capital, which owns 12 million Thomson Reuters shares in London and is one of the company's largest shareholders, said Thomson Reuters' London listing had become problematic for the company.
"The fact that the stock is irrationally undervalued in London is putting a drag on the value of the stock in New York and Toronto," Bourell said.
Canada's Thomson family is the largest shareholder of Thomson Reuters and holds a 55 per cent voting interest.
The Financial Times blamed “a more parochial investment approach” for bogging down Thomson Reuters.
“For a company that makes much of its money from professionals in globalised markets moving capital across borders at high speed, Thomson Reuters became oddly bogged down by a more parochial investment approach,” it said.
When Thomson Corp swooped on Reuters in the summer of 2007, it knew that some UK investors would have trouble holding the paper in its half-cash, half-shares £7.9 billion offer, the FT said.
To avoid a large scale defection of domestic institutions, it turned to a well-worn structure: the dual-listed company, or DLC.
The theory was that shareholders on either side of the Atlantic should be allowed to trade instruments of identical value, taking currency into account, on the local market of their choice.
Reuters’ London shares initially traded at a discount to Thomson’s North American listings until the deal completed in April 2008.
Such gaps are typical with uncompleted deals, as hedge funds bet on possible regulatory delays and other hurdles. Unusually, however, the discount did not disappear when the deal closed.
Over the year, the London line traded on average at a 15 per cent discount to the Toronto quote.
An instrument designed to smooth the takeover instead became an unexpected illustration of the inefficiencies that still exist in modern global markets, the FT said.
The fact that the DLC structure failed to behave as expected was described on Monday by one person close to the company as “irrational”, but analysts identify a number of reasons.
One factor was that the high concentration of the Thomson family’s stake in Canada limited liquidity in Toronto, benefiting the price by restricting opportunities for borrowing stock to sell short.
The simplest explanation, however, may be that UK investors have taken a more bearish stance towards the company, the FT said.
“Their North American peers, many in the company believe, focus less obsessively on the financial data business that serves hard-hit Wall Street and City of London traders and give more weight to its legal, scientific, healthcare, tax and accounting operations.”
For the group, a unified capital structure opens up the possibility of more stock-based acquisitions once turbulence subsides. Having two differently valued instruments could have complicated potential takeovers, especially while more than $5 billion of liquidity was effectively trapped in a pool outside North America.
According to Glocer: “In an age where our markets are global and electronic, brought that way in part because of us at Thomson Reuters, where these shares are traded is much less important to me than where our customers, employees and footprint are.”
● SOURCE Reuters | Financial Post | Financial Times
Monday’s board decision prompted a jump in the shares on Tuesday, but the rally was tempered by fears some large British shareholders will have to cut or sell their stakes.
Chief executive Tom Glocer said he hoped UK shareholders – only five per cent of the company's combined shareholder base – would retain their investments after the reorganisation, but major institutional investors are likely to sell many or all of their shares, given the funds they manage are UK focused.
Reuters reported: "Tom Glocer was good enough to come and see me yesterday afternoon together with the two other remaining institutional shareholders in London, and I am bitterly disappointed," said one top-10 institutional investor who wished to remain anonymous.
The fund manager said he had hoped the company would leave it five years before reaching a decision on its listings.
"The dozy old UK institutions and sell-side analysts are only just realising that Thomson Reuters is a much better company than they thought," he said. "I think investors would have really come back to this one ... It's a real shame."
The company said the fragmentation in its share structure was deterring some investors.
Analysts at Numis Securities said they could see the benefits the simpler shareholder structure would bring but that they too were disappointed by the move.
"We have been firm supporters of the group, which was one of our key picks in Media 2009, and are therefore greatly saddened to see the delisting," they wrote, adding that many UK institutional investors would likely have to sell their stakes.
Numis had a “hold” rating on the London-listed stock prior to news of the reorganisation but upgraded it to “add” in order to reflect the discount relative to the US shares.
UBS analysts said any upside to the shares may be capped by the fact some institutional shareholders would have to sell stock and were less enthusiastic about the company's prospects, retaining a "sell" rating.
"We continue to believe the the fundamental value of the group overall remains too high," UBS analyst Phillip Huang said in a note. "We would expect to see evidence of deteriorating momentum near future, which combined with imminent increased liquidity, could put pressure on the Corp valuation."
Meanwhile, the longstanding valuation spread between the stocks has already dropped to less than four per cent from 9.3 per cent and will continue to narrow, Huang said.
"[There] may be some offset from PLC holders selling if unable to hold Corp," he said.
In any event, London shares are likely to be driven down in value by virtue of the delisting announcement alone, so Huang has reiterated his "sell" rating and kept his price target of $23.50.
Todd Bourell, a partner at hedge fund ValueAct Capital, which owns 12 million Thomson Reuters shares in London and is one of the company's largest shareholders, said Thomson Reuters' London listing had become problematic for the company.
"The fact that the stock is irrationally undervalued in London is putting a drag on the value of the stock in New York and Toronto," Bourell said.
Canada's Thomson family is the largest shareholder of Thomson Reuters and holds a 55 per cent voting interest.
The Financial Times blamed “a more parochial investment approach” for bogging down Thomson Reuters.
“For a company that makes much of its money from professionals in globalised markets moving capital across borders at high speed, Thomson Reuters became oddly bogged down by a more parochial investment approach,” it said.
When Thomson Corp swooped on Reuters in the summer of 2007, it knew that some UK investors would have trouble holding the paper in its half-cash, half-shares £7.9 billion offer, the FT said.
To avoid a large scale defection of domestic institutions, it turned to a well-worn structure: the dual-listed company, or DLC.
The theory was that shareholders on either side of the Atlantic should be allowed to trade instruments of identical value, taking currency into account, on the local market of their choice.
Reuters’ London shares initially traded at a discount to Thomson’s North American listings until the deal completed in April 2008.
Such gaps are typical with uncompleted deals, as hedge funds bet on possible regulatory delays and other hurdles. Unusually, however, the discount did not disappear when the deal closed.
Over the year, the London line traded on average at a 15 per cent discount to the Toronto quote.
An instrument designed to smooth the takeover instead became an unexpected illustration of the inefficiencies that still exist in modern global markets, the FT said.
The fact that the DLC structure failed to behave as expected was described on Monday by one person close to the company as “irrational”, but analysts identify a number of reasons.
One factor was that the high concentration of the Thomson family’s stake in Canada limited liquidity in Toronto, benefiting the price by restricting opportunities for borrowing stock to sell short.
The simplest explanation, however, may be that UK investors have taken a more bearish stance towards the company, the FT said.
“Their North American peers, many in the company believe, focus less obsessively on the financial data business that serves hard-hit Wall Street and City of London traders and give more weight to its legal, scientific, healthcare, tax and accounting operations.”
For the group, a unified capital structure opens up the possibility of more stock-based acquisitions once turbulence subsides. Having two differently valued instruments could have complicated potential takeovers, especially while more than $5 billion of liquidity was effectively trapped in a pool outside North America.
According to Glocer: “In an age where our markets are global and electronic, brought that way in part because of us at Thomson Reuters, where these shares are traded is much less important to me than where our customers, employees and footprint are.”
● SOURCE Reuters | Financial Post | Financial Times
TR's London shares gain 7.3 per cent on delisting news
Tuesday 23 June 2009
Thomson Reuters' London shares had their biggest gain in more than six months after the company unveiled plans to quit the London Stock Exchange.
The shares rose as much as 7.3 per cent to 1750 pence, the biggest gain since 19 December, before falling back to 1720 pence. The London shares later gave up more of the gain, closing at 1690 pence, a rise of 59 pence or 3.62 per cent on the day.
Over the past year the London shares have traded at a discount of up to 20 per cent to the North American shares, although this has narrowed to about 10 per cent recently.
It was described as an arbitrageur’s dream, allowing investors to sell the more expensive North American shares and buy the cheaper British ones.
Thomson Reuters said on Monday it would remain listed on the Toronto Stock Exchange and New York Stock Exchange, while quitting the LSE and NASDAQ.
● SOURCE Bloomberg | MarketWatch
The shares rose as much as 7.3 per cent to 1750 pence, the biggest gain since 19 December, before falling back to 1720 pence. The London shares later gave up more of the gain, closing at 1690 pence, a rise of 59 pence or 3.62 per cent on the day.
Over the past year the London shares have traded at a discount of up to 20 per cent to the North American shares, although this has narrowed to about 10 per cent recently.
It was described as an arbitrageur’s dream, allowing investors to sell the more expensive North American shares and buy the cheaper British ones.
Thomson Reuters said on Monday it would remain listed on the Toronto Stock Exchange and New York Stock Exchange, while quitting the LSE and NASDAQ.
● SOURCE Bloomberg | MarketWatch
Delisting won't affect operations, customers, strategy or financial position - Tom Glocer
Tuesday 23 June 2009
“Unification would benefit shareholders by creating a single deep, global pool of liquidity and a simpler, more transparent capital structure,” he said in a message to the company’s 52,000 staff.
“Our shares are currently listed on four different stock exchanges [London, New York, NASDAQ and Toronto], which has fragmented the trading in our shares and deterred certain large global investors from buying our shares. Unification would also reduce costs and complexity across the company.
“You might fairly ask did we not anticipate when we announced the structure in 2007 that a DLC [dual listed company] would split the trading in our shares and carry a cost and complexity burden? We did, but we believed that these disadvantages would be outweighed by retaining and attracting an active following of investors in the UK. Unfortunately, things have not worked out that way. Over the past two years the percentage of shares held by UK active shareholders has declined from 45% of Thomson Reuters PLC to 12%, and North American investors now own 64% of PLC shares. Overall, UK shareholders now represent only 5% of our consolidated shareholder base. In these circumstances, it is now far better to unify our structure to offer a single, deep pool of liquidity to global investors.”
Glocer encouraged staff who hold Thomson Reuters shares to vote for the change at shareholder meetings scheduled for 7 August. He said shareholder meeting materials and proxy forms will be available in early July.
Following unification, all Thomson Reuters shareholders will have the same economic and voting interests in the company as they do under the current DLC structure, Glocer said.
“Our commitment to customers, employees and other stakeholders in London, the United Kingdom and Europe is unchanged by where we list our shares. London is a vital global capital for the markets we serve and home to more than 5,000 of our employees.
“The Founders Share Company has indicated it will support unification as this will in no way diminish our adherence to the Reuters Trust Principles.”
● SOURCE Thomson Reuters
Thomson Reuters to quit London Stock Exchange
Monday 22 June 2009
Thomson Reuters said it plans to withdraw its shares from the London Stock Exchange, “severing a key connection with Reuters' British roots”, as Reuters’ own story put it.
The company said it would also remove its shares from NASDAQ and remain listed only on the New York and Toronto exchanges.
Chief executive Tom Glocer played down concerns that Thomson Reuters could lose any UK-based shareholders through the action, noting that only five per cent of all shareholders are in the United Kingdom. He expressed hope that those shareholders would retain their holdings even after the delisting.
"Our shares are now fragmented, divided between North America and London in a way we didn't envision. That's hurting the company because there are investors who would come in but won't," Glocer said in a telephone interview with Reuters.
Thomson Reuters said it would seek shareholder approval for the London and NASDAQ delistings on 7 August.
"In a global electronic world where shares are trading in ones and zeros ... where we trade our shares is, to me, plumbing," Glocer said. "I think we shouldn't get too hung up ... London is still the second largest centre that we've got."
Thomson Reuters shares closed down 78 cents to C$33.53 on the Toronto Stock Exchange and down 94 cents at $29.08 on the New York Stock Exchange.
● SOURCE Reuters
The company said it would also remove its shares from NASDAQ and remain listed only on the New York and Toronto exchanges.
Chief executive Tom Glocer played down concerns that Thomson Reuters could lose any UK-based shareholders through the action, noting that only five per cent of all shareholders are in the United Kingdom. He expressed hope that those shareholders would retain their holdings even after the delisting.
"Our shares are now fragmented, divided between North America and London in a way we didn't envision. That's hurting the company because there are investors who would come in but won't," Glocer said in a telephone interview with Reuters.
Thomson Reuters said it would seek shareholder approval for the London and NASDAQ delistings on 7 August.
"In a global electronic world where shares are trading in ones and zeros ... where we trade our shares is, to me, plumbing," Glocer said. "I think we shouldn't get too hung up ... London is still the second largest centre that we've got."
Thomson Reuters shares closed down 78 cents to C$33.53 on the Toronto Stock Exchange and down 94 cents at $29.08 on the New York Stock Exchange.
● SOURCE Reuters
Thomson Reuters to end London share listing - FT
Monday 22 June 2009
Thomson Reuters has decided to end the London listing for its shares, the Financial Times reported.
The board discussed the decision on Monday afternoon, the newspaper said in a report from New York. It is subject to shareholder and court approval.
Thomson Reuters needs 75 per cent majority approval from shareholders to replace the current UK-listed shares and their related US-listed American Depositary Receipts with a single Toronto listing.
The FT said the switch will be conducted through a scheme of arrangement in a manner designed to avoid tax penalties for shareholders and should be completed by the end of September if shareholders and courts give their approval.
It would end a period marked by large valuation gaps between the London and Toronto listings since the dual structure was put in place when Thomson took over Reuters in April 2008.
The UK shares currently trade 10 per cent below the North American stock and 95 per cent of the company is now held by non-UK shareholders, the FT said.
“By improving liquidity in the Canadian stock, which includes most of the Thomson family’s controlling 55 per cent stake, the group hopes to improve its appeal to investors and its chances of raising capital if needed in future,” the FT said.
“The company has been conscious of the long history of Reuters in London, which dates back to Paul Julius Reuter’s pioneering use of carrier pigeons and submarine telegraph cables in the 1850s.
“However, people close to the company told the Financial Times that the change would not affect its sizeable Thomson Reuters markets business in London, nor headcount at its professional division…”
The company could save about $10 million in accounting, legal and other costs associated with the UK listing, they estimated.
The FT said that just 25 per cent of the London listed shares are now in the hands of UK institutions, down from over 50 per cent, of which roughly half were active investors and the other half index tracking funds.
The group expects index trackers and some UK active investors to come out of the stock, but its greater weighting in the Toronto index should in part offset any flow-back issues.
● SOURCE Financial Times
The board discussed the decision on Monday afternoon, the newspaper said in a report from New York. It is subject to shareholder and court approval.
Thomson Reuters needs 75 per cent majority approval from shareholders to replace the current UK-listed shares and their related US-listed American Depositary Receipts with a single Toronto listing.
The FT said the switch will be conducted through a scheme of arrangement in a manner designed to avoid tax penalties for shareholders and should be completed by the end of September if shareholders and courts give their approval.
It would end a period marked by large valuation gaps between the London and Toronto listings since the dual structure was put in place when Thomson took over Reuters in April 2008.
The UK shares currently trade 10 per cent below the North American stock and 95 per cent of the company is now held by non-UK shareholders, the FT said.
“By improving liquidity in the Canadian stock, which includes most of the Thomson family’s controlling 55 per cent stake, the group hopes to improve its appeal to investors and its chances of raising capital if needed in future,” the FT said.
“The company has been conscious of the long history of Reuters in London, which dates back to Paul Julius Reuter’s pioneering use of carrier pigeons and submarine telegraph cables in the 1850s.
“However, people close to the company told the Financial Times that the change would not affect its sizeable Thomson Reuters markets business in London, nor headcount at its professional division…”
The company could save about $10 million in accounting, legal and other costs associated with the UK listing, they estimated.
The FT said that just 25 per cent of the London listed shares are now in the hands of UK institutions, down from over 50 per cent, of which roughly half were active investors and the other half index tracking funds.
The group expects index trackers and some UK active investors to come out of the stock, but its greater weighting in the Toronto index should in part offset any flow-back issues.
● SOURCE Financial Times
Thomson Reuters Q1 profit beats forecasts
Thursday 07 May 2009
Thomson Reuters reported better-than-expected first quarter profit on Thursday as it kept a tight control on costs. The company reaffirmed its expectation that revenue will grow this year.
CEO Tom Glocer said the climate in the market had improved but not enough to rule out further weakness.
"I can't really call exactly where the bottom is. There can be false dawns. Right now sentiment is quite good in the market. We see them opening up their purse strings just a little bit," he said.
The London-listed shares closed a tad under 44 pence lower at 1,812 pence, down 2.37 per cent, after hitting a record high of 1,939 before the results were released.
Greater losses were registered in New York and Toronto.
In New York, Thomson Reuters shares closed 5.73 per cent lower at $29.77, a loss of $1.81.
On NASDAQ, the shares closed at $161.51, down $7.98 or 4.71 per cent.
In Toronto, the fall was 4.75 per cent or C$1.75 to a close of C$35.08.
Thomson Reuters’ Q1 net income was $228 million, or 27 cents a share, compared with $194 million, or 30 cents a share, a year ago.
Underlying operating profit, excluding amortisation, integration costs and other items, rose two per cent to $588 million, or 40 cents per share, beating the average analyst forecast of 34 cents per share.
Revenue from ongoing businesses was $3.12 billion, down three per cent from a year ago but up three per cent before currency effects. Analysts on average were expecting revenue of $3.17 billion.
The company reaffirmed its outlook for revenue to grow in 2009, and for underlying operating margin and free cash flow to be comparable to 2008, supported by revenue growth and the expected savings from integration programmes.
Thomson Reuters has said it expects annualised cost savings of $1 billion by the end of 2011, and Glocer said that while this was a good target, he did not rule out more.
Revenue in the Markets division, which supplies news and data to financial institutions, fell seven per cent to $1.85 billion, hurt by lower transaction volumes and job cuts. But the revenue would have risen 0.4 per cent before currency effects.
Though the outlook has brightened in recent weeks, financial institutions have been hit by closures, mergers and deep job cuts, and Reuters reported that the company is regarded by some analysts as the riskiest bet among professional information providers due to its exposure to the financial sector for about 60 per cent of group sales.
But strong execution, a high proportion of subscription and digital revenues, and the resilience of the Professional unit have helped to drive up Thomson Reuters London-listed shares by more than 20 per cent in the year to date.
Revenue at the Professional division, which supplies information to lawyers, scientists, accountants and the healthcare industry, rose two per cent to $1.27 billion, or five per cent excluding currency effects.
Glocer told the Financial Times that Thomson Reuters can take market share from rivals once turbulent financial and legal markets revive.
Bloomberg’s fall in terminal numbers by 2.5 per cent since November suggested “a much stronger descent than we’re seeing” in the markets business where they compete, Glocer said. “I certainly feel we’re at least holding our own.”
Much of the market share gains the group foresees would come from taking over the “do-it-yourself” data efforts of large banks and other customers, he said. Subscriptions had risen by two per cent in the markets business, while transaction revenues had fallen, but would rebound quickly in a recovery, he added.
“It feels like sentiment has changed in the last month,” Glocer told the FT, “but we don’t run our business on the basis that we need to clutch at green shoots.”
Robert Daleo, chief financial officer, said savings from integration were ahead of plan, adding that when combined with earlier initiatives these were on track to meet a $1.4 billion target by 2011.
● CLICK to read a transcript of the analysts’ webcast by Tom Glocer and Robert Daleo.
● SOURCE Reuters | Financial Times
CEO Tom Glocer said the climate in the market had improved but not enough to rule out further weakness.
"I can't really call exactly where the bottom is. There can be false dawns. Right now sentiment is quite good in the market. We see them opening up their purse strings just a little bit," he said.
The London-listed shares closed a tad under 44 pence lower at 1,812 pence, down 2.37 per cent, after hitting a record high of 1,939 before the results were released.
Greater losses were registered in New York and Toronto.
In New York, Thomson Reuters shares closed 5.73 per cent lower at $29.77, a loss of $1.81.
On NASDAQ, the shares closed at $161.51, down $7.98 or 4.71 per cent.
In Toronto, the fall was 4.75 per cent or C$1.75 to a close of C$35.08.
Thomson Reuters’ Q1 net income was $228 million, or 27 cents a share, compared with $194 million, or 30 cents a share, a year ago.
Underlying operating profit, excluding amortisation, integration costs and other items, rose two per cent to $588 million, or 40 cents per share, beating the average analyst forecast of 34 cents per share.
Revenue from ongoing businesses was $3.12 billion, down three per cent from a year ago but up three per cent before currency effects. Analysts on average were expecting revenue of $3.17 billion.
The company reaffirmed its outlook for revenue to grow in 2009, and for underlying operating margin and free cash flow to be comparable to 2008, supported by revenue growth and the expected savings from integration programmes.
Thomson Reuters has said it expects annualised cost savings of $1 billion by the end of 2011, and Glocer said that while this was a good target, he did not rule out more.
Revenue in the Markets division, which supplies news and data to financial institutions, fell seven per cent to $1.85 billion, hurt by lower transaction volumes and job cuts. But the revenue would have risen 0.4 per cent before currency effects.
Though the outlook has brightened in recent weeks, financial institutions have been hit by closures, mergers and deep job cuts, and Reuters reported that the company is regarded by some analysts as the riskiest bet among professional information providers due to its exposure to the financial sector for about 60 per cent of group sales.
But strong execution, a high proportion of subscription and digital revenues, and the resilience of the Professional unit have helped to drive up Thomson Reuters London-listed shares by more than 20 per cent in the year to date.
Revenue at the Professional division, which supplies information to lawyers, scientists, accountants and the healthcare industry, rose two per cent to $1.27 billion, or five per cent excluding currency effects.
Glocer told the Financial Times that Thomson Reuters can take market share from rivals once turbulent financial and legal markets revive.
Bloomberg’s fall in terminal numbers by 2.5 per cent since November suggested “a much stronger descent than we’re seeing” in the markets business where they compete, Glocer said. “I certainly feel we’re at least holding our own.”
Much of the market share gains the group foresees would come from taking over the “do-it-yourself” data efforts of large banks and other customers, he said. Subscriptions had risen by two per cent in the markets business, while transaction revenues had fallen, but would rebound quickly in a recovery, he added.
“It feels like sentiment has changed in the last month,” Glocer told the FT, “but we don’t run our business on the basis that we need to clutch at green shoots.”
Robert Daleo, chief financial officer, said savings from integration were ahead of plan, adding that when combined with earlier initiatives these were on track to meet a $1.4 billion target by 2011.
● CLICK to read a transcript of the analysts’ webcast by Tom Glocer and Robert Daleo.
● SOURCE Reuters | Financial Times
Thomson Reuters' UK shares hit record high
Tuesday 05 May 2009
Thomson Reuters’ London shares closed at a record high on Tuesday.
The stock ended the day up 95 pence – 5.43 per cent – at 1845 pence on the London Stock Exchange.
Percentage increases in North America were modest.
On the New York Stock Exchange, the share was six cents higher – 0.20 per cent – at $30.70.
On NASDAQ, the increase was $2.45 – 1.49 per cent – to $166.45.
In Toronto, the increase was C$0.16 – 0.44 per cent – to C$36.15.
The stock ended the day up 95 pence – 5.43 per cent – at 1845 pence on the London Stock Exchange.
Percentage increases in North America were modest.
On the New York Stock Exchange, the share was six cents higher – 0.20 per cent – at $30.70.
On NASDAQ, the increase was $2.45 – 1.49 per cent – to $166.45.
In Toronto, the increase was C$0.16 – 0.44 per cent – to C$36.15.
Reuters to beat Bloomberg out of global crisis - FT
Monday 27 April 2009
Reuters may fare better than Bloomberg in the current financial crisis, the Financial Times said on Monday.
Thanks to a technological shift, instead of just wholesaling news and data, wire services can in theory also sell it direct to consumers via the internet or mobile applications. But advertising is scarce and such retail schemes, which cannibalise wholesale revenues, have floundered in the past, it said.
A bigger problem is the banking crisis. Peter Grauer, Bloomberg’s chairman, believes the financial services industry will cut its information spending by 20 per cent this year.
“Such shrinkage offers a replay of the slugging match during the dotcom downturn, when Bloomberg got the better of Reuters, its duopolistic financial information rival,” the FT said.
“This time Reuters may fare better. Bloomberg can’t count on the hedge funds it courted in the 2000s to pick up the slack. It is dominant in fixed-income, not the best place to be; Reuters is stronger in forex and commodities. Furthermore, Thomson Reuters’ legal and medical information provide extra ballast. Bloomberg’s largely one-trick business model, renting terminals at $1,590 per month, hinges on body count. Thanks to savings from the merger, Thomson Reuters shares trade at 15 times forecast earnings, a 32 per cent premium to its peers. Bad news can only await such a high wire rating.”
Analysts expect the global financial crisis to have profound consequences for the industry, but what those will be is far from obvious, the FT said.
Lengthy subscriptions mean cuts by customers take time to filter through, and even in the quarter when Lehman Brothers collapsed, transactional revenues rose thanks to volatility in commodity and foreign exchange markets.
“Only now, as first-quarter figures begin to come through, are investors watching anxiously for the early signs of the credit crunch’s impact. Citigroup analysts noted last week that transaction revenues could be down 40 per cent,” the FT said.
There is considerable uncertainty about the extent to which financial companies will retain overlapping, or similar services given the pressure on services. Although at the same time heightened scrutiny on valuations and increased regulatory demands could help support the industry.
Not all are affected equally. Citigroup argued that Thomson Reuters could fare better than Bloomberg because the latter had been more exposed to harder-hit fixed-income and asset-backed securities traders and hedge funds.
One analyst, who would not be named, said Bloomberg was taking an “aggressively proactive” approach to persuading customers to keep their terminals.
The analyst told the FT that Thomson Reuters, which is less dependent on terminal sales than in past downturns, was fighting back ahead of launching its first common platform since the former Thomson Financial and Reuters businesses combined a year ago.
Thomson Reuters’ London-listed shares are now at the same level as last May. Over the same period the FTSE has dropped 35 per cent.
The London shares closed on Monday at 1,705 pence, 0.99 per cent below their 52-week high of 1,722 set nine trading days ago on 14 April.
● SOURCE Financial Times
Thanks to a technological shift, instead of just wholesaling news and data, wire services can in theory also sell it direct to consumers via the internet or mobile applications. But advertising is scarce and such retail schemes, which cannibalise wholesale revenues, have floundered in the past, it said.
A bigger problem is the banking crisis. Peter Grauer, Bloomberg’s chairman, believes the financial services industry will cut its information spending by 20 per cent this year.
“Such shrinkage offers a replay of the slugging match during the dotcom downturn, when Bloomberg got the better of Reuters, its duopolistic financial information rival,” the FT said.
“This time Reuters may fare better. Bloomberg can’t count on the hedge funds it courted in the 2000s to pick up the slack. It is dominant in fixed-income, not the best place to be; Reuters is stronger in forex and commodities. Furthermore, Thomson Reuters’ legal and medical information provide extra ballast. Bloomberg’s largely one-trick business model, renting terminals at $1,590 per month, hinges on body count. Thanks to savings from the merger, Thomson Reuters shares trade at 15 times forecast earnings, a 32 per cent premium to its peers. Bad news can only await such a high wire rating.”
Analysts expect the global financial crisis to have profound consequences for the industry, but what those will be is far from obvious, the FT said.
Lengthy subscriptions mean cuts by customers take time to filter through, and even in the quarter when Lehman Brothers collapsed, transactional revenues rose thanks to volatility in commodity and foreign exchange markets.
“Only now, as first-quarter figures begin to come through, are investors watching anxiously for the early signs of the credit crunch’s impact. Citigroup analysts noted last week that transaction revenues could be down 40 per cent,” the FT said.
There is considerable uncertainty about the extent to which financial companies will retain overlapping, or similar services given the pressure on services. Although at the same time heightened scrutiny on valuations and increased regulatory demands could help support the industry.
Not all are affected equally. Citigroup argued that Thomson Reuters could fare better than Bloomberg because the latter had been more exposed to harder-hit fixed-income and asset-backed securities traders and hedge funds.
One analyst, who would not be named, said Bloomberg was taking an “aggressively proactive” approach to persuading customers to keep their terminals.
The analyst told the FT that Thomson Reuters, which is less dependent on terminal sales than in past downturns, was fighting back ahead of launching its first common platform since the former Thomson Financial and Reuters businesses combined a year ago.
Thomson Reuters’ London-listed shares are now at the same level as last May. Over the same period the FTSE has dropped 35 per cent.
The London shares closed on Monday at 1,705 pence, 0.99 per cent below their 52-week high of 1,722 set nine trading days ago on 14 April.
● SOURCE Financial Times
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
Pay boom for Thomson Reuters executives
Thursday 02 April 2009
Six senior executives of Thomson Reuters have been given share awards that could be worth $61 million, the Financial Times reported on Thursday.
The awards come after a year in which profits and revenues grew ahead of expectations but fears about the health of the financial and professional customers on which it depends also grew.
Tom Glocer, CEO, was granted restricted stock units valued at a potential $26.1 million over five years. The awards are not subject to performance criteria, the FT said.
“Separate cash and stock bonuses, and $757,000 relocation expenses, mean Glocer’s compensation jumped from £2.61 million for his last year at Reuters to $8.91 million for his first at the helm of the enlarged group,” it said.
A spokesman said the rise reflected larger responsibilities, performance achievements and currency swings. A similar one-time grant to Devin Wenig, chief executive of the markets division, was valued at $15.9 million, on top of a $4.54 million compensation package for the year.
Thomson Reuters said the awards for the two former Reuters executives, which exceeded those to former Thomson directors, were in part a reflection of the fact that they could not join Thomson’s defined pension plan for executives, which is now closed to new participants.
The details come amid heated argument about executive compensation, particularly in the Wall Street and City firms served by Thomson Reuters, and after contentious contract negotiations with some editorial staff, the FT said.
“But the company has little to fear from shareholder opposition to the rewards as it is 55 per cent controlled by the Woodbridge Company, which represents the Thomson family’s holding.”
Geoff Beattie, president of Woodbridge, was also granted restricted stock units with a theoretical value of $3.57 million. Niall FitzGerald, former Reuters chairman, received restricted stock valued at $707,000. The two deputy chairmen were architects of the Thomson Reuters deal.
The rewards followed a year in which the group hit the top end of its forecasts, with eight per cent pro forma revenue growth and a 19 per cent increase in underlying operating profit.
Last month it accelerated estimates of integration savings from the merger, raised the dividend and predicted further organic growth in 2009.
Executive salaries will be frozen this year, after Glocer’s basic salary slipped from the sterling equivalent of $1.67 million to $1.55 million.
A compensation committee report said it had aimed to increase the portion of his compensation tied to performance.
The Daily Mail said: “In an age of shrinking banking bonuses, the staggering payout made American Tom Glocer one of the highest earners in corporate Britain last year.
“The 49-year old lawyer hit the jackpot after merging Reuters, where he was chief executive, with North American media conglomerate Thomson.
“An estimated £15m share option package was triggered when the £9bn deal was finally given the green light last March.
“But the gravy train gathered more speed when Glocer pitched up in the US as head of the enlarged data and publishing giant and was handed share options worth over £18m in Thomson-Reuters.”
His basic pay at Reuters was a relatively modest £900,000. Glocer is aiming to cut overheads by nearly £1 billion – in a move that will see him slash jobs at the combined financial markets divisions.
The Mail said Thomson Reuters’ annual report published on Monday offers a tantalising glimpse into the pay and perks commonplace in US boardrooms.
“But his sweeteners could revive painful memories for longstanding shareholders.
“Glocer came under fire over the £230,000 annual rent Reuters used to pay for his London home.
“Reuters shares have lost less than a tenth of their value over the past year, making them among the best performers in the battered media sector.”
● SOURCE Financial Times | Daily Mail
The awards come after a year in which profits and revenues grew ahead of expectations but fears about the health of the financial and professional customers on which it depends also grew.
Tom Glocer, CEO, was granted restricted stock units valued at a potential $26.1 million over five years. The awards are not subject to performance criteria, the FT said.
“Separate cash and stock bonuses, and $757,000 relocation expenses, mean Glocer’s compensation jumped from £2.61 million for his last year at Reuters to $8.91 million for his first at the helm of the enlarged group,” it said.
A spokesman said the rise reflected larger responsibilities, performance achievements and currency swings. A similar one-time grant to Devin Wenig, chief executive of the markets division, was valued at $15.9 million, on top of a $4.54 million compensation package for the year.
Thomson Reuters said the awards for the two former Reuters executives, which exceeded those to former Thomson directors, were in part a reflection of the fact that they could not join Thomson’s defined pension plan for executives, which is now closed to new participants.
The details come amid heated argument about executive compensation, particularly in the Wall Street and City firms served by Thomson Reuters, and after contentious contract negotiations with some editorial staff, the FT said.
“But the company has little to fear from shareholder opposition to the rewards as it is 55 per cent controlled by the Woodbridge Company, which represents the Thomson family’s holding.”
Geoff Beattie, president of Woodbridge, was also granted restricted stock units with a theoretical value of $3.57 million. Niall FitzGerald, former Reuters chairman, received restricted stock valued at $707,000. The two deputy chairmen were architects of the Thomson Reuters deal.
The rewards followed a year in which the group hit the top end of its forecasts, with eight per cent pro forma revenue growth and a 19 per cent increase in underlying operating profit.
Last month it accelerated estimates of integration savings from the merger, raised the dividend and predicted further organic growth in 2009.
Executive salaries will be frozen this year, after Glocer’s basic salary slipped from the sterling equivalent of $1.67 million to $1.55 million.
A compensation committee report said it had aimed to increase the portion of his compensation tied to performance.
The Daily Mail said: “In an age of shrinking banking bonuses, the staggering payout made American Tom Glocer one of the highest earners in corporate Britain last year.
“The 49-year old lawyer hit the jackpot after merging Reuters, where he was chief executive, with North American media conglomerate Thomson.
“An estimated £15m share option package was triggered when the £9bn deal was finally given the green light last March.
“But the gravy train gathered more speed when Glocer pitched up in the US as head of the enlarged data and publishing giant and was handed share options worth over £18m in Thomson-Reuters.”
His basic pay at Reuters was a relatively modest £900,000. Glocer is aiming to cut overheads by nearly £1 billion – in a move that will see him slash jobs at the combined financial markets divisions.
The Mail said Thomson Reuters’ annual report published on Monday offers a tantalising glimpse into the pay and perks commonplace in US boardrooms.
“But his sweeteners could revive painful memories for longstanding shareholders.
“Glocer came under fire over the £230,000 annual rent Reuters used to pay for his London home.
“Reuters shares have lost less than a tenth of their value over the past year, making them among the best performers in the battered media sector.”
● SOURCE Financial Times | Daily Mail
Brass for the brass
Monday 30 March 2009
Chief executive Tom Glocer, 49, received a $36.6 million package in 2008.
Chief financial officer Robert Daleo, 59, received $14 million. James Smith, 49, president and chief executive of the professional division, took home $5.2 million.
All three executives received a significant part of their compensation in the form of one-time stock option grants aimed at providing performance incentive.
The figures are disclosed in Thomson Reuters’ annual report published on Monday.
The company is one of the few that managed to avoid getting caught in the financial meltdown that claimed so many victims across the economic spectrum, reporting stellar results for 2008, and it is compensating its executives accordingly, the online Financial Post reported.
"Our overall philosophy regarding executive compensation is to pay for performance," the company’s Management Information Circular stated. "We believe this drives our management team to achieve higher levels of results for the benefit of Thomson Reuters and our shareholders."
In 2008 Q4, Thomson Reuters reported net income of $565 million, or 79¢ a share, compared with $432 million, or 67¢ a share.
The largest component of Glocer's pay package was a one-time grant of 700,000 restricted share units that will vest 20 per cent each year for five years providing performance goals are met. His "normal annual compensation" came in at $8.9 million.
Glocer holds 650,231 Thomson Reuters PLC shares.
Daleo went home with $6 million in normal annual compensation and Smith received $5.2 million.
Less than 20 per cent of the total take-home of top executives is described as base salary. The rest is a mix of cash and stock incentives, pension entitlements and "other" compensation.
Financial Post noted that disclosure of executive compensation comes at a time when companies around the world are under pressure from shareholders to keep a lid on management pay.
Thomson Reuters said it expects higher revenues this year despite continuing turmoil on financial markets thanks to diversification into developing countries that are still experiencing growth.
Shares in Thomson Reuters declined 1.43 per cent to 1510 pence on the London Stock Exchange. Despite considerable volatility, the shares are trading at about the same level as they were at the end of March 2008, Financial Post noted.
● SOURCE Financial Post
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
Woodbridge signals it may sell Toronto shares, buy London ones
Thursday 26 February 2009
Woodbridge, the Thomson family's investment vehicle that controls more than half of Thomson Reuters shares, signalled on Thursday it may sell some of its shares traded in Toronto for those traded in London.
The company announced in Toronto that it had made a Canadian regulatory filing that would permit it to undertake transactions providing for sales of up to 10 million additional Thomson Reuters Corporation common shares (representing approximately two per cent of its holdings of Thomson Reuters Corporation common shares) and purchases of a similar number of Thomson Reuters PLC ordinary shares.
The filing does not commit Woodbridge to undertake any of these transactions. Woodbridge previously announced and completed similar transactions in the fourth quarter of 2008.
Any share sales would be through the Toronto Stock Exchange within 30 days. Purchases would be through the London Stock Exchange.
One ordinary share of Thomson Reuters PLC is equivalent to one common share of Thomson Reuters Corporation under Thomson Reuters dual listed company structure. As of yesterday, Woodbridge and other companies affiliated with it beneficially owned an aggregate of 439,767,486 Thomson Reuters Corporation common shares and 15,375,287 Thomson Reuters PLC ordinary shares (including ordinary shares underlying Thomson Reuters PLC American Depositary Shares) and had a voting interest in Thomson Reuters of approximately 55 per cent.
The London listing has traded at a discount to the North American quotes since Thomson's takeover of Reuters was completed last April.
The company announced in Toronto that it had made a Canadian regulatory filing that would permit it to undertake transactions providing for sales of up to 10 million additional Thomson Reuters Corporation common shares (representing approximately two per cent of its holdings of Thomson Reuters Corporation common shares) and purchases of a similar number of Thomson Reuters PLC ordinary shares.
The filing does not commit Woodbridge to undertake any of these transactions. Woodbridge previously announced and completed similar transactions in the fourth quarter of 2008.
Any share sales would be through the Toronto Stock Exchange within 30 days. Purchases would be through the London Stock Exchange.
One ordinary share of Thomson Reuters PLC is equivalent to one common share of Thomson Reuters Corporation under Thomson Reuters dual listed company structure. As of yesterday, Woodbridge and other companies affiliated with it beneficially owned an aggregate of 439,767,486 Thomson Reuters Corporation common shares and 15,375,287 Thomson Reuters PLC ordinary shares (including ordinary shares underlying Thomson Reuters PLC American Depositary Shares) and had a voting interest in Thomson Reuters of approximately 55 per cent.
The London listing has traded at a discount to the North American quotes since Thomson's takeover of Reuters was completed last April.
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 may post strong results, say analysts
Friday 16 January 2009
Thomson Reuters is expected to post strong results next month, J.P. Morgan Securities analysts said on Friday, even as they downgraded the London-listed shares to "neutral" from "overweight" on valuation.
The analysts raised their price targets on the London- and New York-listed shares of the group and kept their "neutral" stance on the U.S. stock.
"We continue to like the fundamentals of the company but would look for a better entry price into both stocks," they wrote in a note to clients.
The analysts expect the group to report strong results, with potential cost savings and/or some restructuring charges shifting from 2008 to 2009.
But the key risk to the shares is news about financial industry job losses and the market's potential read-through to organic growth at the group's markets division, they said. The markets division includes the Reuters and Thomson news operations as well as financial data and tools for investment banks and other financial firms.
Chief financial officer Robert Daleo said last week that the group's quarterly and annual revenue growth rate would slow, reflecting the effects of the world financial crisis.
J.P. Morgan analysts, however, said any weakness in the group's markets division revenue will be offset by the relative strength in its professional unit, which represented about 60 per cent of profits. The professional division sells databases and other deep information reservoirs to lawyers, accountants, scientists and the healthcare industry.
Cost savings may also largely cushion any markets revenue decline, the analysts added.
They raised their price target on Thomson Reuters’ London shares to 1,750 pence from 1,500 pence, and on Thomson Reuters Corp shares to $26.60 from $26.30.
● SOURCE Reuters
The analysts raised their price targets on the London- and New York-listed shares of the group and kept their "neutral" stance on the U.S. stock.
"We continue to like the fundamentals of the company but would look for a better entry price into both stocks," they wrote in a note to clients.
The analysts expect the group to report strong results, with potential cost savings and/or some restructuring charges shifting from 2008 to 2009.
But the key risk to the shares is news about financial industry job losses and the market's potential read-through to organic growth at the group's markets division, they said. The markets division includes the Reuters and Thomson news operations as well as financial data and tools for investment banks and other financial firms.
Chief financial officer Robert Daleo said last week that the group's quarterly and annual revenue growth rate would slow, reflecting the effects of the world financial crisis.
J.P. Morgan analysts, however, said any weakness in the group's markets division revenue will be offset by the relative strength in its professional unit, which represented about 60 per cent of profits. The professional division sells databases and other deep information reservoirs to lawyers, accountants, scientists and the healthcare industry.
Cost savings may also largely cushion any markets revenue decline, the analysts added.
They raised their price target on Thomson Reuters’ London shares to 1,750 pence from 1,500 pence, and on Thomson Reuters Corp shares to $26.60 from $26.30.
● SOURCE Reuters
FT speculates Thomson Reuters may de-list in London
Friday 09 January 2009
More than 150 years after Paul Julius Reuter started to supply prices from the London Stock Exchange, traders there are beginning to ask whether Thomson Reuters might one day disappear from the UK market, the Financial Times said on Friday.
The likely reason for the symbolic shock of a possible de-listing: the valuation gap between the shares in London and in North America, currently about 22 per cent.
“North American investors are concerned the depressed UK price drags on their stock,” the FT said. “They ask whether further action, possibly including an end to the London listing, may be needed.”
Analysts at TD Newcrest, a Canadian brokerage, summarised the dilemma last week, saying: “We are reluctant to continue recommending [the Canadian stock] when we know that investors can buy an identical economic interest in the company for 22 per cent less via [the London] shares.”
Analysts attribute the discrepancy to hedge fund activity, currency exposures and differing views of the company’s assets on opposite sides of the Atlantic, but many have been startled by the extent of the gap, the FT said.
“Thomson people think the old Thomson [which encompasses legal, healthcare and scientific databases] is greatly underestimated [in London],” said Patrick Wellington, a Morgan Stanley analyst.
UK investors with memories of Reuters’ deep troubles in past market slumps have also been more bearish about prospects for its financial data business, Thomson Reuters Markets, which contributes 60 per cent of group sales and about 40 per cent of profits, the FT said.
“We’re prepared to invest the time and energy and effort with our UK investors to help them understand the dynamics of the business,” chief financial officer Robert Daleo told a conference this week. Extensive investor relations efforts have made little difference so far, however.
The FT said Woodbridge, the Thomson family investment company and the group’s largest shareholder, has attempted to tackle another factor behind the UK discount, providing liquidity to arbitrageurs who struggle to borrow the tightly held Toronto stock by swapping some of its Canadian shares for UK paper.
The strategy has been modestly lucrative. By effectively buying about C$300 million of stock at about a 20 per cent discount, Woodbridge has made about C$60 million, but the sum is small set beside the family holding company’s wealth. Two rounds of such trades have yet to close the gap.
The FT said Woodbridge, which had 70 per cent of Thomson Reuters Corp when the takeover closed, has so far amassed an eight per cent holding in Thomson Reuters Plc.
The FT said it is thought unlikely that Woodbridge would seek to increase its overall holding beyond the current total, which has edged up from 53 per cent to 55 per cent with dividend reinvestments.
A Thomson Reuters spokesman would not comment on the dual listed company (DLC) structure, it said. “People close to the company say it has no plans to change it in the next few months. However, board members review the structure regularly, aware that other DLCs, such as Reed Elsevier, have not seen such wide valuation gaps.”
The London shares represent 24 per cent of the group’s value. North Americans now control more than 50 per cent of the UK stock.
“One theory is that the group can wait until north American ownership is sufficiently high that the majority of London investors ask for Canadian or U.S. stock instead. What that percentage would have to be, however, is unclear,” the FT said.
“Ending the former Reuters’ presence on the London exchange would be a symbolic shock to many.”
● SOURCE Financial Times
The likely reason for the symbolic shock of a possible de-listing: the valuation gap between the shares in London and in North America, currently about 22 per cent.
“North American investors are concerned the depressed UK price drags on their stock,” the FT said. “They ask whether further action, possibly including an end to the London listing, may be needed.”
Analysts at TD Newcrest, a Canadian brokerage, summarised the dilemma last week, saying: “We are reluctant to continue recommending [the Canadian stock] when we know that investors can buy an identical economic interest in the company for 22 per cent less via [the London] shares.”
Analysts attribute the discrepancy to hedge fund activity, currency exposures and differing views of the company’s assets on opposite sides of the Atlantic, but many have been startled by the extent of the gap, the FT said.
“Thomson people think the old Thomson [which encompasses legal, healthcare and scientific databases] is greatly underestimated [in London],” said Patrick Wellington, a Morgan Stanley analyst.
UK investors with memories of Reuters’ deep troubles in past market slumps have also been more bearish about prospects for its financial data business, Thomson Reuters Markets, which contributes 60 per cent of group sales and about 40 per cent of profits, the FT said.
“We’re prepared to invest the time and energy and effort with our UK investors to help them understand the dynamics of the business,” chief financial officer Robert Daleo told a conference this week. Extensive investor relations efforts have made little difference so far, however.
The FT said Woodbridge, the Thomson family investment company and the group’s largest shareholder, has attempted to tackle another factor behind the UK discount, providing liquidity to arbitrageurs who struggle to borrow the tightly held Toronto stock by swapping some of its Canadian shares for UK paper.
The strategy has been modestly lucrative. By effectively buying about C$300 million of stock at about a 20 per cent discount, Woodbridge has made about C$60 million, but the sum is small set beside the family holding company’s wealth. Two rounds of such trades have yet to close the gap.
The FT said Woodbridge, which had 70 per cent of Thomson Reuters Corp when the takeover closed, has so far amassed an eight per cent holding in Thomson Reuters Plc.
The FT said it is thought unlikely that Woodbridge would seek to increase its overall holding beyond the current total, which has edged up from 53 per cent to 55 per cent with dividend reinvestments.
A Thomson Reuters spokesman would not comment on the dual listed company (DLC) structure, it said. “People close to the company say it has no plans to change it in the next few months. However, board members review the structure regularly, aware that other DLCs, such as Reed Elsevier, have not seen such wide valuation gaps.”
The London shares represent 24 per cent of the group’s value. North Americans now control more than 50 per cent of the UK stock.
“One theory is that the group can wait until north American ownership is sufficiently high that the majority of London investors ask for Canadian or U.S. stock instead. What that percentage would have to be, however, is unclear,” the FT said.
“Ending the former Reuters’ presence on the London exchange would be a symbolic shock to many.”
● SOURCE Financial Times
Thomson family ‘unhappy’ at UK stock discount
Thursday 08 January 2009
The Thomson family, controlling shareholder in Thomson Reuters, is unhappy at the discount of around 25 per cent of its UK stock trades to the Canadian listing, the Financial Times reported on Thursday. Citing gossip, it said there was talk of a possible capital restructuring.
The family funded a buy-back of the London-traded shares in 2008 by selling down its Canadian issues. That triggered speculation it could eventually delist the UK stock entirely, the FT said.
But authorisation for the buy-back expired at the end of last year and cannot be renewed as Thomson Reuters is in a closed period ahead of its 2008 results on 24 February.
Another option to narrow the discount would be to make the two lines of stock fully fungible or mutually interchangeable. However, dealers saw it more likely the family will wait until after the results and reinstate its stock swap, the FT said.
Thomson Reuters closed at 1,458 pence, down two per cent. The slide came in response to UBS “sell” advice and after comments from chief financial officer Robert Daleo to an investor conference that revenue growth this year would slow.
● SOURCE Financial Times
The family funded a buy-back of the London-traded shares in 2008 by selling down its Canadian issues. That triggered speculation it could eventually delist the UK stock entirely, the FT said.
But authorisation for the buy-back expired at the end of last year and cannot be renewed as Thomson Reuters is in a closed period ahead of its 2008 results on 24 February.
Another option to narrow the discount would be to make the two lines of stock fully fungible or mutually interchangeable. However, dealers saw it more likely the family will wait until after the results and reinstate its stock swap, the FT said.
Thomson Reuters closed at 1,458 pence, down two per cent. The slide came in response to UBS “sell” advice and after comments from chief financial officer Robert Daleo to an investor conference that revenue growth this year would slow.
● SOURCE Financial Times
Thomson Reuters looks abroad to make up for Wall Street
Thursday 08 January 2009
Thomson Reuters is facing a “significant reduction” in US business after the collapse of several Wall Street financial institutions, chief financial officer Robert Daleo said on Thursday. But the company is making up for it by focusing on clients abroad.
“We have seen a significant reduction and lost business as a result of Bear Sterns and cutbacks in other areas, but many of our large accounts continue to hold up fairly well,” Daleo said at a media and telecommunications conference in Phoenix, Arizona.
He said Thomson Reuters’ Top 25 accounts (also known as “focus group accounts”) represent about 13 per cent of revenues. However, an internal shift in perspective has helped soften the financial impact of some of the firms closing their doors.
“We have seen, all year long, declines in sales to the focus group accounts, but we have been able to offset those with good performance in other areas,” he said.
“We have continued through the first nine months to see strong performance in places like the Middle East, Asia, and certain segments of Europe.”
Daleo declined to provide Q4 or 2009 forecasts. “We remain very encouraged by the continued performance of the business across all of our units, and I’ll leave it at that,” he said.
Daleo said Thomson Reuters has about $8 billion in debt with an average maturity of about six and a quarter years and a 5.5 per cent interest rate. It has also paid off debt from Reuters.
“We really don’t have to go back into the debt markets to refinance our long-term debt in 2009,” he said. In addition, the company has a credit facility of $2.5 billion which he said was “totally untapped”.
Daleo also spoke about the difference between Thomson Reuters share prices in London and Toronto. The London shares trade at a discount of nearly 30 per cent to the Toronto shares and the company has been unable to close the gap.
“We’re prepared to invest the time and energy and effort with our UK investors to help them understand the dynamics of the business,” he said.
The London shares closed down two per cent at 1,458 pence. The Toronto shares closed 5.63 per cent at C$31.99.
● SOURCE The Guardian | The Canadian Press
“We have seen a significant reduction and lost business as a result of Bear Sterns and cutbacks in other areas, but many of our large accounts continue to hold up fairly well,” Daleo said at a media and telecommunications conference in Phoenix, Arizona.
He said Thomson Reuters’ Top 25 accounts (also known as “focus group accounts”) represent about 13 per cent of revenues. However, an internal shift in perspective has helped soften the financial impact of some of the firms closing their doors.
“We have seen, all year long, declines in sales to the focus group accounts, but we have been able to offset those with good performance in other areas,” he said.
“We have continued through the first nine months to see strong performance in places like the Middle East, Asia, and certain segments of Europe.”
Daleo declined to provide Q4 or 2009 forecasts. “We remain very encouraged by the continued performance of the business across all of our units, and I’ll leave it at that,” he said.
Daleo said Thomson Reuters has about $8 billion in debt with an average maturity of about six and a quarter years and a 5.5 per cent interest rate. It has also paid off debt from Reuters.
“We really don’t have to go back into the debt markets to refinance our long-term debt in 2009,” he said. In addition, the company has a credit facility of $2.5 billion which he said was “totally untapped”.
Daleo also spoke about the difference between Thomson Reuters share prices in London and Toronto. The London shares trade at a discount of nearly 30 per cent to the Toronto shares and the company has been unable to close the gap.
“We’re prepared to invest the time and energy and effort with our UK investors to help them understand the dynamics of the business,” he said.
The London shares closed down two per cent at 1,458 pence. The Toronto shares closed 5.63 per cent at C$31.99.
● SOURCE The Guardian | The Canadian Press
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
Woodbridge signals Thomson Reuters share swap
Friday 21 November 2008
Woodbridge, the Thomson family’s investment vehicle and controlling shareholder of Thomson Reuters, signalled on Friday it may be about to exchange Thomson Reuters Corporation shares for shares in Thomson Reuters PLC.
Under a Canadian regulatory filing in Toronto, Woodbridge would sell up to 15 million common shares in the corporation on the Toronto Stock Exchange and concurrently buy a similar number of ordinary shares in the PLC on the London Stock Exchange.
Woodbridge and other companies affiliated with it beneficially own an aggregate of 444,780,673 Thomson Reuters Corporation shares and 8,334,812 Thomson Reuters PLC ordinary shares. Its voting interest in Thomson Reuters is approximately 55 per cent.
● SOURCE Fox Business
Under a Canadian regulatory filing in Toronto, Woodbridge would sell up to 15 million common shares in the corporation on the Toronto Stock Exchange and concurrently buy a similar number of ordinary shares in the PLC on the London Stock Exchange.
Woodbridge and other companies affiliated with it beneficially own an aggregate of 444,780,673 Thomson Reuters Corporation shares and 8,334,812 Thomson Reuters PLC ordinary shares. Its voting interest in Thomson Reuters is approximately 55 per cent.
● SOURCE Fox Business
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
TR shares surge on Q3 results news
Thursday 13 November 2008
Thomson Reuters shares soared by up to 12 per cent on Thursday as markets absorbed better than expected third quarter results.
The biggest percentage increase was on the New York Stock Exchange but there were also double-digit gains on NASDAQ and the Toronto Stock Exchange.
Wednesday’s Q3 results included profit at 48 cents per share compared with an 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.
LONDON: TRIL.L ended 44 pence or 3.91 per cent higher at 1,169 pence. Range: 1,097 pence-1225 pence.
NEW YORK: TRI closed $2.65 higher – 12.02 per cent – at $24.69. Range: $22.51-$24.80.
NASDAQ: TRIN soared $11.92 – 11.54 per cent – to close at $115.25. Range $103.08-$116.50.
TORONTO: TRI.TO finished the day up C$2.93 – 10.71 per cent – at C$30.29. Range: C$27.70-C$30.29.
The biggest percentage increase was on the New York Stock Exchange but there were also double-digit gains on NASDAQ and the Toronto Stock Exchange.
Wednesday’s Q3 results included profit at 48 cents per share compared with an 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.
LONDON: TRIL.L ended 44 pence or 3.91 per cent higher at 1,169 pence. Range: 1,097 pence-1225 pence.
NEW YORK: TRI closed $2.65 higher – 12.02 per cent – at $24.69. Range: $22.51-$24.80.
NASDAQ: TRIN soared $11.92 – 11.54 per cent – to close at $115.25. Range $103.08-$116.50.
TORONTO: TRI.TO finished the day up C$2.93 – 10.71 per cent – at C$30.29. Range: C$27.70-C$30.29.
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
Thomson Reuters stock soars on rate cut hopes
Tuesday 28 October 2008
Thomson Reuters shares posted solid gains in North America on Tuesday but the strong rally after recent losses came too late to have much impact in London.
The gains in New York and Toronto were attributed to hopes that central banks worldwide led by the US Federal Reserve will cut interest rates soon.
LONDON: TRIL.L ended 8.50 pence or 0.89 per cent higher at 961.50 pence. Range: 927.4999 pence-993.00 pence.
NEW YORK: TRI closed $1.68 higher – 8.26 per cent – at $22.01. Range: $20.32-$22.03. The Dow Jones Industrial Average marked its second-best day ever with a rise of 889.35 points – 10.88 per cent – to 9065.12. The highest rally was on 13 October when the Dow jumped 936.42 points.
NASDAQ: TRIN soared $10.31 – 11.47 per cent – to close at $100.22. Range $88-$100.22.
TORONTO: TRI.TO finished the day up C$2.19 – 8.47 per cent – at C$28.05. Range: C$26.05-C$28.45.
The gains in New York and Toronto were attributed to hopes that central banks worldwide led by the US Federal Reserve will cut interest rates soon.
LONDON: TRIL.L ended 8.50 pence or 0.89 per cent higher at 961.50 pence. Range: 927.4999 pence-993.00 pence.
NEW YORK: TRI closed $1.68 higher – 8.26 per cent – at $22.01. Range: $20.32-$22.03. The Dow Jones Industrial Average marked its second-best day ever with a rise of 889.35 points – 10.88 per cent – to 9065.12. The highest rally was on 13 October when the Dow jumped 936.42 points.
NASDAQ: TRIN soared $10.31 – 11.47 per cent – to close at $100.22. Range $88-$100.22.
TORONTO: TRI.TO finished the day up C$2.19 – 8.47 per cent – at C$28.05. Range: C$26.05-C$28.45.
Thomson Reuters shares sink in market meltdown
Friday 24 October 2008
Thomson Reuters lost up to 7.71 per cent of its value on Friday in further falls at the end of another disastrous week on world stock markets.
On the anniversary of the 1929 Wall Street Crash, historic lows for the stock were recorded in London, New York and Toronto.
LONDON: TRIL.L ended 50.99 pence or 5.08 per cent lower at 952 pence. Range: 883 pence-989.00 pence. The FTSE 100 closed 204.47 points – 5.0 per cent – down at 3,883.36. The British benchmark has fallen 20.8 percent so far this month, on track for its biggest monthly fall since the crash of 1987, and is down nearly 40 per cent for the year.
NEW YORK: TRI was down $1.67 – 7.71 per cent – on the day to $20. Range: $19.85-$20.84. The Dow Jones Industrial Average fell 3.59 per cent to 8,378.95.
NASDAQ: TRIN ended $7.17 – 6.69 per cent – lower at $91.11. Range $86-$92.97.
TORONTO: TRI.TO finished the day down C$1 – 3.68 per cent – at C$26.15. Range: C$25.02-C$26.59.
On the anniversary of the 1929 Wall Street Crash, historic lows for the stock were recorded in London, New York and Toronto.
LONDON: TRIL.L ended 50.99 pence or 5.08 per cent lower at 952 pence. Range: 883 pence-989.00 pence. The FTSE 100 closed 204.47 points – 5.0 per cent – down at 3,883.36. The British benchmark has fallen 20.8 percent so far this month, on track for its biggest monthly fall since the crash of 1987, and is down nearly 40 per cent for the year.
NEW YORK: TRI was down $1.67 – 7.71 per cent – on the day to $20. Range: $19.85-$20.84. The Dow Jones Industrial Average fell 3.59 per cent to 8,378.95.
NASDAQ: TRIN ended $7.17 – 6.69 per cent – lower at $91.11. Range $86-$92.97.
TORONTO: TRI.TO finished the day down C$1 – 3.68 per cent – at C$26.15. Range: C$25.02-C$26.59.
Mixed results for Thomson Reuters in market gyrations
Friday 10 October 2008
Thomson Reuters ended a tumultuous week of market gyrations with mixed results on the four exchanges on which it is traded.
LONDON: TRIL.L ended 56 pence or 5.09 per cent lower at 1,044 pence. Range: 969.5 pence-1,164 pence. The FTSE 100 closed 225.92 points – 5.24 per cent – down at 4,087.88.
NEW YORK: TRI was down $1.28 – 5.21 per cent – on the day to $23.27. Range: $21.01-$25.99.
NASDAQ: TRIN ended $4.06 – 3.69 per cent – higher at $114.00. Range $105.71-$116.08.
TORONTO: TRI.TO finished the day down C$0.85 – 3.02 per cent – at C$27.25. Range: C$25.3-C$30.47.
LONDON: TRIL.L ended 56 pence or 5.09 per cent lower at 1,044 pence. Range: 969.5 pence-1,164 pence. The FTSE 100 closed 225.92 points – 5.24 per cent – down at 4,087.88.
NEW YORK: TRI was down $1.28 – 5.21 per cent – on the day to $23.27. Range: $21.01-$25.99.
NASDAQ: TRIN ended $4.06 – 3.69 per cent – higher at $114.00. Range $105.71-$116.08.
TORONTO: TRI.TO finished the day down C$0.85 – 3.02 per cent – at C$27.25. Range: C$25.3-C$30.47.
TR shares plumb new depths
Wednesday 08 October 2008
Thomson Reuters shares plumbed new depths on Wednesday, plunging to historic lows before bouncing back to recover some of the value lost in New York and Toronto.
The London shares hit an all-time low of 991 pence at one point as coordinated cuts in interest rates failed to alleviate fears of a global recession.
LONDON: TRIL.L closed 2.43 per cent lower at 1,085 pence, down 27. The day's trading range was 991-1,160 pence. The FTSE 100 index ended 5.18 per cent lower at 4,366.69, a fall of 238.53 points.
NEW YORK: TRI was 0.52 per cent higher at $25.08, a gain of $0.13. Range: $23.85-$25.51. The Dow Jones Industrial Average closed 2.0 per cent or 189 points lower at 9,258.10.
NASDAQ: TRIN gained 0.05 per cent to finish $113.16, up $0.06. Range: $110.02-$116.0328.
TORONTO: TRI.TO gained 2.13 per cent to end the day at C$28.24, up C$0.59. Range: C$26.51-C$28.56.
The London shares hit an all-time low of 991 pence at one point as coordinated cuts in interest rates failed to alleviate fears of a global recession.
LONDON: TRIL.L closed 2.43 per cent lower at 1,085 pence, down 27. The day's trading range was 991-1,160 pence. The FTSE 100 index ended 5.18 per cent lower at 4,366.69, a fall of 238.53 points.
NEW YORK: TRI was 0.52 per cent higher at $25.08, a gain of $0.13. Range: $23.85-$25.51. The Dow Jones Industrial Average closed 2.0 per cent or 189 points lower at 9,258.10.
NASDAQ: TRIN gained 0.05 per cent to finish $113.16, up $0.06. Range: $110.02-$116.0328.
TORONTO: TRI.TO gained 2.13 per cent to end the day at C$28.24, up C$0.59. Range: C$26.51-C$28.56.
Thomson Reuters' UK shares dive, broker reiterates ‘sell’
Monday 06 October 2008
Hugh Van Es, the renowned Dutch photographer who took the "helicopter" photo of the evacuation of Saigon, died on May 15. Hugh was a friend to many of the Reuters journalists who passed through Hong Kong and frequented the FCC over the years. A wake was held for him at the FCC in May. But for those who couldn't make it and would like to honour his memory, former FCC VP and Hon Sec Penny Byrne and her husband Tim Heald are organising a VANES INTERNATIONAL WAKE at the Frontline Club in London, the nearest thing to the FCC in the UK.
Date: Friday 9 October
Time: 1900 hours until last person leaves
Address: 13 Norfolk Place, W2 1QJ (very close to Paddington Station)
Tel: 020 7479 8960
Cash bar, cash food.
Angus MacSwan
Date: Friday 9 October
Time: 1900 hours until last person leaves
Address: 13 Norfolk Place, W2 1QJ (very close to Paddington Station)
Tel: 020 7479 8960
Cash bar, cash food.
Angus MacSwan
Thomson Reuters shares hit in global sell-off
Monday 29 September 2008
Thomson Reuters shares plunged on Monday in a global sell-off as the world awaited the fate of a US rescue plan for the financial industry.
Much of the damage occurred after the House of Representatives rejected President Bush’s $700 billion bail-out.
Closing prices:
LONDON: TRIL.L, closed 5.50 per cent lower before the vote in Washington at 1,219 pence, down 71 pence. The day's trading range was 1,211 pence-1,288 pence. The FTSE 100 index closed 5.30 per cent lower at 4,818.77, a fall of 269.70 points.
NEW YORK: TRI was 9.12 per cent lower at $26.62, a loss of $2.67. Range: $24.83-$29.07. The Dow Jones Industrial Average closed down 777.68 points – 6.98 per cent – at 10,365.45.
NASDAQ: TRIN fell 10.94 per cent to $128.00, a loss of $15.73. Range: $125.09-$137.52.
TORONTO: TRI.TO was down 8.99 per cent at C$27.53, a loss of C$2.72. Range: C$25.89-C$30.25.
Much of the damage occurred after the House of Representatives rejected President Bush’s $700 billion bail-out.
Closing prices:
LONDON: TRIL.L, closed 5.50 per cent lower before the vote in Washington at 1,219 pence, down 71 pence. The day's trading range was 1,211 pence-1,288 pence. The FTSE 100 index closed 5.30 per cent lower at 4,818.77, a fall of 269.70 points.
NEW YORK: TRI was 9.12 per cent lower at $26.62, a loss of $2.67. Range: $24.83-$29.07. The Dow Jones Industrial Average closed down 777.68 points – 6.98 per cent – at 10,365.45.
NASDAQ: TRIN fell 10.94 per cent to $128.00, a loss of $15.73. Range: $125.09-$137.52.
TORONTO: TRI.TO was down 8.99 per cent at C$27.53, a loss of C$2.72. Range: C$25.89-C$30.25.
Canadian broker downgrades Thomson Reuters
Monday 22 September 2008
Thomson Reuters has been downgraded and its price target cut as a result of the negative implications last week’s market turmoil on the financial sector and the broader economy.
“The possibility of further financial services consolidation combined with increased discipline and restraint as the global financial system recapitalizes are likely to reduce the size and near-term growth outlook for many of Thomson Reuters’ end-markets,” RBC Capital Markets analyst Drew McReynolds said in a research note.
He also noted that volatility in emerging markets suggests a slower pace for the company’s geographic expansion efforts.
McReynolds cut his price target from US$39 per share to US$37 and moved his rating to “sector perform” given Thomson Reuters’ 18 per cent two-day run-up.
He does not expect a major catalyst for the stock – more clarity on the pending downturn in its markets division – until the first half of 2009.
● SOURCE National Post
“The possibility of further financial services consolidation combined with increased discipline and restraint as the global financial system recapitalizes are likely to reduce the size and near-term growth outlook for many of Thomson Reuters’ end-markets,” RBC Capital Markets analyst Drew McReynolds said in a research note.
He also noted that volatility in emerging markets suggests a slower pace for the company’s geographic expansion efforts.
McReynolds cut his price target from US$39 per share to US$37 and moved his rating to “sector perform” given Thomson Reuters’ 18 per cent two-day run-up.
He does not expect a major catalyst for the stock – more clarity on the pending downturn in its markets division – until the first half of 2009.
● SOURCE National Post
Thomson family may increase its stake
Saturday 20 September 2008
The Thomson family signalled it may slightly increase its voting interest in Thomson Reuters. In a regulatory filing on Friday, the family said it may sell as many as 10 million of the common shares listed on the Toronto Stock Exchange and spend the proceeds on ordinary shares listed on the London Stock Exchange.
Woodbridge, the Thomson family’s holding company, said the move was being made to facilitate trading in the stocks.
Based on current prices, the transaction would result in a slight increase in Woodbridge’s 55 per cent voting interest, it said.
Since Thomson’s takeover of Reuters in April, London shares of the new dual-listed company have traded at a large discount to those in Toronto.
● SOURCE The Gazette (Montreal)
Woodbridge, the Thomson family’s holding company, said the move was being made to facilitate trading in the stocks.
Based on current prices, the transaction would result in a slight increase in Woodbridge’s 55 per cent voting interest, it said.
Since Thomson’s takeover of Reuters in April, London shares of the new dual-listed company have traded at a large discount to those in Toronto.
● SOURCE The Gazette (Montreal)
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
Thomson Reuters shares soar in Europe, N. America
Friday 19 September 2008
Thomson Reuters shares soared in Europe and North America on Friday after government intervention ended a week of financial market turmoil.
Closing prices:
LONDON: TRIL.L, which started the week just over 1,500 pence, closed at 1,400 pence, up 130 pence or 10.24 per cent on the day. The FTSE 100 Index of blue chip shares registered its biggest one-day gain since it was introduced in 1984. It closed 431.3 points or 8.84 per cent higher at 5,311.30.
NEW YORK: TRI was 8.63 per cent higher at $33.34, a gain of $2.65. The Dow Jones Industrial Average closed 368.75 points or 3.35 per cent higher at 11,388.44.
NASDAQ: TRIN was up 6.48 per cent at $155.57, a gain of $9.47.
TORONTO: TRI.TO was up 6.89 per cent at C$34.76, a gain of C$2.24.
Closing prices:
LONDON: TRIL.L, which started the week just over 1,500 pence, closed at 1,400 pence, up 130 pence or 10.24 per cent on the day. The FTSE 100 Index of blue chip shares registered its biggest one-day gain since it was introduced in 1984. It closed 431.3 points or 8.84 per cent higher at 5,311.30.
NEW YORK: TRI was 8.63 per cent higher at $33.34, a gain of $2.65. The Dow Jones Industrial Average closed 368.75 points or 3.35 per cent higher at 11,388.44.
NASDAQ: TRIN was up 6.48 per cent at $155.57, a gain of $9.47.
TORONTO: TRI.TO was up 6.89 per cent at C$34.76, a gain of C$2.24.
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 hit by US banking crisis
Monday 15 September 2008
Thomson Reuters shares fell rapidly in London on Monday in an immediate response to the US banking crisis. At mid-morning the shares were down 120 pence to 1,399 pence – a fall of nearly 8 per cent – on the expectation that the company will see sales of its financial news and trading terminals plummet as its banking clients collapse or merge.
The FTSE-100 index of leading shares was down 1.89 per cent at 5,218.10.
Lehman Brothers filed for Chapter 11 bankruptcy protection, making it the largest and highest-profile casualty of the global credit crisis. The 158-year-old investment bank is one of the biggest financial services firms to collapse since 1990 when Drexel Burnham Lambert filed for bankruptcy protection.
Merrill Lynch agreed to sell itself to Bank of America for about $50 billion to avert the deepening crisis.
Financial institutions worldwide have recorded writedowns and credit losses of more than $500 billion as the US sub-prime mortgage crisis has spread to other markets.
The FTSE-100 index of leading shares was down 1.89 per cent at 5,218.10.
Lehman Brothers filed for Chapter 11 bankruptcy protection, making it the largest and highest-profile casualty of the global credit crisis. The 158-year-old investment bank is one of the biggest financial services firms to collapse since 1990 when Drexel Burnham Lambert filed for bankruptcy protection.
Merrill Lynch agreed to sell itself to Bank of America for about $50 billion to avert the deepening crisis.
Financial institutions worldwide have recorded writedowns and credit losses of more than $500 billion as the US sub-prime mortgage crisis has spread to other markets.
Thomson Reuters shares take beating
Monday 15 September 2008
Thomson Reuters took a beating in London, New York and Toronto on Monday in immediate negative fallout from the US credit crisis.
On the London Stock Exchange, the shares closed at 1,400 pence, a drop on the day of 7.84 per cent.
The losses were worse in North America where there were falls of more than 10 per cent.
In New York, the stock lost 10.93 per cent of its value to close at $29.41 on the New York Stock Exchange and 10.43 per cent to $146.73 on NASDAQ.
On the Toronto Stock Exchange, Thomson Reuters tumbled to C$31.25, down 10.59 per cent.
Canada’s National Post said that with bankrupt Lehman Brothers accounting for an estimated 1 per cent of Thomson Reuters’ revenues, assuming most of this is lost, it means a 3 per cent downgrade to the company’s 2009 earnings per share (EPS).
Merrill Lynch, which agreed to sell itself to Bank of America for about $50 billion, likely has a similar amount to Lehman, UBS Securities said in a report.
“Given the lag factor between job cuts and cancellations, we believe the brunt of the investment banking downturn is likely to be felt from Q4 2008 onwards and ongoing investment banking consolidation will weigh on sentiment,” UBS analyst Jeffrey Fan told clients.
During the 2002-2004 downturn, Thomson’s Markets business lost 18 per cent of its revenues from peak to trough, he said. While things are different this time, Fan sees substantial downside risks to conservative assumptions of flat Markets growth in 2009 and 2010.
The analyst said that with Thomson Reuters already trading at a premium of 17 times 2009 estimated EPS, the additional downside risk to earnings makes the risk reward “unattractive”. He continues to rate the shares a “sell” with a $28 price target.
Don Vialoux, a Canadian chartered market technician, said Thomson Reuters currently has a negative technical profile. Intermediate trend is down. The stock trades below its 200-day moving average and on Monday morning broke below support at C$33.75 and its 50-day moving average. Support exists at C$27.51, he added.
● SOURCE National Post
On the London Stock Exchange, the shares closed at 1,400 pence, a drop on the day of 7.84 per cent.
The losses were worse in North America where there were falls of more than 10 per cent.
In New York, the stock lost 10.93 per cent of its value to close at $29.41 on the New York Stock Exchange and 10.43 per cent to $146.73 on NASDAQ.
On the Toronto Stock Exchange, Thomson Reuters tumbled to C$31.25, down 10.59 per cent.
Canada’s National Post said that with bankrupt Lehman Brothers accounting for an estimated 1 per cent of Thomson Reuters’ revenues, assuming most of this is lost, it means a 3 per cent downgrade to the company’s 2009 earnings per share (EPS).
Merrill Lynch, which agreed to sell itself to Bank of America for about $50 billion, likely has a similar amount to Lehman, UBS Securities said in a report.
“Given the lag factor between job cuts and cancellations, we believe the brunt of the investment banking downturn is likely to be felt from Q4 2008 onwards and ongoing investment banking consolidation will weigh on sentiment,” UBS analyst Jeffrey Fan told clients.
During the 2002-2004 downturn, Thomson’s Markets business lost 18 per cent of its revenues from peak to trough, he said. While things are different this time, Fan sees substantial downside risks to conservative assumptions of flat Markets growth in 2009 and 2010.
The analyst said that with Thomson Reuters already trading at a premium of 17 times 2009 estimated EPS, the additional downside risk to earnings makes the risk reward “unattractive”. He continues to rate the shares a “sell” with a $28 price target.
Don Vialoux, a Canadian chartered market technician, said Thomson Reuters currently has a negative technical profile. Intermediate trend is down. The stock trades below its 200-day moving average and on Monday morning broke below support at C$33.75 and its 50-day moving average. Support exists at C$27.51, he added.
● SOURCE National Post
London shares still lag North America
Wednesday 20 August 2008
Four months and counting since the merger, and Thomson Reuters shares in London still lag those in North America, Financial Post said on Wednesday.
The price gap has been consistent – about 15 to 20 per cent once foreign exchange rates are factored in – and no one is quite sure why, it said.
In a note to clients yesterday, USB analyst Jeffrey Fan reiterated his previous view that the spread is likely to remain into next year.
He believes that differing views of Canadian and European investors on the prospects for the London shares is part of the reason for the gap.
North Americans are more likely to focus on strengths in the Thomson Reuters division that sells specialised legal and scientific data, while Europeans look to risks in the company's business that sells data and equipment to the troubled financial services industry, he said.
At the Thomson Reuters annual meeting in May, chief financial officer Robert Daleo would not speculate about the London discount, Financial Post said.
He only alluded to a significant short position in the North American shares that would take some time to unwind. Short sellers borrow and then sell shares in a company. They want the stock to drop in price so when it is time to return the shares they can buy them back at a cheaper price and pocket the difference.
Fan said the short position in the London shares remains high, at 13.5 per cent, but lower than the 20 per cent figure of last month.
“Observers say it is anyone's guess as to when the gap will narrow. One analyst yesterday compared the situation to a war of attrition,” Financial Post said.
Fan noted that Thomson Reuters vice-chairman Geoffrey Beattie recently sold 40,000 of the North American shares and bought the equivalent of 66,600 shares in London.
The analyst maintains his "sell" rating as he believes a gloomy outlook for global financial services adds risk to the consensus earnings estimates.
● SOURCE Financial Post
The price gap has been consistent – about 15 to 20 per cent once foreign exchange rates are factored in – and no one is quite sure why, it said.
In a note to clients yesterday, USB analyst Jeffrey Fan reiterated his previous view that the spread is likely to remain into next year.
He believes that differing views of Canadian and European investors on the prospects for the London shares is part of the reason for the gap.
North Americans are more likely to focus on strengths in the Thomson Reuters division that sells specialised legal and scientific data, while Europeans look to risks in the company's business that sells data and equipment to the troubled financial services industry, he said.
At the Thomson Reuters annual meeting in May, chief financial officer Robert Daleo would not speculate about the London discount, Financial Post said.
He only alluded to a significant short position in the North American shares that would take some time to unwind. Short sellers borrow and then sell shares in a company. They want the stock to drop in price so when it is time to return the shares they can buy them back at a cheaper price and pocket the difference.
Fan said the short position in the London shares remains high, at 13.5 per cent, but lower than the 20 per cent figure of last month.
“Observers say it is anyone's guess as to when the gap will narrow. One analyst yesterday compared the situation to a war of attrition,” Financial Post said.
Fan noted that Thomson Reuters vice-chairman Geoffrey Beattie recently sold 40,000 of the North American shares and bought the equivalent of 66,600 shares in London.
The analyst maintains his "sell" rating as he believes a gloomy outlook for global financial services adds risk to the consensus earnings estimates.
● SOURCE Financial Post
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
Q2 results: focus on two-year outlook
Wednesday 06 August 2008
Thomson Reuters looks poised to deliver second quarter results on Tuesday just above expectations, but investors should focus on the outlook over the next two years, UBS analyst Jeffrey Fan says.
Reuters’ revenue fell 17 per cent during the bear market in 2002, and while Fan believes the company will fare better this time around, he sees considerable downside risk to consensus estimates of flat revenue growth over the next two years, Financial Post of Toronto reported in a blog posting under the headline ‘Thomson Reuters vulnerable to economic slowdown’.
The company’s markets business is susceptible to downturns in the financial services sector because it depends on banks and insurance firms to buy the data and equipment it produces.
“If consensus estimates hold, then [Thomson Reuters] still trades on a premium to its peers,” Fan wrote in a note to clients on Wednesday.
The analyst’s worst case scenario is a 50 per cent drop in earnings per share next year if the company suffers on the same level it did in the last downturn. He has a “sell” rating on the stock.
Financial Post said that of the analysts Bloomberg lists covering Thomson Reuters stock, nine have “buy” recommendations, five have “hold” and four “sell”.
● SOURCE Financial Post
Reuters’ revenue fell 17 per cent during the bear market in 2002, and while Fan believes the company will fare better this time around, he sees considerable downside risk to consensus estimates of flat revenue growth over the next two years, Financial Post of Toronto reported in a blog posting under the headline ‘Thomson Reuters vulnerable to economic slowdown’.
The company’s markets business is susceptible to downturns in the financial services sector because it depends on banks and insurance firms to buy the data and equipment it produces.
“If consensus estimates hold, then [Thomson Reuters] still trades on a premium to its peers,” Fan wrote in a note to clients on Wednesday.
The analyst’s worst case scenario is a 50 per cent drop in earnings per share next year if the company suffers on the same level it did in the last downturn. He has a “sell” rating on the stock.
Financial Post said that of the analysts Bloomberg lists covering Thomson Reuters stock, nine have “buy” recommendations, five have “hold” and four “sell”.
● SOURCE Financial Post
Thomson Reuters ‘feeling strain’ - blog
Thursday 24 July 2008
Like a wartime marriage, the Thomson Reuters merger occurred in the harshest of market conditions – the subprime mess quickly led to losses and layoffs among the companies’ largest customers – and the merged entity appears to be feeling the strain, the Wall Street & Technology Blog said.
Thomson Reuters’ stock price has dropped in the last few weeks due to worries that its business will be affected by the Wall Street job cuts.
But within Thomson Reuters, all is well and the combined entity has already come out with its first series of integrated products for wealth managers, according to Debra Walton, global head of market development, the blog said in a post headed State of the Reuters-Thomson Union.
“We spent our first 90 days focusing on two key areas: people integration and laying out our product strategy,” she says. Walton said she could not disclose how many employees have been laid off, but “it’s not about reduction of people”.
While the company has “synergy targets” it needs to deliver on, Walton says those synergies will come more from consolidating real estate and sharing back-end infrastructure than from letting go of people.
On the product side, Thomson Reuters is trying to come up with best-of-breed product combinations.
“There’s less overlap than you would think,” Walton says. The company has already mashed some of the two companies’ products. For instance, Reuters’ 3000extra market data platform has been merged with Thomson’s Tradeweb fixed income transaction viewer. Reuters’ news and messaging and Lipper Funds have been combined with the Thomson One wealth management platform.
The first product upgrades to come will benefit the wealth management community.
“We have begun an upgrade of the Reuters Plus customers to a new strategic wealth management product based on Thomson One,” Walton says. “We’ve just begun this process, we’re engaging with Reuters Plus customers now to help plan these upgrades.”
Later this year Thomson Reuters will introduce new product names and new branding and announce which desktop platforms and back-end infrastructure it will standardise on, the blog added.
● SOURCE Wall Street & Technology Blog
Thomson Reuters’ stock price has dropped in the last few weeks due to worries that its business will be affected by the Wall Street job cuts.
But within Thomson Reuters, all is well and the combined entity has already come out with its first series of integrated products for wealth managers, according to Debra Walton, global head of market development, the blog said in a post headed State of the Reuters-Thomson Union.
“We spent our first 90 days focusing on two key areas: people integration and laying out our product strategy,” she says. Walton said she could not disclose how many employees have been laid off, but “it’s not about reduction of people”.
While the company has “synergy targets” it needs to deliver on, Walton says those synergies will come more from consolidating real estate and sharing back-end infrastructure than from letting go of people.
On the product side, Thomson Reuters is trying to come up with best-of-breed product combinations.
“There’s less overlap than you would think,” Walton says. The company has already mashed some of the two companies’ products. For instance, Reuters’ 3000extra market data platform has been merged with Thomson’s Tradeweb fixed income transaction viewer. Reuters’ news and messaging and Lipper Funds have been combined with the Thomson One wealth management platform.
The first product upgrades to come will benefit the wealth management community.
“We have begun an upgrade of the Reuters Plus customers to a new strategic wealth management product based on Thomson One,” Walton says. “We’ve just begun this process, we’re engaging with Reuters Plus customers now to help plan these upgrades.”
Later this year Thomson Reuters will introduce new product names and new branding and announce which desktop platforms and back-end infrastructure it will standardise on, the blog added.
● SOURCE Wall Street & Technology Blog
Broker rates Thomson Reuters ‘hold’
Friday 18 July 2008
Broker JP Morgan lowered its target price on Thomson Reuters to 1,900 pence from 2,000 pence but kept its “overweight” rating on the company’s shares.
It thinks the market is too pessimistic on the outlook for revenues for the markets division, which includes news services. It added that the more defensive professional business will also help Thomson Reuters deliver growth.
On the London Stock Exchange the share was one of the FTSE 100’s biggest gainers, closing 60 pence higher at 1,380 pence, a rise of 4.55 per cent on the day.
● SOURCE ShareCast
It thinks the market is too pessimistic on the outlook for revenues for the markets division, which includes news services. It added that the more defensive professional business will also help Thomson Reuters deliver growth.
On the London Stock Exchange the share was one of the FTSE 100’s biggest gainers, closing 60 pence higher at 1,380 pence, a rise of 4.55 per cent on the day.
● SOURCE ShareCast
UBS says sell Thomson Reuters shares
Monday 14 July 2008
Investment bank UBS lowered its rating on Thomson Reuters to “sell” from “neutral”, saying revenue in the market for financial information will deteriorate from the fourth quarter of 2008 as investment banking job cuts lead to subscriber cancellations.
In the worst case there is a 50 per cent downside risk to the company’s per share earnings, UBS analyst Jeffrey Fan wrote in a note to clients.
He now expects an 8.5 per cent fall in financial markets revenue from 2009 to 2011, revising a previous estimate of a 5 per cent decline.
“Along with adjustments to Markets cost base and additional restructuring charges, our 2011 earnings per share estimate is downgraded 19 per cent putting us 20-25 per cent below consensus.”
The analyst added that while Thomson Reuters Q2 results (due on 12 August) are expected to be solid, the outlook, which bears significant downside risk, is the key for investors.
Reiterating his “sell” rating, he cut his price target for the Canadian shares to C$28 from C$33.
UBS also cut its target price on the UK shares to 1,260 pence from 1,650 pence.
On the London Stock Exchange, TRIL was the biggest faller in the FTSE 100, closing at 1,245 pence, down 40 pence or 3.11 per cent. On the first day of the merged company, 17 April, Thomson Reuters shares opened at 1,700 pence and closed at 1,560 pence.
● SOURCE ShareCast | Bloomberg | Financial Post
In the worst case there is a 50 per cent downside risk to the company’s per share earnings, UBS analyst Jeffrey Fan wrote in a note to clients.
He now expects an 8.5 per cent fall in financial markets revenue from 2009 to 2011, revising a previous estimate of a 5 per cent decline.
“Along with adjustments to Markets cost base and additional restructuring charges, our 2011 earnings per share estimate is downgraded 19 per cent putting us 20-25 per cent below consensus.”
The analyst added that while Thomson Reuters Q2 results (due on 12 August) are expected to be solid, the outlook, which bears significant downside risk, is the key for investors.
Reiterating his “sell” rating, he cut his price target for the Canadian shares to C$28 from C$33.
UBS also cut its target price on the UK shares to 1,260 pence from 1,650 pence.
On the London Stock Exchange, TRIL was the biggest faller in the FTSE 100, closing at 1,245 pence, down 40 pence or 3.11 per cent. On the first day of the merged company, 17 April, Thomson Reuters shares opened at 1,700 pence and closed at 1,560 pence.
● SOURCE ShareCast | Bloomberg | Financial Post
Downturn is Tom Glocer’s ‘first real test’
Sunday 29 June 2008
Tom Glocer faces his first real test as CEO of Thomson Reuters in the downturn in investment banking, The Sunday Times said.
The downturn is undoubtedly coming – but it doesn’t have to be as bad as last time round, the UK newspaper said.
“That, at least, is the mantra from the newly minted Thomson Reuters,” it said.
“After boarding a plane back to his native New York, from where he will run the company, Tom Glocer now faces his first real test. Thomson still believes it can grow revenues at its financial-markets division during 2009, although most analysts are much less bullish.
“Of course, the new Thomson was created by Glocer so that such a challenge wouldn’t matter as much as it used to. After six years at the helm of Reuters, getting it shipshape after Peter Job’s regime, he concluded that the best place for a company exposed to such a volatile sector as global finance was within another one. His verdict sounded eminently sensible.”
As part of Thomson, markets – which contains the old Reuters business – account for roughly 60 per cent of revenues and 40 per cent of operating profits. Smoothing it out is the more profitable legal, accounting and science information arm.
Thomson has some enviable assets with great defensive qualities. However, it is hard to divert attention from its financial-sector exposure, particularly as most of the £375 million merger cost savings will be squeezed from that division, The Sunday Times said.
“In this gloomy light, it looks as if Glocer has created a cyclical publisher, not a more resilient financial-markets supplier. It is no coincidence that Thomson’s closest rival in professional publishing, Reed Elsevier, is attempting to offload its business publishing arm – the last division keenly exposed to the economic cycle. In these markets, even that auction is unlikely to be hurried.
“Inroads on China and India leave Glocer thinking he is better placed than during the last downturn. In 2002 and 2003, when Reuters’ recurring revenues dropped by 4% and 10% respectively, foreign exchange and commodities were under pressure. This time it is the narrower markets of fixed income and credit that are under the cosh.”
However, the newspaper said it is impossible not to see the impact of the crunch spreading into other departments. Worst-case forecasts suggest 80,000 financial jobs could go globally in the next 18 months. Broker Collins Stewart believes that, despite a push for company-wide enterprise supply deals, 20 per cent of Thomson’s group revenues come from traders’ terminal sales in the United States and western Europe, which are vulnerable when jobs are being cut.
The Sunday Times added that Thomson Reuters shares in London have tumbled 16 per cent since their debut in April, opening up a valuation gap with the more expensive and less liquid stock trading in Toronto.
“A £250m share-buyback programme has been holding them back from greater falls here, but that is due to finish this week, suggesting they will drift further, even though Thomson is forecasting a healthy 6%-8% topline growth across the group this year.”
● SOURCE The Sunday Times
The downturn is undoubtedly coming – but it doesn’t have to be as bad as last time round, the UK newspaper said.
“That, at least, is the mantra from the newly minted Thomson Reuters,” it said.
“After boarding a plane back to his native New York, from where he will run the company, Tom Glocer now faces his first real test. Thomson still believes it can grow revenues at its financial-markets division during 2009, although most analysts are much less bullish.
“Of course, the new Thomson was created by Glocer so that such a challenge wouldn’t matter as much as it used to. After six years at the helm of Reuters, getting it shipshape after Peter Job’s regime, he concluded that the best place for a company exposed to such a volatile sector as global finance was within another one. His verdict sounded eminently sensible.”
As part of Thomson, markets – which contains the old Reuters business – account for roughly 60 per cent of revenues and 40 per cent of operating profits. Smoothing it out is the more profitable legal, accounting and science information arm.
Thomson has some enviable assets with great defensive qualities. However, it is hard to divert attention from its financial-sector exposure, particularly as most of the £375 million merger cost savings will be squeezed from that division, The Sunday Times said.
“In this gloomy light, it looks as if Glocer has created a cyclical publisher, not a more resilient financial-markets supplier. It is no coincidence that Thomson’s closest rival in professional publishing, Reed Elsevier, is attempting to offload its business publishing arm – the last division keenly exposed to the economic cycle. In these markets, even that auction is unlikely to be hurried.
“Inroads on China and India leave Glocer thinking he is better placed than during the last downturn. In 2002 and 2003, when Reuters’ recurring revenues dropped by 4% and 10% respectively, foreign exchange and commodities were under pressure. This time it is the narrower markets of fixed income and credit that are under the cosh.”
However, the newspaper said it is impossible not to see the impact of the crunch spreading into other departments. Worst-case forecasts suggest 80,000 financial jobs could go globally in the next 18 months. Broker Collins Stewart believes that, despite a push for company-wide enterprise supply deals, 20 per cent of Thomson’s group revenues come from traders’ terminal sales in the United States and western Europe, which are vulnerable when jobs are being cut.
The Sunday Times added that Thomson Reuters shares in London have tumbled 16 per cent since their debut in April, opening up a valuation gap with the more expensive and less liquid stock trading in Toronto.
“A £250m share-buyback programme has been holding them back from greater falls here, but that is due to finish this week, suggesting they will drift further, even though Thomson is forecasting a healthy 6%-8% topline growth across the group this year.”
● SOURCE The Sunday Times
Thomson Reuters leads FTSE retreat
Thursday 26 June 2008
Thomson Reuters was among shares leading a retreat on the London Stock Exchange on Thursday and ended down more than 5 per cent to a post-merger low.
At mid-day the stock was at 1,366 pence, some 73 pence or 5.07 per cent lower. The FTSE-100 was down 1.2 per cent at 5,602.90.
At the close, Thomson Reuters had lost 5.6 per cent to 1,359 pence, a loss of 80 pence on the day.
On their first day of trading, 17 April, Thomson Reuters ended at 1,560 pence.
Investment bank Morgan Stanley reduced its price estimate by 9.9 per cent to 1,280 pence from 1,420 pence and maintained its “underweight” recommendation on the share.
It said it expects revenue in the financial division to fall by 2.8 per cent in 2009 as banks cut jobs and try to cut down on their market data costs.
“We expect quarterly revenue growth to slow rapidly in the second half of 2008 and to go negative in the first quarter of 2009,” it said in a research note.
“Our negative growth forecast is predicted on the ongoing retrenchment in investment bank headcount and market data spend,” London-based analyst Patrick Wellington wrote.
He added: “Management does not believe that Reuters revenues will show negative growth in 2009 despite the experience of 2002 and 2003, when recurring revenues dropped by 4 per cent and 10 per cent as investment banking markets were impacted by the fall-away post the internet boom.”
● SOURCE Bloomberg | Reuters | Financial Times
At mid-day the stock
At the close, Thomson Reuters had lost 5.6 per cent to 1,359 pence, a loss of 80 pence on the day.
On their first day of trading, 17 April, Thomson Reuters ended at 1,560 pence.
Investment bank Morgan Stanley reduced its price estimate by 9.9 per cent to 1,280 pence from 1,420 pence and maintained its “underweight” recommendation on the share.
It said it expects revenue in the financial division to fall by 2.8 per cent in 2009 as banks cut jobs and try to cut down on their market data costs.
“We expect quarterly revenue growth to slow rapidly in the second half of 2008 and to go negative in the first quarter of 2009,” it said in a research note.
“Our negative growth forecast is predicted on the ongoing retrenchment in investment bank headcount and market data spend,” London-based analyst Patrick Wellington wrote.
He added: “Management does not believe that Reuters revenues will show negative growth in 2009 despite the experience of 2002 and 2003, when recurring revenues dropped by 4 per cent and 10 per cent as investment banking markets were impacted by the fall-away post the internet boom.”
● SOURCE Bloomberg | Reuters | Financial Times
Company to raise C$1.2 billion
Thursday 19 June 2008
Thomson Reuters said it has signed a deal to raise C$1.2 billion in two note offerings that will be used to repay part of its debt.
The offerings include C$600 million of 5.25 per cent notes due in 2011 and a further C$600 million of 5.7 per cent notes due in 2015.
The company said it plans to use the money to repay bank debt used by the former Thomson Corp to repay the cash portion of its cash and stock acquisition of Reuters.
Moody's Investors Service assigned a ‘Baa1’ rating to the two notes.
Fitch Ratings assigned an ‘A-’ rating.
Thomson Reuters currently has about US$3.4 billion of borrowings under its bridge credit facility related to the deal.
The financing followed another one announced on Tuesday for US$1.75 billion through an issue of corporate bonds.
● SOURCE Canadian Press
The offerings include C$600 million of 5.25 per cent notes due in 2011 and a further C$600 million of 5.7 per cent notes due in 2015.
The company said it plans to use the money to repay bank debt used by the former Thomson Corp to repay the cash portion of its cash and stock acquisition of Reuters.
Moody's Investors Service assigned a ‘Baa1’ rating to the two notes.
Fitch Ratings assigned an ‘A-’ rating.
Thomson Reuters currently has about US$3.4 billion of borrowings under its bridge credit facility related to the deal.
The financing followed another one announced on Tuesday for US$1.75 billion through an issue of corporate bonds.
● SOURCE Canadian Press
Share price falls after ‘savage’ note
Thursday 19 June 2008
Thomson Reuters shares fell to the lowest level since the merger two months ago after a broker advised investors to “sell now while there’s a buyer in town” before the company finishes its buy-back programme.
Market watchers said the stock has been surprisingly resilient since falling 9 per cent on its first day of trading on 17 April.
But it fell 4.75 per cent to £14.45 after Collins Stewart analyst Gareth Thomas said the share price has been held up by the company’s buy-back programme, now 80 per cent complete.
A blog posting on The Guardian website said it was a “savage” sell note.
The broker said: “Since its disastrous first day of post-merger trading when it fell 9%, Thomson Reuters has performed relatively well, outperforming the FT All Share by 1.2%. Why is this? We don’t believe the company is less cyclical than the market, nor particularly cheap. But what may explain its resilience is a $500m buyback programme. But this is now 80% complete. There remains a risk that once it is finished, Thomson Reuters’ shares will fall to reflect its inherent cyclical risk.”
Collins Stewart reckons that the buyback has accounted for nearly 15 per cent of the daily volume in Thomson Reuters shares since the merger. At that rate it estimates the programme will be complete in 12 trading days.
“Given that there is a willing buyer in the market, Thomson Reuters itself, we recommend catching ‘em well (sic) you can, they’ll be gone in 12 trading days. Don’t wait to see if the buyback is holding the shares up; sell now.”
● SOURCE The Guardian | Daily Telegraph
Market watchers said the stock has been surprisingly resilient since falling 9 per cent on its first day of trading on 17 April.
But it fell 4.75 per cent to £14.45 after Collins Stewart analyst Gareth Thomas said the share price has been held up by the company’s buy-back programme, now 80 per cent complete.
A blog posting on The Guardian website said it was a “savage” sell note.
The broker said: “Since its disastrous first day of post-merger trading when it fell 9%, Thomson Reuters has performed relatively well, outperforming the FT All Share by 1.2%. Why is this? We don’t believe the company is less cyclical than the market, nor particularly cheap. But what may explain its resilience is a $500m buyback programme. But this is now 80% complete. There remains a risk that once it is finished, Thomson Reuters’ shares will fall to reflect its inherent cyclical risk.”
Collins Stewart reckons that the buyback has accounted for nearly 15 per cent of the daily volume in Thomson Reuters shares since the merger. At that rate it estimates the programme will be complete in 12 trading days.
“Given that there is a willing buyer in the market, Thomson Reuters itself, we recommend catching ‘em well (sic) you can, they’ll be gone in 12 trading days. Don’t wait to see if the buyback is holding the shares up; sell now.”
● SOURCE The Guardian | Daily Telegraph
Share buyback scheme extended
Wednesday 04 June 2008
Thomson Reuters said on Wednesday it had received approval from the Toronto Stock Exchange (TSX) to renew a US$500 million stock buyback programme for a further 12 months.
The programme will end on 5 June 2009. Shares can be bought on either the TSX or the New York Stock Exchange.
Under the bid, up to 15 million common shares can be repurchased, representing 1.81 per cent of Thomson Reuters’ outstanding shares on 30 May.
Thomson Reuters began purchasing ordinary shares of Thomson Reuters PLC on 18 April, the day after the formation of the merged company. Approximately 9.6 million Thomson Reuters PLC ordinary shares were purchased for a total cost of about US$302 million from 18 April to 30 May.
Thomson Reuters shares listed in London are trading at a 16 per cent discount to those in New York and Toronto.
● SOURCE Thomson Reuters | Financial Post | Seeking Alpha
The programme will end on 5 June 2009. Shares can be bought on either the TSX or the New York Stock Exchange.
Under the bid, up to 15 million common shares can be repurchased, representing 1.81 per cent of Thomson Reuters’ outstanding shares on 30 May.
Thomson Reuters began purchasing ordinary shares of Thomson Reuters PLC on 18 April, the day after the formation of the merged company. Approximately 9.6 million Thomson Reuters PLC ordinary shares were purchased for a total cost of about US$302 million from 18 April to 30 May.
Thomson Reuters shares listed in London are trading at a 16 per cent discount to those in New York and Toronto.
● SOURCE Thomson Reuters | Financial Post | Seeking Alpha
Finance chief buys shares
Thursday 15 May 2008
Thomson Reuters said chief financial officer Robert Daleo spent nearly $300,000 on stock, buying 1,600 American Depositary Shares at $185.90 each. Each ADS is worth six ordinary shares in Thomson Reuters PLC.
He also has 5,105 shares in Thomson Reuters Corporation, which is listed in Toronto.
● SOURCE Thomson Reuters
He also has 5,105 shares in Thomson Reuters Corporation, which is listed in Toronto.
● SOURCE Thomson Reuters
TRI/TRIL - an arbitrageur’s dream
Tuesday 13 May 2008
The gap between the prices of Thomson Reuters’ dual-listed shares in London and Toronto has lingered longer than expected, The Globe and Mail said on Tuesday.
When the two shares began trading separately on 17 April and the UK shares (stock symbol TRIL) lagged their Canadian counterpart (stock symbol TRI) by a significant margin logic suggested it would only be a matter of time before they eventually settled at a similar level, since both represent an equal investment in the same assets.
“But for reasons that escape the company and have left investors scratching their heads, the gap between the two has lingered longer than expected – nearly a month...” the newspaper said.
“With that in mind, arbitrageurs are buying the UK-traded Thomson Reuters PLC shares, while shorting Thomson Reuters Corp on the Toronto Stock Exchange, hoping to capitalize on the gap.”
Short selling involves borrowing and then selling shares in a company in expectation of buying them back at a lower price and profiting on the difference.
The Globe and Mail said that once exchange rates are factored in the London shares have been trading at roughly 15-20 per cent less than the Toronto listing.
Company executives acknowledged the discrepancy at the new company’s annual meeting last week in Toronto. But chief financial officer Robert Daleo declined to guess why the discount exists, the newspaper said.
“We do know that there are a lot of shorts that were put on the Thomson stock that have to be unwound and they have to do it over time, so it could take a while,” he was quoted as saying.
“Markets are generally rational, so it may take a little while longer,” he said. “How long? We have no idea. We do know that [the UK price] doesn’t represent the true intrinsic value of the company.”
One arbitrage player who has taken a position in both shares hoping to profit when the gap narrows is New York-based money manager Glazer Capital. Its president, Paul Glazer, is reported to have written more than 80 letters to executives of 14 large institutional investors in Canada, hoping to prod them into buying the UK shares.
“Given that the Canadian and UK shares are, by design, economically equivalent to each other, it defies all financial theory that the shares of one holding company should trade at a 20-per-cent-plus premium to the others that are just as easily obtained,” the newspaper quoted the letter as saying.
“It is hard to explain why a holder of [the Toronto listing] could not sell these shares and buy a 20-per-cent larger interest in the same company by using the proceeds to buy [the UK traded] shares.”
● SOURCE The Globe and Mail
When the two shares began trading separately on 17 April and the UK shares (stock symbol TRIL) lagged their Canadian counterpart (stock symbol TRI) by a significant margin logic suggested it would only be a matter of time before they eventually settled at a similar level, since both represent an equal investment in the same assets.
“But for reasons that escape the company and have left investors scratching their heads, the gap between the two has lingered longer than expected – nearly a month...” the newspaper said.
“With that in mind, arbitrageurs are buying the UK-traded Thomson Reuters PLC shares, while shorting Thomson Reuters Corp on the Toronto Stock Exchange, hoping to capitalize on the gap.”
Short selling involves borrowing and then selling shares in a company in expectation of buying them back at a lower price and profiting on the difference.
The Globe and Mail said that once exchange rates are factored in the London shares have been trading at roughly 15-20 per cent less than the Toronto listing.
Company executives acknowledged the discrepancy at the new company’s annual meeting last week in Toronto. But chief financial officer Robert Daleo declined to guess why the discount exists, the newspaper said.
“We do know that there are a lot of shorts that were put on the Thomson stock that have to be unwound and they have to do it over time, so it could take a while,” he was quoted as saying.
“Markets are generally rational, so it may take a little while longer,” he said. “How long? We have no idea. We do know that [the UK price] doesn’t represent the true intrinsic value of the company.”
One arbitrage player who has taken a position in both shares hoping to profit when the gap narrows is New York-based money manager Glazer Capital. Its president, Paul Glazer, is reported to have written more than 80 letters to executives of 14 large institutional investors in Canada, hoping to prod them into buying the UK shares.
“Given that the Canadian and UK shares are, by design, economically equivalent to each other, it defies all financial theory that the shares of one holding company should trade at a 20-per-cent-plus premium to the others that are just as easily obtained,” the newspaper quoted the letter as saying.
“It is hard to explain why a holder of [the Toronto listing] could not sell these shares and buy a 20-per-cent larger interest in the same company by using the proceeds to buy [the UK traded] shares.”
● SOURCE The Globe and Mail
Thomson family raises its stake
Friday 09 May 2008
The Thomson family’s holding company, Woodbridge, and other companies associated with it now own about 70 per cent of the outstanding common shares of Thomson Reuters Corp, giving it an approximately 54 per cent voting interest in Thomson Reuters.
Thomson Reuters said Woodbridge received 1.47 million common shares of Thomson Reuters Corp at C$36.26 per share on 1 May. This was under the company’s dividend reinvestment plan.
● SOURCE Thomson Reuters
Thomson Reuters said Woodbridge received 1.47 million common shares of Thomson Reuters Corp at C$36.26 per share on 1 May. This was under the company’s dividend reinvestment plan.
● SOURCE Thomson Reuters
Bridging the Thomson Reuters gap
Tuesday 06 May 2008
Shares of Thomson Reuters listed in London continue to trade at a huge discount to those listed in Toronto, the Financial Times reported. Dual-listed shares rarely trade perfectly efficiently, the FT’s Lex column said, but a gap of this scale, about one fifth, is unheard of.
Technical factors are at play, the FT said. As Thomson Reuters is a dual-listed company, the only way to unwind the classic merger arbitrage trade – long Reuters, short Thomson – is to sell the shares in London and buy in Toronto. Yet the shortage of buyers in London also reflects very different views of the new company’s prospects.
Traditional Canadian holders of Thomson still view it as a defensive professional publisher while the view from London is that the Canadians have no idea what is about to hit them, the FT said. Reuters is still seen as a hostage to the fortunes of its primary customers, the investment banks. “During the last downturn it was clobbered.”
Chief executive Tom Glocer hopes to work on UK shareholders, the FT said. “Either they don’t get the professional side of the business, or they understand the financials side all too well,” it added.
● SOURCE Financial Times
Technical factors are at play, the FT said. As Thomson Reuters is a dual-listed company, the only way to unwind the classic merger arbitrage trade – long Reuters, short Thomson – is to sell the shares in London and buy in Toronto. Yet the shortage of buyers in London also reflects very different views of the new company’s prospects.
Traditional Canadian holders of Thomson still view it as a defensive professional publisher while the view from London is that the Canadians have no idea what is about to hit them, the FT said. Reuters is still seen as a hostage to the fortunes of its primary customers, the investment banks. “During the last downturn it was clobbered.”
Chief executive Tom Glocer hopes to work on UK shareholders, the FT said. “Either they don’t get the professional side of the business, or they understand the financials side all too well,” it added.
● SOURCE Financial Times
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
New stock ticker symbols
Thursday 10 April 2008
Thomson and Reuters announced new stock ticker symbols for Thomson Reuters. They will be effective at the opening of trading on 17 April following the close of Thomson's acquisition of Reuters earlier that morning.
Thomson Reuters will have two parent companies, both of which will be publicly listed. The Thomson Corporation will be renamed Thomson Reuters Corporation, and Thomson Reuters PLC will be a new UK company in which existing Reuters shareholders will receive shares as part of their consideration in the transaction.
Thomson Reuters Corporation common shares will trade on the New York Stock Exchange (NYSE) and Toronto Stock Exchange (TSX) under the symbol TRI.
Thomson Reuters PLC ordinary shares will trade on the London Stock Exchange (LSE) under the symbol TRIL.
Thomson Reuters PLC ADSs will trade on the Nasdaq Global Select Market (NASDAQ) under the symbol TRIN.
Reuters Group PLC ordinary shares and ADSs continue to trade on the LSE and Nasdaq under the symbols RTR and RTRSY respectively until 16 April.
● SOURCE Thomson and Reuters
Thomson Reuters will have two parent companies, both of which will be publicly listed. The Thomson Corporation will be renamed Thomson Reuters Corporation, and Thomson Reuters PLC will be a new UK company in which existing Reuters shareholders will receive shares as part of their consideration in the transaction.
Thomson Reuters Corporation common shares will trade on the New York Stock Exchange (NYSE) and Toronto Stock Exchange (TSX) under the symbol TRI.
Thomson Reuters PLC ordinary shares will trade on the London Stock Exchange (LSE) under the symbol TRIL.
Thomson Reuters PLC ADSs will trade on the Nasdaq Global Select Market (NASDAQ) under the symbol TRIN.
Reuters Group PLC ordinary shares and ADSs continue to trade on the LSE and Nasdaq under the symbols RTR and RTRSY respectively until 16 April.
● SOURCE Thomson and Reuters
