Thomson Reuters
Thomson Reuters puts health unit back on the block
Tuesday 20 March 2012
Thomson Reuters has resumed an auction of its healthcare business, suspended in December due to tough market conditions. Reuters quoted sources familiar with the situation for its report and said Thomson Reuters declined to comment.
More than one bidder is vying for the unit, which provides data, analytics and other services related to the industry to companies, government agencies and healthcare professionals, one of the sources told Reuters. A price of $1 billion has been mentioned.
India’s Infosys Technologies had been reported close to a deal worth up to $750 million when it was pulled three months ago. That would have been only half of the high end of the $1 billion to $1.5 billion analysts had said was possible.
Several new bidders, including private equity firms, have emerged and it appears Thomson Reuters will be able to secure the valuation it was looking for before suspending the sale last year, Reuters quoted one of its source as saying.
● SOURCE Reuters
More than one bidder is vying for the unit, which provides data, analytics and other services related to the industry to companies, government agencies and healthcare professionals, one of the sources told Reuters. A price of $1 billion has been mentioned.
India’s Infosys Technologies had been reported close to a deal worth up to $750 million when it was pulled three months ago. That would have been only half of the high end of the $1 billion to $1.5 billion analysts had said was possible.
Several new bidders, including private equity firms, have emerged and it appears Thomson Reuters will be able to secure the valuation it was looking for before suspending the sale last year, Reuters quoted one of its source as saying.
● SOURCE Reuters
Thomson Reuters wins ethics award for fourth year
Friday 16 March 2012
Thomson Reuters has been named one of the world’s most ethical companies for the fourth successive year. The award by the Ethisphere Institute, a business ethics think-tank, recognises exceptional ethical leadership across continents and industries.
“Out of a record number of nominations for the award, Thomson Reuters secured a hard-earned spot on the list by implementing and maintaining upright business practices and initiatives that are instrumental to the company’s success, benefit the community and raise the bar for ethical standards within the industry,” a Thomson Reuters statement said.
“Our Trust Principals (sic) are an integral part of the way we do business,” said Deirdre Stanley, executive vice president and general counsel. “Being named one of Ethisphere's 2012 World’s Most Ethical Companies for the fourth consecutive year shows that we consistently strive to make a positive impact on society and we are honored to be included.”
Ethisphere makes its annual award on the basis of a review of codes of ethics, litigation and regulatory infraction histories; evaluating the investment in innovation and sustainable business practices; looking at activities designed to improve corporate citizenship; and studying nominations from senior executives, industry peers, suppliers and customers.
● SOURCE Reuters
“Out of a record number of nominations for the award, Thomson Reuters secured a hard-earned spot on the list by implementing and maintaining upright business practices and initiatives that are instrumental to the company’s success, benefit the community and raise the bar for ethical standards within the industry,” a Thomson Reuters statement said.
“Our Trust Principals (sic) are an integral part of the way we do business,” said Deirdre Stanley, executive vice president and general counsel. “Being named one of Ethisphere's 2012 World’s Most Ethical Companies for the fourth consecutive year shows that we consistently strive to make a positive impact on society and we are honored to be included.”
Ethisphere makes its annual award on the basis of a review of codes of ethics, litigation and regulatory infraction histories; evaluating the investment in innovation and sustainable business practices; looking at activities designed to improve corporate citizenship; and studying nominations from senior executives, industry peers, suppliers and customers.
● SOURCE Reuters
EU probe into Thomson Reuters data access 'at critical stage'
Thursday 08 March 2012
Thomson Reuters’ proposed remedies to settle an investigation into the availability of its data to investors are not sufficient, the European Union’s top anti-trust official said on Thursday. The probe into the company’s possible anti-competitive behaviour, opened in 2009, has “reached a critical stage”, said Joaquín Almunia, the EU’s competition commissioner.
The dispute centres around market participants’ access to data. Like other vendors, Thomson Reuters uses short, alphanumeric codes – Reuters Investment Codes (RICs) – that identify financial instruments and their trading locations. Banks, brokers and other financial institutions use them to convert information from Thomson Reuters market data feeds to their own systems.
The European Commission has argued that the availability of up-to-date data at a reasonable cost to participants is critical to a competitive market. Its initial assessment of the case found that restrictions imposed by Thomson Reuters created “substantial barriers” for customers to switch to alternative providers. It can fine companies up to 10 per cent of their annual turnover for breaching competition rules.
The Commission is examining whether customers could be “locked into” working with Thomson Reuters because rewriting software to replace RICs could be lengthy and costly.
“Recently, we have unsuccessfully market-tested a solution offered by Thomson Reuters to facilitate switching,” he said in a speech in Denmark. “We have now reached a critical stage in this investigation. If no effective solution can be agreed upon, then we will have to draw the adequate conclusions.”
“Thomson Reuters has just received feedback from the market test, which it is now analysing," the company said. "While we are undergoing this review, it would be inappropriate to comment. However, Thomson Reuters will continue to co-operate fully with the EU while we are engaged in this process.”
To settle the case, Thomson Reuters in December proposed that it would allow customers to license additional usage rights for RICs and provide them with information to map RICs to rivals’ codes.
Almunia said competitors and investment funds had demanded more concessions.
● SOURCE Financial Times
The dispute centres around market participants’ access to data. Like other vendors, Thomson Reuters uses short, alphanumeric codes – Reuters Investment Codes (RICs) – that identify financial instruments and their trading locations. Banks, brokers and other financial institutions use them to convert information from Thomson Reuters market data feeds to their own systems.
The European Commission has argued that the availability of up-to-date data at a reasonable cost to participants is critical to a competitive market. Its initial assessment of the case found that restrictions imposed by Thomson Reuters created “substantial barriers” for customers to switch to alternative providers. It can fine companies up to 10 per cent of their annual turnover for breaching competition rules.
The Commission is examining whether customers could be “locked into” working with Thomson Reuters because rewriting software to replace RICs could be lengthy and costly.
“Recently, we have unsuccessfully market-tested a solution offered by Thomson Reuters to facilitate switching,” he said in a speech in Denmark. “We have now reached a critical stage in this investigation. If no effective solution can be agreed upon, then we will have to draw the adequate conclusions.”
“Thomson Reuters has just received feedback from the market test, which it is now analysing," the company said. "While we are undergoing this review, it would be inappropriate to comment. However, Thomson Reuters will continue to co-operate fully with the EU while we are engaged in this process.”
To settle the case, Thomson Reuters in December proposed that it would allow customers to license additional usage rights for RICs and provide them with information to map RICs to rivals’ codes.
Almunia said competitors and investment funds had demanded more concessions.
● SOURCE Financial Times
New Bloomberg terminal raises questions at Thomson Reuters
Monday 27 February 2012
Bloomberg’s new $100 million user interface is aimed at making its flagship terminal more intuitive and easier for financial clients to search for data and news. It is part of an effort to connect with a new generation of traders who grew up on internet browsers and are more comfortable using a mouse than the company’s customised keyboard.
“Bloomberg will get press coverage and attention on this announcement, and we expect comparisons to be made to Thomson Reuters in the media,” Craig told staff on Monday. “In addition, clients may have questions.”
Craid added: “With financial & risk now into its third month as a business, we’re already delivering concrete wins for our customers.” He drew attention to print and banner advertising in the Financial Times “demonstrating ownership of the ‘Next’ brand and providing great visibility for Thomson Reuters”. The advertisements promote Westlaw Next, a product for the group’s legal customer base.
“We continue to set the pace in our industry in terms of using new, open technologies to deliver easier navigation, better search and more choice – all things our customers for both WestLaw Next and Eikon value enormously,” he said.
Thomson Reuters’ Eikon terminal, designed as a platform for dozens of disparate products that resulted from Thomson’s 2008 acquisition of Reuters, was introduced in September 2010. It also offers easier search features and allows customers to build different applications to customise it for their needs. Sales have disappointed Thomson Reuters shareholders, however. The company has more than 400,000 end users across its range of desktop products, of which 40,000 have signed up for Eikon, including 16,000 that have installed the product and are considered active users.
Bloomberg edged out Thomson Reuters last year in the $25 billion sector for market data and analysis, taking a 30.44 per cent share compared with Thomson Reuters’ 30.05 per cent according to New York consulting firm Burton-Taylor International. Thomson Reuters said the Burton-Taylor survey focused on terminal sales and did not reflect other market segments the company serves in the financial & risk unit, where revenue also comes from sales of feeds, foreign exchange products and compliance and regulatory products.
● SOURCE Reuters | Paid Content
Bloomberg market share edges ahead of Thomson Reuters - US report
Friday 24 February 2012
Bloomberg pulled ahead of Thomson Reuters in their share of the market data and analysis industry for the first time in 2011, according to a US report.
Bloomberg had a market share of 30.44 per cent last year compared with Thomson Reuters’ 30.05 per cent, the report by Burton-Taylor International Consulting said.
Crains New York Business said Bloomberg’s move into first place “has coincided with troubles at Thomson Reuters, which replaced its CEO at the end of last year following disappointing results for the Eikon market-data desktop product that the company launched in 2010”.
Overall spending on market data and analysis reached a new high in 2011, growing 6.1 per cent over the prior year to $24.94 billion, according to Burton-Taylor. Even so, the year ended on a down note amid “uncertainty in the Western European economies and late-year contraction by market data users,” Douglas Taylor, managing partner of Burton-Taylor, said in a statement.
“Much of the revenue growth was the result of price increases, currency conversions, and non-data related turnover such as transaction fees,” he said.
Bloomberg has been gaining on its rival for years, Crains said. In 2007, the year Thomson and Reuters agreed to merge, Bloomberg had 26 per cent of the market, against Thomson Reuters’ 36 per cent.
“Completed in 2008, the merger made the global giant less competitive for a while, as management focused on integrating two companies in what would soon become a tough economic climate. And by the time Eikon was launched, its customer base was still recovering from a devastating recession.
“‘They were trying to rebuild a new company and build a new product at the same time,’ Mr. Taylor said in an interview. ‘Bloomberg, even in difficult economic times, sticks to its knitting’.”
A spokesman for Thomson Reuters declined to comment, Crains said.
● SOURCE Crains
Bloomberg had a market share of 30.44 per cent last year compared with Thomson Reuters’ 30.05 per cent, the report by Burton-Taylor International Consulting said.
Crains New York Business said Bloomberg’s move into first place “has coincided with troubles at Thomson Reuters, which replaced its CEO at the end of last year following disappointing results for the Eikon market-data desktop product that the company launched in 2010”.
Overall spending on market data and analysis reached a new high in 2011, growing 6.1 per cent over the prior year to $24.94 billion, according to Burton-Taylor. Even so, the year ended on a down note amid “uncertainty in the Western European economies and late-year contraction by market data users,” Douglas Taylor, managing partner of Burton-Taylor, said in a statement.
“Much of the revenue growth was the result of price increases, currency conversions, and non-data related turnover such as transaction fees,” he said.
Bloomberg has been gaining on its rival for years, Crains said. In 2007, the year Thomson and Reuters agreed to merge, Bloomberg had 26 per cent of the market, against Thomson Reuters’ 36 per cent.
“Completed in 2008, the merger made the global giant less competitive for a while, as management focused on integrating two companies in what would soon become a tough economic climate. And by the time Eikon was launched, its customer base was still recovering from a devastating recession.
“‘They were trying to rebuild a new company and build a new product at the same time,’ Mr. Taylor said in an interview. ‘Bloomberg, even in difficult economic times, sticks to its knitting’.”
A spokesman for Thomson Reuters declined to comment, Crains said.
● SOURCE Crains
Pearson denies FT is for sale - to Thomson Reuters or anyone
Friday 10 February 2012
The Financial Times is not for sale, its owner Pearson said on Friday in a sharp slap-down of a report that Thomson Reuters was in “clear discussions” to buy the newspaper.
“The FT is a very valued and valuable part of Pearson. It is not for sale,” the publisher’s press office said in a Twitter post following the report in The Guardian.
The paper’s US media blogger Michael Wolff, in a report on Thursday, said the rumour was raised over lunch with someone he described as “a senior Thomson Reuters executive”.
● SOURCE Twitter
“The FT is a very valued and valuable part of Pearson. It is not for sale,” the publisher’s press office said in a Twitter post following the report in The Guardian.
The paper’s US media blogger Michael Wolff, in a report on Thursday, said the rumour was raised over lunch with someone he described as “a senior Thomson Reuters executive”.
● SOURCE Twitter
FT, after spurning Bloomberg offer, rumoured talking to Thomson Reuters
Friday 10 February 2012
Thomson Reuters as owner of the Financial Times? It’s no more than a rumour, but one discussed publicly and at length by a media commentator after lunch with a senior Thomson Reuters executive.
The hypothesis, reported in The Guardian on Thursday, is based on a passing remark by the unnamed executive about how the company might use the FT. The executive also spoke about how Bloomberg might use the FT.
“Then it trips out, according to my friend – said quite unselfconsciously, rather as though it should be obvious to all; for a moment, I actually think I’ve somehow missed the story – that the FT, having flirted with and then turned down an acquisition offer from Bloomberg, is now talking to Thomson Reuters,” Michael Wolff wrote. “I should qualify my source: he or she is not from the deal-making side (where they keep their mouths shut or, at least, more carefully confide), but someone likely to be consulted by the deal-making side. My source, by the way, has been usefully loose-lipped before, when in the woe-is-me-what’s-going-to-happen-to-us mood of so many media people.”
Wolff wrote: “For good measure, my lunch companion also says that at Thomson Reuters, they believe that the Wall Street Journal’s parent, News Corporation, will sell the Journal in two years, give or take – an actuarial (New Corp Chairman Rupert Murdoch [a former Reuters director], who protects the money-losing WSJ, will shortly be 81), as much as a business analysis.
“True, my companion clearly wishes for an FT or WSJ acquisition by Thomson Reuters to be true; so wishfulness may be coloring his sense of corporate ambition and the likelihood of a transaction. After all, the Thomson company, which owned papers in Canada and London, is one of the few newspaper companies – perhaps, the only one – to have mostly exited the business, reinventing itself, at great profit, as a modern, specialized, high-value, information company.”
Even when Thomson bought Reuters in 2007, it bought it not for its legacy news operation, but for its much greater business information assets, Wolff wrote. “Bloomberg, for its part, generates the overwhelming share of its revenues from its terminals and financial data products. Journalists work for Thomson Reuters and Bloomberg only at some sufferance – they aren’t really needed.”
Back at the Thomson Reuters office after lunch, Wolff asked his source “How solid is this?”
“After the sinking sensation of realizing that foot may have been put in mouth, the source shuts the office door and says: ‘Solid. Solid. Really. Still at an informal level of conversation …’ – a slight retreat – ‘but in clear discussions.’ In other words, even if true, it could be a business lifetime until an agreement. Still. The logic of a deal can almost be as good as a deal.”
● SOURCE The Guardian
The hypothesis, reported in The Guardian on Thursday, is based on a passing remark by the unnamed executive about how the company might use the FT. The executive also spoke about how Bloomberg might use the FT.
“Then it trips out, according to my friend – said quite unselfconsciously, rather as though it should be obvious to all; for a moment, I actually think I’ve somehow missed the story – that the FT, having flirted with and then turned down an acquisition offer from Bloomberg, is now talking to Thomson Reuters,” Michael Wolff wrote. “I should qualify my source: he or she is not from the deal-making side (where they keep their mouths shut or, at least, more carefully confide), but someone likely to be consulted by the deal-making side. My source, by the way, has been usefully loose-lipped before, when in the woe-is-me-what’s-going-to-happen-to-us mood of so many media people.”
Wolff wrote: “For good measure, my lunch companion also says that at Thomson Reuters, they believe that the Wall Street Journal’s parent, News Corporation, will sell the Journal in two years, give or take – an actuarial (New Corp Chairman Rupert Murdoch [a former Reuters director], who protects the money-losing WSJ, will shortly be 81), as much as a business analysis.
“True, my companion clearly wishes for an FT or WSJ acquisition by Thomson Reuters to be true; so wishfulness may be coloring his sense of corporate ambition and the likelihood of a transaction. After all, the Thomson company, which owned papers in Canada and London, is one of the few newspaper companies – perhaps, the only one – to have mostly exited the business, reinventing itself, at great profit, as a modern, specialized, high-value, information company.”
Even when Thomson bought Reuters in 2007, it bought it not for its legacy news operation, but for its much greater business information assets, Wolff wrote. “Bloomberg, for its part, generates the overwhelming share of its revenues from its terminals and financial data products. Journalists work for Thomson Reuters and Bloomberg only at some sufferance – they aren’t really needed.”
Back at the Thomson Reuters office after lunch, Wolff asked his source “How solid is this?”
“After the sinking sensation of realizing that foot may have been put in mouth, the source shuts the office door and says: ‘Solid. Solid. Really. Still at an informal level of conversation …’ – a slight retreat – ‘but in clear discussions.’ In other words, even if true, it could be a business lifetime until an agreement. Still. The logic of a deal can almost be as good as a deal.”
● SOURCE The Guardian
Thomson Reuters resilient in tough times - James Smith
Thursday 09 February 2012
The $3 billion write-down – “a non-cash charge for goodwill impairment” – does not reflect lack of confidence and the financial foundation of the business remains strong, he told the group’s 55,000 staff.
Smith, who took over from Tom Glocer on 1 January, said he looked forward to the year ahead with confidence, both because of the company’s time-tested resilience and because of the dramatic steps taken in recent months.
“Our management team is stronger and we are taking steps to make our organization simpler. We are putting the customers back where they belong – at the heart of everything we do – and we’ve got important product and service improvements planned for 2012…
“I am realistic about the turbulent markets we will face this year. But I also know that dramatic change presents dramatic opportunity.” The more dynamic and challenging the environment for the world’s professionals, the more complex the regulations, the more value Thomson Reuters could provide.
Smith said the $3 billion “accounting adjustment” reflected the fact that the external world – and market valuations – had changed since Thomson completed the Reuters acquisition in 2008. It also reflected the fact that the company had yet to achieve the performance expected from some of the businesses in the former markets division.
“It is important to note that this non-cash charge will not impact the company’s normal business operations nor will it affect liquidity or cash flow from operations. Nor does it reflect a lack of confidence: I am fully confident that our Financial & Risk business can achieve organic revenue growth in the mid-single digits. The financial foundation of our business remains strong.
“Today’s action puts the past behind us and sets our focus squarely on the future,” Smith said. Across the organisation work was well under way on key priorities for this year. He enumerated these as
● kick-start the growth engine in Financial & Risk
● invest in higher growing segments and adjacent businesses
● exploit the strengths of Thomson Reuters’ global franchises
● accelerate development of the business in fast-growing geographies.
Smith said news and insight would become part of the basic fabric of all the group’s flagship products. “We have the biggest and best news organization in the world and no one is better positioned as THE source for market-moving news.”
● SOURCE Thomson Reuters
$3 billion hit pushes Thomson Reuters into heavy loss
Thursday 09 February 2012
Thomson Reuters revealed a $3 billion charge on Thursday related to the declining value of its troubled financial services business, swinging the company to a steep quarterly operating loss.
The loss for last three months of 2011 was $2.59 billion, a sharp contrast to $307 million profit a year earlier.
The charge reflects turmoil in the group’s markets division, whose flagship desktop product Eikon has not been taken up by as many customers as forecast. That lead the division to report quarterly revenues just one per cent higher at $912 million. The company said there were now 15,000 active Eikon installations compared with 8,000 in September.
Thomson Reuters has suffered in the wake of the financial crisis, with customers in banking and finance laying off tens of thousands of employees and slashing costs.
It was the first quarterly report under James Smith, who took over as chief executive from Tom Glocer on 1 January following a series of management shake-ups.
“We have simplified our organisation; we have strengthened our management team; and we are making progress toward improving our execution capability,” the new CEO said in a statement.
The $3 billion charge was the result of the company’s annual goodwill testing. “This non-cash charge will not impact the company’s normal business operations, nor will it affect liquidity, cash flow from operations or financial covenants under the company’s outstanding public debt securities or syndicated credit facility,” it said.
Overall revenues for the quarter were up five per cent before currency changes to $3.35 billion, thanks to strong sales in the group’s legal and tax and accounting businesses.
Thomson Reuters said it expects 2012 revenue to grow in the low single digits.
“The guidance is prudent, as it should be,” Claudio Aspesi, senior analyst at Sanford Bernstein, told Reuters. “My concern is that headwinds in financial services will be very hard because employment will continue to be under pressure. Financial markets and legal both will be under continued revenue pressure in 2012 and beyond. At some point the question of whether the cost structure is in line will have to be answered,” he added.
Thomson Reuters said it intended to sell three businesses: Tax & Accounting's Property Tax Services; Legal's Law School Publishing business; and Financial & Risk's eXimius business, which is part of the Retail Wealth Management organisation. The three businesses combined had about $155 million of revenue in 2011.
● SOURCE Reuters | Financial Times
The loss for last three months of 2011 was $2.59 billion, a sharp contrast to $307 million profit a year earlier.
The charge reflects turmoil in the group’s markets division, whose flagship desktop product Eikon has not been taken up by as many customers as forecast. That lead the division to report quarterly revenues just one per cent higher at $912 million. The company said there were now 15,000 active Eikon installations compared with 8,000 in September.
Thomson Reuters has suffered in the wake of the financial crisis, with customers in banking and finance laying off tens of thousands of employees and slashing costs.
It was the first quarterly report under James Smith, who took over as chief executive from Tom Glocer on 1 January following a series of management shake-ups.
“We have simplified our organisation; we have strengthened our management team; and we are making progress toward improving our execution capability,” the new CEO said in a statement.
The $3 billion charge was the result of the company’s annual goodwill testing. “This non-cash charge will not impact the company’s normal business operations, nor will it affect liquidity, cash flow from operations or financial covenants under the company’s outstanding public debt securities or syndicated credit facility,” it said.
Overall revenues for the quarter were up five per cent before currency changes to $3.35 billion, thanks to strong sales in the group’s legal and tax and accounting businesses.
Thomson Reuters said it expects 2012 revenue to grow in the low single digits.
“The guidance is prudent, as it should be,” Claudio Aspesi, senior analyst at Sanford Bernstein, told Reuters. “My concern is that headwinds in financial services will be very hard because employment will continue to be under pressure. Financial markets and legal both will be under continued revenue pressure in 2012 and beyond. At some point the question of whether the cost structure is in line will have to be answered,” he added.
Thomson Reuters said it intended to sell three businesses: Tax & Accounting's Property Tax Services; Legal's Law School Publishing business; and Financial & Risk's eXimius business, which is part of the Retail Wealth Management organisation. The three businesses combined had about $155 million of revenue in 2011.
● SOURCE Reuters | Financial Times
Thomson Reuters holds lead in market data race
Friday 03 February 2012
Thomson Reuters remains ahead of its rival market data providers in the $24.5 billion global financial information business but Bloomberg is catching up despite the downturn in financial markets that has hit their revenues.
Thomson Reuters leads with about $7.6 billion and Bloomberg is next with about $7.3 billion. The two are the market leaders by far with about two-thirds of the total market for financial information, according to a commentary in Forbes magazine.
“If current trends continue with banks cutting staff and spending, 2012 is shaping up to be a tough year in finance,” said Tom Groenfeldt, a writer on finance and technology.
● SOURCE Forbes
Thomson Reuters leads with about $7.6 billion and Bloomberg is next with about $7.3 billion. The two are the market leaders by far with about two-thirds of the total market for financial information, according to a commentary in Forbes magazine.
“If current trends continue with banks cutting staff and spending, 2012 is shaping up to be a tough year in finance,” said Tom Groenfeldt, a writer on finance and technology.
● SOURCE Forbes
Bloomberg to open new front in war with Thomson Reuters
Wednesday 01 February 2012
Bloomberg is set to launch a new front in its war with Thomson Reuters by offering a free and open software interface that aims to bypass RICs, the lucrative code for identifying securities on terminals.
The New York-based group has developed a tool that allows financial institutions, rival data vendors and software developers to connect and adapt their increasingly complex trading and data connections through a single source at no cost, the Financial Times reported on Wednesday.
It also represents part of Bloomberg’s push to build on Thomson Reuters’ long-running dispute with European anti-trust officials into the market access codes.
At the same time the increasing automation of trading is putting pressure on providers of market data terminals to open up their data feeds. The fragmentation of markets into new trading platforms has forced many investors to connect to multiple data feeds, ratcheting up their IT costs. By offering a free interface, Bloomberg is hoping to to provide a tool that allows investors to both cut costs and circumvent its rivals’ market access codes and win market share.
“Bloomberg is a fierce competitor to Thomson Reuters, which two months ago announced that Tom Glocer would stand down as chief executive to be succeeded by Jim Smith, a long-time Thomson executive with a mandate to improve its core financial data product, Eikon, and technology and customer service,” the FT reported. “Burton-Taylor Consulting has estimated that Bloomberg has gained market share on Thomson Reuters in the last four years.”
RICs – Reuters Instrument Codes – are short alphanumeric codes that identify financial instruments and their trading locations, and are used by banks, brokers and other financial institutions to convert information from Thomson Reuters market data feeds.
But they could not be used to translate data from rival market vendors like Bloomberg or Fidessa, a process known as mapping. The European Commission is examining whether customers could be locked into working with Thomson Reuters because rewriting software to replace RICs could be lengthy and costly, the FT said.
“Bloomberg’s move could force Thomson Reuters to further weaken its policy on RICs and push the US data group into hitherto closed markets. ‘We sell market-data services. We want these systems to be easy to use,’ Shawn Edwards, chief technology officer at Bloomberg, told the Financial Times.”
Last month Thomson Reuters proposed to the European Commission that it allow customers to licence additional usage rights for RICs and provide them with information to map RICs to rivals’ codes. The move could make it easier for financial institutions to switch between different data providers and help Thomson Reuters avoid a potential fine.
● SOURCE Financial Times
The New York-based group has developed a tool that allows financial institutions, rival data vendors and software developers to connect and adapt their increasingly complex trading and data connections through a single source at no cost, the Financial Times reported on Wednesday.
It also represents part of Bloomberg’s push to build on Thomson Reuters’ long-running dispute with European anti-trust officials into the market access codes.
At the same time the increasing automation of trading is putting pressure on providers of market data terminals to open up their data feeds. The fragmentation of markets into new trading platforms has forced many investors to connect to multiple data feeds, ratcheting up their IT costs. By offering a free interface, Bloomberg is hoping to to provide a tool that allows investors to both cut costs and circumvent its rivals’ market access codes and win market share.
“Bloomberg is a fierce competitor to Thomson Reuters, which two months ago announced that Tom Glocer would stand down as chief executive to be succeeded by Jim Smith, a long-time Thomson executive with a mandate to improve its core financial data product, Eikon, and technology and customer service,” the FT reported. “Burton-Taylor Consulting has estimated that Bloomberg has gained market share on Thomson Reuters in the last four years.”
RICs – Reuters Instrument Codes – are short alphanumeric codes that identify financial instruments and their trading locations, and are used by banks, brokers and other financial institutions to convert information from Thomson Reuters market data feeds.
But they could not be used to translate data from rival market vendors like Bloomberg or Fidessa, a process known as mapping. The European Commission is examining whether customers could be locked into working with Thomson Reuters because rewriting software to replace RICs could be lengthy and costly, the FT said.
“Bloomberg’s move could force Thomson Reuters to further weaken its policy on RICs and push the US data group into hitherto closed markets. ‘We sell market-data services. We want these systems to be easy to use,’ Shawn Edwards, chief technology officer at Bloomberg, told the Financial Times.”
Last month Thomson Reuters proposed to the European Commission that it allow customers to licence additional usage rights for RICs and provide them with information to map RICs to rivals’ codes. The move could make it easier for financial institutions to switch between different data providers and help Thomson Reuters avoid a potential fine.
● SOURCE Financial Times
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
Another challenging year for Thomson Reuters - CEO James Smith
Thursday 19 January 2012
“During my break, I could not help but reflect on the opportunity and the responsibility of leading Thomson Reuters as CEO,” Smith told the group’s 55,000 employees. “In thinking about the best way to begin, it was helpful to dream about where I wanted to end. What do I want Thomson Reuters to be known for when my tenure as CEO has ended?
“I want us to be known for:
“● Our intimate understanding of customers, their needs and how we can help them achieve their business goals;
“● The quality of our products;
“● The excellence of our customer service;
“● The caliber, character and engagement of our people;
“● And a level of teamwork that makes possible a truly ‘boundaryless’ organization, where the whole delivers far more than just the sum of its parts.
“If we can accomplish all that, the financial results will take care of themselves.”
To do that, however, would need change in the way some things are done and focus on new measurements of success.
“In the coming weeks, expect to hear more about how we will set targets and keep track of our progress in critical areas like competitive position and customer satisfaction. We will elevate the dialog surrounding new product development and sales effectiveness. We will bring renewed commitment to the development of our people and to improving the diversity of our workforce. And we will address aspects of our performance culture to make sure we all celebrate and share in each other’s successes.”
Smith, who took over from Tom Glocer at the turn of the year, added that there would be plenty of tactical priorities and key initiatives to focus on in the coming year. All of them would reflect the long-range goals he had set out.
“I have no doubt that 2012 will be another challenging year. Market conditions remain uncertain in many places and quite difficult in others. The lagging nature of our subscription-based business model means that it takes time to turn the ship, especially in choppy seas.
“But regardless of the short-term challenges, I am confident that we have begun laying the foundation for a successful future. As I reflected over my holiday break on all the changes we announced at the end of 2011, I could not think of one decision I would have changed. The senior team is in place. It has never been stronger, nor more committed to mutual success…
“I have never been more confident of our ability to succeed in the long term. Our best days are ahead of us.”
● SOURCE Thomson Reuters
CEO James Smith appointed a Thomson Reuters director
Thursday 19 January 2012
James Smith, Thomson Reuters’ new chief executive, has been appointed to the board of directors, the company announced on Thursday.
Smith, 52, succeeded Tom Glocer, also 52, as CEO on 1 January after three months as chief operating officer. Previously, he had been chief executive officer of the group’s professional division where he oversaw the legal, tax & accounting and intellectual property & science businesses. Smith joined the Thomson Newspaper group in 1987.
● SOURCE Thomson Reuters
Smith, 52, succeeded Tom Glocer, also 52, as CEO on 1 January after three months as chief operating officer. Previously, he had been chief executive officer of the group’s professional division where he oversaw the legal, tax & accounting and intellectual property & science businesses. Smith joined the Thomson Newspaper group in 1987.
● SOURCE Thomson Reuters
Thomson Reuters pulls healthcare sale
Thursday 22 December 2011
Thomson Reuters has suspended the sale of its healthcare business, citing tough economic conditions that made it difficult to fetch the right price.
Since announcing the planned divestiture in June, global economic conditions have become more challenging and the company believes they are not conducive to concluding a transaction that reflects the fair value of the healthcare business at this time, a Thomson Reuters statement said on Thursday. “Thomson Reuters is committed to continuing to invest in and grow the Healthcare business until improved market conditions allow the company to complete a divestiture at attractive terms.”
Thomson Reuters said the business continues to perform well with strong revenue growth and expanding margins. Results of the business will continue to be included within “other businesses” in group financial statements. The company had previously said the sale of the healthcare unit was not expected to have a material impact on its 2011 outlook.
The business supplies healthcare data and analysis to companies, government agencies and health professionals. Revenue was about $450 million in 2010.
A company spokesman declined to tell Reuters what parties had considered buying the business or what prices might have been discussed. Two months ago, India’s second-largest software services exporter, Infosys, was said by Indian media to be keen to acquire the business for $700 million to $750 million, but Infosys said it “is not in discussions for the acquisition of Thomson Reuters’ Healthcare business at present”.
● SOURCE Reuters
Since announcing the planned divestiture in June, global economic conditions have become more challenging and the company believes they are not conducive to concluding a transaction that reflects the fair value of the healthcare business at this time, a Thomson Reuters statement said on Thursday. “Thomson Reuters is committed to continuing to invest in and grow the Healthcare business until improved market conditions allow the company to complete a divestiture at attractive terms.”
Thomson Reuters said the business continues to perform well with strong revenue growth and expanding margins. Results of the business will continue to be included within “other businesses” in group financial statements. The company had previously said the sale of the healthcare unit was not expected to have a material impact on its 2011 outlook.
The business supplies healthcare data and analysis to companies, government agencies and health professionals. Revenue was about $450 million in 2010.
A company spokesman declined to tell Reuters what parties had considered buying the business or what prices might have been discussed. Two months ago, India’s second-largest software services exporter, Infosys, was said by Indian media to be keen to acquire the business for $700 million to $750 million, but Infosys said it “is not in discussions for the acquisition of Thomson Reuters’ Healthcare business at present”.
● SOURCE Reuters
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
Reuters managers leave in end-of-year cull
Wednesday 14 December 2011
Thomson Reuters’ incoming chief executive James Smith on Wednesday announced the appointment of a chief people officer – Peter Warwick – to take over the human resources function from Stephen Dando on 1 January with support from Dando until the end of March.
Warwick is currently chief operating officer of the group’s professional division and has been chief executive officer of the legal and tax and accounting businesses.
Dando is one of several Reuters era managers including senior editorial figures said by sources in New York to be leaving the company.
Smith, who takes over from Tom Glocer at the turn of the year, said solid progress had been achieved on the Customer First organisational design work and senior leadership appointments.
He said it concludes the Thomson-Reuters integration and the company now enters a new era.
● SOURCE Thomson Reuters
Warwick is currently chief operating officer of the group’s professional division and has been chief executive officer of the legal and tax and accounting businesses.
Dando is one of several Reuters era managers including senior editorial figures said by sources in New York to be leaving the company.
Smith, who takes over from Tom Glocer at the turn of the year, said solid progress had been achieved on the Customer First organisational design work and senior leadership appointments.
He said it concludes the Thomson-Reuters integration and the company now enters a new era.
● SOURCE Thomson Reuters
EU to test Thomson Reuters' RICs commitments
Wednesday 14 December 2011
The European Commission is asking for comments from other market players on commitments offered by Thomson Reuters to address concerns that it is abusing its market position in real-time data feeds.
“The commitments proposed by Thomson Reuters should allow financial institutions to switch more easily between different providers of financial data and stimulate competition between data vendors,” competition commissioner Joaquin Almunia said in a statement on Wednesday.
Thomson Reuters offered to allow customers to licence additional usage rights for Reuters Instrument Codes and to provide them with the information needed to cross-reference RICs with other data, the commission said. The codes identify securities used by financial institutions to retrieve data from real-time data feeds.
The European Commission opened an investigation into the codes in 2009, saying customers may potentially be locked-in to working with the company because replacing the codes required “a long and costly procedure” to rewrite or reconfigure software applications.
The commission was concerned that Thomson Reuters was abusing its dominant market position “by prohibiting customers from using RICs for retrieving data from alternative providers and mapping them for such a purpose to alternative symbols,” the commission said.
● SOURCE Dow Jones
“The commitments proposed by Thomson Reuters should allow financial institutions to switch more easily between different providers of financial data and stimulate competition between data vendors,” competition commissioner Joaquin Almunia said in a statement on Wednesday.
Thomson Reuters offered to allow customers to licence additional usage rights for Reuters Instrument Codes and to provide them with the information needed to cross-reference RICs with other data, the commission said. The codes identify securities used by financial institutions to retrieve data from real-time data feeds.
The European Commission opened an investigation into the codes in 2009, saying customers may potentially be locked-in to working with the company because replacing the codes required “a long and costly procedure” to rewrite or reconfigure software applications.
The commission was concerned that Thomson Reuters was abusing its dominant market position “by prohibiting customers from using RICs for retrieving data from alternative providers and mapping them for such a purpose to alternative symbols,” the commission said.
● SOURCE Dow Jones
TR: Sorry tale of upheaval, clashes and disappointments - editor
Wednesday 07 December 2011
The Thomson Reuters merger has not lived up to the expectations of either consumers or shareholders and instead, like so many mergers and acquisitions, it has turned into a sorry tale of upheaval, clashes and disappointments, a London-based editor said on Wednesday.
The 2008 acquisition was billed as the deal that would blow rivals like Bloomberg out of the water. The idea was to create a Goliath in the $24 billion market for screen-based financial information that is used by banks and investment institutions around the world, wrote Richard Wachman, City editor of The Observer.
“The reality has been a sorry tale of management upheaval, culture clashes and disappointing product launches. In the latest chapter of the saga, chief executive Tom Glocer has announced his accelerated departure amid rumours he is being nudged out by Canada’s Thomson family, the dominant shareholder, and former owner of the Times before Rupert Murdoch,” Wachman wrote in The Observer’s sister newspaper The Guardian.
“Analysts say the share price has underperformed and complain that hoped-for synergies and innovation haven’t come through, despite all the trumpet blowing at the time of the transaction. The launch of the company’s new Eikon product was behind schedule and the offering was less robust than the market had envisaged, although adjustments may put that right.”
Bloomberg is closing the gap on Thomson Reuters after being well behind four years ago, Wachman said. Florida-based Burton-Taylor International Consulting’s research reveals that in 2007 Thomson Reuters spoke for more than 36 per cent of the market against 25 per cent for Bloomberg. But according to its estimates Bloomberg will have nearly caught up in 2011 with a 30.8 per cent market share against 31.4 per cent for Thomson Reuters.
“Something has gone horribly wrong. At the very least, the task of melding these two companies together has been far more complex than originally envisaged. A less kind interpretation is that management, which has cut many hundreds of jobs, has taken its eye off the ball, losing hapless investors billions along the way.”
● SOURCE The Guardian
The 2008 acquisition was billed as the deal that would blow rivals like Bloomberg out of the water. The idea was to create a Goliath in the $24 billion market for screen-based financial information that is used by banks and investment institutions around the world, wrote Richard Wachman, City editor of The Observer.
“The reality has been a sorry tale of management upheaval, culture clashes and disappointing product launches. In the latest chapter of the saga, chief executive Tom Glocer has announced his accelerated departure amid rumours he is being nudged out by Canada’s Thomson family, the dominant shareholder, and former owner of the Times before Rupert Murdoch,” Wachman wrote in The Observer’s sister newspaper The Guardian.
“Analysts say the share price has underperformed and complain that hoped-for synergies and innovation haven’t come through, despite all the trumpet blowing at the time of the transaction. The launch of the company’s new Eikon product was behind schedule and the offering was less robust than the market had envisaged, although adjustments may put that right.”
Bloomberg is closing the gap on Thomson Reuters after being well behind four years ago, Wachman said. Florida-based Burton-Taylor International Consulting’s research reveals that in 2007 Thomson Reuters spoke for more than 36 per cent of the market against 25 per cent for Bloomberg. But according to its estimates Bloomberg will have nearly caught up in 2011 with a 30.8 per cent market share against 31.4 per cent for Thomson Reuters.
“Something has gone horribly wrong. At the very least, the task of melding these two companies together has been far more complex than originally envisaged. A less kind interpretation is that management, which has cut many hundreds of jobs, has taken its eye off the ball, losing hapless investors billions along the way.”
● SOURCE The Guardian
New Thomson Reuters CEO backs editorial hiring plans - Stephen Adler
Wednesday 07 December 2011
Thomson Reuters’ new chief executive James Smith supports Reuters’ editorial growth strategy, Stephen Adler, editor-in-chief, said and will not curtail his hiring spree.
“We’re full speed ahead,” Adler told The Wall Street Journal’s MarketWatch website.
Some media analysts aren’t quite so sure, columnist Jon Friedman said. They suggest that Smith’s promotion as replacement for CEO Tom Glocer signifies the company’s desire to undercut Adler’s go-go spending ways. They believe that Thomson Reuters’ challenges will force Adler, appointed to the top editorial job in February, to curtail the big spending and eventually shrink the size of his staff.
Friedman said Adler couldn’t have sounded more confident that Smith, who takes over on 1 January, will continue to have “an extraordinary commitment” to Adler’s strategy of investing heavily to strengthen its commitment to enterprise reporting and to recruit journalists such as the WSJ’s Michael Williams and Bloomberg television executive Dan Colarusso.
“Adler said he, too, has heard the whispers from Thomson Reuters’ critics but declared: ‘This doesn’t change anything’,” Friedman wrote.
“What’s also not likely to change is the industry’s confusion about what Adler wants to accomplish,” Friedman wrote. “Does he want his operation to be true to its roots as a British-based wire service that reports doggedly on financial markets or a gleaming long-form journalism operation that wants to be known for its enterprise and investigative reporting? Can Adler make both sides co-exist?”
Adler has tried hard to change the culture of Reuters by wooing a plethora of non-wire-service journalists, Friedman said. “He is betting that he can maintain a strong position in the meat-and-potatoes work of covering the financial markets while making a name for Reuters in enterprise writing.
“In his first year, Adler and his team have succeeded in changing the company’s rather stodgy image. Now, they must find a way to continue the momentum at a time when the world at large expects him to rein in his growth plans.”
● SOURCE MarketWatch
“We’re full speed ahead,” Adler told The Wall Street Journal’s MarketWatch website.
Some media analysts aren’t quite so sure, columnist Jon Friedman said. They suggest that Smith’s promotion as replacement for CEO Tom Glocer signifies the company’s desire to undercut Adler’s go-go spending ways. They believe that Thomson Reuters’ challenges will force Adler, appointed to the top editorial job in February, to curtail the big spending and eventually shrink the size of his staff.
Friedman said Adler couldn’t have sounded more confident that Smith, who takes over on 1 January, will continue to have “an extraordinary commitment” to Adler’s strategy of investing heavily to strengthen its commitment to enterprise reporting and to recruit journalists such as the WSJ’s Michael Williams and Bloomberg television executive Dan Colarusso.
“Adler said he, too, has heard the whispers from Thomson Reuters’ critics but declared: ‘This doesn’t change anything’,” Friedman wrote.
“What’s also not likely to change is the industry’s confusion about what Adler wants to accomplish,” Friedman wrote. “Does he want his operation to be true to its roots as a British-based wire service that reports doggedly on financial markets or a gleaming long-form journalism operation that wants to be known for its enterprise and investigative reporting? Can Adler make both sides co-exist?”
Adler has tried hard to change the culture of Reuters by wooing a plethora of non-wire-service journalists, Friedman said. “He is betting that he can maintain a strong position in the meat-and-potatoes work of covering the financial markets while making a name for Reuters in enterprise writing.
“In his first year, Adler and his team have succeeded in changing the company’s rather stodgy image. Now, they must find a way to continue the momentum at a time when the world at large expects him to rein in his growth plans.”
● SOURCE MarketWatch
Executive changes beginning of the end of turbulent period - new CEO
Friday 02 December 2011
“Thomson Reuters is a company built to win in the information age,” he said in a message to the group’s 55,000 employees. “We have sustainable franchises. We have differentiating competitive advantage in many areas. And – most importantly – we have talented, dedicated people.
“We do many things very well. But there are some things we must do better. Yesterday’s announcement sets in place our next-generation leadership team. It is the beginning of the end of a turbulent period of executive changes. As I have said before, I believe business is a team sport.” The executives appointed to head new business units form a world-class team of operators that will lead to great heights in years to come.
Among the team’s first tasks will be completion of the organisation design work of the past several weeks. “That effort carries the project name ‘Customer First,’ because we are organizing our business around our customers and their needs. That customer theme is at the top of the list of things we must do better.
“Simplifying the organization and our approach to customers is another. Those will be guiding principles.”
Smith said he intended to focus on
● Defining and pursuing the most promising growth vectors in financial services
● Continuing to broaden the company’s value proposition beyond core content and research with high-value tools, software and services
● Exploiting its unique position at the intersection of regulation and finance
● Accelerating development of the business in fast-growing geographies around the world
● Simplifying internal commercial policies and practices
● Improving underlying technology platforms and dramatically improving product quality and customer experience
● Making Thomson Reuters the best place in the world to work.
Smith, chief operating officer until the change of command takes effect, promised an update on the new operating model before the year ends.
He added: “I accepted the CEO job with a great sense of personal excitement and gratitude to the many people who have been responsible for my success. That includes Tom Glocer. His shoes will be impossible to fill; I will have to do the job in my own way. But I also accepted with a deep sense of duty and commitment to the tens of thousands of my colleagues who have dedicated their talents, efforts and professional lives to this organization. Business may begin and end with the customer, but it is the Thomson Reuters people in the middle who make it all happen.”
● SOURCE Thomson Reuters
Tom Glocer out as Thomson family appoints new CEO
Thursday 01 December 2011
The Financial Times quoted people close to the company as saying that David Thomson, chairman, and Geoffrey Beattie, the Canadian family’s consigliere who runs its investment vehicle Woodbridge, have been frustrated with the Thomson Reuters share price, which has fallen from above $41 to $27.22 this year.
The company has undergone a series of structural changes and management shake-ups over the past six months to address the disappointing performance of its markets division, which was essentially the old Reuters and mainly served financial institutions.
Glocer, 52, pictured left, has led Thomson Reuters since 2008, when Canada’s Thomson family completed its acquisition of Reuters. A mergers and acquisitions lawyer, he joined Reuters in 1993 and became the agency’s first American chief executive and the first not to have been a journalist in 2001.
He negotiated Reuters’ sale to the owner of Thomson Financial shortly before the global financial crisis. The merged group enjoyed almost three years of better than expected cost savings from the deal, but has struggled in the last year to roll out a financial services product called Eikon that was meant to unify the two legacy companies’ multiple data products.
By replacing him, the Thomson family effectively removes the last senior Reuters executive from the merged company’s top echelon.
Smith, pictured right, is a former journalist who joined the Thomson Newspaper Group in 1987. Until a few months ago he was head of the professional unit, which sells legal, tax and accounting products. That business has weathered the financial crisis much better than markets.
“By the end of the year, the organizational strategy and budget work I have been leading will be complete, and the transition plan I launched last summer will have achieved its objectives,” Glocer said in a statement. “Jim Smith is a very talented executive with whom I have worked closely over the past four years; he is ready to lead Thomson Reuters.”
The company’s stock has lost about 30 per cent of its value over the past six months as its banking and financial customers laid off thousands of employees and slashed costs.
David Thomson said in a statement: “Tom will be remembered as the individual who turned around Reuters ten years ago, led the company to growth and guided its sale to form Thomson Reuters. Over the past four years, Tom successfully directed an extensive integration, expanded our business internationally, revitalized the Reuters news organization and championed talent across the entire business. The board joins me in thanking Tom for his dedication and service to our company and wishes the very best for him and his family.”
He added: “Jim Smith will provide strong leadership for Thomson Reuters at this juncture. He has earned the respect and confidence of his colleagues and the board alike. His instincts and his customer focus have been the basis of a remarkable career in our business.
“Working with Tom Glocer, the board oversaw the successful execution of an established succession plan in the second half of 2011 and we look forward to beginning the new year with a new management team, new organizational structure, and ever stronger commitment to deliver long-term, sustainable value for all shareholders.”
The new organisational structure will consist of the following business units: financial and risk, legal, intellectual property and science, tax and accounting, and global growth organisation.
● VIDEO
● SOURCE Thomson Reuters | Reuters | The New York Times | Financial Times
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
Tom Glocer sees great things ahead for news
Tuesday 22 November 2011
Many people at Thomson Reuters are tired of organisational change and the rumour mill is hyperactive, CEO Tom Glocer said on Tuesday, but many of the group’s businesses are growing strongly and he sees great things ahead for news as a core distinguishing asset for the whole company.
The company’s financial position is rock-solid, the balance sheet is strong and the credit rating excellent, he said in a message to the group’s 55,000 staff worldwide as Americans prepare to celebrate Thursday’s Thanksgiving holiday. Robert Daleo has done an exemplary job as chief financial officer and the transition to Stephane Bello is going smoothly.
Glocer said that before the year is out decisions will be taken and announced and 2012 will begin with a shared road map for success. “Meanwhile, the best thing you can do from any perspective is to stay focused on meeting your 2011 objectives.”
He told employees: “We can feel good about the work under way to rekindle growth in the businesses that have been struggling. I have been leading a major strategy effort focused on the financial information market, which I reviewed with our Board just last week. In some areas we have a steep climb ahead, but we have what it takes ultimately to succeed and I am working closely with the leaders of those businesses to get us back on the path to robust growth.”
Glocer mentioned powerful growth in the group’s enterprise, trading marketplaces, legal, tax and accounting, and intellectual property and science businesses. Regionally, the company was growing in rapidly developing markets in Asia, the Middle East/Africa, and Latin America.
“I am working directly with Media and Editorial, and I can tell you first-hand that we have built the strongest news organization I’ve seen in my 18 years working here. I see great things ahead for News as a core distinguishing asset for the whole company.”
Glocer said he was working together with chief operations officer James Smith to align the company with its customers’ evolving needs. “From talking to colleagues across our businesses, though, I know that many people are tired of organizational change and that the rumor mill is hyperactive. I understand. Change and the uncertainty that comes with it are hard to handle.”
He said a new operating model called Customer First was taking time because Smith was collaborating with the group’s business and functional leaders to get it right.
“Yes, our markets are changing. That’s true for most big companies these days. The fact that we are changing to keep pace may be a source of anxiety for some, but overall it should be a source of comfort. Any company that tries to stand still today will find itself moving backward,” he said. “This Thanksgiving, I am thankful for all the good things about our company and that Thomson Reuters is blessed with many thousands of talented people who will settle for nothing less than excellence.”
● SOURCE Thomson Reuters
The company’s financial position is rock-solid, the balance sheet is strong and the credit rating excellent, he said in a message to the group’s 55,000 staff worldwide as Americans prepare to celebrate Thursday’s Thanksgiving holiday. Robert Daleo has done an exemplary job as chief financial officer and the transition to Stephane Bello is going smoothly.
Glocer said that before the year is out decisions will be taken and announced and 2012 will begin with a shared road map for success. “Meanwhile, the best thing you can do from any perspective is to stay focused on meeting your 2011 objectives.”
He told employees: “We can feel good about the work under way to rekindle growth in the businesses that have been struggling. I have been leading a major strategy effort focused on the financial information market, which I reviewed with our Board just last week. In some areas we have a steep climb ahead, but we have what it takes ultimately to succeed and I am working closely with the leaders of those businesses to get us back on the path to robust growth.”
Glocer mentioned powerful growth in the group’s enterprise, trading marketplaces, legal, tax and accounting, and intellectual property and science businesses. Regionally, the company was growing in rapidly developing markets in Asia, the Middle East/Africa, and Latin America.
“I am working directly with Media and Editorial, and I can tell you first-hand that we have built the strongest news organization I’ve seen in my 18 years working here. I see great things ahead for News as a core distinguishing asset for the whole company.”
Glocer said he was working together with chief operations officer James Smith to align the company with its customers’ evolving needs. “From talking to colleagues across our businesses, though, I know that many people are tired of organizational change and that the rumor mill is hyperactive. I understand. Change and the uncertainty that comes with it are hard to handle.”
He said a new operating model called Customer First was taking time because Smith was collaborating with the group’s business and functional leaders to get it right.
“Yes, our markets are changing. That’s true for most big companies these days. The fact that we are changing to keep pace may be a source of anxiety for some, but overall it should be a source of comfort. Any company that tries to stand still today will find itself moving backward,” he said. “This Thanksgiving, I am thankful for all the good things about our company and that Thomson Reuters is blessed with many thousands of talented people who will settle for nothing less than excellence.”
● SOURCE Thomson Reuters
NUJ to hold strike ballot after 'insulting' Thomson Reuters offer
Monday 21 November 2011
The National Union of Journalists is to ballot its members at Thomson Reuters in the UK over strike action following what the union called an “insulting below inflation pay offer”.
The Thomson Reuters NUJ chapel said in a statement: “This chapel rejects the below-inflation offer of 1.5 per cent across the board as insulting after three years of real-term pay cuts.
“This chapel insists on a return to the previous practice of annual across-the-board pay rises at least in line with inflation. It demands 7 per cent across the board and in light of our continuing pay dispute, and the company’s failure to come close to our demand, the chapel will proceed with its ballot for industrial action.”
Michelle Stanistreet, NUJ general secretary, said: “Our members at Thomson Reuters have said enough is enough. Over the past years they have tried to meet the management half way on pay issues, despite the fact that pay agreements dating even before the credit crunch have been derisory. They are getting to the point where they can no longer afford to work for Thomson Reuters because they cannot afford to pay their train fares to work or pay their bills. Voting for industrial action is their only option.”
● SOURCE Journalism
The Thomson Reuters NUJ chapel said in a statement: “This chapel rejects the below-inflation offer of 1.5 per cent across the board as insulting after three years of real-term pay cuts.
“This chapel insists on a return to the previous practice of annual across-the-board pay rises at least in line with inflation. It demands 7 per cent across the board and in light of our continuing pay dispute, and the company’s failure to come close to our demand, the chapel will proceed with its ballot for industrial action.”
Michelle Stanistreet, NUJ general secretary, said: “Our members at Thomson Reuters have said enough is enough. Over the past years they have tried to meet the management half way on pay issues, despite the fact that pay agreements dating even before the credit crunch have been derisory. They are getting to the point where they can no longer afford to work for Thomson Reuters because they cannot afford to pay their train fares to work or pay their bills. Voting for industrial action is their only option.”
● SOURCE Journalism
Bloomberg v Thomson Reuters battle about to get bloodier - WSJ
Monday 14 November 2011
Retrenchments on Wall Street are likely to hurt the market for financial data, intensifying competition between Bloomberg and Thomson Reuters, The Wall Street Journal reported on Monday. Steps the two firms took to diversify in the aftermath of the 2008 financial crisis are being tested.
The $23.7 billion global market for financial data is expected to grow only about two per cent this year, according to market data research and consulting firm Burton-Taylor International Consulting, down from 4.2 per cent growth last year, the Journal said. While the market shrank slightly in 2009, it grew in the low double-digits from 2006 to 2008.
These businesses tend to ebb and flow with Wall Street employment. The global finance industry is downsizing as firms brace for a prolonged slowdown due to weak growth, tighter regulations and instability in Europe.
Bloomberg so far has managed to sharply outperform the broader market. It expects 2011 revenue to rise about 11 per cent to $7.6 billion, chief executive Dan Doctoroff said. Revenue rose 10 per cent last year, when the company topped 300,000 subscribers to its terminal, a bundle of financial data, tools and news that costs subscribers about $20,000 a year. Thomson Reuters offers its comparable product for about the same price, though cost varies depending on features, the Journal said.
It said Burton-Taylor estimates Bloomberg lifted its share of the overall market to 30.3 per cent last year from 25.1 per cent in 2005. In contrast, Thomson Reuters’ share slid to 33.2 per cent last year from 37.4 per cent in 2005. Thomson Reuters’ stock is down about 20 per cent year-to-date.
Bloomberg executives said the company likely will slow hiring in 2012 after increasing the size of its work force by about 35 per cent over the past three years. “We feel like we need to give the organization a little more time to breathe,” Doctoroff said.
Thomson Reuters’ financial services business, which has a little more than 400,000 customers of various desktop products, increased revenue 5.5 per cent to $5.64 billion in the year’s first nine months.
“The financial-services division, which accounts for just over half of Thomson Reuters’s revenue, has stumbled amid the disappointing performance of Eikon, its new desktop offering for financial professionals,” the Journal said. “The product now has about 8,000 active users a year after its launch, which it said was slower than expected. Executives said recently that a recent reorganization of the Markets division is likely to improve sales in 2012, though it won’t drive revenue growth in Markets until 2013.”
Chief executive Tom Glocer said Eikon started slowly in part because the product wasn’t ready for “every type of user at every institution”. An upgrade is pending. He also said Eikon was just one of several investments that overall have helped revenue in markets edge up in the most recent quarter ended 30 September.
Meanwhile, the professional division, which serves the legal, tax and accounting industries, increased revenue by 10 per cent to $3.93 billion during the first nine months.
“Thomson Reuters, Mr. Glocer said, has recognized for a long time the trend toward ‘fewer bums on seats’ in the financial-services sector and has shifted dollars to fast-growing areas such as governance risk and compliance, which helps financial institutions cope with growing regulatory burdens,” the Journal reported.
“I think we’re well positioned even in a downturn because of the other weapons we have,” Mr. Glocer said. Thomson Reuters spent about $850 million last year on acquisitions across its businesses.
● SOURCE The Wall Street Journal
The $23.7 billion global market for financial data is expected to grow only about two per cent this year, according to market data research and consulting firm Burton-Taylor International Consulting, down from 4.2 per cent growth last year, the Journal said. While the market shrank slightly in 2009, it grew in the low double-digits from 2006 to 2008.
These businesses tend to ebb and flow with Wall Street employment. The global finance industry is downsizing as firms brace for a prolonged slowdown due to weak growth, tighter regulations and instability in Europe.
Bloomberg so far has managed to sharply outperform the broader market. It expects 2011 revenue to rise about 11 per cent to $7.6 billion, chief executive Dan Doctoroff said. Revenue rose 10 per cent last year, when the company topped 300,000 subscribers to its terminal, a bundle of financial data, tools and news that costs subscribers about $20,000 a year. Thomson Reuters offers its comparable product for about the same price, though cost varies depending on features, the Journal said.
It said Burton-Taylor estimates Bloomberg lifted its share of the overall market to 30.3 per cent last year from 25.1 per cent in 2005. In contrast, Thomson Reuters’ share slid to 33.2 per cent last year from 37.4 per cent in 2005. Thomson Reuters’ stock is down about 20 per cent year-to-date.
Bloomberg executives said the company likely will slow hiring in 2012 after increasing the size of its work force by about 35 per cent over the past three years. “We feel like we need to give the organization a little more time to breathe,” Doctoroff said.
Thomson Reuters’ financial services business, which has a little more than 400,000 customers of various desktop products, increased revenue 5.5 per cent to $5.64 billion in the year’s first nine months.
“The financial-services division, which accounts for just over half of Thomson Reuters’s revenue, has stumbled amid the disappointing performance of Eikon, its new desktop offering for financial professionals,” the Journal said. “The product now has about 8,000 active users a year after its launch, which it said was slower than expected. Executives said recently that a recent reorganization of the Markets division is likely to improve sales in 2012, though it won’t drive revenue growth in Markets until 2013.”
Chief executive Tom Glocer said Eikon started slowly in part because the product wasn’t ready for “every type of user at every institution”. An upgrade is pending. He also said Eikon was just one of several investments that overall have helped revenue in markets edge up in the most recent quarter ended 30 September.
Meanwhile, the professional division, which serves the legal, tax and accounting industries, increased revenue by 10 per cent to $3.93 billion during the first nine months.
“Thomson Reuters, Mr. Glocer said, has recognized for a long time the trend toward ‘fewer bums on seats’ in the financial-services sector and has shifted dollars to fast-growing areas such as governance risk and compliance, which helps financial institutions cope with growing regulatory burdens,” the Journal reported.
“I think we’re well positioned even in a downturn because of the other weapons we have,” Mr. Glocer said. Thomson Reuters spent about $850 million last year on acquisitions across its businesses.
● SOURCE The Wall Street Journal
Tom Glocer enforces Thomson Reuters ethics code
Sunday 13 November 2011
All staff are required to electronically acknowledge that they have read the code and must do so by the end of January at the latest. Improper activities can be reported on a business compliance and ethics hotline.
Nothing is more important to the business than customers’ trust, Glocer said in a memo circulated last week to all staff under the heading “Integrity matters”.
“We’ve earned our reputation over many decades. It could be destroyed in a single day, by one thoughtless action. That’s why you need to carefully review our Code of Business Conduct and Ethics … even if you've read it before. It’s there so we all understand the conduct that is expected of us, and it tells you whom to consult for guidance on complex issues. It’s vitally important to me – and I’m sure it is to you as well – to be part of a company with such a long-established reputation for integrity.
“Integrity matters. Judge every action not only by whether it’s legal or permitted by the Code but whether it’s right.
“If you see any of our colleagues breaking or even bending our guidelines, report that immediately to your manager, the Human Resources department or the attorney who supports your business. Failing that, the Hotline is available to you in many languages, 24 hours a day, 365 days a year. It is every employee’s right and responsibility to use one of these avenues to report improper activities.”
Glocer added: “No business deal or strategic objective is worth sacrificing the reputation that we worked so hard to build and of which we are all so justifiably proud.”
● SOURCE Thomson Reuters
Social media accord ends union dispute with TR
Tuesday 08 November 2011
A US union and Thomson Reuters have agreed on a social media policy that preserves employees’ rights to discuss wages, hours and working conditions on Facebook, Twitter and similar networks.
The Newspaper Guild of New York said on Monday: “Aside from guaranteeing our freedom to express ourselves about job conditions on these networks, the agreement also puts to rest the final dispute the Guild had with Thomson Reuters stemming from the company’s declaration of impasse in contract talks back in January 2010.”
The union had filed an unfair labour practice charge with the US National Labor Relations Board after environment correspondent Deborah Zabarenko, who chairs the union’s unit at Thomson Reuters, was reprimanded for a message she posted on a Reuters Twitter feed. The text of the message, in response to a management request for suggestions on how to make the company “the best place to work,” was: “One way to make this the best place to work is to deal honestly with Guild members.”
The Guild withdrew all other unfair labour practice charges as part of a contract settlement ratified in July. With the social media agreement, finalised on 20 October with an e-mail exchange between its president Bill O’Meara and Reuters Americas Editor Jim Gaines, the Guild has asked the NLRB to withdraw this final charge.
The new social media policy underscores rights workers have under the National Labor Relations Act to publicly discuss working conditions. However, it does not give Guild members a licence to make personal attacks against colleagues or managers, or against individual Thomson Reuters stories or products on social media.
It states: “Our wish is for people to benefit safely from social networks, not to muzzle anyone. Journalists are people too, with all the rights of citizens. If we want to tweet or post about a school play, a film or a favorite recipe, we are free to do so. When dealing with matters of public importance and actual or potential subjects of coverage, however, Reuters journalists should be mindful of the impact their publicly expressed opinions can have on their work and on Reuters. In our Twitter and Facebook profiles, for example, we should identify ourselves as Reuters journalists and declare that we speak for ourselves, not for Thomson Reuters.”
The policy adds: “When writing as Reuters journalists, whether for the file or online, we are guided 24 hours a day by the ethics of our organization as embodied in the Code of Conduct and the Trust Principles, which require us to be responsible, fair and impartial.”
“We expect our journalists to reach conclusions through reporting, but they must also demonstrate the intellectual discipline to keep their conclusions susceptible to further reporting, which requires a posture of open‐mindedness and enlightened skepticism. This is difficult to demonstrate in the social networks’ short forms and under the pressure of thinking‐writing‐posting in real time. But maintaining this posture is critical to our credibility and reputation as journalists. When in doubt about a post, tweet or other action on social networks, we must enlist a second pair of eyes, even at the cost of some delay.”
The policy specifically states that nothing in it should be interpreted as inhibiting the exchange of ideas about matters that deal with employees’ common welfare. Nor is there any prohibition on using social media for speech protected by the National Labor Relations Act, such as candidly discussing wages, hours and working conditions.
The tension is clear, says the company. “Social networks encourage fast, constant, brief communications; journalism calls for communication preceded by fact‐finding and thoughtful consideration.”
It adds: “At all costs, we must avoid flame wars, incendiary rhetoric and loose talk.”
● SOURCE The Newspaper Guild of New York | Thomson Reuters social media policy
The Newspaper Guild of New York said on Monday: “Aside from guaranteeing our freedom to express ourselves about job conditions on these networks, the agreement also puts to rest the final dispute the Guild had with Thomson Reuters stemming from the company’s declaration of impasse in contract talks back in January 2010.”
The union had filed an unfair labour practice charge with the US National Labor Relations Board after environment correspondent Deborah Zabarenko, who chairs the union’s unit at Thomson Reuters, was reprimanded for a message she posted on a Reuters Twitter feed. The text of the message, in response to a management request for suggestions on how to make the company “the best place to work,” was: “One way to make this the best place to work is to deal honestly with Guild members.”
The Guild withdrew all other unfair labour practice charges as part of a contract settlement ratified in July. With the social media agreement, finalised on 20 October with an e-mail exchange between its president Bill O’Meara and Reuters Americas Editor Jim Gaines, the Guild has asked the NLRB to withdraw this final charge.
The new social media policy underscores rights workers have under the National Labor Relations Act to publicly discuss working conditions. However, it does not give Guild members a licence to make personal attacks against colleagues or managers, or against individual Thomson Reuters stories or products on social media.
It states: “Our wish is for people to benefit safely from social networks, not to muzzle anyone. Journalists are people too, with all the rights of citizens. If we want to tweet or post about a school play, a film or a favorite recipe, we are free to do so. When dealing with matters of public importance and actual or potential subjects of coverage, however, Reuters journalists should be mindful of the impact their publicly expressed opinions can have on their work and on Reuters. In our Twitter and Facebook profiles, for example, we should identify ourselves as Reuters journalists and declare that we speak for ourselves, not for Thomson Reuters.”
The policy adds: “When writing as Reuters journalists, whether for the file or online, we are guided 24 hours a day by the ethics of our organization as embodied in the Code of Conduct and the Trust Principles, which require us to be responsible, fair and impartial.”
“We expect our journalists to reach conclusions through reporting, but they must also demonstrate the intellectual discipline to keep their conclusions susceptible to further reporting, which requires a posture of open‐mindedness and enlightened skepticism. This is difficult to demonstrate in the social networks’ short forms and under the pressure of thinking‐writing‐posting in real time. But maintaining this posture is critical to our credibility and reputation as journalists. When in doubt about a post, tweet or other action on social networks, we must enlist a second pair of eyes, even at the cost of some delay.”
The policy specifically states that nothing in it should be interpreted as inhibiting the exchange of ideas about matters that deal with employees’ common welfare. Nor is there any prohibition on using social media for speech protected by the National Labor Relations Act, such as candidly discussing wages, hours and working conditions.
The tension is clear, says the company. “Social networks encourage fast, constant, brief communications; journalism calls for communication preceded by fact‐finding and thoughtful consideration.”
It adds: “At all costs, we must avoid flame wars, incendiary rhetoric and loose talk.”
● SOURCE The Newspaper Guild of New York | Thomson Reuters social media policy
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
Tom Glocer: ‘We’re not magicians’
Tuesday 01 November 2011
Benefits of the recent reorganisation at Thomson Reuters may not fully kick in until 2013, chief executive Tom Glocer said on Tuesday.
“We’re not magicians,” he said in an interview after the company reported a higher-than-expected rise in third-quarter profit and revenue.
Glocer was interviewed in New York by Reuters’ media correspondent Jennifer Saba who said he is under pressure from the board and the controlling shareholder, Canada's Thomson family, to increase the group’s market share, particularly for its financial industry products. Sources familiar with the board's thinking said in July he had about a year to make that happen, she reported.
In September Thomson Reuters said it would merge its two operating divisions – the strongly performing professional serving mainly lawyers and accountants, and the struggling markets, 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,” Glocer said in a statement accompanying the Q3 release.
“What is clear at this point is that 2012 will not look particularly good,” said Claudio Aspesi, a London analyst. “Things are going to get worse before they get better ... even 2013 is a statement of optimistic faith in a recovery.”
Glocer said conditions remained tough in the financial markets. “But that’s not a good enough excuse as various competitors were still able to grow their businesses," he 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.
As part of the September shakeup, James Smith, former head of the professional division, was elevated to the new role of chief operating officer, putting him in a strong position to succeed Glocer.
● SOURCE Reuters
“We’re not magicians,” he said in an interview after the company reported a higher-than-expected rise in third-quarter profit and revenue.
Glocer was interviewed in New York by Reuters’ media correspondent Jennifer Saba who said he is under pressure from the board and the controlling shareholder, Canada's Thomson family, to increase the group’s market share, particularly for its financial industry products. Sources familiar with the board's thinking said in July he had about a year to make that happen, she reported.
In September Thomson Reuters said it would merge its two operating divisions – the strongly performing professional serving mainly lawyers and accountants, and the struggling markets, 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,” Glocer said in a statement accompanying the Q3 release.
“What is clear at this point is that 2012 will not look particularly good,” said Claudio Aspesi, a London analyst. “Things are going to get worse before they get better ... even 2013 is a statement of optimistic faith in a recovery.”
Glocer said conditions remained tough in the financial markets. “But that’s not a good enough excuse as various competitors were still able to grow their businesses," he 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.
As part of the September shakeup, James Smith, former head of the professional division, was elevated to the new role of chief operating officer, putting him in a strong position to succeed Glocer.
● SOURCE Reuters
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
Infosys says it is not in talks to buy TR's healthcare business
Thursday 13 October 2011
India's second-largest software services exporter, Infosys, said on Thursday it is not in talks to acquire Thomson Reuters’ healthcare business.
Denying earlier media reports, Infosys said in an e-mailed statement, “this is to clarify that Infosys is not in discussions for the acquisition of Thomson Reuters’ Healthcare business at present.”
Press Trust of India news agency reported on Wednesday that Infosys was keen to acquire the business, which supplies healthcare data and analysis to companies, government agencies and healthcare professionals. The Bangalore-based firm’s CEO and managing director SD Shibulal said at a press conference: “We are dating ... not yet engaged”. He added: “... we need to understand each other. So, we are definitely ... we have an intention to get engaged.”
Thomson Reuters said in June it was planning to sell the business. India’s Business Standard newspaper reported last month that Infosys was close to buying it for $700 million to $750 million.
● SOURCE Money Control
Denying earlier media reports, Infosys said in an e-mailed statement, “this is to clarify that Infosys is not in discussions for the acquisition of Thomson Reuters’ Healthcare business at present.”
Press Trust of India news agency reported on Wednesday that Infosys was keen to acquire the business, which supplies healthcare data and analysis to companies, government agencies and healthcare professionals. The Bangalore-based firm’s CEO and managing director SD Shibulal said at a press conference: “We are dating ... not yet engaged”. He added: “... we need to understand each other. So, we are definitely ... we have an intention to get engaged.”
Thomson Reuters said in June it was planning to sell the business. India’s Business Standard newspaper reported last month that Infosys was close to buying it for $700 million to $750 million.
● SOURCE Money Control
TR healthcare sale: 'Dating ... not yet engaged'
Wednesday 12 October 2011
India’s Infosys Technologies said on Wednesday it is keen to acquire Thomson Reuters’ healthcare business.
“We are dating ... not yet engaged”, CEO and managing director SD Shibulal said at a press conference. “... we need to understand each other. So, we are definitely ... we have an intention to get engaged,” he added.
Bangalore-based Infosys, India’s second largest software company, has been reported to be close to acquiring the business for $700-$750 million.
In June, Thomson Reuters said it planned to sell the unit, which supplies healthcare data and analysis to companies, government agencies and health professionals. It had revenues of about $450 million in 2010.
● SOURCE Economic Times
“We are dating ... not yet engaged”, CEO and managing director SD Shibulal said at a press conference. “... we need to understand each other. So, we are definitely ... we have an intention to get engaged,” he added.
Bangalore-based Infosys, India’s second largest software company, has been reported to be close to acquiring the business for $700-$750 million.
In June, Thomson Reuters said it planned to sell the unit, which supplies healthcare data and analysis to companies, government agencies and health professionals. It had revenues of about $450 million in 2010.
● SOURCE Economic Times
Another major shake-up as Thomson Reuters disbands dual structure
Wednesday 28 September 2011
In the second major management shake-up in two months, Thomson Reuters disbanded its two-division structure on Wednesday and promoted a senior executive to the new role of chief operating officer. Tom Glocer remains chief executive. Robert Daleo, chief financial officer, will leave next year.
The company said James Smith, chief executive officer of the professional division, would become chief operating officer immediately. At the same time, the professional and markets divisions are disbanded and will “transition to a set of focused business units” reporting to head office.
Both Daleo and Smith were Thomson Corporation executives when the Toronto-based company bought Reuters in 2008.
“The changes we are announcing today will streamline our organization and enable us to work better across business units to achieve growth and capture operating efficiencies from scale,” said Glocer. “The professional markets in which we operate are marked by increasing collaboration among specialists and Thomson Reuters must operate with the speed and agility needed to serve these demanding professionals.”
Daleo, chief financial officer since 1998, will retire in July 2012 when he turns 63. Stephane Bello, chief financial officer of the professional division, will succeed him as chief financial officer of Thomson Reuters, effective 1 January 2012. Daleo will then serve as vice-chairman of the group until his retirement.
David Thomson, chairman of Thomson Reuters, said: “Bob Daleo has guided the financial operations of the company for more than a decade through three chief executives. Retirement has been anticipated for some time and we shall miss the presence of a trusted and valued colleague. Bob’s contributions to the businesses have been immense. Our evolution into a global electronic information company owes a great debt to him. Bob’s advice and leadership will be sorely missed, but those qualities remain in place over the months ahead to all our benefit.”
“Stephane Bello is the perfect choice to succeed Bob because of his strategic and analytical strengths, proven leadership abilities and deep knowledge of the company and our markets,” said Glocer. “He will work closely with Bob, Jim and me over the next several months to ensure a smooth transition and uphold the high standards of integrity and financial reporting set by Bob Daleo.”
Following the sudden departure in July of Devin Wenig, head of markets, Thomson Reuters promoted Smith, chief executive of the professional division that caters to lawyers, accountants and scientists, to the new role of chief operating officer.
The Financial Times reported that the latest moves take some burden from Glocer, who took hands-on control of markets after Wenig’s exit, which was seen as a sign of the group’s controlling shareholder, Canada’s Thomson family, exerting tighter control.
Glocer told the FT that the split into markets and professional divisions had made sense when Thomson Corporation bought Reuters and needed to concentrate on merging its financial data businesses without distracting its professional units.
“Certainly for the first two years it worked very well like that. This year, I concluded markets wasn’t coming out of the integration the way it needed to and I had to take the first step in July,” he said. “In the perfect world, markets would have been growing faster this year and I would have moved in an orderly way to this structure” in 2012, he said.
The FT said Smith’s promotion could elevate his standing as a possible internal successor to Glocer, who said: “He’s always been in the frame as far as I’m concerned, but I’m not planning to go anywhere.”
In a message to staff, Glocer said his strategic goals were simple: to work better across business units to meet the increasingly complex demands of customers and capture growth opportunities; to leverage Thomson Reuters’ scale and achieve efficiencies by building innovative technology platforms that can be shared across the company; and to square off against competitors as a whole company which is greater than the sum of its parts.
He said the priorities he set in July for the markets division of restarting the sales engine and resetting Eikon in the context of the company’s broader product strategy had not changed, nor had the goal of creating a strong performance culture.
“These last two months acting as both CEO of Thomson Reuters and CEO of the Markets division have convinced me of two important things. First, no matter what labels we apply to our units, we have great people who are eager to work together to better serve our customers and grow our company. Second, this must be a team effort but with clearly defined roles and accountability for performance. I am looking forward to working closely with Jim, Bob, Stephane and our other leaders to achieve success and excellence at Thomson Reuters.”
● SOURCE Reuters | Financial Times
The company said James Smith, chief executive officer of the professional division, would become chief operating officer immediately. At the same time, the professional and markets divisions are disbanded and will “transition to a set of focused business units” reporting to head office.
Both Daleo and Smith were Thomson Corporation executives when the Toronto-based company bought Reuters in 2008.
“The changes we are announcing today will streamline our organization and enable us to work better across business units to achieve growth and capture operating efficiencies from scale,” said Glocer. “The professional markets in which we operate are marked by increasing collaboration among specialists and Thomson Reuters must operate with the speed and agility needed to serve these demanding professionals.”
Daleo, chief financial officer since 1998, will retire in July 2012 when he turns 63. Stephane Bello, chief financial officer of the professional division, will succeed him as chief financial officer of Thomson Reuters, effective 1 January 2012. Daleo will then serve as vice-chairman of the group until his retirement.
David Thomson, chairman of Thomson Reuters, said: “Bob Daleo has guided the financial operations of the company for more than a decade through three chief executives. Retirement has been anticipated for some time and we shall miss the presence of a trusted and valued colleague. Bob’s contributions to the businesses have been immense. Our evolution into a global electronic information company owes a great debt to him. Bob’s advice and leadership will be sorely missed, but those qualities remain in place over the months ahead to all our benefit.”
“Stephane Bello is the perfect choice to succeed Bob because of his strategic and analytical strengths, proven leadership abilities and deep knowledge of the company and our markets,” said Glocer. “He will work closely with Bob, Jim and me over the next several months to ensure a smooth transition and uphold the high standards of integrity and financial reporting set by Bob Daleo.”
Following the sudden departure in July of Devin Wenig, head of markets, Thomson Reuters promoted Smith, chief executive of the professional division that caters to lawyers, accountants and scientists, to the new role of chief operating officer.
The Financial Times reported that the latest moves take some burden from Glocer, who took hands-on control of markets after Wenig’s exit, which was seen as a sign of the group’s controlling shareholder, Canada’s Thomson family, exerting tighter control.
Glocer told the FT that the split into markets and professional divisions had made sense when Thomson Corporation bought Reuters and needed to concentrate on merging its financial data businesses without distracting its professional units.
“Certainly for the first two years it worked very well like that. This year, I concluded markets wasn’t coming out of the integration the way it needed to and I had to take the first step in July,” he said. “In the perfect world, markets would have been growing faster this year and I would have moved in an orderly way to this structure” in 2012, he said.
The FT said Smith’s promotion could elevate his standing as a possible internal successor to Glocer, who said: “He’s always been in the frame as far as I’m concerned, but I’m not planning to go anywhere.”
In a message to staff, Glocer said his strategic goals were simple: to work better across business units to meet the increasingly complex demands of customers and capture growth opportunities; to leverage Thomson Reuters’ scale and achieve efficiencies by building innovative technology platforms that can be shared across the company; and to square off against competitors as a whole company which is greater than the sum of its parts.
He said the priorities he set in July for the markets division of restarting the sales engine and resetting Eikon in the context of the company’s broader product strategy had not changed, nor had the goal of creating a strong performance culture.
“These last two months acting as both CEO of Thomson Reuters and CEO of the Markets division have convinced me of two important things. First, no matter what labels we apply to our units, we have great people who are eager to work together to better serve our customers and grow our company. Second, this must be a team effort but with clearly defined roles and accountability for performance. I am looking forward to working closely with Jim, Bob, Stephane and our other leaders to achieve success and excellence at Thomson Reuters.”
● SOURCE Reuters | Financial Times
Police drop sources order
Tuesday 20 September 2011
London's Metropolitan police wanted a court order to force the newspaper's reporters to reveal confidential sources for articles disclosing that murdered teenager Milly Dowler's phone was hacked on behalf of the News of the World. They claimed a reporter could have incited a source to break the Official Secrets Act.
Tuesday’s Scotland Yard announcement came not long after hundreds of media people discussed the police initiative and other press freedom issues. The event, chaired by Reuters editor-at-large Sir Harold Evans, was attended by a top-level contingent from Thomson Reuters including chairman David Thomson, CEO Tom Glocer, pictured, editor-in-chief Stephen Adler, and other editors and executives.
Police left open the possibility the so-called production order could be applied for again, but a senior police source said: “It’s off the agenda. There will be some hard reflection. This was a decision made in good faith, but with no appreciation for the wider consequences. Obviously the last thing we want to do is to get into a big fight with the media. We do not want to interfere with journalists.”
Editors speaking at the Thomson Reuters event recognised Fleet Street had to mend its ways but appealed to the government not to crush Britain's cherished free speech with draconian laws. Top lawyers, editors and politicians agreed during the debate on “The Press We Deserve” that Britain’s existing Press Complaints Commission, a voluntary self-regulatory body, had failed in its duty to keep the press honest but differed sharply over the solution.
Evans said the British press was in its greatest danger since two journalists were jailed for not revealing their sources in 1963.
Editor’s note: The original version of this report headed “Police drop sources order after Thomson Reuters debate” erroneously implied that the police announcement was a consequence of the Thomson Reuters debate. It was not. It was a coincidence. Mea culpa.
Photo: Julie Mollins
● CLICK to view Reuters video
● SOURCE The Guardian | Reuters
Thomson Reuters close to selling healthcare business
Thursday 15 September 2011
Thomson Reuters is close to selling its healthcare business to an Indian company for up to $750 million, an Indian newspaper reported on Thursday.
Business Standard newspaper said Infosys Technologies, India’s second largest software company, was the front-runner for the business and an announcement was expected shortly. Both Thomson Reuters and Infosys declined to comment.
Thomson Reuters said in June it planned to sell the business, which supplies healthcare data and analysis to companies, government agencies and health professionals. It had revenue of about $450 million in 2010.
“It's public knowledge that we are selling the healthcare division but we’re not making any comment on the process,” a Thomson Reuters spokesman said.
● SOURCE Reuters
Business Standard newspaper said Infosys Technologies, India’s second largest software company, was the front-runner for the business and an announcement was expected shortly. Both Thomson Reuters and Infosys declined to comment.
Thomson Reuters said in June it planned to sell the business, which supplies healthcare data and analysis to companies, government agencies and health professionals. It had revenue of about $450 million in 2010.
“It's public knowledge that we are selling the healthcare division but we’re not making any comment on the process,” a Thomson Reuters spokesman said.
● SOURCE Reuters
Disappearing headlines and other faults of flawed terminal
Monday 22 August 2011
Eikon was launched last September as a fundamental shift for the company and the financial services industry it serves. It incorporates social networking features like Facebook, Twitter and instant messaging and is available on multiple computer platforms and smart phones. It was intended to be a key milestone in Thomson Reuters’ strategy to replace dozens of disparate legacy products and build an open and connected global financial community.
Customers were expected to take up Eikon quickly but with many financial businesses still struggling to recover from the global economic crisis, sales have not been spectacular. Six senior executives left the company in July and chief executive Tom Glocer took personal charge of the group’s main operating division.
Thomson Reuters hoped that updated features allowing users to comment, chat and e-mail charts, stories and other data would challenge messaging and more intuitive search tools featured in the latest Bloomberg terminal.
Within the organisation, more than 650 journalists have been using Eikon since the beginning of this year and usage data shows that between 50 and 60 per cent of them are using the new terminal on a routine basis. Users prefer it for enhanced corporate views pages, better market-monitoring tools, more powerful historical and analytical displays and a more intuitive navigation experience, said Adrian Dickson, global head of news product, in an internal memo obtained by The Baron.
“However we, like Eikon customers generally, have also asked for improved speed, performance and urgent attention to bugs and defects. The Eikon team has acknowledged the platform’s shortcomings and over the next six months will focus on performance improvements over the introduction of new content and functionality. This means that many of the gaps that we and others see in the News Experience will remain until the core stability and functionality of Eikon is perfected.”
Dickson said Eikon was much more demanding on data networks and on computer memory which can result in sluggish response times. “Eikon developers are prioritising improvements to overall speed and resilience, which in the case of News means improving the speed with which stories are retrieved as well as ensuring headlines do not randomly disappear.”
Reuters stories are delayed up to two minutes to be made available for searches, Dickson said, adding: “Therein lies the problem.” He said the Eikon development team has made the disappearing story problem the top priority among issues to be repaired in the Eikon news space. “They plan to have a fix in place by early September.”
Dickson listed other faults that had discouraged some journalists from migrating to Eikon for their regular reporting and editing tasks and said a fix was scheduled for mid-October. Other fixes will be in place in the first quarter of next year. New systems are being built that should allow editors to track what stories customers are clicking in near real-time, thus helping editors understand what stories drive traffic, at what times of the day, by which customer types and in what geographies.
Journalists in New York, Washington, Chicago and Toronto were the first to be trained on Eikon earlier this year. London is next, followed by Paris and Frankfurt. Face-to-face training will also take place in Bangalore, Hong Kong and Beijing before the end of 2011. Singapore, Tokyo and Sydney will be completed by Q1 2012. Eikon will begin to be rolled out to medium and small bureaus in the second quarter.
“There are flaws in Eikon, as the company has acknowledged, but the platform has rich tools that work in some of our key areas of coverage,” Dickson said. “As Eikon is stabilized and improved, journalists will become more confident using its multiple features which should help them produce more original and insightful stories…
“The Eikon platform is critical to our future and all journalists need to understand how news is being displayed on the new terminal. Therefore we are planning to install at least one stand-alone Eikon terminal in every bureau throughout the course of 2012.”
● SOURCE Reuters
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
Markets drag on 'healthy' Thomson Reuters results
Thursday 28 July 2011
Thomson Reuters reported sluggish growth in its markets division as the company struggles to accelerate adoption of a new flagship desktop for financial professionals.
Second-quarter results released on Thursday followed a management shakeout that resulted in the sudden departure of the ailing division’s chief Devin Wenig and five other high-level executives last week.
Chief executive Tom Glocer assumed direct responsibility for a turnaround in the division, which competes with Bloomberg, Dow Jones and FactSet Research. Division revenue excluding the impact of currency changes rose one per cent from a year earlier, slowing from the first quarter's gain of two per cent.
Overall revenue and earnings per share were within ranges the company announced last week when it became clear that improving the performance of the markets division was a priority for the board and controlling shareholder, Canada's Thomson family.
Glocer called the results “healthy” but noted this was due to strong growth in the professional division serving legal, accounting and other professionals. That unit’s revenue rose eight per cent excluding the impact of exchange rate changes.
“Nonetheless, revenue growth in our markets division is below our expectations, and I have decided to accelerate the transformation in markets,” Glocer said in a statement. “I am confident that these changes will result in improved performance.”
Total revenue excluding divestitures was $3.2 billion, up four per cent before currency adjustments and slightly ahead of the average analyst forecast. Adjusted earnings per share rose to 51 cents from 41 cents.
Many financial clients are still recovering from the global economic crisis, with job cuts and pullbacks in spending. This is hindering sales of Eikon, a new desktop platform which is aimed at pulling together dozens of disparate legacy products.
The company said it had sold more than 28,000 Eikon desktops since the launch last September. About 3,500 are to new users, meaning that only about 24,500 of the company's roughly 500,000 financial markets users have migrated to the new product.
Reuters’ own coverage of the results said the organisational changes have thrown into question how quickly Thomson Reuters can fast-track growth in markets, which accounted for 59 per cent of the company's revenue in the second quarter.
Glocer is preparing a plan to boost the division’s revenue growth rate and plans to present it to the board in the next two months, Reuters said. “He will have about a year to make it work, according to several people familiar with the board’s thinking.”
The markets shakeup dominated Glocer’s earnings call with analysts who wanted to know how and when things will turn around. He pleaded for some patience in fixing the division and discussed a 30-day plan, which involves reorganising the roles of its sales staff, and a 90-day plan, which entails repositioning the product line. On top of that, there is a year-plus plan that calls for developing a broader strategy around Eikon and Elektron, an ultra-high speed data distribution network.
“Any time you do this level of transformation, people need time to get their sea legs,” Glocer said. “So, in the short term, we expect some disruption. At the same time, we expect a lot of excitement on people moving forward with the new strategy in place.”
Asked if his direct management of markets is an interim measure or a permanent one, he said, “Permanent is a long time. I’m the ninth chief executive of Reuters in 160 years.”
Thomson Reuters shares, which have tumbled in recent days, rose by 3.5 per cent after today’s results.
● SOURCE Reuters | PaidContent
Second-quarter results released on Thursday followed a management shakeout that resulted in the sudden departure of the ailing division’s chief Devin Wenig and five other high-level executives last week.
Chief executive Tom Glocer assumed direct responsibility for a turnaround in the division, which competes with Bloomberg, Dow Jones and FactSet Research. Division revenue excluding the impact of currency changes rose one per cent from a year earlier, slowing from the first quarter's gain of two per cent.
Overall revenue and earnings per share were within ranges the company announced last week when it became clear that improving the performance of the markets division was a priority for the board and controlling shareholder, Canada's Thomson family.
Glocer called the results “healthy” but noted this was due to strong growth in the professional division serving legal, accounting and other professionals. That unit’s revenue rose eight per cent excluding the impact of exchange rate changes.
“Nonetheless, revenue growth in our markets division is below our expectations, and I have decided to accelerate the transformation in markets,” Glocer said in a statement. “I am confident that these changes will result in improved performance.”
Total revenue excluding divestitures was $3.2 billion, up four per cent before currency adjustments and slightly ahead of the average analyst forecast. Adjusted earnings per share rose to 51 cents from 41 cents.
Many financial clients are still recovering from the global economic crisis, with job cuts and pullbacks in spending. This is hindering sales of Eikon, a new desktop platform which is aimed at pulling together dozens of disparate legacy products.
The company said it had sold more than 28,000 Eikon desktops since the launch last September. About 3,500 are to new users, meaning that only about 24,500 of the company's roughly 500,000 financial markets users have migrated to the new product.
Reuters’ own coverage of the results said the organisational changes have thrown into question how quickly Thomson Reuters can fast-track growth in markets, which accounted for 59 per cent of the company's revenue in the second quarter.
Glocer is preparing a plan to boost the division’s revenue growth rate and plans to present it to the board in the next two months, Reuters said. “He will have about a year to make it work, according to several people familiar with the board’s thinking.”
The markets shakeup dominated Glocer’s earnings call with analysts who wanted to know how and when things will turn around. He pleaded for some patience in fixing the division and discussed a 30-day plan, which involves reorganising the roles of its sales staff, and a 90-day plan, which entails repositioning the product line. On top of that, there is a year-plus plan that calls for developing a broader strategy around Eikon and Elektron, an ultra-high speed data distribution network.
“Any time you do this level of transformation, people need time to get their sea legs,” Glocer said. “So, in the short term, we expect some disruption. At the same time, we expect a lot of excitement on people moving forward with the new strategy in place.”
Asked if his direct management of markets is an interim measure or a permanent one, he said, “Permanent is a long time. I’m the ninth chief executive of Reuters in 160 years.”
Thomson Reuters shares, which have tumbled in recent days, rose by 3.5 per cent after today’s results.
● SOURCE Reuters | PaidContent
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
Former German bank chief joins Thomson Reuters board
Monday 25 July 2011
Thomson Reuters on Monday announced the appointment of Wulf von Schimmelmann, former CEO of Germany’s largest independent retail bank Deutsche Postbank, to its board of directors.
David Thomson, chairman, said: “Wulf’s background in financial services complements our global strategy. We look forward to having his counsel as we continue to expand our businesses in strategic markets in Europe and around the world.”
Von Schimmelmann, 64, is a director of Accenture and of Western Union; chairman of the supervisory board of Deutsche Post DHL; and a member of the supervisory board of Maxingvest. He began his career at McKinsey, working in Switzerland, the United States and Germany.
● SOURCE Thomson Reuters
David Thomson, chairman, said: “Wulf’s background in financial services complements our global strategy. We look forward to having his counsel as we continue to expand our businesses in strategic markets in Europe and around the world.”
Von Schimmelmann, 64, is a director of Accenture and of Western Union; chairman of the supervisory board of Deutsche Post DHL; and a member of the supervisory board of Maxingvest. He began his career at McKinsey, working in Switzerland, the United States and Germany.
● SOURCE Thomson Reuters
US union staff at Thomson Reuters approve new contract
Friday 08 July 2011
Journalists, technicians and other news staff represented by the Newspaper Guild of New York have ratified a three-year contract with Thomson Reuters, ending an often acrimonious two-and-a-half-year dispute.
The union said on Friday that the compromise agreement was approved by 252 members while 68 opposed it and six abstained. More than 75 per cent of the 430 Guild members voted at meetings held between 29 June and 7 July in New York, Washington, Chicago, Detroit, Houston, San Francisco, Los Angeles, Seattle, Boston, Miami, Atlanta and Hauppauge.
The new contract, which is already in effect, replaces work rules that had been in place for 18 months and were at the centre of litigation. It includes a guaranteed 1.5 per cent pay increase in each of its three years. The company had previously insisted that most or all raises be awarded solely at its discretion.
Yet to be resolved is a charge by the National Labor Relations Board that Thomson Reuters’ social media policy violated federal labour law by restricting employees’ rights to openly discuss working conditions, and that it was unlawfully applied in connection with a tweet sent by a Guild-represented journalist. Talks on that matter continue.
“It’s been a long battle and we’re happy that it is behind us,” said Guild president Bill O’Meara. “We have a new contract that rewards Guild employees for the critical work they do to make Thomson Reuters successful. I truly hope that this new contract sets the stage for a productive and positive relationship with the new Thomson Reuters management team.”
● SOURCE Poynter | The Newspaper Guild of New York
The union said on Friday that the compromise agreement was approved by 252 members while 68 opposed it and six abstained. More than 75 per cent of the 430 Guild members voted at meetings held between 29 June and 7 July in New York, Washington, Chicago, Detroit, Houston, San Francisco, Los Angeles, Seattle, Boston, Miami, Atlanta and Hauppauge.
The new contract, which is already in effect, replaces work rules that had been in place for 18 months and were at the centre of litigation. It includes a guaranteed 1.5 per cent pay increase in each of its three years. The company had previously insisted that most or all raises be awarded solely at its discretion.
Yet to be resolved is a charge by the National Labor Relations Board that Thomson Reuters’ social media policy violated federal labour law by restricting employees’ rights to openly discuss working conditions, and that it was unlawfully applied in connection with a tweet sent by a Guild-represented journalist. Talks on that matter continue.
“It’s been a long battle and we’re happy that it is behind us,” said Guild president Bill O’Meara. “We have a new contract that rewards Guild employees for the critical work they do to make Thomson Reuters successful. I truly hope that this new contract sets the stage for a productive and positive relationship with the new Thomson Reuters management team.”
● SOURCE Poynter | The Newspaper Guild of New York
Healthcare sale could raise $1 billion for Thomson Reuters
Tuesday 21 June 2011
Thomson Reuters could reap $1 billion from the sale of its healthcare division to reinvest in professional information and services in faster-growing markets such as Latin America and Asia.
Jim Smith, chief executive of the group’s professional division, told the Financial Times it had decided to sell the unit because expanding it to fit Thomson Reuters’ more international focus would have required heavy investment.
Thomson Reuters has begun to use the Reuters brand and infrastructure to widen its reach, the FT said.
“We could not have grown organically without the global footprint we acquired with Reuters. It made a profound difference to the way we think about ... our companies,” Smith said.
Thomson Reuters has asked for offers for the whole business, which Bernstein Research and BNP Paribas have valued at between $850 million and $1.2 billion. The healthcare business has three main divisions, focusing on insurance claims data, analytics for hospitals and clinical content – all heavily skewed to the US market.
The FT said Bernstein estimates disposals and free cash flow could allow Thomson Reuters to fund up to $5 billion of acquisitions by next year, but Smith said it was looking at smaller “fold-in” deals as well as potential investments in new products and services.
The professional division accounts for 43 per cent of group revenues and spans legal, tax, accounting, scientific and regulatory information. Peter Warwick, the division’s chief operating officer, said it was looking to Latin America, India, the Middle East and China, where it faces less competition from traditional professional information providers. “The future really lies in a blend of information, applications and services,” he said.
● SOURCE Financial Times
Jim Smith, chief executive of the group’s professional division, told the Financial Times it had decided to sell the unit because expanding it to fit Thomson Reuters’ more international focus would have required heavy investment.
Thomson Reuters has begun to use the Reuters brand and infrastructure to widen its reach, the FT said.
“We could not have grown organically without the global footprint we acquired with Reuters. It made a profound difference to the way we think about ... our companies,” Smith said.
Thomson Reuters has asked for offers for the whole business, which Bernstein Research and BNP Paribas have valued at between $850 million and $1.2 billion. The healthcare business has three main divisions, focusing on insurance claims data, analytics for hospitals and clinical content – all heavily skewed to the US market.
The FT said Bernstein estimates disposals and free cash flow could allow Thomson Reuters to fund up to $5 billion of acquisitions by next year, but Smith said it was looking at smaller “fold-in” deals as well as potential investments in new products and services.
The professional division accounts for 43 per cent of group revenues and spans legal, tax, accounting, scientific and regulatory information. Peter Warwick, the division’s chief operating officer, said it was looking to Latin America, India, the Middle East and China, where it faces less competition from traditional professional information providers. “The future really lies in a blend of information, applications and services,” he said.
● SOURCE Financial Times
Thomson Reuters adds US yacht race to its sponsorships
Tuesday 17 May 2011
Eileen Lynch, global head of brand strategy, advertising and marketing, said on Tuesday: “Thomson Reuters is excited to sponsor the Annapolis-Newport Race, one of the premier offshore events in the U.S. Competitive sailing, like the other sports we sponsor, embodies our brand belief that the right information in the right hands leads to amazing things. It’s as true for the professional customers we serve as it is for the crews competing in this blue-water classic. We wish everyone a safe and swift race.”
Thomson Reuters is also sponsoring one of the racing yachts, the 66-foot sloop Aurora.
The race, which starts on 3 June, is organised by Annapolis Yacht Club and the New York Yacht Club Regatta Association aided by the Naval Academy Sailing Squadron and Ida Lewis Yacht Club.
Thomson Reuters also sponsors the AT&T Williams Formula 1 grand prix racing team, Canadian golfer Mike Weir, and the British Lawn Tennis Association.
● SOURCE New York Yacht Club | Sail World
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 and US union agree tentative contract
Friday 29 April 2011
Thomson Reuters reached tentative agreement for a new contract with the Newspaper Guild of New York on Friday, opening the way to end a two-year battle over health benefits and wages.
The preliminary agreement is for a three-year contract that includes a $7.6 million cash settlement for the union, a guaranteed 1.5 per cent annual wage increase, a limit on health care costs and a new social media policy.
The US National Labor Relations Board had said it would file against Reuters on numerous issues, among them accusations that it violated a reporter’s right to discuss working conditions when a supervisor reprimanded her for posting a Twitter message that said, “One way to make this the best place to work is to deal honestly with Guild members.”
The author of the post, Deborah Zabarenko, environmental reporter in Washington and head of the Guild at Reuters, sent that message to a company Twitter address after a manager had asked employees to send postings about how to make Reuters the best place to work.
As part of the settlement announced by the Guild, Thomson Reuters agreed to negotiate a new social media policy that would include language protecting employees’ speech and right to engage in other concerted activity about working conditions, as provided under US federal law.
The deal was negotiated under a new management team led by editor-in-chief Stephen Adler, who took over in February. Management's main negotiator was former Wall Street Journal general counsel Stuart Karle, who was appointed Reuters’ chief operating officer earlier this month.
“They changed the whole tone of the negotiations,” Guild president Bill O’Meara said. “They wanted to get it done. Two years of battling was capped in two days of negotiations.”
Both sides asked the board for a delay in filing its complaint. The union said it would ask the board to drop all charges if the new contract is ratified.
“A lot of the credit for this settlement being able to be reached in relatively short order has to go to the new editorial management team,” O’Meara said. “We are very optimistic that we can have an improved relationship with Thomson Reuters going forward. This settlement I think will help set the stage for that.”
Adler said, “This settlement will allow us to focus all our efforts on producing excellent journalism, which is what we all came here to do.”
The 430 editorial staff who belong to the Guild have worked without a contract since early 2009.
● SOURCE Reuters | The New York Times
The preliminary agreement is for a three-year contract that includes a $7.6 million cash settlement for the union, a guaranteed 1.5 per cent annual wage increase, a limit on health care costs and a new social media policy.
The US National Labor Relations Board had said it would file against Reuters on numerous issues, among them accusations that it violated a reporter’s right to discuss working conditions when a supervisor reprimanded her for posting a Twitter message that said, “One way to make this the best place to work is to deal honestly with Guild members.”
The author of the post, Deborah Zabarenko, environmental reporter in Washington and head of the Guild at Reuters, sent that message to a company Twitter address after a manager had asked employees to send postings about how to make Reuters the best place to work.
As part of the settlement announced by the Guild, Thomson Reuters agreed to negotiate a new social media policy that would include language protecting employees’ speech and right to engage in other concerted activity about working conditions, as provided under US federal law.
The deal was negotiated under a new management team led by editor-in-chief Stephen Adler, who took over in February. Management's main negotiator was former Wall Street Journal general counsel Stuart Karle, who was appointed Reuters’ chief operating officer earlier this month.
“They changed the whole tone of the negotiations,” Guild president Bill O’Meara said. “They wanted to get it done. Two years of battling was capped in two days of negotiations.”
Both sides asked the board for a delay in filing its complaint. The union said it would ask the board to drop all charges if the new contract is ratified.
“A lot of the credit for this settlement being able to be reached in relatively short order has to go to the new editorial management team,” O’Meara said. “We are very optimistic that we can have an improved relationship with Thomson Reuters going forward. This settlement I think will help set the stage for that.”
Adler said, “This settlement will allow us to focus all our efforts on producing excellent journalism, which is what we all came here to do.”
The 430 editorial staff who belong to the Guild have worked without a contract since early 2009.
● SOURCE Reuters | The New York Times
Revenue up, Thomson Reuters plans sales to raise cash for core business
Thursday 28 April 2011
Thomson Reuters' revenue growth accelerated in the first quarter as it reaped benefits from heavy spending on new products, and the company plans to sell two more businesses to fund further investment.
It expects to raise about $1 billion from the sale of its enterprise risk management and investment accounting software businesses, the company said on Thursday, along with previously announced sales of its BARBRI legal courses product and Scandinavian legal and tax and accounting units.
Chief executive Tom Glocer said the funds would be reinvested in the core business.
Announcing Q1 2011 financial results, the company said revenue from ongoing businesses was $3.2 billion, up five per cent before currency adjustments, quickening from four per cent growth in the previous quarter.
“I am pleased with our solid results for the first quarter,” Glocer said in a statement accompanying the results. “2011 is playing out much as we anticipated, with accelerating revenue growth which will drive expanded margins and higher cash flow as the year progresses... Based on our good start to the year, we are confident that we will deliver on our expectations for the full year.”
The company reaffirmed its 2011 forecast for mid-single digit revenue growth. It also reiterated that the operating profit margin is expected to increase by at least 100 basis points this year.
First quarter underlying profit increased one per cent, with a corresponding margin of 17.2 per cent. Excluding a $39 million one-time charge, the underlying profit margin was 18.4 per cent compared with 18 per cent in the same period last year.
Adjusted earnings per share, including the one-time charge, rose to 39 cents from 36 cents in the same quarter last year.
Professional division revenue increased eight per cent to $1.38 billion, driven by a 10 per cent increase in legal revenue. The WestlawNext legal database has been sold to more than 18,500 customers since its launch in February 2010, representing 34 per cent of Westlaw's revenue base, the company said.
In the markets division, which competes with Bloomberg and Dow Jones, revenue rose two per cent to $1.87 billion.
● SOURCE Reuters
It expects to raise about $1 billion from the sale of its enterprise risk management and investment accounting software businesses, the company said on Thursday, along with previously announced sales of its BARBRI legal courses product and Scandinavian legal and tax and accounting units.
Chief executive Tom Glocer said the funds would be reinvested in the core business.
Announcing Q1 2011 financial results, the company said revenue from ongoing businesses was $3.2 billion, up five per cent before currency adjustments, quickening from four per cent growth in the previous quarter.
“I am pleased with our solid results for the first quarter,” Glocer said in a statement accompanying the results. “2011 is playing out much as we anticipated, with accelerating revenue growth which will drive expanded margins and higher cash flow as the year progresses... Based on our good start to the year, we are confident that we will deliver on our expectations for the full year.”
The company reaffirmed its 2011 forecast for mid-single digit revenue growth. It also reiterated that the operating profit margin is expected to increase by at least 100 basis points this year.
First quarter underlying profit increased one per cent, with a corresponding margin of 17.2 per cent. Excluding a $39 million one-time charge, the underlying profit margin was 18.4 per cent compared with 18 per cent in the same period last year.
Adjusted earnings per share, including the one-time charge, rose to 39 cents from 36 cents in the same quarter last year.
Professional division revenue increased eight per cent to $1.38 billion, driven by a 10 per cent increase in legal revenue. The WestlawNext legal database has been sold to more than 18,500 customers since its launch in February 2010, representing 34 per cent of Westlaw's revenue base, the company said.
In the markets division, which competes with Bloomberg and Dow Jones, revenue rose two per cent to $1.87 billion.
● SOURCE Reuters
Integration phase over, Thomson Reuters built to last - Tom Glocer
Tuesday 26 April 2011
But he is not ready to pack up his New York Times Square office quite yet, the Financial Times said in a report. “I promised the Thomsons I would stay to complete a job. My reckoning is that job isn’t completed, although we laid a really good foundation,” he said.
Glocer, who became CEO of the combined group on completion of the takeover three years ago, said: “I think we have what may become the defining corporate structure of the best institutions for the next 20 years.” He hailed the continuity provided by a large family stake – Canada’s Thomson family holds 55 per cent of the group’s shares through its investment company Woodbridge – and a public quote in New York and Toronto that keeps management on its toes. “Without the discipline of the market you can become so long-term, it’s perpetual mañana,” he said.
Investors are asking what comes next, the FT said. The group originally promised annualised savings worth $750 million but has steadily raised that forecast to $1.7 billion by the end of 2011. It has spent almost $500 million each year to achieve those savings, and some analysts worry that the group is returning to a pattern from Reuters’ history of repeated waves of investment and restructuring, but Glocer notes that integration expenses will fall to just $200 million in 2011.
Within months of the takeover deal closing in April 2008, a whirlwind blew through the financial hubs on which the group’s $7.5 billion markets division depends, emptying many traders’ desks from Wall Street to the City of London, the FT said.
The damage to Thomson Reuters was limited, however, by cost savings that were larger than expected, big product launches, the $5.4 billion professional information division that balances out the markets business and the group’s decision to abandon a listing in London, where investors were more bearish on its markets division.
Glocer is an acquisitions lawyer who has studied the history of failed deals, concluding that cultural rifts were usually their downfall, the FT said. He decided from the start not to sugar-coat the message to his Reuters colleagues: this was not a merger; Thomson was taking them over.
“When I hear the words ‘merger of equals’, ‘best of both’ or ‘two plus two equals five’ I think that’s a big short,” he says: “It’s a Thomson team complemented where necessary by people with a Reuters skillset.”
The group spent $900 million on 30-40 small acquisitions last year, but Glocer says his focus is on reviving top line growth largely organically, improving margins and converting 100 per cent of operating income into free cash flow.
“The longer-term goals have always been to deliver mid to high single-digit [revenue] growth, operating margins in the mid-20s and free cash flow somewhere north of $3bn. That’s work that’s still to be done and it won’t all be done this year either,” he says. Some of that growth will come from using Reuters’ international presence to expand the Thomson legal, tax, accounting, scientific and regulatory businesses from Latin America to the Gulf.
In a sidebar, the FT said grinding pressure on advertising and circulation revenues at US newspapers and magazines was turning the newswires owned by Thomson Reuters and Bloomberg from training grounds for young reporters into refuges for senior print journalists.
Referring to last week’s editorial restructuring in which four experienced recruits who had held senior positions at The Wall Street Journal, Time, Dow Jones and the South China Morning Post joined the company, it quoted editor-in-chief Stephen Adler as saying steady revenue from subscriptions to data services was a selling point.
Growing competition for instant news has forced wires to expand from their just-the-facts origins, and Adler said his restructuring would emphasise explanation and insight, the FT added.
● SOURCE Financial Times | VIDEO
● CLICK to view the FT video - The Thomson Reuters merger: Three years on
Thomson Reuters unveils major editorial overhaul
Tuesday 19 April 2011
Stephen Adler, pictured, editor-in-chief since February, said he aims to raise Reuters’ profile, streamline decision-making, and better exploit the resources of the company created by the takeover of Reuters by Thomson three years ago.
A former Wall Street Journal editor who joined the company last year after leaving the top job at BusinessWeek magazine, he told staff in a memo: “My sole goal will be to make us the number one news provider in the world. I'm in favor of anything that helps get us there and against anything that gets in the way.”
In a news release, Adler said: “We must be second to none in speed, accuracy, relevance, and fairness, but also – and crucially – in enterprise, insight, analysis and originality.”
“News is central to what we do,” he told a Reuters reporter. “I think this structure enables us to concentrate on doing great journalism.”
The new structure, unveiled after a 60-day review, eliminates a layer of editorial bureaucracy in order to compete more effectively and streamline decision-making.
The new faces are
● Paul Ingrassia, former Dow Jones Newswires president and Pulitzer-prize winner who is appointed to the new position of deputy editor-in-chief. Based in New York, he will spend one week a month in London.
● Stuart Karle, the Journal’s former general counsel, becomes the news division's chief operating officer, a new position.
● Reginald Chua, former editor of the South China Morning Post and the Asian Wall Street Journal, becomes data editor.
● Jim Gaines, formerly managing editor at Time, Life and People magazines, will leave his job as managing editor of The Daily, Rupert Murdoch's digital paper for tablet computers, to join Thomson Reuters as ethics editor.
They are part of a New York-based executive team that also includes Chrystia Freeland, editor of Thomson Reuters Digital, who joined the company last year from the Financial Times; Amy Stevens, executive editor of professional news, who was deputy page-one editor of the Journal; and Adrian Dickson, global head, editorial products. Hugo Dixon continues as editor of Reuters Breakingviews and will remain in London.
As part of Adler’s effort to “tame the bureaucracy and clarify lines of authority,” the re-organisation eliminates roles such as global specialist editors who oversaw coverage of areas such as general and political news, and economic and companies reporting.
Adler’s announcement confirmed the departure of Betty Wong, global managing editor, after 21 years at Reuters.
He said the changes would help to achieve goals he outlined when he took over as editor-in-chief two months ago, namely:
● “To distinguish ourselves as the world's leading provider of news and insight;
● “To serve all Thomson Reuters customers across the divisions;
● “To create innovative digital offerings to showcase our work, brand, and values;
● “To tame bureaucracy and clarify lines of authority;
● “To develop a higher profile for our work;
● “To adhere enthusiastically to the Thomson Reuters Trust Principles.”
“Separating content and operations is really the heart of this restructuring and will enable us to plan coverage in a more unified and coherent way while strengthening the operations that are designed to support and promote it,” he said.
In the new structure, the existing global managing editor job is divided between the chief operating officer, who will handle operations, support, and logistics; and the deputy editor-in-chief, who will oversee content creation in all media and absorb the responsibilities of global specialists editor as well.
Pictures and Television will continue to report to Mark Thompson. Reuters Insider will be led by Chris Cramer. Richard Mably will continue to lead commodities and energy on a global basis.
Adler said he was strongly committed to creating more attractive career paths for journalists who want to continue reporting and writing rather than become managers. “Eliminating the tier of global specialist editors will allow us to create senior reporting positions that will enhance our coverage in key areas. This is good for the staff and great for the file.”
● SOURCE Reuters
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
US panel sets date for action against Thomson Reuters
Thursday 14 April 2011
US authorities have set 29 April to issue a previously announced civil complaint against Thomson Reuters unless the company settles its long-running contract dispute with a union representing some editorial employees.
The National Labor Relations Board said it would postpone its complaint, which is similar to an indictment, on charges that include unlawfully implementing pay and benefit cuts until after the Newspaper Guild of New York and management negotiators meet in a bargaining session with a federal mediator on 26 April.
“However, if no settlement of the contract dispute is reached or if the Employer has not agreed to enter into an informal settlement with the (NLRB) by April 28, 2011, the complaint in this case will issue on April 29, 2011 in order to avoid further delays in the processing of this case,” the Board’s Manhattan acting regional director said on Wednesday in a letter to company lawyers and the union.
Last week the Board told Thomson Reuters the complaint would accuse the company of illegally reprimanding a reporter over a public Twitter posting she had sent criticising management.
In its latest letter the NLRB notified the union and management that it planned to add three more allegations to its complaint: that management illegally changed the health care and retirement savings plans and illegally applied a code of conduct to Guild-represented employees that was not negotiated with the union. The Guild represents some 420 Thomson Reuters staff.
Thomson Reuters declared an impasse in contract talks with the Guild in January 2010.
● SOURCE The Newspaper Guild of New York
The National Labor Relations Board said it would postpone its complaint, which is similar to an indictment, on charges that include unlawfully implementing pay and benefit cuts until after the Newspaper Guild of New York and management negotiators meet in a bargaining session with a federal mediator on 26 April.
“However, if no settlement of the contract dispute is reached or if the Employer has not agreed to enter into an informal settlement with the (NLRB) by April 28, 2011, the complaint in this case will issue on April 29, 2011 in order to avoid further delays in the processing of this case,” the Board’s Manhattan acting regional director said on Wednesday in a letter to company lawyers and the union.
Last week the Board told Thomson Reuters the complaint would accuse the company of illegally reprimanding a reporter over a public Twitter posting she had sent criticising management.
In its latest letter the NLRB notified the union and management that it planned to add three more allegations to its complaint: that management illegally changed the health care and retirement savings plans and illegally applied a code of conduct to Guild-represented employees that was not negotiated with the union. The Guild represents some 420 Thomson Reuters staff.
Thomson Reuters declared an impasse in contract talks with the Guild in January 2010.
● SOURCE The Newspaper Guild of New York
Thomson Reuters boosts its digital presence
Thursday 07 April 2011
She will be responsible for online, mobile and digital properties including Reuters.com, reporting to editor-in-chief Stephen Adler. It is his first senior personnel change since he was named the company's top journalist in February. Adler has said his top priorities include focusing more on the Internet and mobile applications as a way to build readership.
“With news users’ habits changing rapidly, and competitors getting better all the time, we have to be distinctive, creative and contemporary as we drive to distinguish ourselves as the world’s leading source for news,” Adler wrote in a memo to staff on Thursday.
Freeland, who starts her new job on Monday, joined Thomson Reuters in March 2010. Previously she was US managing editor of the Financial Times, overseeing editorial for the newspaper's print and online editions.
● SOURCE Reuters
US labour panel to press Reuters over reaction to Twitter post
Thursday 07 April 2011
The board asserts that Reuters violated the reporter’s right to discuss working conditions when her supervisor reprimanded her for posting a message on Twitter saying, “One way to make this the best place to work is to deal honestly with Guild members”.
The author of the post, Deborah Zabarenko, environmental reporter in Washington and head of the Newspaper Guild of New York at Reuters, sent the tweet to a company Twitter address after a supervisor had invited employees to send postings about how to make Reuters the best place to work.
“The next day the bureau chief called me at home,” Zabarenko, pictured, told The New York Times. “He told me that Reuters had a policy that we were not supposed to say something that would damage the reputation of Reuters News or Thomson Reuters. I felt kind of threatened. I thought it was some kind of intimidation.”
A NLRB official confirmed the board’s Manhattan office had informed Thomson Reuters and the union of the planned complaint. The official also confirmed it involved an accusation that the company had violated a worker’s federally protected right to engage in concerted, protected activity with co-workers to improve working conditions.
The board usually warns parties before a formal complaint is filed, to encourage settlement of the dispute. If no settlement occurs an administrative law judge will hear the complaint.
A Thomson Reuters spokeswoman said the company was surprised by the board’s complaint because it did not believe Zabarenko had even been disciplined. She said the company’s social media guidelines were straightforward and like those at many other companies.
The Guild, which represents 420 Reuters employees, has been in contract talks with the company since before the old contract expired in January 2009.
Peter Szekely, the Guild’s secretary-treasurer, said “Management unilaterally implemented a policy that restricts the free speech of its employees, and for a news organisation that’s inappropriate.” He said the NLRB had told the union it planned to file additional charges against Thomson Reuters over a new pay plan and other issues.
● SOURCE The New York Times
Tom Glocer: We have a clear sense of mission
Thursday 07 April 2011
“We could do many things, but we have a clear sense of mission. Our core mission is to take content and software, and provide it to professionals as part of their work, to allow them to make better decisions faster,” the chief executive said in an interview.
The merger completed on 17 April 2008 went remarkably well “because we worked so hard at it”, he told the Dubai daily Gulf News. “Most people wrongly spend more time on the nuts and bolts of the physical aspects. But I think the long term determinants of success are the softer cultural issues on which I spent most of my time. As a result the company really feels like one company.
“One of the reasons that the merger has gone well is because from the very beginning I was very clear that this was not a merger of equals,” Glocer said. It was very clear that Thomson acquired Reuters and the combined company was named Thomson Reuters.
“The constituent parts of the whole were Thomson two thirds, Reuters one third.
“This was only slightly confusing because I personally came from Reuters, where I was CEO, before I became CEO of the merged group. And we reversed Thomson Financial News into Reuters, so it looked as if Reuters acquired the Thomson Financial business. But for the group, the whole thing was very clear: it was an acquisition of Reuters by Thomson Corp.”
Glocer added: “Providing news is integral to all of our services, even if the percentage of our revenues that come from the traditional Reuters news agency is well under five per cent of the total.”
He said Thomson Reuters would expand the number of vertical industries in which it participates. For example, a new business area, which also illustrates Thomson Reuters’ global approach, is Point Carbon, a carbon trading and energy service launched last year. “We now have the leading content and software for capturing both carbon pricing and other important factors, for whatever carbon trading regime is used, whether it is cap and trade or any other.”
● SOURCE Gulf News
Thomson Reuters rated one of Britain's top employers
Friday 01 April 2011
The company was described as “exceptional for its strong ethics and social conscience, unparalleled opportunities to travel and work abroad and its flexible approach to work when, where and how you like”.
The audited independent research into best human resources practice gave Thomson Reuters five stars across five HR areas:
● Primary benefits
● Secondary benefits and working conditions
● Training and development
● Career development
● Company culture.
● SOURCE HR Magazine
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 again rated one of world’s most ethical companies
Wednesday 16 March 2011
Thomson Reuters has been recognised as one of the world’s most ethical companies for the fourth successive year.
The award is made by the Ethisphere Institute, a New York-based think tank dedicated to the creation, advancement and sharing of best practices in business ethics, corporate social responsibility, anti-corruption and sustainability.
“Thomson Reuters is dedicated to a comprehensive global Corporate Responsibility programme, at the heart of which is a strong ethical backbone”, said Deirdre Stanley, general counsel for Thomson Reuters. “At the heart of our business are the Trust Principles: committing all employees to uphold standards of integrity, independence and freedom from bias. These works alongside our Code of Business Conduct and Ethics, providing principles and practical guidance for all staff.”
"As companies strive to maintain a competitive advantage, good ethics translate into better business, and better business means better bottom lines. Thomson Reuters recognizes the important role that principled practices play in brand reputation, which ultimately is the most valuable asset for a corporation," said Alex Brigham, executive director of the Ethisphere Institute.
● SOURCE Ethisphere
The award is made by the Ethisphere Institute, a New York-based think tank dedicated to the creation, advancement and sharing of best practices in business ethics, corporate social responsibility, anti-corruption and sustainability.
“Thomson Reuters is dedicated to a comprehensive global Corporate Responsibility programme, at the heart of which is a strong ethical backbone”, said Deirdre Stanley, general counsel for Thomson Reuters. “At the heart of our business are the Trust Principles: committing all employees to uphold standards of integrity, independence and freedom from bias. These works alongside our Code of Business Conduct and Ethics, providing principles and practical guidance for all staff.”
"As companies strive to maintain a competitive advantage, good ethics translate into better business, and better business means better bottom lines. Thomson Reuters recognizes the important role that principled practices play in brand reputation, which ultimately is the most valuable asset for a corporation," said Alex Brigham, executive director of the Ethisphere Institute.
● SOURCE Ethisphere
Thomson Reuters chief moves up list of world's super rich
Wednesday 09 March 2011
Thomson, third Baron Thomson of Fleet and the richest person in Canada, rose three places to 17 with a fortune of $23 billion, while Bloomberg fell seven spots to 30 with $18.1 billion, in Forbes magazine’s annual listing of the super rich.
The world's richest man, Mexican tycoon Carlos Slim, retained the top spot for the second year in a row and made more money than any of the world’s other 1,209 billionaires in the past year: $20.5 billion, taking his fortune to $74 billion.
Microsoft co-founder Bill Gates held on to second place, growing his wealth to $56 billion from $53 billion last year, and US investor Warren Buffett again came in third with $50 billion, up from $47 billion.
Forbes ranked the billionaires' fortunes at the close of global stock markets on 14 February.
● SOURCE Forbes
Union asks TR to agree to mediation in stalled US contract talks
Friday 18 February 2011
A union representing 420 mostly editorial employees at Thomson Reuters in the United States asked the company on Friday to agree to mediation to break long-deadlocked contract negotiations.
The Newspaper Guild of New York suggested that, for at least 90 days, both sides turn to Martin Scheinman, a New York arbitrator who has mediated previous disputes with Reuters over the past 12 years.
“As you know, the Guild and Reuters have had a great deal of difficulty in this round of negotiations,” Guild president Bill O’Meara said in a letter to Jay Krupin, the company’s external labour counsel. “You think it’s our fault, the Guild thinks it’s Reuters fault, and neither of us will convince the other that they are wrong. In situations like these, parties often turn to mediators. I think that makes sense here.”
O’Meara said that if management accepted the concept but preferred another mediator the Guild would certainly consider it. “The Guild remains committed to achieving a fair contract for our members at Thomson Reuters, an agreement that doesn’t lower their standards of employment,” he said in a statement.
The two sides last met on 6 January when management negotiators declined to make a counterproposal to a comprehensive package the Guild had offered in December. The union’s offer made what it called a major movement on management’s key demand for greater use of discretionary pay.
The dispute is tied up in litigation, with the National Labor Relations Board investigating numerous Guild charges, including one that management broke the law by declaring impasse in the talks on 19 January 2010 and imposing work rules that the union says are costing its members a net total of more than $2 million a year.
● SOURCE The Newspaper Guild of New York
The Newspaper Guild of New York suggested that, for at least 90 days, both sides turn to Martin Scheinman, a New York arbitrator who has mediated previous disputes with Reuters over the past 12 years.
“As you know, the Guild and Reuters have had a great deal of difficulty in this round of negotiations,” Guild president Bill O’Meara said in a letter to Jay Krupin, the company’s external labour counsel. “You think it’s our fault, the Guild thinks it’s Reuters fault, and neither of us will convince the other that they are wrong. In situations like these, parties often turn to mediators. I think that makes sense here.”
O’Meara said that if management accepted the concept but preferred another mediator the Guild would certainly consider it. “The Guild remains committed to achieving a fair contract for our members at Thomson Reuters, an agreement that doesn’t lower their standards of employment,” he said in a statement.
The two sides last met on 6 January when management negotiators declined to make a counterproposal to a comprehensive package the Guild had offered in December. The union’s offer made what it called a major movement on management’s key demand for greater use of discretionary pay.
The dispute is tied up in litigation, with the National Labor Relations Board investigating numerous Guild charges, including one that management broke the law by declaring impasse in the talks on 19 January 2010 and imposing work rules that the union says are costing its members a net total of more than $2 million a year.
● SOURCE The Newspaper Guild of New York
Earnings up, Thomson Reuters forecasts higher revenue this year
Thursday 10 February 2011
The improved outlook reflects signs that the group’s financial and professional customers are recovering from the recession. A year ago Thomson Reuters was under pressure as those customers cut spending and employees.
“A shock like the world went through leaves a caution that hangs around for a while,” chief executive Tom Glocer said in an interview with Reuters on Thursday. “But there’s no question that the conditions themselves are getting better in many of our markets.”
The improving economy and new services helped lift Q4 earnings to $225 million, or 27 cents per share, up from $182 million, or 21 cents per share, a year earlier. Q4 adjusted earnings per share of 43 cents missed the average analyst forecast of 46 cents.
Revenue climbed three per cent to $3.46 billion. Analysts expected $3.44 billion. Full-year earnings came to $933 million, or $1.08 per share, up from $867 million, or $1.01 per share, in 2009. Revenue ended essentially flat at $13 billion.
Highlighting the brighter outlook, the company raised its annual dividend by seven per cent to $1.24 per share.
Thomson Reuters has invested heavily in new products such as financial desktop Eikon, online video news service Reuters Insider and legal database service WestlawNext. Glocer said these investments would pay off in 2011. “With this period of heavy investment now successfully completed and our markets improving, we have set our sights on accelerating growth and delivering strong returns on our investments,” he said in a statement. “We have targeted mid-single-digit revenue growth for 2011, accompanied by strongly expanding margins and increasing levels of free cash flow.”
Thomson Reuters’ New York-listed shares have risen 11.6 per cent so far in 2011. The Toronto-listed shares are up 10.8 per cent.
In an internal message, Glocer told staff: “I am proud of what we accomplished, but very clear that much remains to be done, and mindful that we need to accelerate the pace of change.”
Growth and efficiency would remain priorities for 2011 “and we will aspire to excellence in all that we do. We have the ability, and therefore the mandate, to go from good – or in some cases maybe just OK – to truly excellent in areas such as:
● “Establishing a winning performance culture, and strengthening talent and engagement across the company;
● “Becoming hands-down the world’s best news organisation; the organisational changes I wrote about earlier this week will advance this goal;
● “Delivering customer service that truly delights our customers; customers are the ultimate judges of a company’s excellence;
● “Delivering the most innovative platform-based products which embody deep customer insight; and
● “Ensuring that our capital and talent is focused on the highest-value opportunities.
“Our commitment to excellence should also extend to our respect for our colleagues, communities and the environment. If each of the 55,000 of us achieves his or her own personal excellence, and we align our efforts, we will be unstoppable.
“We have turned the corner on growth. Now let’s reach for excellence.”
● SOURCE Thomson Reuters | Reuters
Thomson Reuters names new editor-in-chief
Monday 07 February 2011
He is Stephen Adler, pictured, who joined the company a year ago from BusinessWeek where he was editor-in-chief. He left the magazine after it was purchased by Bloomberg. Adler replaces David Schlesinger who held the post since January 2007 and now returns to China to oversee group strategy in that country as chairman of Thomson Reuters China. The moves are effective immediately.
Chief executive Tom Glocer said the appointment of a relative outsider to the company’s top editorial job showed “not everything has to be invented here”.
Adler, 56, a former investigative editor at The Wall Street Journal and one-time editor of The American Lawyer, joined Thomson Reuters in January 2010 to set up dedicated news services for its legal, tax and accounting and healthcare and science divisions, fulfilling a goal set when Thomson acquired Reuters in April 2008. He is a graduate of Harvard University and Harvard Law School.
Glocer said Thomson Reuters’ fledgling professional news initiative, which employs 12 journalists, is “ready to be integrated into mother Reuters”.
Pointing to AOL’s acquisition of Huffington Post and The Daily Beast’s Newsweek deal, he added: “If you look at the outside world, there’s a need to accelerate change even in venerable and well-respected news organisations.”
“Journalistic excellence will continue to be our hallmark,” Adler said in a statement, “and our goal is to become a must-read among global professionals. To that end, we will continue to develop our extraordinary internal talent as well as hiring strategically from outside.”
He told the Financial Times his appointment to the new role of executive vice president of news for Thomson Reuters, reporting to the heads of both the markets and professional divisions, signalled a decision “to view Reuters News as an asset for the whole company”.
“There is going to be one news organisation to serve all the businesses,” Adler said. “The goal is to have a united news organisation.”
Glocer said: “My biggest hope and goal for him is we maximise the amount of time and resource that truly goes to journalistic excellence. Reuters developed its reputation when no one could do what we did. We should do that again.”
In a message to staff, Glocer said Adler would be a member of the executive committee and would report jointly to Devin Wenig and James Smith, chief executives of Thomson Reuters’ markets and professional divisions respectively. “This reporting relationship will help ensure that news will become a central asset for both divisions – the very heart of our company. Steve is the ideal choice to lead the next phase in the development of Reuters News as a core capability for Thomson Reuters.”
Schlesinger, 50, joined Reuters in 1987 as a correspondent in Hong Kong. He is a fluent Mandarin speaker and former head of Reuters’ editorial operations in China. “He’s far better known in China than I am,” Glocer said, adding that it would have taken him 20 years to build the same level of trust within a market where relationships matter were he just visiting twice a year from his New York head office.
Glocer said it was the perfect moment for Schlesinger to return to China in a senior strategic role to support the development of the group’s businesses in this key market. “David brings extraordinary passion and experience to this mission.”
He added: “Our news organisation is now poised to advance to new levels of excellence in an industry which is moving very fast. Please join me in thanking David for getting us here and supporting Steve as he takes us forward.”
● SOURCE Thomson Reuters | MarketWire
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
Tom Glocer sees multi-speed optimism for multi-speed world
Thursday 27 January 2011
Thomson Reuters CEO Tom Glocer said on Thursday he generally shared rising business optimism, though "it's a multi-speed optimism for a multi-speed world".
Glocer told Reuters Insider television at the World Economic Forum in Davos that in "Brazil, the Gulf, Asia the optimism is off the charts but it feels a little bit different at the periphery in Europe. On balance, given a balanced business like ours, yes it's very positive for 2011".
Glocer said banks were rebalancing their activity. Fixed income desks had a rough time in the second half of last year but people were now positioning themselves for the long-term environment.
Speaking about the company’s business generally, Glocer said: "In our world, Latin America is very strong for us, not only in the financial services world but in legal and in tax and accounting as well, so we're excited about it."
Asked about other growth areas, Glocer said; "The Gulf has been strong right through, India and China are strong for us and also at the edges of Asia. Pretty much everywhere, even Japan has had a pretty good run for us in the last couple of years."
● SOURCE Business Standard
Glocer told Reuters Insider television at the World Economic Forum in Davos that in "Brazil, the Gulf, Asia the optimism is off the charts but it feels a little bit different at the periphery in Europe. On balance, given a balanced business like ours, yes it's very positive for 2011".
Glocer said banks were rebalancing their activity. Fixed income desks had a rough time in the second half of last year but people were now positioning themselves for the long-term environment.
Speaking about the company’s business generally, Glocer said: "In our world, Latin America is very strong for us, not only in the financial services world but in legal and in tax and accounting as well, so we're excited about it."
Asked about other growth areas, Glocer said; "The Gulf has been strong right through, India and China are strong for us and also at the edges of Asia. Pretty much everywhere, even Japan has had a pretty good run for us in the last couple of years."
● SOURCE Business Standard
Thomson Reuters launches new corporate branding campaign
Monday 24 January 2011
The campaign replaces the previous post-merger campaign titled Intelligent Information. It describes the impact and competitive advantage that professionals in the financial, legal, tax and accounting, healthcare, science and media fields can have when armed with the right information at the right time.
“The Knowledge Effect campaign is an evolution of the Intelligent Information campaign we introduced when we launched the Thomson Reuters brand almost three years ago,” said Gus Carlson, executive vice president and chief marketing officer. “The Knowledge Effect is what happens when the right information – what we call intelligent information – is put in the hands of our professional customers. When they can make the right decisions faster and with more confidence, they can accomplish amazing things. The Knowledge Effect campaign enhances the understanding and relevance of the Thomson Reuters brand by explaining not just what we do and how we do it, but why it matters.”
The company said that in addition to using traditional media, the campaign has a strong digital media component, leveraging a mix of digital display advertising, mobile marketing, iPad applications, social content and a ● Knowledge Effect microsite.
Campaign launch plans include activities around the World Economic Forum taking place in Davos, Switzerland this week as well as in key Thomson Reuters markets such as New York, London and Toronto. The budget was not disclosed.
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
Thomson Reuters exploring consumer video service - Tom Glocer
Friday 10 December 2010
“We sort of have a consumer following, almost less by intention and more just because people find and, thank God, trust us in particular in crisis and in particular with respect to international serious news and economics, they turn to ● Reuters.com or some of the apps we have,” Glocer said at the Le Web conference in Paris on Thursday.
“We are thinking about, whether we couldn’t, the time isn't right, to aggregate a serious international audience.
“We’re a fairly serious company. We’re unlikely to put the pretty blonde on the couch to read news to you or to have banter back and forth about ‘Hey, you know, how was the game last night?’ And the challenge in traditional broadcast has been to reach a large enough audience to monetise the advertising or to pay back the cost of cable carriage, or even in the old days in newspapers to pay back distribution and the printing plant you had to go quite broad…
“But the neat thing about what the Internet has done for us all is, it is now possible to aggregate the smaller proportion, let’s say, of Americans who listen to NPR, might watch the BBC, read The Economist, etc, and the equal or larger number of Germans and French who do, into an international audience. You still have the language issue, but, you know, this conference is in English, so we’re looking at whether there actually might now be a time to do more of it.”
Tom Glocer: We’ll end uncertainty over pension increases
Wednesday 08 December 2010
The plans – Reuters Pension Fund and the Supplementary Pension Scheme – are currently about 90 per cent funded. The company’s last major injection of funds was in 2006.
A more permanent method of increases has got to be the right approach, Glocer told members of The Reuter Society. The issue was what was a fair result. “It’s more an issue of the deficit, and an issue of what the company can contribute. It’s more an issue of what the company can do.
“I’ve told them, find some way so we don’t just leave people with uncertainty… It doesn’t sit well with me and it doesn’t sit well with Thomson colleagues as well.”
Glocer said he was mindful that there had been no inflation increase to pensions in the last two years, adding: “I care a lot about our obligations to our pensioners and all our pension plans around the world.
“We’ll do whatever we need to do,” Glocer said at the Society’s 2oth anniversary meeting in London.
“It’s not some black hole that nobody cares about. I do, the finance director does, and more important, the treasurer does.”
Answering questions put by Michael Cooling, former corporate relations manager, Glocer said he had spent a lot of time on the cultural fit between the Thomson and Reuters sides of the company. “In the longer term it’ll be the cultural dogs that don’t come back to bite.”
The CEO also made these other points:
● The financial services side of the company – the markets division’s 60 per cent of the business – was challenging and banks were not forecasting profit growth next year. Growth on the professional side of the company in 2011 would be somewhat stronger than in markets and the whole of the company could grow by five to seven per cent.
● The adoption of the Reuters Trust Principles by the entire merged company was “a pretty good test of character”.
● The resignation of columnist Neil Collins over trading in shares he owned and wrote about on the commentary service Reuters Breakingviews was less damaging than a series of issues in the Middle East. “What he did knowingly and on multiple occasions was to break the rules of the Reuters Principles and Breakingviews as well. I’m quite confident he wasn’t trading on inside information. The facts of the case were pretty straightforward. I worry more about our neutrality and independence in reporting from Israel and the Palestinian Territories because people scrutinise every word from there.”
● The Thomson Reuters Alumni group will be re-established but budgets are really tough for next year and an electronic structure will be built before events can resume, possibly in 2012 or perhaps the second half of 2011. To make it effective there had to be a proper plan to ensure communications between the disparate elements of the Thomson Reuters group.
Photo: Left to right, Reuter Society chairman Stephen Somerville, Tom Glocer and Michael Cooling.
Thomsons are richest Canadians for 12th year
Friday 03 December 2010
The Thomson family, which has a controlling interest in Thomson Reuters, kept a strong grip on their status as the wealthiest Canadians this year, seeing their net worth increase by 6.2 per cent to more than C$23 billion.
They were far ahead of the second richest Canadian, grocery store magnate Galen Weston with C$8.5 billion, according to a survey by Canadian Business magazine.
It was the 12th year in a row that the Thomsons have held the top spot.
The list was calculated based on the real and estimated value of investments held at the end of September.
● SOURCE Reuters
They were far ahead of the second richest Canadian, grocery store magnate Galen Weston with C$8.5 billion, according to a survey by Canadian Business magazine.
It was the 12th year in a row that the Thomsons have held the top spot.
The list was calculated based on the real and estimated value of investments held at the end of September.
● SOURCE Reuters
US appeals court upholds decision against Thomson Reuters
Friday 19 November 2010
A US Court of Appeals has upheld a lower court ruling that forces Thomson Reuters to allow The Newspaper Guild of New York to seek arbitration to settle contract disputes.
The Guild, which represents 420 employees in the United States, is challenging Thomson Reuters’ decision to suspend automatic collection of union dues. The company had maintained it was not required to go to arbitration since the contract that guaranteed that right expired in February 2009.
“Simply put, we won the battle with Thomson Reuters about our right to fight for our members,” the Guild of New York said in a statement after Thursday’s ruling. The union and the company will go before an arbitrator on 13 December. Other hearings over disciplinary cases will be held early next year.
Jack Reerink, managing editor for the US and Canada, said in a note to staff explaining management’s position after the ruling: “The Guild wanted to make its case before an arbitrator. We went to court because we don’t like to be forced to arbitrate a dispute if we don't really have to.” He added that the company looks forward to making its case and that management hopes “this will not detract from the Guild’s willingness to agree to the fair labor deal we have offered”.
Thursday’s decision did not address the company’s declaration last January of an impasse in contract talks and the subsequent imposition of work rules that included changes in overtime pay and work schedules. Thomson Reuters and the union recently resumed negotiations after a 10-month break. Among the issues dividing them are the company’s desire to impose a merit system for pay increases and increased contributions for health care coverage. The company has offered a $1 million ratification bonus to be spread among the 420 unionized employees if an agreement can be reached before 15 December.
“Reuters is committed to negotiating a fair deal for everyone – an agreement that includes flexibility, rewards for excellence and more equal sharing of health costs, all of which are needed not only to remain competitive, but to keep growing,” a spokeswoman said. “Reuters stands behind its position, and looks forward to the day when the Guild returns to the bargaining table with a meaningful counterproposal.”
● SOURCE Crains New York Business
The Guild, which represents 420 employees in the United States, is challenging Thomson Reuters’ decision to suspend automatic collection of union dues. The company had maintained it was not required to go to arbitration since the contract that guaranteed that right expired in February 2009.
“Simply put, we won the battle with Thomson Reuters about our right to fight for our members,” the Guild of New York said in a statement after Thursday’s ruling. The union and the company will go before an arbitrator on 13 December. Other hearings over disciplinary cases will be held early next year.
Jack Reerink, managing editor for the US and Canada, said in a note to staff explaining management’s position after the ruling: “The Guild wanted to make its case before an arbitrator. We went to court because we don’t like to be forced to arbitrate a dispute if we don't really have to.” He added that the company looks forward to making its case and that management hopes “this will not detract from the Guild’s willingness to agree to the fair labor deal we have offered”.
Thursday’s decision did not address the company’s declaration last January of an impasse in contract talks and the subsequent imposition of work rules that included changes in overtime pay and work schedules. Thomson Reuters and the union recently resumed negotiations after a 10-month break. Among the issues dividing them are the company’s desire to impose a merit system for pay increases and increased contributions for health care coverage. The company has offered a $1 million ratification bonus to be spread among the 420 unionized employees if an agreement can be reached before 15 December.
“Reuters is committed to negotiating a fair deal for everyone – an agreement that includes flexibility, rewards for excellence and more equal sharing of health costs, all of which are needed not only to remain competitive, but to keep growing,” a spokeswoman said. “Reuters stands behind its position, and looks forward to the day when the Guild returns to the bargaining table with a meaningful counterproposal.”
● SOURCE Crains New York Business
Thomson Reuters resumes contract talks with union in New York
Thursday 04 November 2010
Contract negotiations between Thomson Reuters and The Newspaper Guild of New York resumed on Thursday after an impasse of nearly 10 months.
The previous contract expired in February 2009. In January 2010 Thomson Reuters declared an impasse in negotiations and imposed new work rules. The union said they were aimed at eliminating the Guild, which represents 420 reporters, editors and technical staff, at the company.
The Guild says changes to health care benefits including the doubling of payroll-deducted costs, due to take effect on 1 January, are illegal. It says it returned to the talks in an effort to stave off, or mitigate, the changes.
Guild president Bill O’Meara presented Thomson Reuters management with ideas for a compromise package on pay and health care that the union said would benefit both sides.
● SOURCE The Newspaper Guild of New York
The previous contract expired in February 2009. In January 2010 Thomson Reuters declared an impasse in negotiations and imposed new work rules. The union said they were aimed at eliminating the Guild, which represents 420 reporters, editors and technical staff, at the company.
The Guild says changes to health care benefits including the doubling of payroll-deducted costs, due to take effect on 1 January, are illegal. It says it returned to the talks in an effort to stave off, or mitigate, the changes.
Guild president Bill O’Meara presented Thomson Reuters management with ideas for a compromise package on pay and health care that the union said would benefit both sides.
● SOURCE The Newspaper Guild of New York
Thomson Reuters’ Q3 profit up 65% as revenue resumes growth
Thursday 28 October 2010
Thomson Reuters’ third-quarter profit jumped 65 per cent as revenue started growing for the first time in a year, the company reported on Thursday.
Raising its full-year revenue forecast, Thomson Reuters said that, based on year-to-date performance and improved momentum, it now sees 2010 revenue being flat to slightly up rather than flat to slightly down. The company has been slowly recovering from last year's downturn, which squeezed the financial companies and law firms that subscribe to its services. The rebound is moving faster than it had forecast.
“We're past the bottom and on the way back up,” said Tom Glocer, chief executive.
Underlying operating profit fell four per cent to $681 million, mainly due to investment in new products, causing the operating profit margin to slip slightly to 21 per cent. Thomson Reuters has invested $1 billion in initiatives including Insider, an online financial video news service, and Eikon, a desktop trading terminal that it sells to financial professionals.
The markets division, which includes financial products such as trading terminals and the Reuters news service, suffered the worst of the recession as the hard-hit financial sector shed jobs. It saw a modest one per cent revenue uptick during the quarter, excluding the effect of currency swings. Including currency, revenue slipped one per cent to $1.85 billion.
The professional division, which includes services for law, tax and accounting firms and for the health care and sciences industries, grew revenue five per cent to $1.41 billion.
Overall, the company reported net income rose to $268 million, or 32 cents per share, in the quarter ended 30 September, up from $162 million, or 19 cents per share, a year earlier. Adjusted earnings per share rose to 49 cents from 43 cents a year earlier because of lower integration costs related to Thomson's purchase of Reuters in 2008. Analysts, on average, were expecting earnings of 44 cents per share.
Revenue edged up one per cent to $3.26 billion from $3.22 billion a year ago. The average forecast was $3.2 billion.
“People who understand how our subscription model works will figure out that positive net sales this far into the year will imply revenue growth next year other than in the most extraordinary circumstances,” Glocer said.
● SOURCE Reuters
Raising its full-year revenue forecast, Thomson Reuters said that, based on year-to-date performance and improved momentum, it now sees 2010 revenue being flat to slightly up rather than flat to slightly down. The company has been slowly recovering from last year's downturn, which squeezed the financial companies and law firms that subscribe to its services. The rebound is moving faster than it had forecast.
“We're past the bottom and on the way back up,” said Tom Glocer, chief executive.
Underlying operating profit fell four per cent to $681 million, mainly due to investment in new products, causing the operating profit margin to slip slightly to 21 per cent. Thomson Reuters has invested $1 billion in initiatives including Insider, an online financial video news service, and Eikon, a desktop trading terminal that it sells to financial professionals.
The markets division, which includes financial products such as trading terminals and the Reuters news service, suffered the worst of the recession as the hard-hit financial sector shed jobs. It saw a modest one per cent revenue uptick during the quarter, excluding the effect of currency swings. Including currency, revenue slipped one per cent to $1.85 billion.
The professional division, which includes services for law, tax and accounting firms and for the health care and sciences industries, grew revenue five per cent to $1.41 billion.
Overall, the company reported net income rose to $268 million, or 32 cents per share, in the quarter ended 30 September, up from $162 million, or 19 cents per share, a year earlier. Adjusted earnings per share rose to 49 cents from 43 cents a year earlier because of lower integration costs related to Thomson's purchase of Reuters in 2008. Analysts, on average, were expecting earnings of 44 cents per share.
Revenue edged up one per cent to $3.26 billion from $3.22 billion a year ago. The average forecast was $3.2 billion.
“People who understand how our subscription model works will figure out that positive net sales this far into the year will imply revenue growth next year other than in the most extraordinary circumstances,” Glocer said.
● SOURCE Reuters
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
New York Guild and Thomson Reuters to resume stalled contract talks
Tuesday 19 October 2010
Contract talks between Thomson Reuters and The Newspaper Guild of New York, stalled since January when the company declared an impasse, are to resume next month.
The union, which represents 420 reporters, editors and technical workers at Thomson Reuters, told company managers on Monday it would resume “on-the-record bargaining” for a new contract. It said this follows a recent exchange of correspondence with the company.
The previous contract expired in February 2009. In January 2010 Thomson Reuters declared an impasse in negotiations and imposed new work rules. The union said the new rules were aimed at eliminating the Guild as the employees' representative.
Guild president Bill O’Meara said recent events had changed the picture. Company managers had said they planned drastic changes in benefits, including spiking health care costs, switching vendors for dental, vision, prescription and other coverage and eliminating many of the funds now available in retirement savings accounts. “We felt these changes would hit members so hard that we had to at least try to do what we could to stop or mitigate them.”
O’Meara said he had asked editor-in-chief David Schlesinger, a member of Reuters’ management’s bargaining committee in 1998-2000, to join the talks when they resume on 4 November.
● SOURCE The Newspaper Guild of New York
The union, which represents 420 reporters, editors and technical workers at Thomson Reuters, told company managers on Monday it would resume “on-the-record bargaining” for a new contract. It said this follows a recent exchange of correspondence with the company.
The previous contract expired in February 2009. In January 2010 Thomson Reuters declared an impasse in negotiations and imposed new work rules. The union said the new rules were aimed at eliminating the Guild as the employees' representative.
Guild president Bill O’Meara said recent events had changed the picture. Company managers had said they planned drastic changes in benefits, including spiking health care costs, switching vendors for dental, vision, prescription and other coverage and eliminating many of the funds now available in retirement savings accounts. “We felt these changes would hit members so hard that we had to at least try to do what we could to stop or mitigate them.”
O’Meara said he had asked editor-in-chief David Schlesinger, a member of Reuters’ management’s bargaining committee in 1998-2000, to join the talks when they resume on 4 November.
● SOURCE The Newspaper Guild of New York
TR offers trip to South Pole as Eikon prize
Wednesday 13 October 2010
The winner will become a member of a three-person team attempting to set a new world record for the journey from the coast of the Antarctic to the South Pole.
The current Guinness World record stands at two days, 21 hours, 21 minutes. The attempt to break it will be in a new polar vehicle, pictured, powered by bio-fuel. Setting off on 12 December 2011, the expedition will aim to arrive at the pole on the centenary of the first successful attempt by Norwegian explorer Roald Amundsen on 14 December 1911.
The competition is open to residents of the United States, United Kingdom, Canada, France, Germany, Spain, Switzerland, Japan, Hong Kong, India, Singapore and the United Arab Emirates.
Entrants have to say in up to 40 characters each what they would like to see both more of and less of in the new era of financial markets.
Runners-up will win a luxury holiday. Best entries from each eligible country will win an iPad.
● SOURCE Thomson Reuters
Tom Glocer: Building on a year of achievement
Thursday 23 September 2010
The Thomson Reuters Board, meeting in London last week, heard detailed updates on technology initiatives, talent programmes and acquisition strategy. The chief executive said disclosure rules kept him from sharing details on the last item, but on the other two subjects he did not need to be so guarded.
“Our approach to technology seeks to balance investment in innovation on the one hand with scale-efficiency projects on the other, both within and across our divisions,” Glocer said in a message circulated to the group’s 55,000 employees. “This balance enables us both to grow revenues through new and improved products and to improve customer service and time-to-market while reducing costs through greater leverage of technology platforms. Getting this balance right is not easy and requires constant attention, but it is one of the most important elements of our success. We must stay agile and ‘light on our technology feet’ (as I describe it to my fellow directors), while still placing large bets on technology infrastructures such as data storage and distribution which give us a competitive advantage.”
The Board was also presented with a detailed review of the group’s various talent programmes, “which are intended to ensure that we have a robust pipeline of future leaders and the right development opportunities in place to motivate and stretch them”, Glocer said.
He said he was proud of the company’s many investments in talent. “Next month, for example, we'll be launching a Career Development Month in the Americas, a UKI diversity week and other people initiatives around the globe. Most of what the company spends, we spend quite rightly on people and technology.”
London was also the setting for the launch of Thomson Reuters Eikon, “which targets the new generation of financial professionals who are distinguished by their affinity for technology, greater demand for real-time information and an outlook that transcends social, geographic or language barriers”. It offers these professionals a single place to turn for comprehensive, critical content, Glocer said. “Three years in the making, Eikon is truly a ‘new tool for a new era’.”
He called Eikon “a real game-changer” and congratulated Devin Wenig, markets division chief executive, and “the entire Markets team for delivering one hot platform”. Early sales results confirm that the company has another winner on its hands.
In addition to Eikon and WestlawNext, which sets the standard for what the new generation of legal professionals need to do their jobs, Thomson Reuters also released Reuters Insider, an interactive on-demand video platform, and Elektron, an ultra-high speed data distribution network, in 2010. A global tax workstation called ONESOURCE and Advantage Suite 5.0 for healthcare are scheduled for launch in the fourth quarter. “I am very proud that we continued to invest through the ‘Great Recession’ of 2008-2009, and we are now set to reap the rewards of this strategy,” Glocer said.
“It is important that we prove to our shareholders, other stakeholders, and especially to ourselves, that we can reap these rewards. We have had the rare permission over the past two years to keep investing in the projects that we believe in, but now we must show that we can turn this confidence into revenue and profit growth.
“This balance between investment and return, over the short and the long term, is another balance we must get right. It is with this in mind that we have begun to prepare the 2011 budget.
“In the coming quarter there's much to be done to realize the full potential of this year of achievement and prepare for 2011. Building on the strongest roster of products we have ever had, I have no doubt we will succeed.”
● SOURCE Thomson Reuters
Thomson and Reuters 'a matter for the next generation' - David Thomson
Saturday 18 September 2010
“Canadian media family executive David Thomson rarely ventures outside his Toronto hometown, but he was in London for a board meeting of Thomson Reuters followed by drinks and dinner with the City’s movers and shakers,” the Financial Times reported on Saturday.
“At the British Museum event midweek, he expressed faith in the digital media future, ahead of a relaunch of the family’s Globe and Mail publication in Canada. But he shrugged off the question of whether the Thomson name would remain twinned with Reuters as a matter for the next generation.”
The FT gave no further details about Thomson’s remarks at the event. It said chief executive Tom Glocer welcomed HSBC chairman and UK trade minister designate Stephen Green, who was a fellow panellist at a conference held during the week by strategic advisory group Oxford Analytica on global risk and the global economy.
Thomson, 53, grandson of the family media empire’s founder the late Lord Thomson, became chairman of Thomson Corporation in 2002 and chairman of the merged entity after the acquisition of Reuters in 2008. He does not use his hereditary title of 3rd Baron Thomson of Fleet. Forbes magazine ranks him and his family the richest in Canada and 20th richest in the world with a fortune of C$19 billion.
Lord Thomson founded a media dynasty, ensuring that control passed to his son, Kenneth who died in 2006, and his son, David. In his 1975 autobiography, Lord Thomson wrote: “David, my grandson, will have to take his part in the running of the Organisation and David’s son, too. With the fortune that we will leave to them go also responsibilities. These Thomson boys that come after Ken are not going to be able, even if they want to, to shrug off these responsibilities.”
● SOURCE Financial Times
Tom Glocer on Eikon: You too can make it sing
Friday 17 September 2010
Glocer and the Cass dean, chief operating officer Alex Fraser, pictured, cut an orange ribbon in the new Thomson Reuters zone at the school which is decorated in the company’s orange livery.
“With the previous products it took a huge amount of training to make it sing,” Glocer said. Eikon, by contrast, uses new tools like web-style navigation and social networking. “You can do what I do; just play with it and explore,” Glocer said.
The zone initially has just one Eikon terminal with some data on a 15-minute delay but a separate room at the school with 3000 Xtra workstations, which Eikon replaces, is set to be converted later. A further room at the school has Bloomberg machines.
A Thomson Reuters trainer showed highlights of Eikon – marketed with the slogan “New era. New tools” – to a small group. He stressed that there was no need to set up and save sheets, as with 3000 Xtra, though this function is available. He showed how easy it was to click between user-friendly displays of news, data and graphs and import data into Excel. The trainer joked that it was likely to put trainers out of work.
The first Cass student to use the terminal, who was familiar with Bloomberg, said he found Eikon much friendlier because of the familiar web-style links.
A Thomson Reuters salesman said privately that converting clients would be a major focus for the sales force in the next three years. Although clients do not pay extra for Eikon, many have complex systems of their own with which it needs to be integrated, he said.
● Eikon at Cass Business School | VIDEO
Thomson Reuters refinances bonds at lower rate
Thursday 16 September 2010
Thomson Reuters raised C$750 million from an issue of 10-year bonds, almost double the C$400 million minimum targeted.
The Wall Street Journal reported that the issue was priced at 143.6 basis points over the government of Canada 3.5 per cent June 2020 benchmark bond for a yield of 4.398 per cent. The bonds carry a coupon of 4.35 per cent.
Thomson Reuters said the offering is expected to close on 30 September. It plans to use the net proceeds from the offering, available cash and/or other resources to repay other corporate debt – EUR 500 million principal amount of 4.625 per cent medium term notes upon their maturity in November 2010.
The Globe and Mail of Toronto said the old debt was the last of Reuters PLC paper that was absorbed when Thomson and Reuters merged in 2008, according to Moody’s, which assigned the debt a Baa1 rating. After the refinancing, all of the company’s debt will bear the Thomson Reuters name.
Fitch Ratings assigned the new note an A- rating, reflecting the company’s cash flow generating ability, sound balance sheet and consistent and conservative financial policies. It said it believes Thomson Reuters “has the flexibility to address upcoming maturities, make smaller prudent acquisitions and participate in some share repurchase activity”.
In August Standard & Poor's lifted its outlook on Thomson Reuters to stable in response to the company's improved operating performance.
● SOURCE The Wall Street Journal | MarketWatch | The Globe and Mail
The Wall Street Journal reported that the issue was priced at 143.6 basis points over the government of Canada 3.5 per cent June 2020 benchmark bond for a yield of 4.398 per cent. The bonds carry a coupon of 4.35 per cent.
Thomson Reuters said the offering is expected to close on 30 September. It plans to use the net proceeds from the offering, available cash and/or other resources to repay other corporate debt – EUR 500 million principal amount of 4.625 per cent medium term notes upon their maturity in November 2010.
The Globe and Mail of Toronto said the old debt was the last of Reuters PLC paper that was absorbed when Thomson and Reuters merged in 2008, according to Moody’s, which assigned the debt a Baa1 rating. After the refinancing, all of the company’s debt will bear the Thomson Reuters name.
Fitch Ratings assigned the new note an A- rating, reflecting the company’s cash flow generating ability, sound balance sheet and consistent and conservative financial policies. It said it believes Thomson Reuters “has the flexibility to address upcoming maturities, make smaller prudent acquisitions and participate in some share repurchase activity”.
In August Standard & Poor's lifted its outlook on Thomson Reuters to stable in response to the company's improved operating performance.
● SOURCE The Wall Street Journal | MarketWatch | The Globe and Mail
Thomson Reuters improves brand ranking
Thursday 16 September 2010
The 2010 survey by Interbrand, the world’s largest brand consultancy, estimated Thomson Reuters’ brand value at $8.976 billion, six per cent higher than last year.
"Thomson Reuters’ continued investment in the brand is beginning to show dividends across the portfolio as all offerings are being streamlined and tied closer to the brand,” Interbrand said. “Product launches continue to be significant proof points for the brand and the platform of ‘intelligent information’. The company continues to anticipate market requirements and advance the technological capabilities of its products to stay ahead of the competition.”
Interbrand evaluates brand value on the basis of its economic value to the company. The ranking process includes companies’ financials and analysts' projections.
High-ranking brands are better able to attract new customers, achieve greater customer loyalty and command a price premium for what they uniquely offer. By growing and expanding brand strength, they generate more revenue for the business.
Coca-Cola tops the 2010 list with a brand value of $70.452 billion, followed by IBM, Microsoft, Google and GE.
● SOURCE Thomson Reuters | Interbrand
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
New desktop a ‘fundamental shift’ - Devin Wenig
Tuesday 14 September 2010
"Today's generation of financial professionals demand tools that are intuitive, rich in data and analytics, and highly connected, to give them an edge. Eikon is a fundamental shift for our company and our industry. It will constantly adapt to help customers thrive in this new era. The launch signifies another key milestone in our strategy to build an open and connected global financial community," said Wenig, markets division CEO.
Eikon places the most comprehensive market information, news, analytics and trading tools available into a desktop as simple to use and collaborative as the Internet, Thomson Reuters said. It said the new desktop had won the support of more than 300 clients.
A company press release said Eikon was designed “to catapult market data into the 21st century and leverages information into easy-to-use web style search, aggregates the best of social networking technology, and allows for seamless mobile interchange from the office, home or while on the move. Eikon is available on multiple computer platforms, Blackberry and iPhone devices with a single sign-on to access information anywhere, at anytime".
Eikon’s semantic tagging technology removes the need to remember instrument codes or use complex interfaces. It is delivered by Internet technology and so can be downloaded and installed in seconds. With seamless upgrades, the technology enables a single powerful desktop to evolve and keep apace with rapidly changing markets and customer needs.
A core innovation harnesses social networking technology like Facebook, Twitter and instant messaging for financial markets and connects financial professionals around the world to create communities.
The new desktop completes a three-part, $1 billion overhaul of Thomson Reuters’ product portfolio for financial professionals. It follows the recent launch of Elektron, an ultra-high speed data distribution network, and Reuters Insider, an interactive on-demand video platform.
● SOURCE Thomson Reuters press release | Eikon
New Thomson Reuters desktop aims at Bloomberg
Monday 13 September 2010
Thomson Reuters' next generation desktop product for financial professionals (pictured above) incorporates social media features it hopes will help win customers from Bloomberg and others.
Eikon, to be launched on Tuesday, incorporates dozens of disparate products that provide data, news, analytics and trading tools, as well as social media applications familiar to users of Twitter, instant messaging and Facebook. It accounts for the biggest part of a $1 billion investment in new financial products. Others are video news service Reuters Insider and data network Elektron.
Along with improved search, customers will also be able to access Eikon on the iPhone, BlackBerry and similar mobile devices.
"What we are trying to do is take the best learning from the consumer media world and apply that to professional tools," said Devin Wenig, markets division chief executive. "Our clients say 'you've got great stuff but we can't get at it because it's in too many places’. And they say the whole industry is looking a little tired and it's time for a refresh."
The new desktop is designed to be more cost-effective for the company and easier to install and upgrade.
"Eikon really simplified the plumbing issues," said Doug Steiner, a consultant to investment bank Scotia Capital, one of 1,000 clients that took part in beta testing the product.
Thomson Reuters will continue to support existing products but expects clients to take up Eikon quickly, Wenig said. They can migrate at no extra cost unless they upgrade.
Bloomberg launched an upgraded version of its desktop in the summer, offering user-friendly features such as more intuitive search.
Thomson Reuters is betting that updated features allowing users to comment, chat and e-mail charts, stories and other data will counter Bloomberg's messaging.
Thomson Reuters’ Q2 results were lower than expected partly because investment in new products reduced its operating profit margin to 20.4 per cent from 24.2 per cent a year earlier.
● SOURCE Reuters | Eikon
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
S&P lifts Thomson Reuters outlook on improved performance
Thursday 19 August 2010
Standard & Poor's lifted its outlook on Thomson Reuters to stable from negative, citing improved operating performance.
The ratings agency noted other positive developments including the view that the Reuters integration will be successfully completed next year and that credit ratios will remain in line with S&P's expectations in the medium term.
Thomson Reuters' A- rating largely reflects what S&P views as the group’s strong business-risk profile, expanded product portfolio following the $16 billion acquisition of Reuters in 2008 and geographic diversity.
In S&P's opinion, the benefits of the integration are partially offset by Thomson Reuters' credit protection measures, which it said are somewhat weak for the ratings, and the sizeable annual dividend, which reduces free cash flow.
S&P said it could consider raising the company's ratings if Thomson Reuters was able to demonstrate continued strengthening of its operating performance and credit measures. A downgrade could occur if the group’s performance falls below S&P's expectations or if the company faces significant difficulties completing the Reuters integration.
In July Thomson Reuters reported its second-quarter profit fell 8.6 per cent to 35 cents per share from 38 cents a year earlier on lower revenue from its markets division, although the company said it expected total revenue to grow in the current quarter. The stock is up 9.6 per cent this year.
The company's next quarterly earnings report is scheduled on 28 October.
● SOURCE Business Week
The ratings agency noted other positive developments including the view that the Reuters integration will be successfully completed next year and that credit ratios will remain in line with S&P's expectations in the medium term.
Thomson Reuters' A- rating largely reflects what S&P views as the group’s strong business-risk profile, expanded product portfolio following the $16 billion acquisition of Reuters in 2008 and geographic diversity.
In S&P's opinion, the benefits of the integration are partially offset by Thomson Reuters' credit protection measures, which it said are somewhat weak for the ratings, and the sizeable annual dividend, which reduces free cash flow.
S&P said it could consider raising the company's ratings if Thomson Reuters was able to demonstrate continued strengthening of its operating performance and credit measures. A downgrade could occur if the group’s performance falls below S&P's expectations or if the company faces significant difficulties completing the Reuters integration.
In July Thomson Reuters reported its second-quarter profit fell 8.6 per cent to 35 cents per share from 38 cents a year earlier on lower revenue from its markets division, although the company said it expected total revenue to grow in the current quarter. The stock is up 9.6 per cent this year.
The company's next quarterly earnings report is scheduled on 28 October.
● SOURCE Business Week
Thomson Reuters nominated for two online documentary awards
Monday 16 August 2010
Thomson Reuters has been nominated for two multi-media projects as part of the second France 24 - RFI Web Documentary Award.
Times of Crisis and Surviving the Tsunami: Stories of Hope will compete against seven other interactive multimedia journalism projects from France and Italy for the €8,000 prize.
Times of Crisis comprises an interactive timeline of text, videos and images documenting the 365 days after the collapse of Lehman Brothers in 2008. Surviving the Tsunami was created by the Thomson Reuters Foundation and combines videos and interactive maps to show the impact of the 2004 disaster.
The winner will be announced on 1 September.
● SOURCE Journalism | France24
Times of Crisis and Surviving the Tsunami: Stories of Hope will compete against seven other interactive multimedia journalism projects from France and Italy for the €8,000 prize.
Times of Crisis comprises an interactive timeline of text, videos and images documenting the 365 days after the collapse of Lehman Brothers in 2008. Surviving the Tsunami was created by the Thomson Reuters Foundation and combines videos and interactive maps to show the impact of the 2004 disaster.
The winner will be announced on 1 September.
● SOURCE Journalism | France24
Thomson Reuters revises staff social media guidelines
Friday 06 August 2010
They apply to "employees and contractors who create or contribute to blogs, wikis, social networks, virtual worlds or other social media. Whether you use Facebook, LinkedIn, Twitter, Yammer, Wikipedia or MySpace – or comment on blogs or online media stories – these guidelines are for you".
Adherence to the group's Code of Business Conduct and Ethics and the Trust Principles are among the basic principles for staff who use social media.
"Be accurate, honest and genuine and take responsibility for your mistakes,” staff are told. “A conversational, personal tone often works best – similar to how you'd speak. If you make a mistake, or someone questions a statement or claim you make, it's your responsibility to investigate it. If appropriate, you should quickly correct any mistakes or provide any necessary clarifications."
Employees are instructed to respect others in their posts and discussions. “Social media networks and online communications shouldn't be used to attack or insult Thomson Reuters, fellow employees, customers, vendors, contractors, suppliers, competitors or others.
“Be sensible. Don't make posts or comments that may be considered defamatory, obscene, libelous, threatening, harassing or embarrassing to others.”
Staff must not comment on Thomson Reuters legal matters, stock price, financial performance, competitors, strategy or rumours unless specifically authorised to do so.
Incidental personal use of Thomson Reuters computer systems at work may be acceptable under certain circumstances, but excessive use for social media networks, personal blogging or creating other types of online content could result in the company limiting employees’ ability to engage in these activities during work time and/or taking disciplinary action.
“If you violate these guidelines, we may require you to correct, edit or remove a post or statement. In addition, violations of these guidelines by employees can result in disciplinary action, including termination of employment.”
● SOURCE Thomson Reuters
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
Thomson Reuters wins $20.8 million New York tax breaks case
Tuesday 03 August 2010
New York City's Industrial Development Agency (NYCIDA) on Tuesday approved Thomson Reuters' application to transfer up to $20.8 million in unused city and state sales tax subsidies from its 3 Times Square headquarters to seven other properties in Manhattan.
The application had been opposed by the Newspaper Guild of New York which is in a contract dispute with the company. The previous contract expired in February 2009 and in January 2010 Thomson Reuters declared an impasse in negotiations and imposed new work rules that the union said were aimed at eliminating the Guild as the employees' representative.
The union, which represents 420 reporters, editors and technical workers at Thomson Reuters, had sought to persuade city officials to delay the tax breaks until the company explained its job creation record and cleared alleged labor violations.
The Industrial Development Agency is the city agency in charge of approving discretionary tax subsidies to local businesses. Under a new NYCIDA deal, Thomson Reuters must increase its base employment commitment from the current 1,800 jobs to 3,744 and grow its overall headcount in the city above 4,210 to access all of the tax breaks.
The approval is also contingent upon Thomson Reuters resolving eight outstanding charges of unfair labor practices – some of which deal with the contract negotiations – pending before the National Labor Relations Board, failing which the company would lose the subsidies, a spokeswoman for the city's Economic Development Corporation said.
Subsidies totalling $28 million were originally agreed in 1998 for construction of the 3 Times Square tower with Reuters as the anchor tenant. Construction of the 30-storey building on Seventh Avenue between 42nd and 43rd Streets was completed in 2001. Under the agreement Reuters committed to remain at the location – known as 3XSQ – to 2021, retain its 1,800 employees in the city and add another 2,348 jobs. But the promised jobs did not materialise, leading to Reuters paying back $330,000 and forfeiting $1.7 million in sales tax breaks. Some $20 million in tax credits were not used.
At a public hearing last week the Guild's parent union, the Communication Workers of America, argued that Thomson Reuters had failed to meet the standards of good corporate citizenship in its treatment of Guild-represented employees. It said that instead of adding jobs, Thomson Reuters’ track record was cutting jobs, including transferring work to Bangalore and Canada.
Thomson Reuters marketing president for the Americas Chris Perry said the new deal was needed to "get the commitment of the merged company to stay in New York City”. He added: "We have several unused facilities that include Stamford, Connecticut, Hauppauge, New York, Nutley, New Jersey, and Jersey City, all of which are available to look at as options." Failure to approve the subsidy "will cause us to re-look at our real estate strategy", Perry said.
Chief executive Tom Glocer, in a letter to New York City’s public advocate Bill de Blasio, said the Guild had failed to make a substantive counterproposal after Thomson Reuters made a proposal to reconcile a year ago. He said the Guild “never made a proposal for wages and benefits, two of the core issues of the negotiations,” and that the NYCIDA was not the right department to handle labor disputes. Glocer said the company remained positive and hopeful of reconciliation with the Guild.
● SOURCE Crain's New York Business | IDA Report
The application had been opposed by the Newspaper Guild of New York which is in a contract dispute with the company. The previous contract expired in February 2009 and in January 2010 Thomson Reuters declared an impasse in negotiations and imposed new work rules that the union said were aimed at eliminating the Guild as the employees' representative.
The union, which represents 420 reporters, editors and technical workers at Thomson Reuters, had sought to persuade city officials to delay the tax breaks until the company explained its job creation record and cleared alleged labor violations.
The Industrial Development Agency is the city agency in charge of approving discretionary tax subsidies to local businesses. Under a new NYCIDA deal, Thomson Reuters must increase its base employment commitment from the current 1,800 jobs to 3,744 and grow its overall headcount in the city above 4,210 to access all of the tax breaks.
The approval is also contingent upon Thomson Reuters resolving eight outstanding charges of unfair labor practices – some of which deal with the contract negotiations – pending before the National Labor Relations Board, failing which the company would lose the subsidies, a spokeswoman for the city's Economic Development Corporation said.
Subsidies totalling $28 million were originally agreed in 1998 for construction of the 3 Times Square tower with Reuters as the anchor tenant. Construction of the 30-storey building on Seventh Avenue between 42nd and 43rd Streets was completed in 2001. Under the agreement Reuters committed to remain at the location – known as 3XSQ – to 2021, retain its 1,800 employees in the city and add another 2,348 jobs. But the promised jobs did not materialise, leading to Reuters paying back $330,000 and forfeiting $1.7 million in sales tax breaks. Some $20 million in tax credits were not used.
At a public hearing last week the Guild's parent union, the Communication Workers of America, argued that Thomson Reuters had failed to meet the standards of good corporate citizenship in its treatment of Guild-represented employees. It said that instead of adding jobs, Thomson Reuters’ track record was cutting jobs, including transferring work to Bangalore and Canada.
Thomson Reuters marketing president for the Americas Chris Perry said the new deal was needed to "get the commitment of the merged company to stay in New York City”. He added: "We have several unused facilities that include Stamford, Connecticut, Hauppauge, New York, Nutley, New Jersey, and Jersey City, all of which are available to look at as options." Failure to approve the subsidy "will cause us to re-look at our real estate strategy", Perry said.
Chief executive Tom Glocer, in a letter to New York City’s public advocate Bill de Blasio, said the Guild had failed to make a substantive counterproposal after Thomson Reuters made a proposal to reconcile a year ago. He said the Guild “never made a proposal for wages and benefits, two of the core issues of the negotiations,” and that the NYCIDA was not the right department to handle labor disputes. Glocer said the company remained positive and hopeful of reconciliation with the Guild.
● SOURCE Crain's New York Business | IDA Report
Thomson Reuters Q2 profit falls, sees Q3 revenue growth
Thursday 29 July 2010
Thomson Reuters reported lower quarterly profit and revenue slightly below Wall Street expectations on Thursday but said sales trends pointed to a return to revenue growth this quarter.
The second quarter results show that the group is gradually emerging from the shadow of the financial crisis, which triggered layoffs on Wall Street and cancellations of subscriptions to trading terminals and products for legal professionals, Reuters reported.
Underlying operating profit fell 17 per cent in Q2 to $655 million, and adjusted earnings per share fell to 47 cents from 58 cents a year earlier, slightly below analysts’ forecasts. Revenue from ongoing businesses fell two per cent to $3.22 billion.
"While our markets are only slowly improving, we have seen accelerating results in terms of revenues, net sales and customer uptake of our new products," chief executive Tom Glocer said in a statement. "Based on these encouraging trends, we expect that Thomson Reuters will return to revenue growth in the third quarter."
The company reiterated its forecast that 2010 revenue would be flat to slightly down compared with 2009, and that net sales would strengthen this year.
While net sales improved, revenue was still down year-on-year due to the delayed impact of cancelled subscriptions.
In the markets division, which serves the financial industry, revenue fell four per cent from the same quarter a year earlier. Revenue from the division was up from the first quarter, excluding adjustments for currency, marking the second consecutive quarter of sequential growth.
Revenue rose two per cent in the professional division, which sells databases and other information reservoirs to lawyers, accountants, scientists and healthcare workers.
The Reuters news agency business reported a three per cent fall in revenue, but net sales turned positive after it won a contract with CNN.
● SOURCE Reuters | Thomson Reuters press release | Earnings call transcript
The second quarter results show that the group is gradually emerging from the shadow of the financial crisis, which triggered layoffs on Wall Street and cancellations of subscriptions to trading terminals and products for legal professionals, Reuters reported.
Underlying operating profit fell 17 per cent in Q2 to $655 million, and adjusted earnings per share fell to 47 cents from 58 cents a year earlier, slightly below analysts’ forecasts. Revenue from ongoing businesses fell two per cent to $3.22 billion.
"While our markets are only slowly improving, we have seen accelerating results in terms of revenues, net sales and customer uptake of our new products," chief executive Tom Glocer said in a statement. "Based on these encouraging trends, we expect that Thomson Reuters will return to revenue growth in the third quarter."
The company reiterated its forecast that 2010 revenue would be flat to slightly down compared with 2009, and that net sales would strengthen this year.
While net sales improved, revenue was still down year-on-year due to the delayed impact of cancelled subscriptions.
In the markets division, which serves the financial industry, revenue fell four per cent from the same quarter a year earlier. Revenue from the division was up from the first quarter, excluding adjustments for currency, marking the second consecutive quarter of sequential growth.
Revenue rose two per cent in the professional division, which sells databases and other information reservoirs to lawyers, accountants, scientists and healthcare workers.
The Reuters news agency business reported a three per cent fall in revenue, but net sales turned positive after it won a contract with CNN.
● SOURCE Reuters | Thomson Reuters press release | Earnings call transcript
Tom Glocer: Lack of cost of living pension increase 'an important issue'
Monday 19 July 2010
In a letter to Angela Dean, chairman of the Pension Review Group, Thomson Reuters’ chief executive addressed issues raised by Reuters pensioners and other former staff. Dean had raised matters of concern to members of Reuters Pension Fund and Supplementary Pension Scheme in an e-mail to the CEO.
“As for the important issue of pensions, I am very sympathetic,” Glocer replied. “As you are aware the current Funding Agreement was reached with the RPF trustees in 2006 pursuant to which Reuters paid off the pension deficit and a mechanism was put in place which allowed discretionary inflationary increases when the Plan is in surplus. Fortunately, increases have been granted each year since 2006 other than January 2009 – when fallout from the global financial crisis on Plan assets did not permit the trustees to approve an increase and January 2010 because RPI was negative. We are committed to continuing to work with the RPF trustees on these issues and look forward to reaching a solution that meets our common desire to secure pensioners’ retirements.
“I would like to emphasize that we have the highest regard for our retirees and other alumni in London and around the world, not only as important stakeholders but also for their part in helping to build Thomson Reuters into the global leader it is today. We are currently evaluating options for launching a global alumni program that will support more frequent communication between the company and its alumni and bring current and former employees together in London and our other major centers. It is my sincere hope that this forum, alongside the long-standing Reuters Society, will come to be highly valued by our wider retiree community.”
On the matter of the discontinued pensioners’ lunch, last held in London in April 2008, Glocer said “…it feels inappropriate to me to continue pensioners’ lunches in London for only legacy Reuters pensioners when staff all over the world have given service to Thomson Reuters and its constituent companies. We did look at the cost of organizing similar events in the now numerous locations in which we have a large population of retirees; however, this proved too expensive in the current environment…”
NY Guild invokes Bloomberg in TR contract dispute
Monday 12 July 2010
The Newspaper Guild of New York, which represents some Thomson Reuters employees, has recorded a radio spot to be aired on stations WINS and WCBS AM asking listeners to complain to Bloomberg, founder and owner of Thomson Reuters' main rival financial information business.
The 30-second spot says: "Media giant Thomson Reuters was supposed to create hundreds of new jobs to get $26 million dollars in New York tax breaks. But now the company is cutting pay and benefits for hundreds of its employees." It asks why a foreign company should get tax breaks in tough times and says voters ought to call the mayor's office to protest.
The union says Thomson Reuters has asked New York City’s Independent Development Agency to divert an unspecified, unused portion of the $26 million it received in 1998 to seven leased Manhattan locations. The tax breaks were given to Reuters to persuade it to build its US headquarters at 3 Times Square ten years before the 2008 takeover by Thomson and were intended to spur job creation. The Guild lists ten reasons why the company’s request should be denied.
Among those reasons are that the company does not need the money. "Unlike New York City and State right now, Thomson Reuters is a healthy, profitable company."
Also, says the union, Reuters has moved hundreds of jobs out of the city to other US and Canadian locations and covers Wall Street from Bangalore, India. Instead of beefing up its New York-based financial reporting team, says the Guild, the company created more than 100 reporting jobs in Bangalore where it has said wages are one-fourth to one-sixth of those in New York. Most of the Bangalore journalists report on US-based companies and, recently, US commodity markets, the Guild said.
Guild president Bill O’Meara said the purpose of the tax subsidies was to encourage good employers to stay in New York and provide good jobs for the people who live there. “By cutting the compensation of our members and shipping good jobs out of the city, the company has been anything but a good employer deserving of scarce public resources at this difficult economic time.”
Earlier this year the union filed a complaint with the US National Labor Relations Board accusing Thomson Reuters of planning to cut wages of reporters and other employees by an average of 10 per cent this year without Guild consent. Thomson Reuters disputed the figure, saying it was guaranteeing a 0.5 per cent increase for the 400-plus US journalists represented by the union at Reuters News. Some would get bigger raises.
The New York Daily News on Monday quoted Thomson Reuters spokeswoman Courtney Dolan saying: “Since October 2008 the Newspaper Guild of NY, which represents approximately 440 employees out of more than 3,700 Thomson Reuters employees in NYC, has refused to put a single, comprehensive offer on the table. As a result, Reuters declared an impasse in January 2010 in accordance with applicable law. Reuters stands behind its position and is committed to moving the organization forward. We look forward to the day when the Guild directs its efforts to returning to the bargaining table with a meaningful counterproposal to our best offer instead of creating misleading videos and radio ads.“
● SOURCE New York Daily News | Reuters Exposed | AUDIO
Expanded digital media roles for Thomson Reuters executives
Wednesday 30 June 2010
Thomson Reuters has promoted two executives to lead a push into digital media.
Alisa Bowen, who as global head of consumer publishing had a leading role in the redesign of the ● Reuters.com website and development of mobile applications for the BlackBerry, iPhone and iPad platforms, was made global head of business operations. She joined Reuters in 2001 as a business analyst for media strategy.
Keith McAllister, former global editor of Thomson Reuters' online projects, becomes editor and publisher of consumer media. Before joining Reuters in April 2009 he was chief executive of an online syndicator and also worked for CNN where he was senior executive in charge of newsgathering. His new role will consolidate management of Reuters’ editorial and business teams.
Christoph Pleitgen, managing director of Reuters news agency, is appointed head of client operations.
The appointments follow the creation of a new team of managing editors for five editorial regions. “The new team structure reflects the growth of our news organisation, and the increasing demand we’re seeing from our customers for news and information from emerging markets,” said global managing editor Betty Wong.
In the past year Reuters has added columnists with its acquisition of commentary website Breakingviews, invested in enterprise journalism, and launched Reuters Insider, a video service for financial professionals.
A key task of the new managing editors will be to ensure Reuters makes the best use of its new investments and technologies while supporting collaboration across the various platforms.
The new managing editors, who will report directly to Wong, are:
● Caroline Drees, Middle East editor since late 2008, becomes managing editor, Middle East and Africa in mid-July and will remain based in Dubai. Drees joined Reuters in 1994. On secondment to the Reuters Foundation in 2006/7 she ran a project to help set up Iraq's first independent news agency.
● Sarah Edmonds, continental Europe editor since 2008 and deputy EMEA managing editor, becomes managing editor, Europe in mid-July and will be based in Frankfurt. She was previously bureau chief of the Nordics and Baltics, based in Stockholm. Edmonds began her Reuters career 18 years ago in her native Toronto as a financial markets and telecommunications reporter.
● Saul Hudson, Latin America editor since April 2009, becomes managing editor, Latin America in mid-July and will remain based in Sao Paulo. He previously worked with Reuters for 13 years in The Americas.
● Jack Reerink, global company news editor, becomes managing editor, United States and Canada in September and will remain based in New York. He led coverage of company news and stock markets in the Asia Pacific region from 2002 to 2007 with a short stint as Asia treasury editor. Reerink joined Reuters in 1997.
● Brian Rhoads, Americas managing editor based in New York since September 2008, will move to Hong Kong in July to become managing editor, Asia. Previously, he worked for Reuters in Asia for 12 years, eight of them in China.
● SOURCE Media Bistro | Paid Content | Thomson Reuters
Alisa Bowen, who as global head of consumer publishing had a leading role in the redesign of the ● Reuters.com website and development of mobile applications for the BlackBerry, iPhone and iPad platforms, was made global head of business operations. She joined Reuters in 2001 as a business analyst for media strategy.
Keith McAllister, former global editor of Thomson Reuters' online projects, becomes editor and publisher of consumer media. Before joining Reuters in April 2009 he was chief executive of an online syndicator and also worked for CNN where he was senior executive in charge of newsgathering. His new role will consolidate management of Reuters’ editorial and business teams.
Christoph Pleitgen, managing director of Reuters news agency, is appointed head of client operations.
The appointments follow the creation of a new team of managing editors for five editorial regions. “The new team structure reflects the growth of our news organisation, and the increasing demand we’re seeing from our customers for news and information from emerging markets,” said global managing editor Betty Wong.
In the past year Reuters has added columnists with its acquisition of commentary website Breakingviews, invested in enterprise journalism, and launched Reuters Insider, a video service for financial professionals.
A key task of the new managing editors will be to ensure Reuters makes the best use of its new investments and technologies while supporting collaboration across the various platforms.
The new managing editors, who will report directly to Wong, are:
● Caroline Drees, Middle East editor since late 2008, becomes managing editor, Middle East and Africa in mid-July and will remain based in Dubai. Drees joined Reuters in 1994. On secondment to the Reuters Foundation in 2006/7 she ran a project to help set up Iraq's first independent news agency.
● Sarah Edmonds, continental Europe editor since 2008 and deputy EMEA managing editor, becomes managing editor, Europe in mid-July and will be based in Frankfurt. She was previously bureau chief of the Nordics and Baltics, based in Stockholm. Edmonds began her Reuters career 18 years ago in her native Toronto as a financial markets and telecommunications reporter.
● Saul Hudson, Latin America editor since April 2009, becomes managing editor, Latin America in mid-July and will remain based in Sao Paulo. He previously worked with Reuters for 13 years in The Americas.
● Jack Reerink, global company news editor, becomes managing editor, United States and Canada in September and will remain based in New York. He led coverage of company news and stock markets in the Asia Pacific region from 2002 to 2007 with a short stint as Asia treasury editor. Reerink joined Reuters in 1997.
● Brian Rhoads, Americas managing editor based in New York since September 2008, will move to Hong Kong in July to become managing editor, Asia. Previously, he worked for Reuters in Asia for 12 years, eight of them in China.
● SOURCE Media Bistro | Paid Content | Thomson Reuters
Thomson Reuters Foundation launches pro bono legal service
Tuesday 22 June 2010
TrustLaw provides a free online matching service promoting the practice of pro bono legal work. It will also become the first international information hub on anti-corruption and governance issues.
Glocer told staff in an internal message: “Here's how it works: If you are an NGO, a social entrepreneur or even a government in need, you can contact TrustLaw Connect and be put in touch with leading law firms with specialist skills in the area where you need help. They will give you some of the best legal advice available, for free. This is the essence of pro bono – offering a free service for the public good.”
TrustLaw creates a new free international marketplace for pro bono projects. “I've spoken to a number of legal managing partners and they are really getting behind TrustLaw as a way to meet their social responsibilities,” Glocer, himself a lawyer, said. “Big name law firms including Freshfields, Clifford Chance and Baker & McKenzie are among some 190 organizations signed up to TrustLaw Connect already.”
Glocer said the idea for TrustLaw first came from Thomson Reuters’ own clients. “We asked NGO members of our AlertNet humanitarian website what service they needed most that we could assist them with, and they told us it was legal advice.
“Foundation CEO Monique Villa and her team have done an outstanding job in turning this idea into a reality. It adds to the Foundation's excellent work in launching its Emergency Information Service to help the people of Haiti after January's earthquake, and to the long-established program for training journalists in developing countries.”
● SOURCE Thomson Reuters
● TrustLaw
Thomson Reuters in top 100 US firms for IT professionals
Monday 21 June 2010
Computerworld magazine placed the company at 56 in its list headed by USAA, a financial services company based in San Antonio, Texas.
"Out of all the categories measured, we were recognized for retention and career development," Thomson Reuters said. "Retention measures assessed the frequency of employee satisfaction surveys, turnover rates and promotions, morale and employee satisfaction with flexible hours, job sharing and telecommuting programs. Career development looked at mentoring programs, tuition reimbursement and opportunities for career growth.
"We're a 'go to' destination for IT professionals who want to tackle challenges, work with state-of-the art and advanced technologies, drive results and innovation and pursue their passions. And to keep our best and brightest employees engaged, we are working harder to present a clear career path and exploring ways to promote cross-company collaboration.”
The survey looks at company information including benefits, rewards, employment statistics including retention, training and development, and the percentage of women and minorities in IT staff and management positions. A random sample of US-based full- and part-time IT staff was also surveyed on topics including satisfaction with training and development.
● SOURCE Thomson Reuters | Computerworld
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
Chairman David Thomson named Canada's richest billionaire
Monday 14 June 2010
Thomson, who turned 53 on Saturday, ranks 20th overall on Forbes’ annual list of billionaires, edging out Michael Bloomberg, founder of the eponymous financial news service and mayor of New York.
“Thomson avoids the spotlight despite his substantial media holdings (which includes Reuters, acquired in 2008, national newspaper of record The Toronto Globe and Mail, and Canada’s CTV television network) and his gaudy title (3rd Baron Thomson of Fleet),” the website MarketWatch reported.
According to a plan devised decades ago by Thomson Corporation founder Roy Thomson, control of the family fortune passed to David Thomson when his father Kenneth died in June 2006. David Thomson became the 3rd Baron Thomson of Fleet, a British peerage, on his 49th birthday.
"David, my grandson, will have to take his part in the running of the organisation and David's son, too," Roy Thomson wrote in his 1975 autobiography. "With the fortune that we will leave to them go also responsibilities. These Thomson boys that come after Ken are not going to be able, even if they want to, to shrug off these responsibilities."
The Thomson family is the richest in Canada and 20th richest in the world according to Forbes. David Thomson’s son from his first marriage is the designated heir to the family business empire.
● SOURCE MarketWatch
Thomson Reuters named Canada's top brand by value
Monday 17 May 2010
Thomson Reuters is the biggest winner in a ranking of Canada’s best brands by value, soaring to first place from nowhere among the top 25 publicly-traded Canadian companies.
Consulting firm Interbrand put a brand value of C$9.4 billion on Thomson Reuters, measuring its valuation on the contributions to the bottom line made by the brand alone, discounted in part for the inherent riskiness of the brand's ability to maintain demand for its product or service.
Thomson Reuters rocketed straight to first place, leapfrogging all other Canadian companies “by virtue of a merger that has gone almost seamlessly”, the Toronto Globe and Mail reported.
Last year's top brand, BlackBerry, was pushed into fourth place, behind Toronto-Dominion Bank and Royal Bank of Canada.
● SOURCE Globe and Mail
Consulting firm Interbrand put a brand value of C$9.4 billion on Thomson Reuters, measuring its valuation on the contributions to the bottom line made by the brand alone, discounted in part for the inherent riskiness of the brand's ability to maintain demand for its product or service.
Thomson Reuters rocketed straight to first place, leapfrogging all other Canadian companies “by virtue of a merger that has gone almost seamlessly”, the Toronto Globe and Mail reported.
Last year's top brand, BlackBerry, was pushed into fourth place, behind Toronto-Dominion Bank and Royal Bank of Canada.
● SOURCE Globe and Mail
Expect revenue growth in 2nd half, Tom Glocer tells shareholders
Friday 14 May 2010
Thomson Reuters has weathered the economic storm and expects to return to revenue growth in the second half of this year, CEO Tom Glocer said on Friday.
He told shareholders at the group’s annual general meeting in Toronto that Thomson Reuters stood to gain from this year's new products, including software for the financial services industry, tax professionals and lawyers, as well as Reuters Insider, a new Web-based business news television service launched this week.
"While many companies had to slash their R&D budgets just to be able to survive the recession, we had the financial strength and determination to keep investing in product development," Glocer said. "...These investments are now beginning to bear fruit and it's very exciting. I strongly believe that the combination of improving market conditions that we see now, new flagship offerings and scalable infrastructure, positions our company very well to grow and deliver shareholder value in 2011 and beyond," he added.
In comments after the meeting Glocer said the company was still looking at acquisitions, although he did not predict any deals with more than a $1 billion price tag. “Our history has been to make a number of small to medium-size fold-in acquisitions, and that’ll be true this year as well ... There’s more in the pipeline,” Glocer said.
Shareholders voted in favour of a plan to freeze base salaries for Glocer and four other key executives this year, in a so-called “say on pay” resolution. Glocer’s $1.55 million base salary was a small fraction of his total 2009 compensation of $36.6 million, which included performance pay. The company said the results of the vote would be released next week. At last year’s AGM, 17.7 per cent voted against top executives' pay packages. About 53 per cent of the company's stock is owned by Canada’s Thomson family.
Asked about an ongoing labour dispute with 420 journalists in New York, Glocer said contract negotiations begun in October 2008 with The Newspaper Guild of New York had reached an impasse. The union has accused the company of trying to impose an illegal pay cut on its members. The company disputes this. Glocer said he was still hopeful the two sides could reach a negotiated settlement but added "we have to be tough on costs".
“We are in a very delicate place right now,” Glocer said in response to a question by Lise Lareau of the Canadian Media Guild. “ ... I’m comfortable that legally and ethically the company has acted properly.”
● SOURCE The Canadian Press | The Globe and Mail
He told shareholders at the group’s annual general meeting in Toronto that Thomson Reuters stood to gain from this year's new products, including software for the financial services industry, tax professionals and lawyers, as well as Reuters Insider, a new Web-based business news television service launched this week.
"While many companies had to slash their R&D budgets just to be able to survive the recession, we had the financial strength and determination to keep investing in product development," Glocer said. "...These investments are now beginning to bear fruit and it's very exciting. I strongly believe that the combination of improving market conditions that we see now, new flagship offerings and scalable infrastructure, positions our company very well to grow and deliver shareholder value in 2011 and beyond," he added.
In comments after the meeting Glocer said the company was still looking at acquisitions, although he did not predict any deals with more than a $1 billion price tag. “Our history has been to make a number of small to medium-size fold-in acquisitions, and that’ll be true this year as well ... There’s more in the pipeline,” Glocer said.
Shareholders voted in favour of a plan to freeze base salaries for Glocer and four other key executives this year, in a so-called “say on pay” resolution. Glocer’s $1.55 million base salary was a small fraction of his total 2009 compensation of $36.6 million, which included performance pay. The company said the results of the vote would be released next week. At last year’s AGM, 17.7 per cent voted against top executives' pay packages. About 53 per cent of the company's stock is owned by Canada’s Thomson family.
Asked about an ongoing labour dispute with 420 journalists in New York, Glocer said contract negotiations begun in October 2008 with The Newspaper Guild of New York had reached an impasse. The union has accused the company of trying to impose an illegal pay cut on its members. The company disputes this. Glocer said he was still hopeful the two sides could reach a negotiated settlement but added "we have to be tough on costs".
“We are in a very delicate place right now,” Glocer said in response to a question by Lise Lareau of the Canadian Media Guild. “ ... I’m comfortable that legally and ethically the company has acted properly.”
● SOURCE The Canadian Press | The Globe and Mail
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
Thomson Reuters said to be interested in buying Newsweek
Tuesday 11 May 2010
Thomson Reuters has expressed interest in buying Newsweek magazine, put up for sale a week ago by The Washington Post Co, The New York Observer reported.
"We do not comment on market rumours," a spokeswoman for Thomson Reuters was quoted as saying.
Others who may be interested include AllBritton Communications, owner of Politico, and Rupert Murdoch's News Corp, although a spokesman for the latter said "Not us" when asked about being on the short list, the Observer said. Newsweek editor Jon Meacham also said he would consider trying to pull together an offer with investors.
"Of the names that have emerged on the short list so far, Thomson Reuters is the most surprising,” the Observer said. “The company, a huge player in Europe, has only recently stepped up its game in the U.S., and has never before been a contender for a U.S. property with Newsweek's profile.
"Last year, when Bloomberg was about to purchase BusinessWeek, Thomson Reuters threw itself into that bidding very late in the game, joining up with ZelnickMedia to make a play for the business weekly. Bloomberg, a rival to Reuters, ultimately bought the magazine.”
The Observer said that while Reuters is best known for business media it also has been beefing up its consumer reporting, a buildup that would fit in well with a Newsweek purchase. "The company lets finance blogger Felix Salmon do what he likes, and last year it hired Jim Impoco, from Condé Nast Portfolio and The New York Times before that, to beef up its long-form reporting team.
"And what would Thomson Reuters want to do with a magazine like Newsweek? Perhaps the company is just kicking the tires, or maybe there's a plan at work that is more substantive. Last year, Newsweek cut its rate base from 3.1 million to 1.5 million, hoping to serve a far more elite audience. Maybe the people at Thomson Reuters feel like they can have their own version of The Economist.
"Staying competitive with Bloomberg, which has a monthly and just added a weekly magazine to its holdings, could be another reason.”
Bloomberg told The Times last week that it didn't have interest in the newsweekly, but one person familiar with the Newsweek sale said that it may be reconsidering, especially after Thomson Reuters decided to throw itself into the mix, the Observer said. Bloomberg didn't show interest in BusinessWeek until a week before the deadline approached for bids.
● SOURCE The New York Observer
"We do not comment on market rumours," a spokeswoman for Thomson Reuters was quoted as saying.
Others who may be interested include AllBritton Communications, owner of Politico, and Rupert Murdoch's News Corp, although a spokesman for the latter said "Not us" when asked about being on the short list, the Observer said. Newsweek editor Jon Meacham also said he would consider trying to pull together an offer with investors.
"Of the names that have emerged on the short list so far, Thomson Reuters is the most surprising,” the Observer said. “The company, a huge player in Europe, has only recently stepped up its game in the U.S., and has never before been a contender for a U.S. property with Newsweek's profile.
"Last year, when Bloomberg was about to purchase BusinessWeek, Thomson Reuters threw itself into that bidding very late in the game, joining up with ZelnickMedia to make a play for the business weekly. Bloomberg, a rival to Reuters, ultimately bought the magazine.”
The Observer said that while Reuters is best known for business media it also has been beefing up its consumer reporting, a buildup that would fit in well with a Newsweek purchase. "The company lets finance blogger Felix Salmon do what he likes, and last year it hired Jim Impoco, from Condé Nast Portfolio and The New York Times before that, to beef up its long-form reporting team.
"And what would Thomson Reuters want to do with a magazine like Newsweek? Perhaps the company is just kicking the tires, or maybe there's a plan at work that is more substantive. Last year, Newsweek cut its rate base from 3.1 million to 1.5 million, hoping to serve a far more elite audience. Maybe the people at Thomson Reuters feel like they can have their own version of The Economist.
"Staying competitive with Bloomberg, which has a monthly and just added a weekly magazine to its holdings, could be another reason.”
Bloomberg told The Times last week that it didn't have interest in the newsweekly, but one person familiar with the Newsweek sale said that it may be reconsidering, especially after Thomson Reuters decided to throw itself into the mix, the Observer said. Bloomberg didn't show interest in BusinessWeek until a week before the deadline approached for bids.
● SOURCE The New York Observer
Reuters launches Insider - 'YouTube for traders'
Tuesday 11 May 2010
The service, two years in the making, is aimed at half a million financial subscribers who will pay up to $2,000 a month to receive a stream of 3,000 online news clips a week. It will be available on desktops, BlackBerries, iPhones and iPads, live or on-demand.
Thomson Reuters hopes Insider will shape the future of news. It is part of a $1 billion technology investment at the group, which wants to embed itself more firmly into customers’ daily work and differentiate itself further from Bloomberg and other competitors.
About 15 per cent of the content will come from Reuters’ own studios in Hong Kong, London and New York and desktop nodes while the rest will come from media outlets like CNBC, Sky and Forbes, along with content from analysts.
“The trend that we are seeing in professional information is not all that different than consumer media,” said Devin Wenig, chief executive for the markets division – essentially the old Reuters business plus Thomson Financial. “People are increasingly visual, and they expect to access information in that way. They want to be able to look at a chief executive and see the expression on the analyst’s face.”
The rise of the Internet means that traders today are more familiar with clicking their way through YouTube than memorising codes for using Reuters’ trading screens and information feeds. “You see very different behaviour from a 25-year-old just out of the London School of Economics to a 55-year-old who has been trading for the last 25 years,” said Wenig. “People who grew up with Google have totally different expectations of how to interact with information and media. We can’t ignore that.”
“What if this becomes the way people consume news?” Mike Stepanovich, managing editor of Insider, said. “What if all news providers decide to come together to share content and syndicate information?”
The idea is to harness Insider’s technology, which allows videos to be searched in real time, to create what he calls a marketplace for news. News organisations that signed up could submit video, pictures and text to the Reuters platform. They would not pay for the exposure, and Reuters would not pay them for their material.
Stepanovich agreed with The Times that “once someone aggregates lots of sources ... the value of having a global news organisation [such as Reuters] kind of goes away”. But he added: “If someone’s going to disrupt your business model, it had best be you. This is the future of the agency business.”
Financial customers are the priority for Insider but Stepanovich said a consumer-orientated product was being considered under which anyone could access searchable video content from a variety of publishers.
As part of the initiative, Reuters is sharing a suite of tools for desktop video production, "even if some of the footage that comes back looks like a hostage video," The New York Times said. It sounds wonderful, and probably will be one day, but the density and relevance of information still need work, The New York Times said. Thomson Reuters says it will iron out glitches as they occur. "It’s not exactly ‘Glee.’ It’s not even ‘Mad Money.’ But it beats downloading and reading the PDF of the latest media research report by a mile,” the newspaper said.
"The breadth and depth of Reuters global editorial coverage has allowed us the opportunity to create something truly unique," said David Schlesinger, editor-in-chief. "By leveraging our 2,800 journalists worldwide, Reuters Insider provides our clients with global financial market news and the credibility that accompanies local access and knowledge."
Reuters Insider is a key part of Thomson Reuters’ New Era, New Tools programme designed to address the challenges faced by the financial services community. It follows the recent launch of Elektron, a new high speed data distribution network, and will be fully integrated into Eikon, the company's next-generation information desktop offering due to launch later this year. Eikon aims to create a common platform for all of Thomson Reuters’ 200 financial products. It is likely to look and feel more like a conventional web portal and all the group’s 500,000 customers will be moved on to it, replacing 3000Xtra as the flagship product.
“We are not going to be the greatest technology company in the world and nor should we be,” said Wenig. “But technology is an enabler. We have to put money into it. We can’t just talk about it. I don’t want to turn us into a consumer company but you ignore at your peril what YouTube and Twitter have done to online behaviour.”
Wenig said in a launch message to staff: "As I've said before, we have started down the road of making a number of radical transformations – to our products, our platforms and how we run our business – that will make an enormous difference for our customers. Congratulations to everyone who made today's exciting next step possible."
● SOURCE Thomson Reuters | The Times | The New York Times | Financial Times | Fast Company | Market Watch | Thomson Reuters marketing VIDEO | Thomson Reuters VIDEO
Thomson Reuters adds tennis to its sponsorships
Monday 10 May 2010
Gus Carlson, Thomson Reuters’ executive vice president and chief marketing officer, said: “We are delighted to be partnering with the LTA, bringing our world-class global expertise in intelligent information to the exciting world of competitive tennis. Supporting the tennis stars of today and tomorrow, Thomson Reuters is looking forward to further exploring how information and technology can drive elite performance and sporting success”
Thomson Reuters also sponsors Formula One motor racing team AT&T Williams and Canadian golf champion Mike Weir. The company says both embody Thomson Reuters' core values: global business collaboration is key; people make the difference; and performance matters.
● SOURCE Lawn Tennis Association
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
Tom Glocer: I'll carry on blogging
Wednesday 05 May 2010
The chief executive was speaking to the FT in New York on Tuesday where Thomson Reuters presented its 2010 Q1 financial results. The newspaper's reporter noted that the US investment bank was a large client and said Glocer's comments were "a subject of intense scrutiny by journalists at Reuters and elsewhere".
"His warning of a 'rush to judgement' by 'our media-driven society' and suggestion that Goldman’s problems may only be the fault of 'a couple of bad apples' angered some Reuters journalists, but Mr Glocer told the FT: 'I stand by whatever I wrote.'
"'It’s a personal blog and I write about what interests me,' he said. Nobody at Goldman had asked him to make his remarks, he said. 'I guess the question is: Can the CEO of Thomson Reuters have a blog at all and if so can he ever comment on a client. I’m comfortable with where it is,’” the FT said. Glocer added that he would not censor negative comments on the blog, it said.
Behind the scenes the dialogue is getting downright personal over Glocer's defence of Goldman Sachs and also over complaints by former staff of the perceived lacklustre company response to the leaked military footage showing two Reuters people shot dead in Iraq by the US military, said Philip Stone, a former Reuters media executive based in Geneva.
Stone wrote a commentary headed "Reuters Old British Guard None Too Enamored With The New Guard Thomson Reuters American Senior Team", on his own blog, Follow the Media, which covers media issues worldwide.
"That Glocer would go public defending Goldman Sachs was a break in tradition for the news agency that had been British-operated until Glocer and his American team took over in July 2001, eventually overseeing in 2008 its majority sale to the Canadian Thomson family with his team transferring to the new company," Stone wrote. "The unwritten rule had been that management didn’t comment on news events for fear of perceptions of bias in the editorial reporting of those events. So now questions are publicly asked whether Glocer’s comments will be seen by the news side as a message to go easy with a major client.
"In actual fact the opposite is true. If Glocer had been looking for a way to actually tell his news people to hit Goldman Sachs as hard as possible, and then some, he could have found no finer way of doing it than by publicly supporting the Wall Street firm. One thing that has not changed with ownership is ferocious editorial independence and the various corporate governances protecting that independence."
It is very doubtful that editorial were best pleased by Glocer’s comments, Stone said, but now that he has spoken so publicly editorial will go overboard to ensure there are no perceptions of its going easy on the story. But statements by the Newspaper Guild of New York and news items by the likes of The New York Times were something that the news organisation didn’t need. "News reputations get built over the years; they can be lost overnight."
Commenting on what he called Glocer's quiet diplomacy approach to the US authorities in the case of Namir Noor-Eldeen and Saeed Chmagh, Stone said it seems that whereas Glocer does not want “to shout from the rooftop criticising the killing of two Reuters staff because he doesn’t think that would do any good, he does shout from the rooftop about the innocence of a major client, so he thinks Goldman Sachs will benefit from that particular shouting? It’s that very perception that the CEO of a very proud news organization should always, not sometimes, strive to avoid,” Stone wrote.
"Many years ago an old Reuters sage once advised a new manager, 'Just because you have the right to do something doesn’t mean that you actually go and do it.' It was good advice then; it’s good advice for even a CEO to remember today."
● SOURCE Financial Times | Tom Glocer’s blog | Follow the Media
Thomson Reuters Q1 net profit falls 31% to $555 million
Tuesday 04 May 2010
"The tentative recovery in our net sales that we began to see in the second half of 2009 has firmed and accelerated in the first quarter of 2010," chief executive Tom Glocer said in a statement.
First-quarter underlying profit was $555 million, down six per cent from $590 million last year. Adjusted earnings per share fell to 36 cents from 40 cents in the same quarter last year, but beat the average analyst forecast of 31 cents. Revenue from ongoing businesses was $3.14 billion. Analysts expected $3.11 billion. Foreign exchange rate movements excluded, revenue fell two per cent.
The company stuck to its February forecast, saying net sales would strengthen throughout 2010. It also repeated that this year's revenue would be flat to slightly down and that underlying free cash flow would be down slightly from 2009 as it invests in new products and platforms.
Thomson Reuters said it would spend more than $1 billion on new technology and products. Among them is Eikon, a new desktop for financial and trading clients.
MARKETS DIVISION
● Revenue was flat in the markets division, which includes the news service and data products for financial industry customers. Excluding the impact of foreign exchange rates, revenue fell four per cent. Markets revenue depends heavily on long-term subscriptions. The financial crisis, which crested in early 2009, triggered massive layoffs and cancellations of trading terminals. While the economy has improved, many of these cancellations have shown up in recent quarterly results.
PROFESSIONAL DIVISION
● Revenue rose two per cent in the professional division, which sells databases and other information reservoirs to lawyers, accountants, scientists and healthcare workers. Excluding the impact of foreign exchange rates, this revenue rose one per cent. Many law firms cut staff as they struggled in the recession, and cash-strapped clients sought lower legal bills. Legal revenue slipped three per cent before currency adjustments.
● SOURCE Reuters | Transcript of Thomson Reuters call with analysts
The New York Times raises an eyebrow at Tom Glocer's blog
Monday 26 April 2010
Glocer's posting is an unusual step for a media executive, the Times said on Monday under the headline Thomson Reuters CEO Has a Sympathetic Ear for Goldman Sachs. The New York-based global investment banking and securities firm, a Thomson Reuters customer, has been criticised for its role in the deals. The SEC has accused Goldman Sachs of fraud relating to the structuring and marketing of a synthetic collateral debt obligation (CDO) offering.
"But Mr Glocer – whose firm serves clients in the financial-services industry, and who oversees the Reuters news service – said such criticism wasn't yet merited," the newspaper said in its Media Decoder blog.
“It just seems too easy and too politically expedient to jump on this bandwagon,” Glocer wrote. “Perhaps the firm will eventually be found liable of these charges, although I rather doubt it. But what happened to our prized principles of maintaining innocence prior to being proven guilty?”
Glocer said “Goldman does not need me to defend them – they have far better lawyers on retainer. But when most of the world is ready to convict and condemn before trial, my sense of fairness suggests we should suspend judgment until the full story emerges.”
Among comments posted on Glocer's blog, Dolly wrote: "Your argument is very weak. Did not expect this from you."
A Very Loyal TR employee said: "For every job 'right sourced' to India there is a mother or father who worked hard to build Thomson Reuters. The business world could be many things but fair."
● SOURCE The New York Times | Tom Glocer's blog
Thomson Reuters launches high-speed global network
Tuesday 20 April 2010
Thomson Reuters launched a global, high-speed network on Tuesday for financial firms to access real-time data as well as share information with each other directly.
The new network, called Elektron, includes hosting centres in New York, Chicago, London, Frankfurt, Tokyo and Singapore, with more to come in Hong Kong, India and Brazil later in the year, all connected by a fibre optic ring.
As trading decisions are made increasingly by computers, the difficulty has been to execute ideas at high speed that require trades in multiple markets, said Jon Robson, Thomson Reuters’ president of enterprise. "This provides the infrastructure, technology and connections to different markets so that trades can happen quickly," he said.
Elektron will provide any Thomson Reuters client of any size equal access to high-frequency markets, Robson said. It will also serve as a neutral distribution platform for participants to exchange research, prices, business ideas or transactions. Thomson Reuters plans to migrate all of its content to Elektron over time as well as use its greater bandwidth to add deeper levels of market information, Robson said.
Larry Tabb, chief executive of research and consultancy firm TABB Group, said the Elektron system changes the whole paradigm of how people receive and deliver information. "It allows people to communicate more seamlessly, who would otherwise have to rely on slower channels or somebody remembering who gets what," he added.
● SOURCE Reuters
The new network, called Elektron, includes hosting centres in New York, Chicago, London, Frankfurt, Tokyo and Singapore, with more to come in Hong Kong, India and Brazil later in the year, all connected by a fibre optic ring.
As trading decisions are made increasingly by computers, the difficulty has been to execute ideas at high speed that require trades in multiple markets, said Jon Robson, Thomson Reuters’ president of enterprise. "This provides the infrastructure, technology and connections to different markets so that trades can happen quickly," he said.
Elektron will provide any Thomson Reuters client of any size equal access to high-frequency markets, Robson said. It will also serve as a neutral distribution platform for participants to exchange research, prices, business ideas or transactions. Thomson Reuters plans to migrate all of its content to Elektron over time as well as use its greater bandwidth to add deeper levels of market information, Robson said.
Larry Tabb, chief executive of research and consultancy firm TABB Group, said the Elektron system changes the whole paradigm of how people receive and deliver information. "It allows people to communicate more seamlessly, who would otherwise have to rely on slower channels or somebody remembering who gets what," he added.
● SOURCE Reuters
Thomson Reuters reveals long-term targets
Monday 19 April 2010
Thomson Reuters on Monday revealed long-term targets for mid-to-high single digit revenue growth rates, operating profit margins in the mid-20 per cent range, and free cash flow in excess of $3 billion.
"The severity and duration of the 'Great Recession' of 2009 has meant that it will take us a little longer to reach these goals, but they appear no less achievable to us," the company said in its latest annual report.
A joint message to shareholders from chairman David Thomson and chief executive Tom Glocer said that despite the most challenging economic conditions they had seen in their business careers the company delivered resilient operating and financial performance in 2009. "We would characterise our results as being excellent on a relative basis and acceptable, but far short of what we believe Thomson Reuters has the potential to achieve, on an absolute basis."
They said they were very proud that while they had worked hard to reduce costs and realise savings through the integration of the acquired Reuters businesses, they had been able to continue and, in fact, increase investment in strategic new product platforms and in the international expansion of the business. “We are well ahead of plan in the integration of Reuters, and by year-end 2009 we had achieved combined run-rate savings of $1.1 billion from our integration and legacy savings programs. We now expect to achieve some 2.5 times greater savings from the Reuters integration ($1.2 billion) than originally forecast."
The Reuters integration had also continued to outpace expectations in terms of bringing new content, technology and services to customers, combining the best elements of the cultures of the legacy organisations, and providing new opportunities for Thomson Reuters’ 55,000 employees.
This year, Thomson Reuters could continue and accelerate the process of taking its businesses global – especially to tap higher growth rates in rapidly developing economies, and add other market sectors where professionals need its special combination of must-have content and technology to do their jobs.
"In 2010, we are following both of these paths to restart growth in our businesses that have been hardest hit by the global recession and accelerate growth in our units that have continued to grow right through the crisis…
"Over the longer term, we believe that our business can achieve mid-to-high single digit revenue growth rates, operating profit margins in the mid-20% range, and free cash flow in excess of $3 billion. The severity and duration of the 'Great Recession' of 2009 has meant that it will take us a little longer to reach these goals, but they appear no less achievable to us."
The report is in a new multimedia format – an online mix of video, text, pictures and animated graphics. "Going digital has made us a much greener company," Glocer said in a video message. "No trees were chopped down in the making of this annual report, unless fossil fuel was consumed in delivering it to you."
Thomson Reuters shareholders annual general meeting is to be held in Toronto on 14 May.
● CLICK to view Thomson Reuters 2009 annual report
"The severity and duration of the 'Great Recession' of 2009 has meant that it will take us a little longer to reach these goals, but they appear no less achievable to us," the company said in its latest annual report.
A joint message to shareholders from chairman David Thomson and chief executive Tom Glocer said that despite the most challenging economic conditions they had seen in their business careers the company delivered resilient operating and financial performance in 2009. "We would characterise our results as being excellent on a relative basis and acceptable, but far short of what we believe Thomson Reuters has the potential to achieve, on an absolute basis."
They said they were very proud that while they had worked hard to reduce costs and realise savings through the integration of the acquired Reuters businesses, they had been able to continue and, in fact, increase investment in strategic new product platforms and in the international expansion of the business. “We are well ahead of plan in the integration of Reuters, and by year-end 2009 we had achieved combined run-rate savings of $1.1 billion from our integration and legacy savings programs. We now expect to achieve some 2.5 times greater savings from the Reuters integration ($1.2 billion) than originally forecast."
The Reuters integration had also continued to outpace expectations in terms of bringing new content, technology and services to customers, combining the best elements of the cultures of the legacy organisations, and providing new opportunities for Thomson Reuters’ 55,000 employees.
This year, Thomson Reuters could continue and accelerate the process of taking its businesses global – especially to tap higher growth rates in rapidly developing economies, and add other market sectors where professionals need its special combination of must-have content and technology to do their jobs.
"In 2010, we are following both of these paths to restart growth in our businesses that have been hardest hit by the global recession and accelerate growth in our units that have continued to grow right through the crisis…
"Over the longer term, we believe that our business can achieve mid-to-high single digit revenue growth rates, operating profit margins in the mid-20% range, and free cash flow in excess of $3 billion. The severity and duration of the 'Great Recession' of 2009 has meant that it will take us a little longer to reach these goals, but they appear no less achievable to us."
The report is in a new multimedia format – an online mix of video, text, pictures and animated graphics. "Going digital has made us a much greener company," Glocer said in a video message. "No trees were chopped down in the making of this annual report, unless fossil fuel was consumed in delivering it to you."
Thomson Reuters shareholders annual general meeting is to be held in Toronto on 14 May.
● CLICK to view Thomson Reuters 2009 annual report
Thomson Reuters turns to web for major product revamp
Wednesday 14 April 2010
A series of launches will bring together products from the former Reuters and Thomson Financial for the first time into two simplified platforms – one aimed at enterprises such as large banks, the other at individual users such as small hedge funds. It amounts to a radical change for both parts of the business.
The web-based platforms will replace traditional terminal commands with Internet-style online search. They are part of a drive to cater to “the 23-year-old at Goldman Sachs who grew up with Google”, said Devin Wenig, markets chief executive, pictured. They also aim to distinguish Thomson Reuters from Bloomberg and its one-size-fits-all terminals.
Thomson Reuters had to “radically slim the company down”, Wenig told the Financial Times. This would not be by cutting jobs – it plans to increase headcount quite a lot this year – but by reorganising its sales and support staff so that “everybody in the company is going to be working on one of these two platforms”.
Since the financial crisis began, big banks had consolidated, mid-sized customers struggled, but a long tail of smaller customers had grown, Wenig said. To cater for smaller clients cost-effectively, online training and customer support would be introduced.
The enterprise platform will launch next week and claims to offer faster delivery of data to clients, many of whom will be able to locate Thomson Reuters servers alongside their own to reduce delays, as Bloomberg does.
Wenig said the group would not change its pricing, but enterprise clients would find the platform cheaper to run.
Next month Thomson Reuters will make Insider, an online video platform it has been testing since last year, available to all its customers. In addition to the company’s own media staff, Insider will allow outsiders such as brokerages to offer videos of their analysts.
In the autumn a desktop platform called Eikon will offer a wider range of data, greater personalisation, and improved risk management, collaboration and emerging markets features.
“The industry is in a hugely different place from where it was in April 2008, and we think a lot of the changes are permanent and structural,” Wenig said. “Big banks are disappearing but we’ve created 1,000 new accounts in ... six months.”
● SOURCE Financial Times
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
Tom Glocer: it's not just about money
Wednesday 31 March 2010
“We want incredible, high-performing, successful people but within the boundaries where the company matters more than I. There'll be another chief executive. There've been nine before me at Reuters and, if you think in longer terms, it puts a bit of perspective just on how bright is your candle power,” the CEO said in a radio broadcast.
“It's not just about money, but there is a market out there for talent. People are more aware of it than they think. To pretend that it's no issue at all and that people will just stay for the joy of it, I think, ultimately, is insulting but, conversely, if you believe you can bribe people to stay in a hostile environment or money's the only thing that motivates them, all of the research, all of my experience, shows differently. In fact what the best research show is that the single highest correlating factor to retaining employees and job satisfaction is: my manager understands me, cares about me, maybe knows the names of my children and is interested in my work and helps me achieve my goals. But don't try and pay me half the market rate, 'cos you'll just, you know, you'll diss me.”
Glocer described a cycle which he said was true for human beings, for companies and for governments where success and high achievement breeds pride, “that's OK, then breeds arrogance, not OK, then breeds complacency, egotistical behaviour, and then the downfall, and you see that cycle over and over again.
“And it is the rare individual and the rare company that can stay when it's at the top of the game. How paranoid are you? … You need to keep that humble questioning, otherwise eventually you'll just believe your own PR.”
Glocer was speaking in a panel discussion on BBC Radio 4 programme The Bottom Line, first broadcast on Sunday 28 March.
Interviewer Evan Davies also asked Glocer about the motivation for Thomson’s 2008 takeover of Reuters. Was it that Reuters suddenly found itself facing the most intense competition in the most lucrative bit of the market from players like Bloomberg? Was Reuters getting a bit desperate?
Glocer’s reply: “No, Reuters went through – I arrived in the UK and took on the job as chief executive in the summer of 2001 and the period 2001 to 2003 was the near-death experience for Reuters, and it was really difficult. You know, we had to do some very unpopular things. I had to do some things that I still find hard to this day. We let a lot of people go which substantially restructured the company, we sold a lot of units, but until the time we agreed to the Thomson acquisition we had come through that hole and were growing nicely again. The fit with Thomson was just so good, and their willingness to come at the right moment and pay a substantial premium for Reuters was there, that we jumped.”
Asked about the decline of newspapers, Glocer said: “At the margin, the traditional Reuters news agency selling to media customers is now about two per cent of the $13 billion annual revenues of the firm… It's very visible, we care about it a lot, it's still a profitable business but, you know, the shift in our revenues reflects where we find profitable opportunities, and yes, the newspaper world is going through a terrible, wrenching transformation. Part of it, I think, is because people can't wrap their brains around a pretty straightforward transition which is: newspapers don't have to be on physical wood paper pulp technology, right? It just so happens that the current processes lasted for so long no one can think about what does journalism mean in an iPad world, or son of iPad, and what will it look like. So, I think this is not the death knell of journalism, it is the death knell of people who insist that journalism has to be about printing on dead trees.”
● CLICK to view a video version of the radio broadcast (available only in the UK) | VIDEO
Thomson Reuters again rated among world's most ethical companies
Wednesday 24 March 2010
The designation, awarded by the New York-based Ethisphere Institute, recognises companies that go beyond making statements about doing business ethically and translate those words into action.
The designation is awarded to companies that have leading ethics and compliance programmes, particularly compared with their industry peers. Companies were judged on their ethics and compliance programmes, governance and corporate responsibility. They were measured against seven categories: corporate citizenship and responsibility; corporate governance; innovation that contributes to the public well being; industry leadership; executive leadership and tone from the top; legal, regulatory and reputation track record; and internal systems and ethics/compliance programme.
Thomson Reuters is listed in the media, publishing and entertainment section alongside Time Warner.
● SOURCE Ethisphere Institute
Thomson Reuters ranks #2 in Fortune list
Friday 12 March 2010
Top of the ranking was Automatic Data Processing with a score of 6.69, just ahead of Thomson Reuters’ 6.54.
Fortune gave Thomson Reuters the following industry rankings for key attributions of reputation:
● Innovation 1
● People management 2
● Use of corporate assets 3
● Social responsibility 1
● Quality of management 5
● Financial soundness 3
● Long-term investment 3
● Quality of products/services 3
● Global competitiveness 1
● SOURCE CNN
Thomson Reuters files its 2009 annual report
Thursday 11 March 2010
The report is available on ● www.thomsonreuters.com in the Investor Relations section.
CLICK this link to download it directly ● Thomson Reuters 2009 Annual Report
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.
Thomson Reuters reported its 2009 results on 24 February. Profit for the last quarter was 68 per cent lower and financial customer losses were expected to continue to hurt revenue this year. The next quarterly results are due to be announced on 4 May.
● SOURCE Thomson Reuters
Gordon Brown, in pre-election mode, uses Thomson Reuters platform
Wednesday 10 March 2010
British prime minister Gordon Brown chose to use a Thomson Reuters platform to announce some major pre-election political news, including a public sector pay freeze on senior civil servants and the military.
Brown was speaking on Wednesday at Thomson Reuters' London office at Canary Wharf as an invited guest in an occasional series of talks by "newsmakers". His speech received wide media coverage, and Thomson Reuters got some credit as a newsmaking location – non-partisan, of course.
The Guardian newspaper noted that Brown was "speaking at Thomson Reuters in Canary Wharf, the same venue where the Tory leader, David Cameron, attacked Labour's record on the economy last week."
● SOURCE Reuters
Brown was speaking on Wednesday at Thomson Reuters' London office at Canary Wharf as an invited guest in an occasional series of talks by "newsmakers". His speech received wide media coverage, and Thomson Reuters got some credit as a newsmaking location – non-partisan, of course.
The Guardian newspaper noted that Brown was "speaking at Thomson Reuters in Canary Wharf, the same venue where the Tory leader, David Cameron, attacked Labour's record on the economy last week."
● SOURCE Reuters
Thomson Reuters staff mark International Women's Day
Monday 08 March 2010
IWD, first observed in 1911, celebrates women’s economic, political and social achievements. It is a public holiday in China, Russia and some other countries.
The project, a collaboration involving the Reuters UK Online desk and the ● women@thomsonreuters network, is open to external guest contributors.
The live blog began with the observance of International Women's Day in Kiritimati, Kiribati. It is being anchored by different Reuters bureaus around the world including those in Singapore, India, Switzerland, Dubai, Britain, Canada and the United States.
Organisers say it is the first time something on this scale has been attempted at Reuters. They believe the "follow-the-sun" live blog format could provide a template for covering other global news events online and in real time. Other events covered by live blogs include the Winter Olympics 2010, the United Nations COP15 meeting. Although the duration of these events was much longer they were not covered around the clock and around the world.
Online events include:
● A special coverage page "Women in Focus"
http://uk.reuters.com//news/globalcoverage/womenInFocus
● A live follow-the-sun blog platform to which all are free to contribute
http://live.reuters.com/Event/International_Womens_Day_2010_2
● A slide show of Reuters images
http://online.thomsonreuters.com/womensday/
● Reuters is powering the Aurora International Women's Day site for the second year
http://internationalwomensday.com
● A series of guest great debate blogs
http://blogs.reuters.com/great-debate-uk/tag/iwd/
● A special Twitter feed
http://twitter.com/Women_on_IWD
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
Devin Wenig sees more media sector mergers
Friday 19 February 2010
Wenig, chief executive of the group’s markets division that includes Reuters news agency, predicted the return of media sector merger activity.
“We’re a b-to-b [business-to-business] company but marriage of content and distribution has been critical… Reach and original content production can sit together. I would not be surprised at seeing mergers and acquisitions coming back.”
Wenig said the company is still integrating its own big merger so won’t be making massive acquisitions of its own, but expect smaller deals — like its recent purchase of Breakingviews — instead.
Wenig said the company would add paid services to its reuters.com news site this year. The site gets 30 million unique users a month.
He said Thomson Reuters would soon begin to syndicate third-party content and make it available to its customers. “When we talk to clients they say that’s what we need.” As part of that, the company would also syndicate some local content (although it has no plans to produce local content of its own).
Outside the conference venue in New York, demonstrators protested about prolonged contract negotiations between Thomson Reuters and the Newspaper Guild of New York, representing editorial employees. Asked about labour issues, Wenig said: “We’re not cutting either staff or salaries.” He said the company was thinking about structuring compensation in order to “play to win”.
● SOURCE PaidContent
Union accuses Thomson Reuters of illegal pay cuts and Twitter curbs
Friday 05 February 2010
A union filed a complaint against Thomson Reuters alleging it is illegally imposing pay cuts and restricting what employees can write on their Twitter accounts.
In a complaint filed with the US National Labor Relations Board, the Newspaper Guild of New York charged that Thomson Reuters plans to cut wages of reporters and other employees by an average of 10 per cent this year without the union's consent.
Thomson Reuters disputed the figure, saying it is guaranteeing a 0.5 per cent increase for the more than 400 US journalists represented by the union at Reuters News. Some will get bigger raises, based on how well they do their jobs, Thomson Reuters said in a statement. "We believe such a system is fairer than a lockstep system and is essential for Reuters' future," the company said.
The union's complaint alleges that on 19 January Thomson Reuters improperly declared an impasse in the negotiations, which have been running for more than a year.
Other media companies, mostly newspapers, have been lowering wages and requiring unpaid leaves of absence during the past year as a severe advertising slump dried up their main source of revenue. The Newspaper Guild contends Reuters has not been hit as hard because it is not as dependent on advertising as newspapers.
"This dispute is really about saving quality journalism in this country," said New York Guild President Bill O'Meara. "If a healthy company like Thomson Reuters – whose CEO made almost as much in 2008 as our 420 members' annual salaries – cuts pay, it will cause less healthy news organizations to cut even more, and pretty soon many of the journalists our democracy depends on won't be able to afford to stay in the business."
The complaint also alleges that Thomson Reuters has not followed proper procedures for drawing up its policy governing its employees' use of Twitter, the online social networking tool for broadcasting brief messages.
Thomson Reuters bars its workers for posting anything "that would damage the reputation of Reuters News or Thomson Reuters." A union activist was reminded of the policy after responding to a senior manager's call to "join the (Twitter) conversation on making Reuters the best place to work" with a tweet that said: "One way to make this the best place to work is to deal honestly with Guild members."
● SOURCE The Associated Press | Newspaper Guild of New York
In a complaint filed with the US National Labor Relations Board, the Newspaper Guild of New York charged that Thomson Reuters plans to cut wages of reporters and other employees by an average of 10 per cent this year without the union's consent.
Thomson Reuters disputed the figure, saying it is guaranteeing a 0.5 per cent increase for the more than 400 US journalists represented by the union at Reuters News. Some will get bigger raises, based on how well they do their jobs, Thomson Reuters said in a statement. "We believe such a system is fairer than a lockstep system and is essential for Reuters' future," the company said.
The union's complaint alleges that on 19 January Thomson Reuters improperly declared an impasse in the negotiations, which have been running for more than a year.
Other media companies, mostly newspapers, have been lowering wages and requiring unpaid leaves of absence during the past year as a severe advertising slump dried up their main source of revenue. The Newspaper Guild contends Reuters has not been hit as hard because it is not as dependent on advertising as newspapers.
"This dispute is really about saving quality journalism in this country," said New York Guild President Bill O'Meara. "If a healthy company like Thomson Reuters – whose CEO made almost as much in 2008 as our 420 members' annual salaries – cuts pay, it will cause less healthy news organizations to cut even more, and pretty soon many of the journalists our democracy depends on won't be able to afford to stay in the business."
The complaint also alleges that Thomson Reuters has not followed proper procedures for drawing up its policy governing its employees' use of Twitter, the online social networking tool for broadcasting brief messages.
Thomson Reuters bars its workers for posting anything "that would damage the reputation of Reuters News or Thomson Reuters." A union activist was reminded of the policy after responding to a senior manager's call to "join the (Twitter) conversation on making Reuters the best place to work" with a tweet that said: "One way to make this the best place to work is to deal honestly with Guild members."
● SOURCE The Associated Press | Newspaper Guild of New York
TR hires US diplomat to strengthen government affairs in the Americas
Monday 01 February 2010
Thomson Reuters announced it is hiring a senior US diplomat to strengthen the company’s government affairs in the Americas.
Ambassador Paula Dobriansky, a former under secretary of state, joins the markets division as senior vice president and head of government affairs for the Americas.
"With more than three decades in key government and diplomatic roles, Paula will leverage her experience, expertise and influence to ensure Thomson Reuters has a stronger Washington presence and a seat at the table on important discussions that affect our financial and media businesses," said Nancy Gardner, executive vice president and general counsel, Thomson Reuters markets.
Dobriansky will be responsible for designing and implementing Thomson Reuters markets strategy in Washington and other key Americas capitals. She joins a global government affairs team across both the markets and professional businesses which identify risks and opportunities presented by potential regulation and maintain strategic lines of communication with government bodies.
Before joining Thomson Reuters Dobriansky was under secretary of state for democracy and global affairs from 2001 to 2009, and received the secretary of state's highest honour, the distinguished service medal, for her work.
● SOURCE Marketwire
Ambassador Paula Dobriansky, a former under secretary of state, joins the markets division as senior vice president and head of government affairs for the Americas.
"With more than three decades in key government and diplomatic roles, Paula will leverage her experience, expertise and influence to ensure Thomson Reuters has a stronger Washington presence and a seat at the table on important discussions that affect our financial and media businesses," said Nancy Gardner, executive vice president and general counsel, Thomson Reuters markets.
Dobriansky will be responsible for designing and implementing Thomson Reuters markets strategy in Washington and other key Americas capitals. She joins a global government affairs team across both the markets and professional businesses which identify risks and opportunities presented by potential regulation and maintain strategic lines of communication with government bodies.
Before joining Thomson Reuters Dobriansky was under secretary of state for democracy and global affairs from 2001 to 2009, and received the secretary of state's highest honour, the distinguished service medal, for her work.
● SOURCE Marketwire
Tom Glocer says he's seen 'marked uptick' in sales, TR well placed for acquisitions
Wednesday 27 January 2010
Tom Glocer said on Wednesday Thomson Reuters saw a marked uptick in sales as it progressed through the end of 2009.
The CEO told Reuters Insider television that because of the company's subscription model it would take time for the weakness earlier in the year to work through the system but that it was now well placed.
Thomson Reuters was in a strong position to make acquisitions and to invest in its businesses and had opportunistically refinanced debt over the summer, he said. There was "a tonne" of good businesses coming onto the market.
Glocer is attending the World Economic Forum in Davos. He said that at the WEF a year ago it was "near professional suicide" when he had expressed some optimism but now in the technology world in particular, businesses were cautiously beginning to invest.
● SOURCE Reuters
● Tom Glocer | VIDEO
The CEO told Reuters Insider television that because of the company's subscription model it would take time for the weakness earlier in the year to work through the system but that it was now well placed.
Thomson Reuters was in a strong position to make acquisitions and to invest in its businesses and had opportunistically refinanced debt over the summer, he said. There was "a tonne" of good businesses coming onto the market.
Glocer is attending the World Economic Forum in Davos. He said that at the WEF a year ago it was "near professional suicide" when he had expressed some optimism but now in the technology world in particular, businesses were cautiously beginning to invest.
● Tom Glocer | VIDEO
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
How to make money out of the Internet, by Hugo Dixon
Monday 25 January 2010
Hugo Dixon, who made more than £3 million out of the sale of his Breakingviews financial commentary website to Thomson Reuters, has some tips for those who want to make money from the Internet.
Thomson Reuters paid £12 million for the business, with £3 million of that sum covering Dixon's shares and options. A further retention bonus keeps him in place for another three years.
"You have got to have distinctive, value-added content and in an era of budget cuts that gets harder and harder," he said in an interview. "The temptation if you've got to cut costs by five per cent is just to salami slice and everyone works a bit harder and quality just deteriorates a little bit more. What you end up with when you finally decide to put it behind a paywall is something that's not good enough to persuade people to pay for."
Dixon, now global editor of the re-branded Reuters Breakingviews, says media groups have got to focus much more clearly on what is their unique selling point – "keep the investment there, possibly increase the investment there, and everything else, which may be necessary as part of a package, because a newspaper is a package, they don't have to produce themselves, they can buy that in," he told The Guardian. He says Rupert Murdoch should never be underestimated but he will have a tough time succeeding with a paywall for his newspaper sites in the UK given the free alternatives.
Prior to founding Breakingviews in 1999 Dixon was a correspondent, leader writer and an editor at the Financial Times. At 46 he is "a trim figure with an air of donnish abstraction about him, and a cerebral manner” The Guardian says, and “looks slightly out of place in the corridors of Reuters' glitzy Canary Wharf HQ. He and his US editor, Rob Cox, are the only survivors of Breakingviews' early days as a dotcom startup. With the bet finally paying off, Dixon can afford to dispense advice. But he is not, on the surface, given to self-doubt and former colleagues say he was not always emollient with those without such a high IQ.
"One former ally less pleased by the deal was Jonathan Ford, Breakingviews' co-founder and another ex-FT staffer. Having left the site in 2007 after the two men fell out, he was signed up the following year to run Reuters' fledgling commentary operation, a rival to Breakingviews. Reuters' decision to buy Dixon's business effectively put Ford out of a job, and unsurprisingly he left." Ford returned the FT last week chief leader writer.
The Reuters deal has allowed Breakingviews to beef up its offices in London and New York, add a second columnist in Hong Kong and Washington and another in Moscow and to seek columnists for Dubai, Mumbai, Tokyo and Frankfurt. It also has people in Paris and Madrid and syndicates columns to 15 newspapers including The Daily Telegraph, The New York Times and Le Monde. The 30-strong team of Reuters Breakviews columnists includes Neil Collins, former City editor of The Daily Telegraph and Peter Thal Larsen, former banking editor of the FT.
● SOURCE The Guardian
Thomson Reuters paid £12 million for the business, with £3 million of that sum covering Dixon's shares and options. A further retention bonus keeps him in place for another three years.
"You have got to have distinctive, value-added content and in an era of budget cuts that gets harder and harder," he said in an interview. "The temptation if you've got to cut costs by five per cent is just to salami slice and everyone works a bit harder and quality just deteriorates a little bit more. What you end up with when you finally decide to put it behind a paywall is something that's not good enough to persuade people to pay for."
Dixon, now global editor of the re-branded Reuters Breakingviews, says media groups have got to focus much more clearly on what is their unique selling point – "keep the investment there, possibly increase the investment there, and everything else, which may be necessary as part of a package, because a newspaper is a package, they don't have to produce themselves, they can buy that in," he told The Guardian. He says Rupert Murdoch should never be underestimated but he will have a tough time succeeding with a paywall for his newspaper sites in the UK given the free alternatives.
Prior to founding Breakingviews in 1999 Dixon was a correspondent, leader writer and an editor at the Financial Times. At 46 he is "a trim figure with an air of donnish abstraction about him, and a cerebral manner” The Guardian says, and “looks slightly out of place in the corridors of Reuters' glitzy Canary Wharf HQ. He and his US editor, Rob Cox, are the only survivors of Breakingviews' early days as a dotcom startup. With the bet finally paying off, Dixon can afford to dispense advice. But he is not, on the surface, given to self-doubt and former colleagues say he was not always emollient with those without such a high IQ.
"One former ally less pleased by the deal was Jonathan Ford, Breakingviews' co-founder and another ex-FT staffer. Having left the site in 2007 after the two men fell out, he was signed up the following year to run Reuters' fledgling commentary operation, a rival to Breakingviews. Reuters' decision to buy Dixon's business effectively put Ford out of a job, and unsurprisingly he left." Ford returned the FT last week chief leader writer.
The Reuters deal has allowed Breakingviews to beef up its offices in London and New York, add a second columnist in Hong Kong and Washington and another in Moscow and to seek columnists for Dubai, Mumbai, Tokyo and Frankfurt. It also has people in Paris and Madrid and syndicates columns to 15 newspapers including The Daily Telegraph, The New York Times and Le Monde. The 30-strong team of Reuters Breakviews columnists includes Neil Collins, former City editor of The Daily Telegraph and Peter Thal Larsen, former banking editor of the FT.
● SOURCE The Guardian
Thomson Reuters audits global food operations, says New York now safe
Wednesday 20 January 2010
Thomson Reuters is auditing food operations at its offices around the world following citations for hygiene violations at its global headquarters in New York.
The cafeteria at 3 Times Square is now safe, according to an internal memo to employees from the internal communications team. The company is monitoring the situation, however.
Media columnist Jeff Bercovici, who broke the original story last week, quoted the internal memo thus on the website Daily Finance: “You may have seen an article called ‘The Dirtiest, and Cleanest, Cafeterias in the Media Business’ that has been circulating on the Internet the past few days. Among its comments on various cafeterias, the article references a November 2009 NYC Health Department inspection of the 3 Times Square cafeteria which cited concerns related to equipment maintenance and food handling. Since that inspection, Aramark -- the company which operates the cafeteria -- has strengthened its processes focused on food handling and equipment. The cafeteria passed a subsequent inspection in December. Aramark has released a statement describing the actions it has taken (see below) and states full confidence in the safety and cleanliness of the food service operations at 3 Times Square.”
The New York City Department of Health and Mental Hygiene had cited failure to vermin-proof the facility at 3 Times Square, “potential contamination sources, and, Other General Violation”. It awarded the cafeteria 32 violation points, mostly concerning food temperature and operating conditions. The executive dining room at 3 Times Square was cited for eight violations.
The internal memo added: “To further support ongoing compliance with standards, Thomson Reuters Facilities group is conducting a close review of Aramark's quarterly internal health inspection reports, annual Health Department inspections, the inventory and maintenance records of cafeteria equipment and the overall state of the cafeteria. We are also conducting audits of other food service operations serving our offices around the globe to ensure that our people have access to healthy food prepared according to strict standards.”
The Aramark statement said: "The circumstances that led to this situation are not reflective of our high standards. We take these matters very seriously and immediately took corrective action to address the situation.
"On November 11, the NYC Board of Health performed a routine inspection of the kitchen and found violations.
"We immediately developed and implemented a plan to take corrective action, which included personnel changes, refreshed employee training, and a full implementation of our sanitation and food safety procedures.
"On December 29, 2009, the NYC Board of Health returned to the kitchen and found the corrective action taken to be effective and the kitchen passed its reinspection.
"Our senior leadership team continues to monitor this location closely to ensure that this remains a clean, safe, and high-quality dining establishment."
● SOURCE Daily Finance
The cafeteria at 3 Times Square is now safe, according to an internal memo to employees from the internal communications team. The company is monitoring the situation, however.
Media columnist Jeff Bercovici, who broke the original story last week, quoted the internal memo thus on the website Daily Finance: “You may have seen an article called ‘The Dirtiest, and Cleanest, Cafeterias in the Media Business’ that has been circulating on the Internet the past few days. Among its comments on various cafeterias, the article references a November 2009 NYC Health Department inspection of the 3 Times Square cafeteria which cited concerns related to equipment maintenance and food handling. Since that inspection, Aramark -- the company which operates the cafeteria -- has strengthened its processes focused on food handling and equipment. The cafeteria passed a subsequent inspection in December. Aramark has released a statement describing the actions it has taken (see below) and states full confidence in the safety and cleanliness of the food service operations at 3 Times Square.”
The New York City Department of Health and Mental Hygiene had cited failure to vermin-proof the facility at 3 Times Square, “potential contamination sources, and, Other General Violation”. It awarded the cafeteria 32 violation points, mostly concerning food temperature and operating conditions. The executive dining room at 3 Times Square was cited for eight violations.
The internal memo added: “To further support ongoing compliance with standards, Thomson Reuters Facilities group is conducting a close review of Aramark's quarterly internal health inspection reports, annual Health Department inspections, the inventory and maintenance records of cafeteria equipment and the overall state of the cafeteria. We are also conducting audits of other food service operations serving our offices around the globe to ensure that our people have access to healthy food prepared according to strict standards.”
The Aramark statement said: "The circumstances that led to this situation are not reflective of our high standards. We take these matters very seriously and immediately took corrective action to address the situation.
"On November 11, the NYC Board of Health performed a routine inspection of the kitchen and found violations.
"We immediately developed and implemented a plan to take corrective action, which included personnel changes, refreshed employee training, and a full implementation of our sanitation and food safety procedures.
"On December 29, 2009, the NYC Board of Health returned to the kitchen and found the corrective action taken to be effective and the kitchen passed its reinspection.
"Our senior leadership team continues to monitor this location closely to ensure that this remains a clean, safe, and high-quality dining establishment."
● SOURCE Daily Finance
Reuters cited for dirtiest media cafeteria in New York
Thursday 14 January 2010
Reuters has the dirtiest media cafeteria in New York, according to recent inspections by the city’s health department.
The New York City Department of Health and Mental Hygiene cited failure to vermin-proof the facility at 3 Times Square, “potential contamination sources, and, Other General Violation”.
It awarded the cafeteria 32 violation points, mostly concerning food temperature and operating conditions. A score of 27 or less is needed for a restaurant to pass the inspection. The average violation point total for all New York City restaurants on their most recent inspection is 14.
The health department said “the Notice of Violation issued for this inspection was resolved by a hearing, or a pleading of guilt and a fine payment, or a default judgement”.
The executive dining room at 3 Times Square – Thomson Reuters’ global headquarters – was cited for eight violations noticed on 30 November.
New York Magazine, under the headline “Never Accept an Invitation to Lunch at the Reuters Cafeteria”, said that after The New York Times shut down its cafeteria because of a gastro-intestinal outbreak last year, the website Daily Finance looked at the rest of the media cafeterias in the city.
The cleanest media cafeterias belong to Google, which earned five points from inspectors, “while ever punctilious Bloomberg managed a sterling four points – surely a relief to employees there, who are strongly encouraged never to leave the building”, media columnist Jeff Bercovici wrote on Daily Finance.
● SOURCE New York City Department of Health and Mental Hygiene | Daily Finance | New York Magazine | The New York Observer
The New York City Department of Health and Mental Hygiene cited failure to vermin-proof the facility at 3 Times Square, “potential contamination sources, and, Other General Violation”.
It awarded the cafeteria 32 violation points, mostly concerning food temperature and operating conditions. A score of 27 or less is needed for a restaurant to pass the inspection. The average violation point total for all New York City restaurants on their most recent inspection is 14.
The health department said “the Notice of Violation issued for this inspection was resolved by a hearing, or a pleading of guilt and a fine payment, or a default judgement”.
The executive dining room at 3 Times Square – Thomson Reuters’ global headquarters – was cited for eight violations noticed on 30 November.
New York Magazine, under the headline “Never Accept an Invitation to Lunch at the Reuters Cafeteria”, said that after The New York Times shut down its cafeteria because of a gastro-intestinal outbreak last year, the website Daily Finance looked at the rest of the media cafeterias in the city.
The cleanest media cafeterias belong to Google, which earned five points from inspectors, “while ever punctilious Bloomberg managed a sterling four points – surely a relief to employees there, who are strongly encouraged never to leave the building”, media columnist Jeff Bercovici wrote on Daily Finance.
● SOURCE New York City Department of Health and Mental Hygiene | Daily Finance | New York Magazine | The New York Observer
Brouhaha in the blogosphere over spiked story
Friday 08 January 2010
The manager, Steven Cohen of SAC Capital Advisors, called Devin Wenig, CEO of the markets division that includes Reuters news agency, last month to complain about a story by reporters Matthew Goldstein and Svea Herbst-Bayliss who had been looking into allegations that Cohen engaged in insider trading in the 1980s.
The brouhaha has quickly been taken up in the blogosphere.
“Wenig passed Cohen's concerns onto Schlesinger, who put the kibosh on the story, raising question about what, precisely, the point of Reuters is if rich people can quash inconvenient stories with a phone call,” Manhattan media blog Gawker said.
Schlesinger said in a conference call with staff on Wednesday it was not a bad story and could have run. The call was tense, according to Gawker, which obtained a recording of it. Schlesinger faced down a string of angry and confused Reuters journalists demanding to know precisely why their boss spiked the story, it said.
During the conference call Schlesinger also fielded questions about contract negotiations with the Newspaper Guild of New York and the controversial redesign of the reuters.com website.
“To judge by the conference call, the Cohen episode has severely demoralized the wire service's staff, which was already preoccupied by bitter contract negotiations between its union members and management,” said another blog, Talking Biz News.
“Schlesinger acknowledged that Wenig had called him about the Cohen story, and that after reading it at Wenig's request, he told his deputy Jack Reerink that he had problems with it. But he denounced the ‘false blog stories’ accusing Reuters of caving to a wealthy hedge fund manager and insisted that his concerns had nothing to so with Cohen's complaint. And he lambasted his staffers for ‘running to a blog and spreading[ing] tittle-tattle’ … instead of raising concerns internally.
“Editors make judgments. You might not always agree with those judgments, and that’s fine,” Schlesinger said in the call. “If you disagree with those judgments, then come to me. Keep it within editorial, and don’t go running to a blog.”
At one point near the end of the call the editor-in-chief interrupted one staff member who said that his editorial judgment was on trial. ”My judgment is not on trial here,” he said, apologizing for losing his temper. “It was a question of judgment, and that judgment is not up for a vote or trial.”
Gawker reported: “When Reuters media reporter Robert MacMillan asked his boss what actually happened, and what was wrong with the story, Schlesinger immediately became testy, and bizarrely seemed to say that there wasn't anything wrong with it: ‘We're not going to do news editing by plebiscite...so I'm not going to go into the details of it. The story could have run. I mean, it was not a bad story. It could have run. But I had questions about it.’ Schlesinger said that the decision to kill it wasn't actually his — he raised his questions with Reerink, who made the ultimate decision: ‘I was actually in Tokyo. I said, look, it's up to you, I'm going to bed. He made a decision not to run it. That's it.’”
Schlesinger declined to explain his decision beyond saying “You obviously have a choice — you can either believe me or not. And if you don't believe me, fine. But I'm telling you that I was hired as an editor to make judgments. And I make those judgments free of pressure.”
Talking Biz News said Reerink, global company news editor, wrote a note to staff on Friday in which he mocked the blogs and said: “In the real world, we live by the trust principles. In the real world, we kick back stories for more reporting, balance or insight. In the real world, we don’t run every story just because we wrote it.
“Are we going to be right all the time? No. But we’ll try very hard. And we’ll learn from our mistakes. (and this was not a mistake, by the way).”
Talking Biz News published what it said was an e-mail sent by Schlesinger. It said: “There’s been blog chatter in the US this week that I spiked a story because Devin told me to after he got a call from the story’s putative subject. I know many of our journalists have been concerned by the reports and even wondered if they were true.
“Don’t believe them.
“We make decisions on stories for editorial and journalistic reasons only.
“Those decisions, by their nature, are judgement calls and you of course are always free to question the judgement or debate the issues. But never doubt the commitment of this company and of me to our Trust principles and journalistic ethics.
“In my three years as Editor-in-Chief (and in the three years before that when I was running editorial operations), neither Tom [Glocer, chief executive] nor Devin has ever asked me to kill a story or to run a story. I would have objected loudly if they had.”
● SOURCE Gawker | Talking Biz News | The Business Insider
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
Avoidance of debt said key to success of Thomson Reuters deal
Tuesday 29 December 2009
Thomson’s takeover of Reuters fared better than other media deals that have since turned sour because the Canadian group avoided taking on vast debts, says Geoffrey Beattie, the combined group’s deputy chairman.
Beattie, who is also president of the Thomson family’s investment company Woodbridge – 55 per cent shareholder in Thomson Reuters – said that by using “super profits” from selling college textbooks arm Thomson Learning to private equity buyers, “we went in completely financially hedged”.
Thomson worked on tax planning for the cash and stock deal for two years, Beattie told the Financial Times. Since then, “in the darkest days of last year”, Woodbridge has bought back C$500 million of stock at depressed valuations.
Thomson Reuters has been one of media’s most resilient performers, and avoided the shocks delivered by peers such as Reed Elsevier, the FT said.
Canada’s richest family shocked their industry by selling The Times and The Sunday Times to Rupert Murdoch in 1981, but after the crisis of the past two years the unsentimental decision to trade out of print media for better long-term opportunities looks like part of a pattern, the FT said.
“Having pocketed $7.75bn, $2bn more than outsiders had expected, Thomson revealed a £7.9bn offer for Reuters, in the same month as Mr Murdoch’s News Corp doubled up on newspapers with a $5.6bn bid for Dow Jones. The deal transformed its Thomson Financial division into a market data leader on a par with Bloomberg and diversified a portfolio focused on professional information systems for lawyers, scientists and accountants.”
Thomson Reuters has not been immune, however. The former Thomson Corp share price, which topped C$50 in early 2007, now stands below $34.
Beattie describes the difference between the family’s fortunes and those of others as the difference between building and trading. Whether or not a controlling shareholder represents a family, “when you have big illiquid positions, you have to be much more focused on risk management and longer-term market cycles”.
The typical institutional shareholder may hold a stock for less than six months, but families cannot trade in and out of their investments, he notes. The advantage is they avoid trading costs, think more carefully about the merits and proper risk-return ratio of their assets, and know that “from time to time there will be opportunities where the market gets ahead of itself”.
“We know there are always bumps in the road but long-term investors win over short-term investors. It’s a kind of religion [with the family]”, adds Roger Martin, a Thomson Reuters director and dean of Toronto university’s Rotman management school.
He notes that there is a difference between family investors such as Woodbridge, whose economic stake matches their voting control, and those who use super-voting rights to magnify their power over their groups. “There’s a nice moral authority point there. It’s not just a management that doesn’t own any shares in the company saying, ‘Don’t worry about the share price, we’re doing everything we can.’”
● SOURCE Financial Times
Beattie, who is also president of the Thomson family’s investment company Woodbridge – 55 per cent shareholder in Thomson Reuters – said that by using “super profits” from selling college textbooks arm Thomson Learning to private equity buyers, “we went in completely financially hedged”.
Thomson worked on tax planning for the cash and stock deal for two years, Beattie told the Financial Times. Since then, “in the darkest days of last year”, Woodbridge has bought back C$500 million of stock at depressed valuations.
Thomson Reuters has been one of media’s most resilient performers, and avoided the shocks delivered by peers such as Reed Elsevier, the FT said.
Canada’s richest family shocked their industry by selling The Times and The Sunday Times to Rupert Murdoch in 1981, but after the crisis of the past two years the unsentimental decision to trade out of print media for better long-term opportunities looks like part of a pattern, the FT said.
“Having pocketed $7.75bn, $2bn more than outsiders had expected, Thomson revealed a £7.9bn offer for Reuters, in the same month as Mr Murdoch’s News Corp doubled up on newspapers with a $5.6bn bid for Dow Jones. The deal transformed its Thomson Financial division into a market data leader on a par with Bloomberg and diversified a portfolio focused on professional information systems for lawyers, scientists and accountants.”
Thomson Reuters has not been immune, however. The former Thomson Corp share price, which topped C$50 in early 2007, now stands below $34.
Beattie describes the difference between the family’s fortunes and those of others as the difference between building and trading. Whether or not a controlling shareholder represents a family, “when you have big illiquid positions, you have to be much more focused on risk management and longer-term market cycles”.
The typical institutional shareholder may hold a stock for less than six months, but families cannot trade in and out of their investments, he notes. The advantage is they avoid trading costs, think more carefully about the merits and proper risk-return ratio of their assets, and know that “from time to time there will be opportunities where the market gets ahead of itself”.
“We know there are always bumps in the road but long-term investors win over short-term investors. It’s a kind of religion [with the family]”, adds Roger Martin, a Thomson Reuters director and dean of Toronto university’s Rotman management school.
He notes that there is a difference between family investors such as Woodbridge, whose economic stake matches their voting control, and those who use super-voting rights to magnify their power over their groups. “There’s a nice moral authority point there. It’s not just a management that doesn’t own any shares in the company saying, ‘Don’t worry about the share price, we’re doing everything we can.’”
● SOURCE Financial Times
Tom Glocer upbeat at close of 'a particularly memorable year'
Tuesday 22 December 2009
“This has been a year of unprecedented challenge and equally unprecedented achievement for Thomson Reuters,” the chief executive told the group’s 50,000 staff on Tuesday.
“Over the past 15 months, the world came frighteningly close to economic collapse. But even though all signs in the global economy and in our business suggest the worst is behind us, nobody knows for sure what shape the economic recovery will take.
“To cope with this economic uncertainty, we are building on our company's strong 2009 performance by continuing to invest in the key projects that will help us restart growth and deliver long-term value to our stakeholders. I feel renewed confidence in our ability to do this. I have just returned from visiting many of our offices and customers in China, the UAE, India and Japan, and at each stop I found new growth opportunities and met with employees whose talent and passion for the business convinced me that we will capture those opportunities. Even in areas where growth has slowed or stopped for the moment, we have opportunities to take share and the people who can make it happen.
“I’ll have more to say on this as the new year begins. But now, as we reach the end of a particularly memorable year, I just want to take a moment to say thanks. Your dedication, hard work and skill drove great progress on our 2009 priorities.”
Glocer listed these as
● “Integration – thanks to an amazing performance in Markets, we're running ahead of target and schedule on the Reuters integration program
● “Globalization – we've taken bold steps to expand our position in the world's fastest growing markets such as building out our Westlaw business internationally and expanding our Scientific markets
● “Whole greater than the sum of its parts – there have been many successes here including the growing impact of the Thomson Reuters brand, which entered the top 40 of the world's most valuable brands this year, and the development of best-in-class product platforms such as Cobalt, Utah and the Global Tax Workstation.
“You accomplished all this in the face of the toughest economic conditions any of us have ever experienced.
Year's end is also an appropriate time to reflect on all that you have done to benefit our communities. As I see it, being a world-class company isn't just about hitting our numbers, important though that is. It's also about the values we uphold and what we stand for in the wider world. On that front, I feel incredibly fortunate to work for this company.”
● SOURCE Reuters
World in transition to Asia's century says Tom Glocer
Tuesday 22 December 2009
The world is living through the transition from America's century to Asia's says Tom Glocer, but Thomson Reuters’ chief executive remains optimistic about the United States.
"…it does feel to me as if we are living through the transition from America’s century (20th) to Asia’s century (21st). (Europe’s century was obviously the 19th),” he writes in his latest blog posting. “Despite all our challenges, I remain optimistic about the United States. Sure we need to begin living within our means and not treating the roofs over heads as a revolving credit facility, but the productive and innovative capacity of the country is still great and Asia’s rise need not be a zero sum game. Nonetheless, America’s reign as the world’s only superpower will have been short-lived."
He added: “Don’t count out the Gulf. While Dubai’s current problems are well known, it would be wrong to conclude that Abu Dhabi, Qatar and Bahrain are all one large palm-shaped sand bar stretching into the sea. Anyone for the 22nd being Africa’s century with the Gulf its major trading hub?"
In India, Glocer told an interviewer that Thomson Reuters is moving more international jobs to India and other Asian nations as the developed world is still emerging from the worst recession after the credit crisis.
Glocer wrote his blog on the long way home to New York from a 12-day end-of-year trip to Tokyo, Beijing, Shanghai, Hong Kong, Mumbai, Hyderabad, Chennai, Bangalore, Abu Dhabi and Dubai. "While Asia and the Gulf are regular destinations for me, I seldom try to cover this much ground in such little time,” he noted. “Fun for the aging body it is not."
● Tom Glocer’s blog
"…it does feel to me as if we are living through the transition from America’s century (20th) to Asia’s century (21st). (Europe’s century was obviously the 19th),” he writes in his latest blog posting. “Despite all our challenges, I remain optimistic about the United States. Sure we need to begin living within our means and not treating the roofs over heads as a revolving credit facility, but the productive and innovative capacity of the country is still great and Asia’s rise need not be a zero sum game. Nonetheless, America’s reign as the world’s only superpower will have been short-lived."
He added: “Don’t count out the Gulf. While Dubai’s current problems are well known, it would be wrong to conclude that Abu Dhabi, Qatar and Bahrain are all one large palm-shaped sand bar stretching into the sea. Anyone for the 22nd being Africa’s century with the Gulf its major trading hub?"
In India, Glocer told an interviewer that Thomson Reuters is moving more international jobs to India and other Asian nations as the developed world is still emerging from the worst recession after the credit crisis.
Glocer wrote his blog on the long way home to New York from a 12-day end-of-year trip to Tokyo, Beijing, Shanghai, Hong Kong, Mumbai, Hyderabad, Chennai, Bangalore, Abu Dhabi and Dubai. "While Asia and the Gulf are regular destinations for me, I seldom try to cover this much ground in such little time,” he noted. “Fun for the aging body it is not."
● Tom Glocer’s blog
Thomson Reuters limits 2010 price increases
Friday 18 December 2009
Thomson Reuters will increase the price of most of its data products by three per cent instead of 4.75 per cent in 2010, reflecting tighter budgets for market data, a senior company executive said.
“An annual Thomson Reuters price adjustment is part of our standard operating procedure and is well understood and anticipated by our customers,” said Simon Lee, global head of commercial operations.
Thomson Reuters raised its prices by 4.75 per cent in 2009. The former Thomson and Reuters groups separately hiked their prices by four per cent in 2008.
The three per cent increase for 2010 will be imposed on all datafeeds related to market data, such as Reuters 3000Xtra, Thomson One Investment Management, Thomson One.com Investment Banking and Thomson ONE Wealth Management. Reuters Dealing, the foreign exchange trade platform, will not be increased because it was already “appropriately priced”, Lee said.
The decision to minimise any price increases for datafeed products was communicated to customers in October and did not reflect any concerns about competition, Lee said.
● SOURCE Securities Industry News
“An annual Thomson Reuters price adjustment is part of our standard operating procedure and is well understood and anticipated by our customers,” said Simon Lee, global head of commercial operations.
Thomson Reuters raised its prices by 4.75 per cent in 2009. The former Thomson and Reuters groups separately hiked their prices by four per cent in 2008.
The three per cent increase for 2010 will be imposed on all datafeeds related to market data, such as Reuters 3000Xtra, Thomson One Investment Management, Thomson One.com Investment Banking and Thomson ONE Wealth Management. Reuters Dealing, the foreign exchange trade platform, will not be increased because it was already “appropriately priced”, Lee said.
The decision to minimise any price increases for datafeed products was communicated to customers in October and did not reflect any concerns about competition, Lee said.
● SOURCE Securities Industry News
Thomson Reuters Foundation launches humanitarian news lifeline
Tuesday 15 December 2009
The Thomson Reuters Foundation launched its Emergency Information Service (EIS), a humanitarian news lifeline designed to help the survivors of major natural disasters. The free service will supply fast and practical information from all available sources, such as help in finding shelters, drinking water and missing relatives.
“The aim is to provide accurate and actionable information to the affected population,” Monique Villa, chief executive of the Foundation, told a launch event at Thomson Reuters’ London office at Canary Wharf.
An EIS team of journalists based in the disaster zone will collect information and disseminate it in local languages using all available communications, from SMS text messages and radio to “zero tech” methods such as posters, leaflets and megaphones.
Tim Large, editor of Alertnet, the Foundation’s humanitarian news service, said the teams would comprise Alertnet and Reuters-trained reporters working with local media and NGOs. They would also cooperate with the Federation of Red Cross and Red Crescent Societies, a major supporter of AlertNet since it was founded in 1997, as well as other NGOs.
The inspiration for the EIS came from the 1994 Tsunami disaster, which killed 226,000 people and demonstrated on a massive scale the victims’ need for vital information. To mark the fifth anniversary, AlertNet and the Red Cross have teamed up to pay tribute to the survivors in a film called Surviving the Tsunami: Stories of Hope, which was shown at the launch event. Watch the trailer, right, or click on the link below to see the whole film.
● Emergency Information Service
● AlertNet
● Reporter’s Notebook by Dean Yates
● Surviving the Tsunami | VIDEO
“The aim is to provide accurate and actionable information to the affected population,” Monique Villa, chief executive of the Foundation, told a launch event at Thomson Reuters’ London office at Canary Wharf.
An EIS team of journalists based in the disaster zone will collect information and disseminate it in local languages using all available communications, from SMS text messages and radio to “zero tech” methods such as posters, leaflets and megaphones.
Tim Large, editor of Alertnet, the Foundation’s humanitarian news service, said the teams would comprise Alertnet and Reuters-trained reporters working with local media and NGOs. They would also cooperate with the Federation of Red Cross and Red Crescent Societies, a major supporter of AlertNet since it was founded in 1997, as well as other NGOs.
The inspiration for the EIS came from the 1994 Tsunami disaster, which killed 226,000 people and demonstrated on a massive scale the victims’ need for vital information. To mark the fifth anniversary, AlertNet and the Red Cross have teamed up to pay tribute to the survivors in a film called Surviving the Tsunami: Stories of Hope, which was shown at the launch event. Watch the trailer, right, or click on the link below to see the whole film.
● Emergency Information Service
● AlertNet
● Reporter’s Notebook by Dean Yates
● Surviving the Tsunami | VIDEO
Thomson Reuters seeks more office space in London’s Docklands
Monday 14 December 2009
Four years after Reuters moved to London’s Docklands, Thomson Reuters is searching for more office space at Canary Wharf.
The company is consolidating from its City of London buildings occupied by the former Thomson group into space closer to the 283,000 square feet building at 30 South Colonnade to which Reuters transferred in 2005 after selling its landmark headquarters at 85 Fleet Street.
The website Need Office Space said likely properties for the relocation include 5 Churchill Place, which was sold last week for £208 million, and 328,000 square feet at 30 North Colonnade.
The Thomson arm of the group occupies almost 200,000 square feet in the City, including 56,000 square feet at Aldgate House, 50,000 square feet at 1 Mark Square, 46,000 square feet at 71-80 Hatton Garden and 42,000 square feet at 58-64 City Road.
● SOURCE Need Office Space
The company is consolidating from its City of London buildings occupied by the former Thomson group into space closer to the 283,000 square feet building at 30 South Colonnade to which Reuters transferred in 2005 after selling its landmark headquarters at 85 Fleet Street.
The website Need Office Space said likely properties for the relocation include 5 Churchill Place, which was sold last week for £208 million, and 328,000 square feet at 30 North Colonnade.
The Thomson arm of the group occupies almost 200,000 square feet in the City, including 56,000 square feet at Aldgate House, 50,000 square feet at 1 Mark Square, 46,000 square feet at 71-80 Hatton Garden and 42,000 square feet at 58-64 City Road.
● SOURCE Need Office Space
Thomson Reuters moving more international jobs to Asia - Tom Glocer
Sunday 13 December 2009
Thomson Reuters is moving more jobs to India and other Asian nations as the developed world is still emerging from the worst recession after the credit crisis, says Tom Glocer.
"We are moving more international jobs to the region," the chief executive said.
"HSBC and Standard Chartered have done much better than the Royal Bank of Scotland and Lloyds, in part, because of their presence in the Asian markets and developing markets," he said in an interview.
"We have more people in India than in any other country, except the US," Glocer told The Economic Times of India.
"Legal business is building up and we have an important role to play with partners in the development of the Indian judicial system," he said.
The head of Thomson Reuters' investment advisory and wealth management business, Eric Frank, is relocating to Hong Kong from New York to run the wealth management business from Asia because "the opportunities are so significant" Glocer said.
"It is a good period for stronger institutions," Glocer said. "That doesn't mean that any of them are going to go on a spending spree. But it does overall help, if the financial system improves."
Glocer said the global economic recovery would be uneven. He pointed to the theory of Sir Martin Sorrell, CEO of advertising agency WPP, who believes recovery in Europe will be L-shaped, in the U.S. it will be U-shaped – low and slow – while in countries such as China and India it will be V-shaped, which means rapid recovery.
"I don't want to pretend that all are bouncing back," Glocer added. "I also think that the darkest hour before the dawn is not the right time to predict the colours of the next 48 hours.”
● SOURCE Trading Markets / The Economic Times
"We are moving more international jobs to the region," the chief executive said.
"HSBC and Standard Chartered have done much better than the Royal Bank of Scotland and Lloyds, in part, because of their presence in the Asian markets and developing markets," he said in an interview.
"We have more people in India than in any other country, except the US," Glocer told The Economic Times of India.
"Legal business is building up and we have an important role to play with partners in the development of the Indian judicial system," he said.
The head of Thomson Reuters' investment advisory and wealth management business, Eric Frank, is relocating to Hong Kong from New York to run the wealth management business from Asia because "the opportunities are so significant" Glocer said.
"It is a good period for stronger institutions," Glocer said. "That doesn't mean that any of them are going to go on a spending spree. But it does overall help, if the financial system improves."
Glocer said the global economic recovery would be uneven. He pointed to the theory of Sir Martin Sorrell, CEO of advertising agency WPP, who believes recovery in Europe will be L-shaped, in the U.S. it will be U-shaped – low and slow – while in countries such as China and India it will be V-shaped, which means rapid recovery.
"I don't want to pretend that all are bouncing back," Glocer added. "I also think that the darkest hour before the dawn is not the right time to predict the colours of the next 48 hours.”
● SOURCE Trading Markets / The Economic Times
World trade chief appointed a Thomson Reuters trustee
Monday 07 December 2009
Founders Share Company directors act as trustees of the Thomson Reuters Trust Principles which govern the way Thomson Reuters Corporation conducts business.
Lamy, 62, began his career in the French civil service at the Inspection Générale des Finances and at the Treasury. He then became an advisor to the Finance Minister Jacques Delors, and, subsequently, to Prime Minister Pierre Mauroy. In Brussels between 1985 and 1994, he was chief of staff to the president of the European Commission, Jacques Delors, and later CEO of the restructured French bank Credit Lyonnais. He was also commissioner for trade at the European Commission under Romano Prodi and since September 2005 he has been director general at the WTO.
Pehr Gyllenhammar, chairman of the Founders Share Company, said, "I am delighted to welcome Mr Lamy to the Founders Share Company. I first worked with Mr Lamy when he was Chief of Staff to the President of the European Union, Mr Jacques Delors, and later when he was Commissioner for Trade at the European Commission and I am very much looking forward to working with him again. Mr Lamy will bring a wealth of invaluable global experience to our distinguished Board."
Lamy said, "I look forward to working with the members of the Board to help uphold the values of integrity, independence and freedom from bias contained within Thomson Reuters Trust Principles."
The constitution of Thomson Reuters Corporation, ultimate parent company of the Thomson Reuters Group, includes provisions to safeguard the Principles. Thomson Reuters has issued the Founders Share Company with a single Founders Share which enables it to block any shareholder action which threatens the Principles.
● SOURCE PR Newswire
Thomson Reuters hires former BusinessWeek editor-in-chief
Wednesday 02 December 2009
Former BusinessWeek editor-in-chief Stephen Adler will join Thomson Reuters as editorial director of the professional division, the company said on Wednesday.
Adler, who left BusinessWeek after McGraw-Hill said it would sell the struggling magazine to Bloomberg, will design and edit news and editorial content for the Thomson Reuters division that serves legal, healthcare, science, tax and accounting professionals.
He will report to Jim Smith, who runs the professional division, and will work with David Schlesinger, editor-in-chief, who said Adler's background "is perfect for helping us create news packages that are relevant to the customers (that) the businesses within Professional serve”.
Adler became BusinessWeek's editor-in-chief in 2005. Previously he worked for 16 years at The Wall Street Journal, including posts as legal editor, investigative editor and deputy managing editor, and edited The American Lawyer magazine.
"This is an incredible opportunity with a company that's leading the way into the future of business information and media," Adler said. "I have long respected the market-leading Professional businesses and world-class Reuters news team and look forward to working with both."
Adler is among the highest-profile departures from BusinessWeek, which shed many journalists and columnists after Bloomberg said it would buy the magazine. Bloomberg completed its purchase on Tuesday.
● SOURCE Reuters
Adler, who left BusinessWeek after McGraw-Hill said it would sell the struggling magazine to Bloomberg, will design and edit news and editorial content for the Thomson Reuters division that serves legal, healthcare, science, tax and accounting professionals.
He will report to Jim Smith, who runs the professional division, and will work with David Schlesinger, editor-in-chief, who said Adler's background "is perfect for helping us create news packages that are relevant to the customers (that) the businesses within Professional serve”.
Adler became BusinessWeek's editor-in-chief in 2005. Previously he worked for 16 years at The Wall Street Journal, including posts as legal editor, investigative editor and deputy managing editor, and edited The American Lawyer magazine.
"This is an incredible opportunity with a company that's leading the way into the future of business information and media," Adler said. "I have long respected the market-leading Professional businesses and world-class Reuters news team and look forward to working with both."
Adler is among the highest-profile departures from BusinessWeek, which shed many journalists and columnists after Bloomberg said it would buy the magazine. Bloomberg completed its purchase on Tuesday.
● SOURCE Reuters
Thomson Reuters completes acquisition of Breakingviews
Tuesday 01 December 2009
Thomson Reuters said on Tuesday it had completed its acquisition of Breakingviews, a leading provider of online financial insight, positioning the newly combined commentary organisation as the global leader in point-of-view journalism for financial markets.
The output of the combined team of Reuters’ original commentary writers and the Breakingviews people will be known as Reuters Breakingviews to make a clear distinction between the news service and commentary offerings.
"A fundamental plank of our Editorial strategy for making Reuters the indispensable news service for the 21st century is to expand our traditional fact-based news coverage to also offer agenda-setting point-of-view journalism. I am confident we will build upon reputation and expertise from both Reuters and Breakingviews and leverage the expertise of the combined organization," said David Schlesinger, editor-in-chief.
The Reuters Breakingviews attribution will designate the commentary and opinion of the named authors, while Reuters will designate the expert sourced news and analysis that has moved markets and provided insight for more than 150 years.
Reuters Breakingviews has about 30 columnists based in London, New York, Hong Kong, Paris, Washington, Moscow and Madrid, with immediate plans for expanded coverage in the Gulf, Japan, Germany and India.
The newly combined service is available on all Thomson Reuters desktops with selected commentaries appearing on reuters.com. Reuters Breakingviews also reaches a broader audience of nearly 4.5 million investors and opinion formers via daily columns in many of the world's most influential newspapers, including The New York Times, Le Monde, The Daily Telegraph and the International Herald Tribune.
Hugo Dixon, editor, Reuters Breakingviews, who will be running the combined commentary team, said: "The enlarged team will have global reach, allowing us to react more rapidly to breaking news and cover more stories. We will also now be able to reach hundreds of thousands more influential readers through Thomson Reuters desktops."
Breakingviews was founded in 1999 to provide online financial commentary aimed at a professional audience. It is one of a handful of journalism websites to have successfully introduced a subscription model. The company also has a thriving syndication business.
● SOURCE Marketwire
The output of the combined team of Reuters’ original commentary writers and the Breakingviews people will be known as Reuters Breakingviews to make a clear distinction between the news service and commentary offerings.
"A fundamental plank of our Editorial strategy for making Reuters the indispensable news service for the 21st century is to expand our traditional fact-based news coverage to also offer agenda-setting point-of-view journalism. I am confident we will build upon reputation and expertise from both Reuters and Breakingviews and leverage the expertise of the combined organization," said David Schlesinger, editor-in-chief.
The Reuters Breakingviews attribution will designate the commentary and opinion of the named authors, while Reuters will designate the expert sourced news and analysis that has moved markets and provided insight for more than 150 years.
Reuters Breakingviews has about 30 columnists based in London, New York, Hong Kong, Paris, Washington, Moscow and Madrid, with immediate plans for expanded coverage in the Gulf, Japan, Germany and India.
The newly combined service is available on all Thomson Reuters desktops with selected commentaries appearing on reuters.com. Reuters Breakingviews also reaches a broader audience of nearly 4.5 million investors and opinion formers via daily columns in many of the world's most influential newspapers, including The New York Times, Le Monde, The Daily Telegraph and the International Herald Tribune.
Hugo Dixon, editor, Reuters Breakingviews, who will be running the combined commentary team, said: "The enlarged team will have global reach, allowing us to react more rapidly to breaking news and cover more stories. We will also now be able to reach hundreds of thousands more influential readers through Thomson Reuters desktops."
Breakingviews was founded in 1999 to provide online financial commentary aimed at a professional audience. It is one of a handful of journalism websites to have successfully introduced a subscription model. The company also has a thriving syndication business.
● SOURCE Marketwire
The bottom line: secret story of Thomson Reuters logo
Friday 20 November 2009
A disaffected member of Thomson Reuters’ design team has sent an image purporting to explain its inspiration to a blog called Post Secret. In short order the designer's parting shot then appeared on Finextra, a newswire and information source for the worldwide financial technology community, which credited Felix Salmon, a blogger on Reuters' commentary team, for forwarding it.
The image as it appears on the two websites is pictured right.
Earlier this month Thomson Reuters won a World Brand Congress award for brand leadership in information technology. It was also ranked 40th in the Top 100 Global Brands listed by BusinessWeek.
● SOURCE Post Secret | Finextra
Thomson family, Canada's richest, increases wealth despite recession
Thursday 19 November 2009
“In compiling our 11th annual Rich 100 list, we were surprised to discover that at the tail-end of the recession the majority of Canada's richest had not just stopped bleeding money - they were making it again. A lot of it,” the magazine said.
From April to September, the Toronto Stock Exchange composite index rose by nearly 45 per cent – a rise further bolstered by the strength of the Canadian dollar. That translated into a C$7.6 billion rise in the net worth of Canada’s 100 richest people. Almost half of that gain – just over C$3.5 billion – went to Canada’s richest family by far, the Thomsons headed by the 3rd Baron Thomson of Fleet, pictured.
“The family of the late Kenneth Thomson was worth roughly $21.99 billion as of late September, when we finalized our calculations for this year," Canadian Business said. "That’s an impressive 19% jump from last year, when the sagging fortunes of the media industry had hammered the value of the family’s central asset: more than 455 million shares in Thomson Reuters Corp. But that really fails to capture the awe-inspiring windfall that the rebound bestowed upon Canada’s richest clan. Consider this: that $3.5-billion gain from 2008 to 2009 translates into $10.9 million per day, $452,500 per hour, $7,540 per minute and $126 per second. But even at that, the Thomsons are still well below their record high of $25.35 billion, reached in 2007.”
Thomson Reuters shares have fallen by C$1.99 in the past couple of months, carving C$907 million off the family fortune, the magazine said.
“But the Thomsons won’t need to worry about selling assets to pay the bills any time soon. It’s been three years since Ken, the kindly family patriarch who was frequently seen walking his dog around Toronto’s posh Rosedale neighbourhood, passed away. His son, David, is now head of the family’s collection of businesses, and serves as chairman of Thomson Reuters.
“Like his father, David shuns the spotlight and rarely speaks publicly. That’s also true of the other siblings, Peter - who is also active in the family businesses and sits on the board of Thomson Reuters - and sister Taylor, who has worked as an actress and producer, but plays little role in the family business.”
● SOURCE Canadian Business
Thomson Reuters Foundation appoints new chairman
Wednesday 18 November 2009
David Binet, executive vice president of the Thomson family’s investment vehicle Woodbridge, has been appointed chairman of Thomson Reuters Foundation. He takes over immediately.
The appointment was made by the Foundation’s Board of Trustees. Binet is a trustee. Woodbridge is the majority shareholder in Thomson Reuters.
Binet succeeds Dick Harrington, former chief executive officer of The Thomson Corporation, who has been chairman of the Foundation since Thomson completed its takeover of Reuters in April 2008.
“David’s experience as a trustee, and his deep background in journalism, law and business make him uniquely qualified to lead the Foundation,” said Tom Glocer, chief executive officer of Thomson Reuters. “Under David’s guidance, the Foundation can expand the impact and influence of its good work around the world.” He added: “I want to thank Dick Harrington for his many contributions as chairman, seeing the organization through the integration and putting in place the cornerstones on which the new Foundation will be built.”
Binet is a former reporter and editor with The Canadian Press. Prior to joining Woodbridge in 1999 he was a partner in the Canadian law firm Torys. He is also a member of the board of directors of CTVglobemedia, which owns Canada's largest television network, CTV, a number of specialty channels and 34 radio stations, as well as The Globe and Mail, Canada's national newspaper.
“The Foundation has enormous potential to grow beyond its current scope and truly represent the breadth and depth of Thomson Reuters globally,” Binet said. “I am committed to unlocking that potential, building on the important initiatives under way and exploring new ways in which the Foundation can make a difference in the world.”
Monique Villa, chief executive officer of the Foundation, said: “I am delighted that David has agreed to chair the Board of Trustees of the Foundation. David has been actively involved in helping us strengthen and expand a world-class corporate foundation. His appointment comes at a time when we are preparing to launch two important programs -- to give broader access to the rule of law and to help affected populations when disaster strikes. His leadership, and his experience as a journalist and a lawyer, will be invaluable in this next exciting phase of the Thomson Reuters Foundation."
● SOURCE Thomson Reuters Foundation
The appointment was made by the Foundation’s Board of Trustees. Binet is a trustee. Woodbridge is the majority shareholder in Thomson Reuters.
Binet succeeds Dick Harrington, former chief executive officer of The Thomson Corporation, who has been chairman of the Foundation since Thomson completed its takeover of Reuters in April 2008.
“David’s experience as a trustee, and his deep background in journalism, law and business make him uniquely qualified to lead the Foundation,” said Tom Glocer, chief executive officer of Thomson Reuters. “Under David’s guidance, the Foundation can expand the impact and influence of its good work around the world.” He added: “I want to thank Dick Harrington for his many contributions as chairman, seeing the organization through the integration and putting in place the cornerstones on which the new Foundation will be built.”
Binet is a former reporter and editor with The Canadian Press. Prior to joining Woodbridge in 1999 he was a partner in the Canadian law firm Torys. He is also a member of the board of directors of CTVglobemedia, which owns Canada's largest television network, CTV, a number of specialty channels and 34 radio stations, as well as The Globe and Mail, Canada's national newspaper.
“The Foundation has enormous potential to grow beyond its current scope and truly represent the breadth and depth of Thomson Reuters globally,” Binet said. “I am committed to unlocking that potential, building on the important initiatives under way and exploring new ways in which the Foundation can make a difference in the world.”
Monique Villa, chief executive officer of the Foundation, said: “I am delighted that David has agreed to chair the Board of Trustees of the Foundation. David has been actively involved in helping us strengthen and expand a world-class corporate foundation. His appointment comes at a time when we are preparing to launch two important programs -- to give broader access to the rule of law and to help affected populations when disaster strikes. His leadership, and his experience as a journalist and a lawyer, will be invaluable in this next exciting phase of the Thomson Reuters Foundation."
● SOURCE Thomson Reuters Foundation
Thomson Reuters almost back to pre-Lehman bankruptcy levels - Tom Glocer
Monday 16 November 2009
Thomson Reuters has been hurt by the demise of several Wall Steet firms but was able to pick up business from acquirers such as Barclays and Nomura and is almost back to pre-Lehman Brothers bankruptcy levels, Tom Glocer said on Monday.
"We've gotten the business back much faster than I expected," the chief executive said on the sidelines of the WSJ CEO Council in New York.
The financial business, however, continues to be slow. He pointed to health care, science and tax and accounting services as a growth area.
Glocer said the United States should see a slow climb back to employment but some jobs aren't coming back because they have been eliminated, or sent overseas, or replaced by technology.
Thomson Reuters has continued to selectively hire and continues to do so, he said. The company did not make any major job cuts and does not foresee any. Instead, he said it has slowed the pace of hiring to contain operating costs.
● SOURCE The Wall Street Journal / Dow Jones Newswires
"We've gotten the business back much faster than I expected," the chief executive said on the sidelines of the WSJ CEO Council in New York.
The financial business, however, continues to be slow. He pointed to health care, science and tax and accounting services as a growth area.
Glocer said the United States should see a slow climb back to employment but some jobs aren't coming back because they have been eliminated, or sent overseas, or replaced by technology.
Thomson Reuters has continued to selectively hire and continues to do so, he said. The company did not make any major job cuts and does not foresee any. Instead, he said it has slowed the pace of hiring to contain operating costs.
● SOURCE The Wall Street Journal / Dow Jones Newswires
Kurt Schork Awards winner misses ceremony due to late visa
Friday 13 November 2009
Karachi-based reporter Maqbool Ahmed was unable to receive the $5,000 prize for a local journalist in the developing world or a country in transition in person. It was in recognition of his article titled Inside Swat, published in The Herald, a Pakistani magazine, in November 2008.
The $5,000 prize for a freelance journalist covering foreign news was awarded jointly to Manon Quérouil of France for Columbia - Occupation: Contract Killer published in Marie Claire in April 2009 and Nir Rosen of the United States for How We Lost the War We Won published in Rolling Stone in October 2008.
The awards, administered by the Institute for War & Peace Reporting, recognise fearless freelance news reporting and journalists who report from their own countries at great personal risk and sacrifice. They were presented by Kurt Schork's partner, Sabina Cosic of the Kurt Schork Memorial Fund.
Schork, an American freelance journalist, was killed in a military ambush in Sierra Leone on 24 May 2000 while on assignment for Reuters.
Photo: Manon Quérouil (left) and Nir Rosen
● Kurt Schork Memorial Fund
● Institute for War & Peace Reporting
● Sean Maguire
● Kurt Schork in the Reuters Memorial Book
EU anti-trust regulators probe RICs
Tuesday 10 November 2009
European Union anti-trust regulators launched an investigation into Thomson Reuters' coding practice, saying the structure might discourage customers from moving to rival firms.
The European Commission, which polices competition in the 27 EU countries, said the investigation was launched on its own initiative and that it did not imply it had proof of an infringement.
The Commission said it would examine whether Thomson Reuters could prevent clients from mapping Reuters Instrument Codes (RICs) to alternative identification codes of other datafeed suppliers.
"Without the possibility of such mapping, customers may potentially be 'locked'-in to working with Thomson Reuters because replacing RICs by reconfiguring or by rewriting their software applications can be a long and costly procedure," it said in a statement.
RICs identify financial instruments including shares in companies, currencies, and futures contracts. They are used to retrieve information from Thomson Reuters' real-time datafeeds.
Thomson Reuters confirmed it had received a questionnaire from the Commission on the use of RICs and that it was cooperating with the Commission.
"Thomson Reuters provides its customers with consistent, dependable and convenient access to several million financial instruments from almost every electronic trading venue around the world," the company said in a statement. "Thomson Reuters data is reliably and consistently identified by a managed code, which we create and maintain to enable navigation of the company's global content."
Jonathan Todd, a spokesman for the European Commission, told a news conference the commission's concern was that Thomson Reuters customers were unable to use alternative market datafeeds alongside the company's service. "There are three actual and potential competitors for Thomson Reuters in this area and none of them have this restriction," he said.
● SOURCE Reuters
The European Commission, which polices competition in the 27 EU countries, said the investigation was launched on its own initiative and that it did not imply it had proof of an infringement.
The Commission said it would examine whether Thomson Reuters could prevent clients from mapping Reuters Instrument Codes (RICs) to alternative identification codes of other datafeed suppliers.
"Without the possibility of such mapping, customers may potentially be 'locked'-in to working with Thomson Reuters because replacing RICs by reconfiguring or by rewriting their software applications can be a long and costly procedure," it said in a statement.
RICs identify financial instruments including shares in companies, currencies, and futures contracts. They are used to retrieve information from Thomson Reuters' real-time datafeeds.
Thomson Reuters confirmed it had received a questionnaire from the Commission on the use of RICs and that it was cooperating with the Commission.
"Thomson Reuters provides its customers with consistent, dependable and convenient access to several million financial instruments from almost every electronic trading venue around the world," the company said in a statement. "Thomson Reuters data is reliably and consistently identified by a managed code, which we create and maintain to enable navigation of the company's global content."
Jonathan Todd, a spokesman for the European Commission, told a news conference the commission's concern was that Thomson Reuters customers were unable to use alternative market datafeeds alongside the company's service. "There are three actual and potential competitors for Thomson Reuters in this area and none of them have this restriction," he said.
● SOURCE Reuters
No interest in buying print media says Tom Glocer
Friday 06 November 2009
The question was put to the chief executive by correspondent Robert MacMillan, pictured, who covers Thomson Reuters as part of his media beat.
“Covering Thomson Reuters Corp for almost two years has taught me that people like to cast my company in a recurring role in media deal parlor games,” he writes in a Reuters blog. “Now that the company’s arch-rival Bloomberg LP will buy BusinessWeek magazine from McGraw-Hill, lots of my pals in the media world are wondering: Will Thomson Reuters buy a mainstream news or business news magazine? Or newspaper? Why not Forbes? Why not the Financial Times?
“Keep in mind that Thomson Reuters likes to remind people when they ask these questions that Thomson Corp, before buying Reuters, got out of its Canadian newspaper empire for a reason.
“I asked our chief executive, Tom Glocer, a question along these lines on a Thursday phone call he had with reporters to discuss the company’s third-quarter financial results."
Glocer's reply: “Thomson did a remarkable job, far earlier than any other company I know, of seeing what was coming and transitioning their business out of print for the most part… I don’t see any particular time or reason at this juncture why we should go the other way.”
MacMillan returned to the theme when he interviewed Glocer later in the day and used the Financial Times as an example. He got a similarly dismissive response from the CEO.
What about other properties, MacMillan enquired.
"Is it impossible that somewhere in the world that we'd take a print property and move it electronic? No, but we're not looking to go out and buy consumer print publications. That’s not what we think our business is,” Glocer replied.
Robert Daleo, chief financial officer, said Thomson Reuters was a company where “what we shy away from are advertising-based models. We charge for content, we charge for information and news”.
What about reuters.com, an ad-supported site that runs Reuters news? Glocer said: “I would argue that the overwhelming amount of our news is behind the firewall in the sense that you only get it as part of a product that you pay for. It’s great that we have it. I’m very proud of reuters.com. I use it on weekends and evenings when I’m not in front of my bigger service, my subscription service.”
● SOURCE Reuters
UBS raises Thomson Reuters to ‘buy’
Friday 06 November 2009
UBS upgraded Thomson Reuters to "buy" from "sell" and substantially lifted its price target on the stock, saying the company was well positioned for sustainable growth despite uncertainties in the near term.
In its Q3 results on Thursday, Thomson Reuters reported quarterly revenue fell in its markets and legal businesses as customers cut costs in the wake of the financial crisis, but it said the worst was over.
"We believe investors will see through the lagging financial results and focus on the recovery of the underlying business drivers," analyst Phillip Huang said in a note. He raised his price target on the stock to $37.50 from $23.50.
Huang said he expected the underlying drivers for the business to notably improve over the next 12 months due to increasing visibility of stabilisation in the headcount for the financial and legal sectors.
There were uncertainties in the near term, however, as he expected the company's financial results to remain volatile.
"We have yet to see the full impact of the downturn reflected in the financial results for Markets and Legal given the late cycle nature of the subscription business," Huang said. Thomson Reuters shares are attractive despite these uncertainties because the rewards outweigh the risks.
In New York on Friday, Thomson Reuters shares were slightly lower at $32.07.
● SOURCE Reuters
In its Q3 results on Thursday, Thomson Reuters reported quarterly revenue fell in its markets and legal businesses as customers cut costs in the wake of the financial crisis, but it said the worst was over.
"We believe investors will see through the lagging financial results and focus on the recovery of the underlying business drivers," analyst Phillip Huang said in a note. He raised his price target on the stock to $37.50 from $23.50.
Huang said he expected the underlying drivers for the business to notably improve over the next 12 months due to increasing visibility of stabilisation in the headcount for the financial and legal sectors.
There were uncertainties in the near term, however, as he expected the company's financial results to remain volatile.
"We have yet to see the full impact of the downturn reflected in the financial results for Markets and Legal given the late cycle nature of the subscription business," Huang said. Thomson Reuters shares are attractive despite these uncertainties because the rewards outweigh the risks.
In New York on Friday, Thomson Reuters shares were slightly lower at $32.07.
● SOURCE Reuters
Thomson Reuters Q3 profit tumbles in 'challenging environment'
Thursday 05 November 2009
The group earned $162 million, or 19 cents per share, in the three months ended 30 September – down from $404 million or 49 cents per share a year earlier. Underlying operating profit rose three per cent to $711 million in the third quarter, from $690 million a year ago.
CEO Tom Glocer told investment analysts it was a challenging environment.
"Despite difficult market conditions, our businesses delivered solid results in the third quarter," he said. "Our Tax & Accounting and Healthcare & Science businesses continued to perform very strongly, and sales of subscription products in our Markets and Legal units improved in Q3 over what we expect were their bottom in Q2. While the weak year-to-date net sales experienced in recent quarters are now flowing through into revenues, we expect this dip to be shallow and limited to the next few quarters.
"Our ongoing focus on the Reuters integration and close cost management across the company has enabled us to continue to grow underlying operating profit. While we would welcome a quick return to revenue growth, we understand how to operate in challenging markets and we are confident that we are outperforming the competition," Glocer said.
Adjusted earnings from continuing operations slipped to 43 cents per share from 47 cents a year ago, beating average analyst forecasts of 40 cents per share.
Thomson Reuters said its revenue slipped four per cent to $3.22 billion, partly because of unfavourable foreign exchange rates.
"While the weak year-to-date net sales experienced in recent quarters are now flowing through into revenues, we expect this dip to be shallow and limited to the next few quarters," Glocer said.
Revenue from ongoing businesses, excluding the impact of foreign exchange rates, fell two per cent to $3.21 billion. The average analyst forecast was $3.23 billion.
In the markets division, revenue from the media operation including Reuters news agency fell by 14 per cent to $90 million amid consolidation among traditional media outlets such as newspapers.
Overall corporate expenses tripled from a year earlier to $163 million in the third quarter, due in part to integration costs.
Thomson Reuters re-affirmed its previous guidance: it expects revenue to grow this year and underlying operating profit margin and free cash flow to be comparable to 2008.
● SOURCE Reuters | Financial Post
Tom Glocer collects transatlantic business award
Thursday 05 November 2009
The British Ambassador to the United States, Nigel Sheinwald, presented the award which is handed out each year by BritishAmerican Business. BABI is dedicated to helping companies connect and build their business on both sides of the Atlantic. Glocer is a member of its international advisory board.
He told guests at a dinner at the Pierre Hotel on Tuesday 3 November: “Thomson Reuters spans the Atlantic and then the world. From time to time (especially in lean times) much is made of the rivalry between New York and London as great financial centers. However, it has always seemed to me that the qualities we share in common and the links that bind us are stronger than our differences”.
The two cities provide “a most fertile ground for a professional information company like Thomson Reuters to thrive in”, he added. “I accept this award on behalf of all my colleagues at Thomson Reuters in the hope and belief that we shall remain intertwined in the success of London and New York for many years to come”.
Deputy chairman Niall FitzGerald is a past recipient of the award.
● SOURCE Reuters | BABI
Thomson Reuters expands in Middle East and Africa
Tuesday 03 November 2009
Thomson Reuters has unveiled its expanded regional headquarters in Dubai, the culmination of a year that saw it hire 104 new staff throughout the Middle East and Africa.
The modern Dubai Media City offices overlooking the Gulf represent one of the few places that have managed to increase investment during the recession.
“While most companies have been looking at their strategies and trying to understand what to do with staff, we believe that the Middle East and Africa is a region that is growing, and as such have more staff coming in,” said Basil Moftah, managing director for Middle East and Africa. “We now have 135 people based in Dubai and 15 people based in Abu Dhabi, so this is quite a substantial operation. It’s considered one of our largest offices globally,” he told Abu Dhabi-based newspaper The National.
The new hires, which bring total staff across the region to 520, were brought in to expand coverage of the region’s 22 stock exchanges and the 2,000 regional banks connected through Thomson Reuters’ trading systems, as well as deepen coverage in such areas as commodities, energy, equities and treasury. The company has appointed senior staff in the United Arab Emirates, Saudi Arabia, Egypt and Lebanon with expertise in Islamic finance, investment and advisory, and equities.
“Our biggest focus is obviously commodities and equities, given what’s happened in the market,” Moftah said. He declined to say how large Thomson Reuters’ investment in the Middle East and Africa expansion was, saying only that it was “definitely a double-digit, million dollar investment”.
Moftah said regional sales dipped in the second quarter, but the performance of Q2 and Q3 more than made up for it. “There was quite a lull during Q2 as businesses were rethinking what they were doing,” he said. “But since then, there has been a real pick-up in the Middle East and Africa. We are looking at double-digit growth for the year.” Joerg Floeck, head of sales and customer services for the markets division, said the company was looking to spend $1 billion a year on new technology, and was pursuing equally aggressive expansion in Latin America, Brazil, China and India.
● SOURCE The National
The modern Dubai Media City offices overlooking the Gulf represent one of the few places that have managed to increase investment during the recession.
“While most companies have been looking at their strategies and trying to understand what to do with staff, we believe that the Middle East and Africa is a region that is growing, and as such have more staff coming in,” said Basil Moftah, managing director for Middle East and Africa. “We now have 135 people based in Dubai and 15 people based in Abu Dhabi, so this is quite a substantial operation. It’s considered one of our largest offices globally,” he told Abu Dhabi-based newspaper The National.
The new hires, which bring total staff across the region to 520, were brought in to expand coverage of the region’s 22 stock exchanges and the 2,000 regional banks connected through Thomson Reuters’ trading systems, as well as deepen coverage in such areas as commodities, energy, equities and treasury. The company has appointed senior staff in the United Arab Emirates, Saudi Arabia, Egypt and Lebanon with expertise in Islamic finance, investment and advisory, and equities.
“Our biggest focus is obviously commodities and equities, given what’s happened in the market,” Moftah said. He declined to say how large Thomson Reuters’ investment in the Middle East and Africa expansion was, saying only that it was “definitely a double-digit, million dollar investment”.
Moftah said regional sales dipped in the second quarter, but the performance of Q2 and Q3 more than made up for it. “There was quite a lull during Q2 as businesses were rethinking what they were doing,” he said. “But since then, there has been a real pick-up in the Middle East and Africa. We are looking at double-digit growth for the year.” Joerg Floeck, head of sales and customer services for the markets division, said the company was looking to spend $1 billion a year on new technology, and was pursuing equally aggressive expansion in Latin America, Brazil, China and India.
● SOURCE The National
New York Fed’s PR chief to join Thomson Reuters
Thursday 22 October 2009
The head of public affairs at the Federal Reserve Bank of New York is to take up a similar role at Thomson Reuters.
Calvin Mitchell, executive vice president of the communications group at the New York Fed, will become global head of corporate affairs in November, the company said on Thursday. He will be based in New York.
Mitchell joined the New York Fed in 2005, serving during a tumultuous period for the bank that functions as the Fed's point of connection with Wall Street. He had previously worked at the US Mission to the United Nations, the US Treasury Department, the White House and the National Security Council.
● SOURCE NASDAQ / Dow Jones
Calvin Mitchell, executive vice president of the communications group at the New York Fed, will become global head of corporate affairs in November, the company said on Thursday. He will be based in New York.
Mitchell joined the New York Fed in 2005, serving during a tumultuous period for the bank that functions as the Fed's point of connection with Wall Street. He had previously worked at the US Mission to the United Nations, the US Treasury Department, the White House and the National Security Council.
● SOURCE NASDAQ / Dow Jones
Thomson Reuters buys Breakingviews to boost comment
Wednesday 14 October 2009
The website will be incorporated into the Thomson Reuters feed for users of its teminals under the brand Reuters Breakingviews. It will also continue to supply commentary for newspapers such as The New York Times.
Thomson Reuters refused to disclose the purchase price but reports put it at around £13 million, giving its founder and largest shareholder, journalist Hugo Dixon, £2.6 million.
Dixon will run the enlarged service, which will operate separately from Reuters' news reports. He is bringing over 20 journalists and taking over the existing Reuters Comment operation. Thomson Reuters said it is talking to Jonathan Ford, Dixon’s former business partner who was hired last year to start the Reuters commentary service, about taking on other roles at Thomson Reuters.
The Breakingviews board has recommended that shareholders in the privately held company accept the offer, Thomson Reuters said, adding that the transaction should close within eight weeks.
The decision to buy Breakingviews pushes Reuters News further into the world of commenting on business and financial news, Reuters’ own report on the purchase said.
The separate stand-alone branding will allow Reuters to continue to ensure that there remains a clear distinction between its news service and commentary offering. "Breakingviews will continue to represent the commentary and opinion of the author, while Reuters reporting will continue to represent the traditional sourced news and analysis that has been its staple for more than 150 years," a Thomson Reuters press release said.
Reuters decided to buy Breakingviews even after starting its own service because the deal was at an attractive price and will accelerate the company's push into commentary, editor-in-chief David Schlesinger said.
He told the Financial Times that the new Reuters Breakingviews would combine the team built by Dixon since he founded the site in 1999 with Reuters’ similar-sized commentary team launched less than a year ago.
“Departures and reassignments” would lead to a combined team of “30-ish”, he said, without giving details of where cuts might fall. The combined service would continue with hiring plans in the Gulf, India and other parts of Asia, he added.
Reuters could have achieved its goals to expand in commentary “given enough time”, he said, but the acquisition allowed it to “short-circuit” the process.
“This is not a deal where we were buying revenue. This is a deal where we were buying [a] brand and people and capability,” he said. “My big worry has always been the commoditisation of factual news. There are many ways you can do to mitigate against that but [one is that] subscribers want facts and they want ideas.”
Dixon said the deal demonstrated “that high-quality financial commentary is extremely valuable.” It “should enhance the product as we’ll be plugged into a much bigger journalistic enterprise,” he said.
● SOURCE Reuters | Financial Times | The Times | Thomson Reuters
● Breakingviews
Bloomberg 'outbids Thomson Reuters' for BusinessWeek
Wednesday 14 October 2009
Dave was amazingly conscientious, and World Desk worries haunted him for years after his farewell drinks. He wrote in one email:
"I was most interested to hear about your Reuter nightmares: you might be comforted to know that mine (which usually dealt with crises developing when 1. I can't remember how to work the computers or the codes I need to send a story or 2. I'm alone on a desk after something terrible has happened and I don't know how to handle the flood of copy) have almost disappeared after nearly six years in retirement. I used to get these at least twice a week and would awake in a sense of terrible dread."
As night editor, his work wasn't really over at the end of the shift. Many of us benefited from his after-hours pastoral care. I'll always remember a session at Maggie's Tin Pan Alley in New York that ended shortly before dawn with Kevin Cooney sound asleep, his head resting on Dave's right shoulder. The silence at the bar was broken only when Dave murmured: "Poor Kev."
We have lost a dear friend, and I hope he would not mind my sharing his memory of a happier August day in Halifax, Nova Scotia:
"I recall visiting my parents shortly after my daughter's birth in 1970; my father and I sat outside on the lawn behind our house at Pine Hill on Francklyn Street overlooking the North West Arm on a balmy August afternoon. To this day I think of my father picking up a glass of chilled Chablis, staring into the distance and murmuring: 'Tough old life.' These words floated across my mind as I read of you sampling the champagnes in the Oyster Bar."
Graham Colville
"I was most interested to hear about your Reuter nightmares: you might be comforted to know that mine (which usually dealt with crises developing when 1. I can't remember how to work the computers or the codes I need to send a story or 2. I'm alone on a desk after something terrible has happened and I don't know how to handle the flood of copy) have almost disappeared after nearly six years in retirement. I used to get these at least twice a week and would awake in a sense of terrible dread."
As night editor, his work wasn't really over at the end of the shift. Many of us benefited from his after-hours pastoral care. I'll always remember a session at Maggie's Tin Pan Alley in New York that ended shortly before dawn with Kevin Cooney sound asleep, his head resting on Dave's right shoulder. The silence at the bar was broken only when Dave murmured: "Poor Kev."
We have lost a dear friend, and I hope he would not mind my sharing his memory of a happier August day in Halifax, Nova Scotia:
"I recall visiting my parents shortly after my daughter's birth in 1970; my father and I sat outside on the lawn behind our house at Pine Hill on Francklyn Street overlooking the North West Arm on a balmy August afternoon. To this day I think of my father picking up a glass of chilled Chablis, staring into the distance and murmuring: 'Tough old life.' These words floated across my mind as I read of you sampling the champagnes in the Oyster Bar."
Graham Colville
Thomson Reuters 'working as strategic partner on BusinessWeek bid'
Wednesday 07 October 2009
“Thomson Reuters has publicly been saying that it has no interest in bidding for BusinessWeek, ever since the news that it was on the block came out. And that was true, until Bloomberg and later ZelnickMedia came into the picture: the multimedia business media giant is working as a strategic partner in the ZelnickMedia bid for BusinessWeek, we have learned from multiple sources. It will not contribute any cash to the deal, if successful, but presumably will have some sort of a content and distribution arrangement,” it reported.
“Also, with Zelnick’s bid, we have also learned that there may be other monetary investors involved, though Zelnick surely is the lead on this. As has been reported previously, Zelnick is being advised by former WSJ publisher and Dow Jones exec Gordon Crovitz, who is not likely to take any operating role if the bid is successful.
As for the reasons Thomson Reuters got interested again, one source said it is because of Bloomberg: it wants to keep a bitter rival from getting a more consumer-facing media brand. Both Bloomberg and Thomson Reuters have been trying to diversify with their consumer efforts, as has been well documented.”
PaidContent said another source says the final decision "is not as imminent as it is being made out in press, which probably means there’s some due diligence left on who to choose between the two – unless some last-second bid also comes in." Reuters declined comment on “market rumor or speculation".
The website added: “Interestingly, Thomson Reuters CEO Tom Glocer recently penned a column for BW the mag, on its recent issue about the role of optimism in business. And he mentioned on his blog that among the reasons he did the post for the mag: 'BusinessWeek itself has been the subject of a number of swipes in other publications ever since rumors of its purported sale began to leak, and I was happy to support Steve Adler and his very professional team at BW. The fact that the economic model for business news has shifted rapidly under the feet of BW, Forbes and Fortune should not now be seen to detract from the quality of the work of their journalists.'”
● SOURCE PaidContent
● Tom Glocer’s blog
● BusinessWeek
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 buys news release company
Monday 21 September 2009
Thomson Reuters said on Monday it has agreed to buy from NYSE Euronext Oslo-based Hugin Group, which distributes news releases for companies in Europe.
Terms were not disclosed but Norwegian newspaper Dagens Naeringlsliv said the price was around €40 million to €42 million.
The acquisition is part of a strategy of providing corporate clients with investor relations and public relations services.
As part of the agreement, Thomson Reuters and NYSE Euronext will expand their strategic partnership toward offering value-added services to the issuer community, Thomson Reuters said.
Hugin, founded in 1995, distributes press releases and provides investor relations services for more than 1,700 companies in Europe. It employs 105 staff, with key centres in Norway, Germany and France.
● SOURCE Reuters
● Hugin
Terms were not disclosed but Norwegian newspaper Dagens Naeringlsliv said the price was around €40 million to €42 million.
The acquisition is part of a strategy of providing corporate clients with investor relations and public relations services.
As part of the agreement, Thomson Reuters and NYSE Euronext will expand their strategic partnership toward offering value-added services to the issuer community, Thomson Reuters said.
Hugin, founded in 1995, distributes press releases and provides investor relations services for more than 1,700 companies in Europe. It employs 105 staff, with key centres in Norway, Germany and France.
● SOURCE Reuters
● Hugin
Thomson Reuters to buy breakingviews.com for £10m - report
Sunday 20 September 2009
Thomson Reuters is in advanced talks to buy ● breakingviews.com, an online financial analysis service, for £10 million, The Sunday Times reported.
The seller is Hugo Dixon, a former Financial Times journalist who is backed by more than 40 shareholders including The Wall Street Journal.
“Dixon, who ran the Financial Times's Lex column for five years, has been in talks with Thomson Reuters since July,” The Sunday Times said. “The £10m price tag was agreed in recent days, according to sources inside Thomson Reuters, which has been seeking to expand the commentary and analysis available on its global news network for more than a year.
“The media company has recruited a number of commentators, including Jonathan Ford, who co-founded Breakingviews with Dixon in 1999. Ford no longer has any shares in the business, having left in 2007.”
The Sunday Times said the Breakingviews operation is likely to be left as a separate entity, with its own branding. It has about 15,000 direct subscribers. Columns in a string of newspapers including The New York Times, Le Monde, El Pais and Handelsblatt, have increased its readership to an estimated 4.5 million. "It is profitable in Europe but continues to invest heavily in America and Asia.”
● SOURCE The Sunday Times
The seller is Hugo Dixon, a former Financial Times journalist who is backed by more than 40 shareholders including The Wall Street Journal.
“Dixon, who ran the Financial Times's Lex column for five years, has been in talks with Thomson Reuters since July,” The Sunday Times said. “The £10m price tag was agreed in recent days, according to sources inside Thomson Reuters, which has been seeking to expand the commentary and analysis available on its global news network for more than a year.
“The media company has recruited a number of commentators, including Jonathan Ford, who co-founded Breakingviews with Dixon in 1999. Ford no longer has any shares in the business, having left in 2007.”
The Sunday Times said the Breakingviews operation is likely to be left as a separate entity, with its own branding. It has about 15,000 direct subscribers. Columns in a string of newspapers including The New York Times, Le Monde, El Pais and Handelsblatt, have increased its readership to an estimated 4.5 million. "It is profitable in Europe but continues to invest heavily in America and Asia.”
● SOURCE The Sunday Times
Women’s network celebrates first anniversary
Friday 18 September 2009
Women@Thomson Reuters, the group's global women’s network, is celebrating its first anniversary.
The network has grown to more than 1,700 women in over 20 chapters in Australia, Hong Kong, the United Kingdom and the United States.
The network's vision is to develop the talents and champion the contributions of Thomson Reuters' 23,000 female employees, promoting women as equal partners in the company's success, achievement and profitability.
Its main goal in the coming year is to grow the network so it is available to all women in all divisions and businesses of Thomson Reuters.
As part of the celebration, the network will run a global call on Thursday 24 September with Dimitra Manis, global head of talent, who will talk about Managing Your Career. The call is also open to male employees.
Time for the call is 9:00 to 10:00 am EDT / 2:00 to 3:00 pm BST / 7:30 to 8:30 pm Bangalore.
● SOURCE Thomson Reuters
The network has grown to more than 1,700 women in over 20 chapters in Australia, Hong Kong, the United Kingdom and the United States.
The network's vision is to develop the talents and champion the contributions of Thomson Reuters' 23,000 female employees, promoting women as equal partners in the company's success, achievement and profitability.
Its main goal in the coming year is to grow the network so it is available to all women in all divisions and businesses of Thomson Reuters.
As part of the celebration, the network will run a global call on Thursday 24 September with Dimitra Manis, global head of talent, who will talk about Managing Your Career. The call is also open to male employees.
Time for the call is 9:00 to 10:00 am EDT / 2:00 to 3:00 pm BST / 7:30 to 8:30 pm Bangalore.
● SOURCE Thomson Reuters
Thomson Reuters improves global brand ranking
Friday 18 September 2009
The list compiled by Interbrand consultancy and published by BusinessWeek magazine gave Thomson Reuters a brand value of $8.434 billion compared with $8.313 billion a year ago.
To figure in the list a brand must derive at least a third of its earnings from outside its home country, be recognisable beyond its base of customers, and have publicly available marketing and financial data. Interbrand ranks each brand on the basis of how much it is likely to earn for the company in the future. It uses analysts' projections, company financial documents, and qualitative and quantitative analysis to arrive at a net present value of those earnings. Market leadership, stability, and global reach – the ability to cross geographic and cultural borders – are taken into account. The brand values are based on data collected during the 12 months to 30 June 2009.
The top three brands in the list are Coca-Cola, IBM and Microsoft.
● SOURCE BusinessWeek
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 a 'most ethical' company
Friday 11 September 2009
Thomson Reuters has been rated one of the world's most ethical companies.
The 2009 list of 99 companies is compiled by Ethisphere Institute, a New York-based international think tank dedicated to the creation, advancement and sharing of best practices in business ethics, corporate social responsibility, anti-corruption and sustainability.
It received nominations from businesses in more than 100 countries and 35 industries which were measured against seven categories:
● Corporate citizenship and responsibility
● Corporate governance
● Innovation that contributes to the public well being
● Industry leadership
● Executive leadership and tone from the top
● Legal, regulatory and reputation track record
● Internal systems and ethics/compliance program.
Thomson Reuters was listed in the Media, Publishing and Entertainment section.
● SOURCE Ethisphere Institute
The 2009 list of 99 companies is compiled by Ethisphere Institute, a New York-based international think tank dedicated to the creation, advancement and sharing of best practices in business ethics, corporate social responsibility, anti-corruption and sustainability.
It received nominations from businesses in more than 100 countries and 35 industries which were measured against seven categories:
● Corporate governance
● Innovation that contributes to the public well being
● Industry leadership
● Executive leadership and tone from the top
● Legal, regulatory and reputation track record
● Internal systems and ethics/compliance program.
Thomson Reuters was listed in the Media, Publishing and Entertainment section.
● SOURCE Ethisphere Institute
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
No inflation-linked increase for ex-Reuters UK pensioners
Monday 07 September 2009
Tom Glocer says Thomson Reuters cannot provide an inflation-linked pension increase to its former Reuters UK pensioners this year.
In a letter to the Pension Review Group, Thomson Reuters' CEO writes, "We do not believe we can unilaterally provide a discretionary increase at this time for the participants in the two former Reuters pension plans."
He was responding to a letter from PRG chairman Angela Dean which pointed out that senior company executives had recently had financial rewards worth many millions.
"It is hard to believe that the Company cannot afford a modest increase to the pension funds to ensure Reuters pensioners are fairly compensated, particularly in view of the financial performance of Thomson Reuters over the last year and predictions for 2009," Dean said.
Glocer replied "... To begin by addressing your request directly, we do not believe we can unilaterally provide a discretionary increase at this time for the participants in the two former Reuters pension plans (the Plans). We explain this position in the remainder of this letter.
"As you are aware, the Reuters Pension Fund (RPF), the larger of the two legacy Reuters Plans, is an unusual and very old hybrid plan which combines elements of both defined contribution and defined benefit plans. In fact, during the 100 year plus history of the RPF, Reuters never took a contribution holiday despite years of pension surpluses as we followed the practice that company contributions were fixed. Consistent with this position, it was the Plan Trustees and not management of the company that held the power to determine investment strategy, surplus or deficit status and, importantly, how to provide inflationary increases, if any, to participants.
"After a series of revisions to pension laws, a thorough review of the unusual Reuters Plans and the appearance of a deficit in the Plans, the company and the Plan Trustees entered into a Funding Agreement in 2006 pursuant to which the company made a £153m contribution to the RPF, and an undertaking to contribute an additional £40m. This served to cover Plan deficits, and thereby permit the Trustees to consider whether to make inflationary increases. The Trustees, using their discretion under the Plans and the 2006 Funding Agreement, did, in fact, grant increases of 2.7% in 2006, 3.6% in 2007 and 3.9% in 2008. In addition, consistent with the company's commitment to the retirement security of its former employees, Thomson Reuters entered into a parent company guarantee of Reuters obligations under the Plans soon after the completion of the Reuters acquisition, and fulfilled Reuters commitment to contribute another £40m to the RPF.
"With respect to the manner in which discretionary increases are to be considered, the Plans and the 2006 Funding Agreement provide that following the close of each year, the scheme actuary is to perform a funding review to assess whether there was a surplus or deficit at the close of such year. If a surplus is determined to exist, the Trustees are empowered to use up to 40% of such surplus to provide a discretionary increase on Relevant Pensions (as defined), subject to a maximum of the change in RPI in the year to the preceding September, capped at 5%. This mechanism was put in place as it was understood between the parties that the primary objective should be to secure members' benefits and that the granting of any discretionary increase should not be materially detrimental to that primary objective.
"It should thus be clear that the ability to authorize any inflationary increase is dependent on the investment performance of the Plans which is managed by the Trustees of the Plans, and not the company. As 2008 was an "anno horribilis" for the investment community, it is not surprising that the Plan Trustees have determined that no inflationary increase is possible at this time.
"We are committed to working with the Trustees of all the company's plans to find solutions which honor the contributions made by generations of Reuters and Thomson employees in building the current company. While Thomson Reuters is prepared to consider alternative arrangements with the Trustees, these discussions must await the expiration of the current 2006 Funding Agreement."
Following is the full text of the PRG's letter to Glocer:
Dear Mr Glocer
I am writing to you as Chairman of the Pension Review Group (PRG) which as you are aware, has been campaigning for a number of years to restore the annual inflation-linked pension increases for pensioners of the UK Reuters Pension Fund and Reuters Supplementary Pension Scheme.
We are delighted to see that Thomson Reuters has achieved such successful financial results for 2008, and that the outlook for this year is positive. However, for Reuters pensioners the prospect for 2009 is somewhat gloomy as, in view of the current global financial problems, we do not anticipate an increase to our pensions this year. This will mean that since 2002, the overall value of our pensions will have fallen by 13%, as measured by the increase in the Retail Prices Index.
The agreement between the Trustees and the Company for providing discretionary increases depends on there being a funding surplus, and if the financial markets continue to perform at their current level, the likelihood of future pension increases would seem remote, so our pensions will suffer an even greater loss in value. This is a serious concern for the pensioners we represent.
By contrast, we understand that pensioners who are members of the Defined Benefit Scheme in Thomson, receive a guaranteed annual increase and are not subject to the uncertainties of a funding agreement formula.
Thomson Reuters is still the only FTSE 100 company that fails to pay an annual index-linked increase to some of its pensioners who are members of a defined benefit scheme. The principle of an annual inflationary increase applies, in law, to pensions earned since 1997 and to all UK state pensions. Surely a company of this stature and wealth should not be uniquely out of step in applying this principle, and thereby penalising the very people who were instrumental in building the success of Reuters and are now most vulnerable?
Following the merger of Thomson and Reuters, the companies were involved in an exercise to equalise the benefits of the different groups of employees. We believe it is only fair that this principle of equity should be applied to pensioners.
We note that senior executives at Thomson Reuters have recently been awarded significant financial rewards worth many millions, which include compensation for former Reuters staff to recognise differences in company pension benefits. It is hard to believe that the Company cannot afford a modest increase to the pension funds to ensure Reuters pensioners are fairly compensated, particularly in view of the financial performance of Thomson Reuters over the last year and predictions for 2009.
We would ask that the Company review its position regarding inflationary increases for Reuters pensioners, and consider injecting sufficient money into the funds to enable the payment of such increases on a yearly basis.
The situation for pensioners is increasingly difficult as they can no longer rely on their savings to mitigate the effects of a decrease in the value of their pensions, so they are doubly penalised. The assurance of an annual inflationary increase, instead of the yearly uncertainty that a discretionary award brings, would go a long way to protecting us from a permanent decline in real incomes.
I hope you will give our request serious consideration and look forward to hearing from you.
Yours sincerely
Angela Dean
Chairman, Pensions Review Group
● Reuters Pension Fund members are reminded to vote by 14 September in the election for an RPF member-nominated Trustee. You can vote by post or online. The poll closes at 2:00 pm BST on that date so don't leave it until the last minute!
● SOURCE Pension Review Group
In a letter to the Pension Review Group, Thomson Reuters' CEO writes, "We do not believe we can unilaterally provide a discretionary increase at this time for the participants in the two former Reuters pension plans."
He was responding to a letter from PRG chairman Angela Dean which pointed out that senior company executives had recently had financial rewards worth many millions.
"It is hard to believe that the Company cannot afford a modest increase to the pension funds to ensure Reuters pensioners are fairly compensated, particularly in view of the financial performance of Thomson Reuters over the last year and predictions for 2009," Dean said.
Glocer replied "... To begin by addressing your request directly, we do not believe we can unilaterally provide a discretionary increase at this time for the participants in the two former Reuters pension plans (the Plans). We explain this position in the remainder of this letter.
"As you are aware, the Reuters Pension Fund (RPF), the larger of the two legacy Reuters Plans, is an unusual and very old hybrid plan which combines elements of both defined contribution and defined benefit plans. In fact, during the 100 year plus history of the RPF, Reuters never took a contribution holiday despite years of pension surpluses as we followed the practice that company contributions were fixed. Consistent with this position, it was the Plan Trustees and not management of the company that held the power to determine investment strategy, surplus or deficit status and, importantly, how to provide inflationary increases, if any, to participants.
"After a series of revisions to pension laws, a thorough review of the unusual Reuters Plans and the appearance of a deficit in the Plans, the company and the Plan Trustees entered into a Funding Agreement in 2006 pursuant to which the company made a £153m contribution to the RPF, and an undertaking to contribute an additional £40m. This served to cover Plan deficits, and thereby permit the Trustees to consider whether to make inflationary increases. The Trustees, using their discretion under the Plans and the 2006 Funding Agreement, did, in fact, grant increases of 2.7% in 2006, 3.6% in 2007 and 3.9% in 2008. In addition, consistent with the company's commitment to the retirement security of its former employees, Thomson Reuters entered into a parent company guarantee of Reuters obligations under the Plans soon after the completion of the Reuters acquisition, and fulfilled Reuters commitment to contribute another £40m to the RPF.
"With respect to the manner in which discretionary increases are to be considered, the Plans and the 2006 Funding Agreement provide that following the close of each year, the scheme actuary is to perform a funding review to assess whether there was a surplus or deficit at the close of such year. If a surplus is determined to exist, the Trustees are empowered to use up to 40% of such surplus to provide a discretionary increase on Relevant Pensions (as defined), subject to a maximum of the change in RPI in the year to the preceding September, capped at 5%. This mechanism was put in place as it was understood between the parties that the primary objective should be to secure members' benefits and that the granting of any discretionary increase should not be materially detrimental to that primary objective.
"It should thus be clear that the ability to authorize any inflationary increase is dependent on the investment performance of the Plans which is managed by the Trustees of the Plans, and not the company. As 2008 was an "anno horribilis" for the investment community, it is not surprising that the Plan Trustees have determined that no inflationary increase is possible at this time.
"We are committed to working with the Trustees of all the company's plans to find solutions which honor the contributions made by generations of Reuters and Thomson employees in building the current company. While Thomson Reuters is prepared to consider alternative arrangements with the Trustees, these discussions must await the expiration of the current 2006 Funding Agreement."
Following is the full text of the PRG's letter to Glocer:
Dear Mr Glocer
I am writing to you as Chairman of the Pension Review Group (PRG) which as you are aware, has been campaigning for a number of years to restore the annual inflation-linked pension increases for pensioners of the UK Reuters Pension Fund and Reuters Supplementary Pension Scheme.
We are delighted to see that Thomson Reuters has achieved such successful financial results for 2008, and that the outlook for this year is positive. However, for Reuters pensioners the prospect for 2009 is somewhat gloomy as, in view of the current global financial problems, we do not anticipate an increase to our pensions this year. This will mean that since 2002, the overall value of our pensions will have fallen by 13%, as measured by the increase in the Retail Prices Index.
The agreement between the Trustees and the Company for providing discretionary increases depends on there being a funding surplus, and if the financial markets continue to perform at their current level, the likelihood of future pension increases would seem remote, so our pensions will suffer an even greater loss in value. This is a serious concern for the pensioners we represent.
By contrast, we understand that pensioners who are members of the Defined Benefit Scheme in Thomson, receive a guaranteed annual increase and are not subject to the uncertainties of a funding agreement formula.
Thomson Reuters is still the only FTSE 100 company that fails to pay an annual index-linked increase to some of its pensioners who are members of a defined benefit scheme. The principle of an annual inflationary increase applies, in law, to pensions earned since 1997 and to all UK state pensions. Surely a company of this stature and wealth should not be uniquely out of step in applying this principle, and thereby penalising the very people who were instrumental in building the success of Reuters and are now most vulnerable?
Following the merger of Thomson and Reuters, the companies were involved in an exercise to equalise the benefits of the different groups of employees. We believe it is only fair that this principle of equity should be applied to pensioners.
We note that senior executives at Thomson Reuters have recently been awarded significant financial rewards worth many millions, which include compensation for former Reuters staff to recognise differences in company pension benefits. It is hard to believe that the Company cannot afford a modest increase to the pension funds to ensure Reuters pensioners are fairly compensated, particularly in view of the financial performance of Thomson Reuters over the last year and predictions for 2009.
We would ask that the Company review its position regarding inflationary increases for Reuters pensioners, and consider injecting sufficient money into the funds to enable the payment of such increases on a yearly basis.
The situation for pensioners is increasingly difficult as they can no longer rely on their savings to mitigate the effects of a decrease in the value of their pensions, so they are doubly penalised. The assurance of an annual inflationary increase, instead of the yearly uncertainty that a discretionary award brings, would go a long way to protecting us from a permanent decline in real incomes.
I hope you will give our request serious consideration and look forward to hearing from you.
Yours sincerely
Angela Dean
Chairman, Pensions Review Group
● Reuters Pension Fund members are reminded to vote by 14 September in the election for an RPF member-nominated Trustee. You can vote by post or online. The poll closes at 2:00 pm BST on that date so don't leave it until the last minute!
● SOURCE Pension Review Group
Thomson Reuters aims to click with the Internet generation
Sunday 30 August 2009
For the first time, all 200 financial products will be moved to a common platform, replacing 3000Xtra and making the company’s systems simpler to use.
The new product is likely to be more like a conventional web portal in look and feel when it comes to market early next spring. All 500,000 customers will be moved on to it.
“It is the first time we are going to properly launch a product,” Wenig told veteran Reuters watcher James Ashton in The Sunday Times. “We never really launch products. They just emerge. This will have proper marketing and advertising.”
Wenig said: “You see very different behaviour from a 25-year-old just out of the London School of Economics to a 55-year-old who has been trading for the last 25 years.
“People who grew up with Google have totally different expectations of how to interact with information and media. We can’t ignore that.”
The new product is Project Utah, the final part of a $1 billion technology upgrade.
“We are not going to be the greatest technology company in the world and nor should we be,” said Wenig. “But technology is an enabler. We have to put money into it. We can’t just talk about it.”
In the 158 years since Reuters began flying pigeons with news alerts tied to their legs, it has had to move with the times, The Sunday Times said. “But the company, which merged with Thomson last year and has delisted itself from the London stock market, has never really been known for its cutting-edge advances.
“New versions of old systems have underwhelmed or been released late. Innovations such as offering instant messaging between users have often been introduced first by its nimbler rival Bloomberg, which has caused a headache for Reuters ever since it set up as a direct competitor almost three decades ago.
“It recently trailed in Bloomberg’s wake in mobile, but the launch of a news application for the BlackBerry and iPhone was a hit, drawing 90,000 subscribers in its first month. However, long-term followers of the industry see a change of tack.”
“The difference now is that Thomson Reuters is taking a more friendly approach to how it presents information,” said Douglas Taylor, managing partner at Burton-Taylor International Consulting and a former executive at both Thomson Financial and Reuters.
“In some cases they are playing catch-up but I think their expectation is to leapfrog Bloomberg.”
Despite the financial crash, underlying sales at Thomson Reuters’ markets division are still growing, although only by 0.2 per cent in the last quarter, the newspaper said.
Taylor forecasts that the $23 billion market for electronic financial information will shrink by 1-3 per cent this year, with Bloomberg holding a 26 per cent share and Thomson Reuters 34 per cent because it dominates in areas such as fixed income. Where they compete directly, the two companies are judged to be roughly neck and neck.
Thomson Reuters is trying to drive down split-second delays in its data feeds, The Sunday Times said. Some investment banks have asked the company to host their applications in its data centres to increase efficiency.
The biggest change to news provision will be Insider, a video news service for the financiers who already use its news terminals. If they pay, they can call up interviews as if they were trawling YouTube and they will also be able to search quickly through transcripts for the key points. “I don’t want to turn us into a consumer company but you ignore at your peril what YouTube and Twitter have done to online behaviour,” said Wenig.
He invoked Apple and BlackBerry maker Research in Motion as the type of company he wants Thomson Reuters to emulate.
“We didn’t tend to think of ourselves as a product innovation company. I am trying to move the company forward and encourage people to think about new things,” he said.
● SOURCE The Sunday Times
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, £4 million to the good, house-hunting in New York
Saturday 15 August 2009
Tom Glocer, who pocketed £4 million after selling some of his Thomson Reuters shares near the top this week, plans to buy a new home in New York, the Financial Times reported.
The CEO, who relocated to his hometown from London last year, sold 200,000 shares at £20.11 – near their all-time high of £20.34 – on Tuesday.
The family kept an apartment in New York while Glocer lived in London as pre-merger Reuters CEO. They also own a lake house in Finland, where Glocer's Finnish wife Maarit grew up.
The FT, which has been reading Glocer's blog, says it's a cut above the usual CEO effort. "Mr Glocer writes about everything from Obama to markets, the future of newspapers, technology (he loves Facebook), books (he reads Roth to Dostoevsky to Houellebecq), music (The Grateful Dead), and 'soccer vs footie'. He started his blog, he says, after deciding that he could see what it was like himself, or pay a pricey consultant to write him a report on it."
● SOURCE Financial Times | Tom Glocer’s Blog
The CEO, who relocated to his hometown from London last year, sold 200,000 shares at £20.11 – near their all-time high of £20.34 – on Tuesday.
The family kept an apartment in New York while Glocer lived in London as pre-merger Reuters CEO. They also own a lake house in Finland, where Glocer's Finnish wife Maarit grew up.
The FT, which has been reading Glocer's blog, says it's a cut above the usual CEO effort. "Mr Glocer writes about everything from Obama to markets, the future of newspapers, technology (he loves Facebook), books (he reads Roth to Dostoevsky to Houellebecq), music (The Grateful Dead), and 'soccer vs footie'. He started his blog, he says, after deciding that he could see what it was like himself, or pay a pricey consultant to write him a report on it."
● SOURCE Financial Times | Tom Glocer’s Blog
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
Boycott AP over paid links says U.S. business blogger
Thursday 06 August 2009
"In case you aren’t aware the Associated Press (AP) is painting itself into the corner of obscurity by charging non-AP sites and blogs to pull small snippets from their news items. I think after their traffic starts dying off they will soon realize that links are the lifeblood of the Internet. No incoming links, no income, it’s just that simple,” wrote Statesboro Business Magazine publisher Allen Harkleroad (pictured).
"Personally I have been boycotting linking to AP stories and whenever possible avoiding AP stories in their entirety. Long Live Reuters and the other news services that embrace the link economy and fair use. I encourage you to boycott the Associated Press’ news as well."
Thomson Reuters’ president, media, Chris Ahearn, on Tuesday welcomed links to Reuters’ online news reports.
“Blaming the new leaders or aggregators for disrupting the business of the old leaders, or saber-rattling and threatening to sue are not business strategies – they are personal therapy sessions. Go ask a music executive how well it works,” he wrote.
“A better approach is to have a general agreement among community members to treat others’ content, business and ideas with the same respect you would want them to treat yours…”
● SOURCE Statesboro Business Magazine
News honcho champions 'link economy'
Tuesday 04 August 2009
“Recently there has been a rising crescendo of finger-pointing, shrieking, braying and teeth-gnashing about the future of the news. In the last couple of weeks there have been many comments on proposals for making money out of online news,” says Chris Ahearn, president, media.
“To start, yes the global economy is fairly grim and the cyclical aspects of our business are biting extremely hard in the face of the structural changes. But the Internet isn’t killing the news business any more than TV killed radio or radio killed the newspaper. Incumbent business leaders in news haven’t been keeping up. Many leaders continue to help push the business into the ditch by wasting “resources” (management speak for talented people) on recycling commodity news. Reader habits are changing and vertically curated views need to be meshed with horizontal read-around ones,” he wrote in a Reuters blog posting.
“Blaming the new leaders or aggregators for disrupting the business of the old leaders, or saber-rattling and threatening to sue are not business strategies – they are personal therapy sessions. Go ask a music executive how well it works.
“A better approach is to have a general agreement among community members to treat others’ content, business and ideas with the same respect you would want them to treat yours…
“I believe in the link economy. Please feel free to link to our stories — it adds value to all producers of content. I believe you should play fair and encourage your readers to read-around to what others are producing if you use it and find it interesting.
Ahearn does not believe in charging others for simply linking to your content. “Appropriate excerpting and referencing are not only acceptable, but encouraged. If someone wants to create a business on the back of others’ original content, the parties should have a business relationship that benefits both,” he says.
“Let’s stop whining and start having real conversations across party lines. Let’s get online publishers, search engines, aggregators, ad networks, and self-publishers (bloggers) in a virtual room and determine how we can all get along. I don’t believe any one of us should be the self-appointed Internet police; agreeing on a code of conduct and ethics is in everyone’s best interests.
“Our news ecosystem is evolving and learning how it can be open, diverse, inclusive and effective. With all the new tools and capabilities we should be entering a new golden age of journalism – call it journalism 3.0. Let’s identify how we can birth it and agree what is “fair use” or “fair compensation” and have a conversation about how we can work together to fuel a vibrant, productive and trusted digital news industry. Let’s identify business models that are inclusive and that create a win-win relationship for all parties.
“This is not code for some hidden agenda – it is an open call for collective problem solving. Let’s do it wiki-style and edit it in the public domain. Let’s define the code of conduct and ethics we would all like to operate under.”
● SOURCE Reuters
Online copyright protection group registers 1,000 members
Thursday 23 July 2009
An online copyright protection group in which Thomson Reuters is a founder has registered more than 1,000 members since its launch in April.
The Fair Syndication Consortium now includes more than half of all US newspaper publishers.
Bloggers, the Magazine Publishers Association of America (MPA), The Washington Post and The New York Times are also involved in the initiative. It is based on online copyright tracking technology which enables consortium members to monitor instances where full copies of their material have been republished online.
External sites using the content will be approached with an proposed advertising revenue deal in return for continued use. If this is rejected, other options, including possible licensing or legal action will be explored.
"As one of the largest multimedia news organisations in the world, we find value in everything from subscription to ad-based monetization models," said Chris Ahearn, president of media at Thomson Reuters.
"The Fair Syndication usage model is an important step forward in creating a thriving and sustainable commercial environment for our News Agency and Reuters.com publishing businesses, as well as our peers in the publishing world."
● SOURCE www.journalism.co.uk
● The Fair Syndication Consortium
The Fair Syndication Consortium now includes more than half of all US newspaper publishers.
Bloggers, the Magazine Publishers Association of America (MPA), The Washington Post and The New York Times are also involved in the initiative. It is based on online copyright tracking technology which enables consortium members to monitor instances where full copies of their material have been republished online.
External sites using the content will be approached with an proposed advertising revenue deal in return for continued use. If this is rejected, other options, including possible licensing or legal action will be explored.
"As one of the largest multimedia news organisations in the world, we find value in everything from subscription to ad-based monetization models," said Chris Ahearn, president of media at Thomson Reuters.
"The Fair Syndication usage model is an important step forward in creating a thriving and sustainable commercial environment for our News Agency and Reuters.com publishing businesses, as well as our peers in the publishing world."
● SOURCE www.journalism.co.uk
● The Fair Syndication Consortium
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.”
Tom Glocer gets "substantially more" than others - report
Monday 20 July 2009
Tom Glocer, Thomson Reuters’ CEO, was named on Monday as a board director who enjoys substantially more than others “despite tumbling stockmarkets, shrinking earnings and one of the most severe recessions in living memory”.
Glocer enjoyed an annual bonus payout of $3.03 million, or 212 per cent of his basic salary, for 2008. “The payout for the American lawyer, who sold London-based Reuters to Canadian rival Thomson in April last year, comes on top of a $757,397 payment to cover the personal cost of relocating from London to New York and a £27m takeover windfall,” The Guardian said.
Reporting a survey of management pay by Income Data Services (IDS), part of Thomson Reuters, it said UK directors' annual bonuses, when expressed as a proportion of basic salaries, have fallen by a quarter in the 12 months to April, down from 40 per cent of basic to 30 per cent. Over the same period, the FTSE 100 fell 38 per cent.
The survey does not take into account that in some cases board directors are successfully negotiating an increase in their basic salaries, mitigating the net impact on their take-home pay of falling performance bonuses, The Guardian said.
Revised deals are being secured despite unprecedented shareholder efforts to curb what they see as unacceptable revisions to boardroom pay deals.
Managers immediately below board level saw the steepest decline in their bonus, according to the IDS survey. This group had enjoyed bonus awards for the year to April 2008 worth 20 per cent of their basic salary; that has fallen to 13 per cent.
Meanwhile, middle and junior management saw their bonuses pared back from 10 per cent of basic salary to 7.8 per cent on average. Technical and professional staff experienced a lesser reduction in bonus, dropping from 8 per cent to 5.5 per cent.
● SOURCE The Guardian
Glocer enjoyed an annual bonus payout of $3.03 million, or 212 per cent of his basic salary, for 2008. “The payout for the American lawyer, who sold London-based Reuters to Canadian rival Thomson in April last year, comes on top of a $757,397 payment to cover the personal cost of relocating from London to New York and a £27m takeover windfall,” The Guardian said.
Reporting a survey of management pay by Income Data Services (IDS), part of Thomson Reuters, it said UK directors' annual bonuses, when expressed as a proportion of basic salaries, have fallen by a quarter in the 12 months to April, down from 40 per cent of basic to 30 per cent. Over the same period, the FTSE 100 fell 38 per cent.
The survey does not take into account that in some cases board directors are successfully negotiating an increase in their basic salaries, mitigating the net impact on their take-home pay of falling performance bonuses, The Guardian said.
Revised deals are being secured despite unprecedented shareholder efforts to curb what they see as unacceptable revisions to boardroom pay deals.
Managers immediately below board level saw the steepest decline in their bonus, according to the IDS survey. This group had enjoyed bonus awards for the year to April 2008 worth 20 per cent of their basic salary; that has fallen to 13 per cent.
Meanwhile, middle and junior management saw their bonuses pared back from 10 per cent of basic salary to 7.8 per cent on average. Technical and professional staff experienced a lesser reduction in bonus, dropping from 8 per cent to 5.5 per cent.
● SOURCE The Guardian
Thomson Reuters discusses Breakingviews takeover
Tuesday 14 July 2009
Thomson Reuters is reported to be in preliminary discussions to acquire Breakingviews, the financial commentary web site.
Breakingviews is a privately held media company based in London. It has made no comment about the talks and a spokeswoman for Thomson Reuters declined to discuss the reports, saying the company did not comment on market rumours. But she did say “Thomson Reuters remains committed to its innovation agenda, which includes investments in news and commentary initiatives.”
Thomson Reuters began its own online financial commentary unit this year. New York-based Felix Salmon, who is leading the effort to produce a financial blog, does not think the company will buy Breakingviews.
“Needless to say, I have no first-hand, or even second-hand, knowledge of such matters – nobody tells me anything, and nor should they. But I can say that this smells of desperation on the part of Breaking Views, and I will also confidently predict that the deal is not going to happen,” he wrote in a Reuters blog.
“When I joined Reuters’s commentary group, it was clear to me that we were a Breakingviews killer: we were going to provide better commentary than they do, at the unbeatable price of $0.00. Reuters can afford to do that because journalism is always a loss center here: the profts come from terminal sales, and introducing a commentary service adds value to the terminals and makes them easier to sell.”
Breakingviews’ commentary is syndicated in several newspapers including The New York Times, The Daily Telegraph and Le Monde. It was founded in 2000 by two journalists who worked for the Financial Times’ Lex column, which produces similar commentary.
The company has only a small number of shareholders and is partly owned by Rupert Murdoch’s News Corp. by way of its acquisition of Dow Jones in 2007.
The discussions between Thomson Reuters and Breakingviews were reported by The Times and The New York Times.
● CLICK to read Felix Salmon’s full blog and comments on it.
● SOURCE The Times | The New York Times | Forbes
Breakingviews is a privately held media company based in London. It has made no comment about the talks and a spokeswoman for Thomson Reuters declined to discuss the reports, saying the company did not comment on market rumours. But she did say “Thomson Reuters remains committed to its innovation agenda, which includes investments in news and commentary initiatives.”
Thomson Reuters began its own online financial commentary unit this year. New York-based Felix Salmon, who is leading the effort to produce a financial blog, does not think the company will buy Breakingviews.
“Needless to say, I have no first-hand, or even second-hand, knowledge of such matters – nobody tells me anything, and nor should they. But I can say that this smells of desperation on the part of Breaking Views, and I will also confidently predict that the deal is not going to happen,” he wrote in a Reuters blog.
“When I joined Reuters’s commentary group, it was clear to me that we were a Breakingviews killer: we were going to provide better commentary than they do, at the unbeatable price of $0.00. Reuters can afford to do that because journalism is always a loss center here: the profts come from terminal sales, and introducing a commentary service adds value to the terminals and makes them easier to sell.”
Breakingviews’ commentary is syndicated in several newspapers including The New York Times, The Daily Telegraph and Le Monde. It was founded in 2000 by two journalists who worked for the Financial Times’ Lex column, which produces similar commentary.
The company has only a small number of shareholders and is partly owned by Rupert Murdoch’s News Corp. by way of its acquisition of Dow Jones in 2007.
The discussions between Thomson Reuters and Breakingviews were reported by The Times and The New York Times.
● CLICK to read Felix Salmon’s full blog and comments on it.
● SOURCE The Times | The New York Times | Forbes
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
Thomson Reuters brand wins UK, US awards
Thursday 25 June 2009
Judges for the UK Marketing Society prize took into consideration the company’s global branding strategy, launch and roll-out of the new brand image.
Earlier in the same week, the Introducing Intelligent Information campaign won a Silver Anvil Award of Excellence from the Public Relations Society of America.
● SOURCE UK Marketing Society | Public Relations Society of America
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
Niall FitzGerald shortlisted for supermarket chairman
Sunday 21 June 2009
Thomson Reuters’ deputy chairman Niall FitzGerald is one of two leading businessmen shortlisted to become chairman of supermarket group J Sainsbury, The Sunday Times said.
The other one in the frame for the £396,000-a-year job at the top of Britain’s third-biggest food retailer is John Peace, chairman of fashion brand Burberry, business information group Experian, and acting chairman of Standard Chartered bank.
“FitzGerald, 63, is deputy chairman of Thomson Reuters and is keen to take a chairmanship,” the newspaper said. “In recent months he has been approached on three occasions to become chairman at BP but turned down the offers.
“The wealthy Irishman, who flirted with communism in his youth, spent three decades selling everything from Dove soap to Vaseline at Unilever, the household-goods group.”
He became a director of Reuters in 2003, chairman in 2004, and deputy chairman of the combined group on Thomson’s takeover in April 2008.
● SOURCE The Sunday Times
The other one in the frame for the £396,000-a-year job at the top of Britain’s third-biggest food retailer is John Peace, chairman of fashion brand Burberry, business information group Experian, and acting chairman of Standard Chartered bank.
“FitzGerald, 63, is deputy chairman of Thomson Reuters and is keen to take a chairmanship,” the newspaper said. “In recent months he has been approached on three occasions to become chairman at BP but turned down the offers.
“The wealthy Irishman, who flirted with communism in his youth, spent three decades selling everything from Dove soap to Vaseline at Unilever, the household-goods group.”
He became a director of Reuters in 2003, chairman in 2004, and deputy chairman of the combined group on Thomson’s takeover in April 2008.
● SOURCE The Sunday Times
Pension increase ruled out for this year
Thursday 14 May 2009
Thomson Reuters has turned its back on members of its UK pension funds and ruled out any inflation-linked increase for 2009, their fourth pay freeze in the past seven years.
The bad news, which effectively means that Reuters Pension Fund and Supplementary Pension Scheme pensioners are 13 per cent worse off, was confirmed at the Thomson Reuters annual general meeting in London on 13 May.
Pension Review Group chairman Angela Dean asked CEO Tom Glocer when the newly merged company would “do the right thing by its pensioners and pay them index-linked increases, as do other FTSE 100 companies with defined benefit schemes, and as did the old Thomson company for its UK pensioners?”
Glocer ducked the question and passed it to former Reuters chairman Niall FitzGerald, who speaks for “legacy Reuters issues” on the new Thomson Reuters board of directors.
FitzGerald noted that the RPF and SPS were in deficit at the end of 2008. This meant that under the terms of the 2006 funding agreement between old Reuters and the pension fund trustees, there could be no inflation increases this year.
FitzGerald reminded that there had been increases in the three years since the funding agreement, when Reuters put in £230 million to shore up the funds and wipe out their deficits at that time. If the funds returned to surplus by the end of this year, the trustees would be in a position to resume increases, he said.
The funding agreement between RPF/SPS and the company runs out in 2010, when it will be renegotiated. When Thomson took over Reuters last year, it said it was standing by the agreement.
Allan Ferguson, another Reuters UK pensioner who attended the AGM, said he understood that former employees of Thomson “get cost of living increases automatically”.
FitzGerald replied that Thomson Reuters had many pension schemes in many different countries. “Some have automatic indexation, some don’t. I really can’t add anything to what I said.”
David Thomson, chairman of the board and head of the Canadian company which has the controlling interest in Thomson Reuters, ended on a more conciliatory note by saying “we will take into serious consideration your concerns”.
The Pension Review Group wrote to CEO Glocer in April, ahead of the AGM, setting out the concerns of RPF/SPS pensioners and asking the company to resume annual inflation increases, which was very much the custom and practice prior to the first freeze in 2003.
The PRG letter, which the company has acknowledged but not yet provided a substantive reply, noted that Thomson Reuters was doing well and paying Glocer and other senior executives multi-million dollar salaries and bonuses. Pensioners, meanwhile, were getting poorer.
The PRG intends to publish the full text of its letter and the company’s substantive reply, when it arrives. The question asked by the PRG chairman at the AGM was as follows:
At a time when the new Thomson Reuters company is forging ahead, and its top executives from old Reuters are earning multi-million dollar salaries and bonuses, why are Reuters pensioners suffering yet another pay cut?
Elderly members of the Reuters UK defined benefit schemes are facing their fourth pension freeze in seven years, which means they are 13 per cent worse off. And this at a time when any savings they might have are producing greatly reduced returns.
When will Thomson Reuters do the right thing by its pensioners and pay them index-linked annual increases, as do other FTSE 100 companies with defined benefit schemes, and as did the old Thomson company for its UK pensioners?
The bad news, which effectively means that Reuters Pension Fund and Supplementary Pension Scheme pensioners are 13 per cent worse off, was confirmed at the Thomson Reuters annual general meeting in London on 13 May.
Pension Review Group chairman Angela Dean asked CEO Tom Glocer when the newly merged company would “do the right thing by its pensioners and pay them index-linked increases, as do other FTSE 100 companies with defined benefit schemes, and as did the old Thomson company for its UK pensioners?”
Glocer ducked the question and passed it to former Reuters chairman Niall FitzGerald, who speaks for “legacy Reuters issues” on the new Thomson Reuters board of directors.
FitzGerald noted that the RPF and SPS were in deficit at the end of 2008. This meant that under the terms of the 2006 funding agreement between old Reuters and the pension fund trustees, there could be no inflation increases this year.
FitzGerald reminded that there had been increases in the three years since the funding agreement, when Reuters put in £230 million to shore up the funds and wipe out their deficits at that time. If the funds returned to surplus by the end of this year, the trustees would be in a position to resume increases, he said.
The funding agreement between RPF/SPS and the company runs out in 2010, when it will be renegotiated. When Thomson took over Reuters last year, it said it was standing by the agreement.
Allan Ferguson, another Reuters UK pensioner who attended the AGM, said he understood that former employees of Thomson “get cost of living increases automatically”.
FitzGerald replied that Thomson Reuters had many pension schemes in many different countries. “Some have automatic indexation, some don’t. I really can’t add anything to what I said.”
David Thomson, chairman of the board and head of the Canadian company which has the controlling interest in Thomson Reuters, ended on a more conciliatory note by saying “we will take into serious consideration your concerns”.
The Pension Review Group wrote to CEO Glocer in April, ahead of the AGM, setting out the concerns of RPF/SPS pensioners and asking the company to resume annual inflation increases, which was very much the custom and practice prior to the first freeze in 2003.
The PRG letter, which the company has acknowledged but not yet provided a substantive reply, noted that Thomson Reuters was doing well and paying Glocer and other senior executives multi-million dollar salaries and bonuses. Pensioners, meanwhile, were getting poorer.
The PRG intends to publish the full text of its letter and the company’s substantive reply, when it arrives. The question asked by the PRG chairman at the AGM was as follows:
At a time when the new Thomson Reuters company is forging ahead, and its top executives from old Reuters are earning multi-million dollar salaries and bonuses, why are Reuters pensioners suffering yet another pay cut?
Elderly members of the Reuters UK defined benefit schemes are facing their fourth pension freeze in seven years, which means they are 13 per cent worse off. And this at a time when any savings they might have are producing greatly reduced returns.
When will Thomson Reuters do the right thing by its pensioners and pay them index-linked annual increases, as do other FTSE 100 companies with defined benefit schemes, and as did the old Thomson company for its UK pensioners?
Thomson Reuters launches new iPhone, iPod Touch and Blackberry applications
Monday 11 May 2009
“It would be a logical conclusion that there would be a paid element in time,” said Alisa Bowen, head of consumer publishing. “The ability to launch premium services is our ultimate goal.”
The company is also looking at a more comprehensive service for the Kindle, Amazon’s electronic reader. “We’re seeing a willingness to discuss [the Kindle business model] from Amazon,” Bowen said.
The new applications offer video and market data as well as headlines. They are tailored for the three devices’ different audiences. The iPhone/iPod Touch service plays up video coverage and photography for a consumer-focused user base, while its Blackberry service focuses on customised business reporting and data.
Both apps are being released free to BlackBerry and iPhone/iPod Touch users, but the company wants to turn them into products that generate both subscription and advertising revenue.
Chris Ahearn, president of media, told the website paidContent that the company was still moving forward on Markets division CEO Devin Wenig's promise to invest $1 billion in building up its multimedia capabilities. That push revolves around ramping up its video capabilities for both TV and the web.
"The iPhone app is targeted to all business professionals, not just financial consumers, or users in legal or health and science. It's for Thomson Reuters professional audience writ large," he said. Ahearn said the company will roll out a number of other products this year. "You'll see a variety of multimedia offerings across online, mobile as well as the terminals over the course of this year. We're investing $1 billion in the middle of what is arguably one of the most difficult economic periods we've seen in decades."
"We learned a lot of lessons over the last two decades – the most important of which is to focus on delivering great user experiences," said Ahearn. "This app for iPhone and iPod Touch is an excellent way to give our business professional audience convenient access to Reuters content anytime, anyplace."
Key features and benefits of the mobile application include:
● News stories from a variety of categories including world, sports, politics, environment, health, and business
● Full story articles and photos optimised for easy reading on a mobile device
● Ability to select region – US, Canada, UK, or India – for localised content
● Up-to-the-minute market data including indices, commodities and currencies by region
● Designed to support offline use when users don’t have service or an Internet connection
● Personalised stocks tab so users can track only the stocks that they want
● Keywords and My Feeds tab that allows users to customised news feeds that are of special interest.
● SOURCE Financial Times | The Washington Post | Business World
● CLICK to download the iPhone and iPod Touch application from the Apple iTunes website.
● CLICK to download the BlackBerry application from the BlackBerry website.
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
Thomson Reuters staff vote for industrial action
Monday 06 April 2009
Journalists at Thomson Reuters’ financial news operation have voted for industrial action in an attempt to protect their current working conditions, The Guardian reported on Monday.
Members of the National Union of Journalists who used to work for Thomson Financial News took part in secret ballot, with 59 per cent of the 30 staff who took part in the ballot voting in favour of strike action and 83 per cent in favour of some form of industrial action.
Before the April 2008 merger, staff working for Thomson Financial News were on a nine-day fortnight. They are unhappy at a plan to introduce a 10-day fortnight.
"Our members at the previous Thomson's group had a nine-day fortnight as part of their contracts to recognise the stress of the job and the anti-social shift pattern," said the NUJ head of publishing, Barry Fitzpatrick. "They now play their part in making huge profits for an extraordinarily successful company."
NUJ members are understood to be meeting next week to plan their next move, The Guardian said.
A spokeswoman for Thomson Reuters said the planned rota change was part of a plan to create common working practices across the company.
"Reuters is deeply disappointed that a majority of former Thomson Financial News staff have voted for industrial action over changes to shift patterns in the London newsroom," the spokeswoman added.
"Given the challenges facing the industry and the innovative investments Reuters is making throughout the newsroom, the ballot will only prolong a dispute that is unnecessary and ill-considered and one which involves less than 10 per cent of the London newsroom staff."
● SOURCE The Guardian
Members of the National Union of Journalists who used to work for Thomson Financial News took part in secret ballot, with 59 per cent of the 30 staff who took part in the ballot voting in favour of strike action and 83 per cent in favour of some form of industrial action.
Before the April 2008 merger, staff working for Thomson Financial News were on a nine-day fortnight. They are unhappy at a plan to introduce a 10-day fortnight.
"Our members at the previous Thomson's group had a nine-day fortnight as part of their contracts to recognise the stress of the job and the anti-social shift pattern," said the NUJ head of publishing, Barry Fitzpatrick. "They now play their part in making huge profits for an extraordinarily successful company."
NUJ members are understood to be meeting next week to plan their next move, The Guardian said.
A spokeswoman for Thomson Reuters said the planned rota change was part of a plan to create common working practices across the company.
"Reuters is deeply disappointed that a majority of former Thomson Financial News staff have voted for industrial action over changes to shift patterns in the London newsroom," the spokeswoman added.
"Given the challenges facing the industry and the innovative investments Reuters is making throughout the newsroom, the ballot will only prolong a dispute that is unnecessary and ill-considered and one which involves less than 10 per cent of the London newsroom staff."
● SOURCE The Guardian
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
Thomson Reuters announces C$750 million note offering
Thursday 26 March 2009
Thomson Reuters announced it has entered into an agency agreement with a syndicate of Canadian investment dealers for a public offering in Canada of C$750 million of 6.0 per cent notes due 2016.
Proceeds are expected to be used for general corporate purposes including debt repayment due this year.
The notes are being issued by Thomson Reuters Corporation and will be unconditionally guaranteed by Thomson Reuters PLC. The offering is expected to close on 31 March subject to customary closing conditions. The notes are not being offered or sold in the United States.
Fitch Ratings has assigned an 'A-' rating to the notes. Fitch currently rates Thomson Reuters and its subsidiaries as follows:
Thomson Reuters Corp:
● Issuer Default Rating (IDR) 'A-'
● Bank credit facility 'A-'
● Senior unsecured notes 'A-'
● Commercial paper 'F2'
● Short-term IDR 'F2'.
Reuters Group Limited:
● IDR 'A-'.
Reuters Finance PLC:
● IDR 'A-'
● Senior unsecured 'A-'.
Fitch said the ratings reflect the company’s meaningful cash flow generating ability, its sound balance sheet and its consistent and conservative financial policies. At the end of 2008, proforma unadjusted net leverage was within management's targeted range of at or below two times.
The ratings also reflect Thomson Reuters’ growth prospects, as well as the product line and geographic diversity of its cash flow stream, it said.
“Fitch recognizes there are meaningful barriers to entry in TRI's core businesses and that there are a limited number of well-capitalized, rational competitors that compete predominantly on product differentiation, quality and delivery (rather than on price).
“Unlike traditional advertising-based consumer media subsectors, TRI has already made the transition to electronic delivery and faces very little threat of substitution by digital transplants.
“Rating concerns center predominantly on the cyclicality of the Markets division, however, Fitch notes there is meaningful room in the rating to accommodate potential cyclical weakness in the Markets division. Also, integration and acquisition risk remain concerns. As with other highly rated companies, the potential threat of financial policy revisions is always a concern, although Fitch believes these issues are sufficiently mitigated.”
● SOURCE Yahoo Finance | Fitch Ratings
Proceeds are expected to be used for general corporate purposes including debt repayment due this year.
The notes are being issued by Thomson Reuters Corporation and will be unconditionally guaranteed by Thomson Reuters PLC. The offering is expected to close on 31 March subject to customary closing conditions. The notes are not being offered or sold in the United States.
Fitch Ratings has assigned an 'A-' rating to the notes. Fitch currently rates Thomson Reuters and its subsidiaries as follows:
Thomson Reuters Corp:
● Issuer Default Rating (IDR) 'A-'
● Bank credit facility 'A-'
● Senior unsecured notes 'A-'
● Commercial paper 'F2'
● Short-term IDR 'F2'.
Reuters Group Limited:
● IDR 'A-'.
Reuters Finance PLC:
● IDR 'A-'
● Senior unsecured 'A-'.
Fitch said the ratings reflect the company’s meaningful cash flow generating ability, its sound balance sheet and its consistent and conservative financial policies. At the end of 2008, proforma unadjusted net leverage was within management's targeted range of at or below two times.
The ratings also reflect Thomson Reuters’ growth prospects, as well as the product line and geographic diversity of its cash flow stream, it said.
“Fitch recognizes there are meaningful barriers to entry in TRI's core businesses and that there are a limited number of well-capitalized, rational competitors that compete predominantly on product differentiation, quality and delivery (rather than on price).
“Unlike traditional advertising-based consumer media subsectors, TRI has already made the transition to electronic delivery and faces very little threat of substitution by digital transplants.
“Rating concerns center predominantly on the cyclicality of the Markets division, however, Fitch notes there is meaningful room in the rating to accommodate potential cyclical weakness in the Markets division. Also, integration and acquisition risk remain concerns. As with other highly rated companies, the potential threat of financial policy revisions is always a concern, although Fitch believes these issues are sufficiently mitigated.”
● SOURCE Yahoo Finance | Fitch Ratings
Industrial action ballot over nine-day fortnight
Friday 13 March 2009
Journalists at Thomson Reuters are balloting on industrial action to protect the right of former Thomson Financial News staff to a nine-day fortnight.
The National Union of Journalists is holding a ballot after rejecting the company's offer of £1,000 in compensation for the loss of the nine-day fortnight as "risible" and "totally inadequate". The union says former TFN staff have vowed to continue working their current hours, despite threats of disciplinary action.
The dispute over working hours is part of a wider argument over pay that has been brewing for months, The Guardian reported. The company's latest offer is a 1.25% rise in annual pay across the board, which the union has criticised as below inflation.
Barry Fitzpatrick, the NUJ's head of publishing, said TFN members regarded the nine-day fortnight as an essential benefit given the low pay rise and the fact that their colleagues from the Reuters side of the business were better paid.
"Many former TFN staff are paid significantly less than Reuters' colleagues for doing the same work, and in a lot of cases paid not much more than a Reuters trainee's starting salary," Fitzpatrick said.
"If the company is serious about harmonisation, it should properly consider its journalists' claim for compensation, which, given the company's massive profits, is more than affordable even in these difficult times."
A Thomson Reuters spokeswoman said: "We regret that the NUJ has decided to take this course of action, particularly in light of the concerted and prolonged efforts made by the company to resolve matters amicably. We delayed implementation of the changes to work, employed favourable enhancements to terms and conditions and proposed a financial offer, which has been flatly rejected by the NUJ."
● SOURCE The Guardian
The National Union of Journalists is holding a ballot after rejecting the company's offer of £1,000 in compensation for the loss of the nine-day fortnight as "risible" and "totally inadequate". The union says former TFN staff have vowed to continue working their current hours, despite threats of disciplinary action.
The dispute over working hours is part of a wider argument over pay that has been brewing for months, The Guardian reported. The company's latest offer is a 1.25% rise in annual pay across the board, which the union has criticised as below inflation.
Barry Fitzpatrick, the NUJ's head of publishing, said TFN members regarded the nine-day fortnight as an essential benefit given the low pay rise and the fact that their colleagues from the Reuters side of the business were better paid.
"Many former TFN staff are paid significantly less than Reuters' colleagues for doing the same work, and in a lot of cases paid not much more than a Reuters trainee's starting salary," Fitzpatrick said.
"If the company is serious about harmonisation, it should properly consider its journalists' claim for compensation, which, given the company's massive profits, is more than affordable even in these difficult times."
A Thomson Reuters spokeswoman said: "We regret that the NUJ has decided to take this course of action, particularly in light of the concerted and prolonged efforts made by the company to resolve matters amicably. We delayed implementation of the changes to work, employed favourable enhancements to terms and conditions and proposed a financial offer, which has been flatly rejected by the NUJ."
● SOURCE The Guardian
Thomson Reuters to launch video news service in June
Tuesday 03 March 2009
Thomson Reuters Corp will launch a video news service in June for financial professionals who use its terminals, part of a $1 billion plan to appeal to a new generation of customers.
The service, called Reuters Insider, will provide live and searchable financial markets coverage, analysis and breaking news.
It will not run all day, will not rely on advertising and will be largely unavailable to the public. Clients, however, will be able to access it around the clock. Paying customers will be able to access on-demand news segments in the same way people watch video clips on YouTube. They will be able to select videos on channels grouped by category, such as foreign exchange, equities or political news.
The project is part of a $1 billion programme to update the company's products and infrastructure to make them more appealing to financial professionals accustomed to using the Internet to get information.
Thomson Reuters has been testing the service since last October, and is launching it during a time of uncertainty for media outlets.
Many newspapers, TV stations and news outlets are losing advertising revenue as people get more news online, often for free. Some news and information companies may be forced out of business. Others are trying to figure out how to get people to pay for their news.
Investing during the global economic downturn, which has led to layoffs in the financial industry, is what the company must do to keep performing well, said Devin Wenig, markets division chief executive.
Reuters journalists are contributing to the programming, and Thomson Reuters is recruiting about 120 people to run it from multi-media studios in New York, London and Hong Kong. It hopes clients such as banks and investment companies will also supply video and create their own channels.
The new service is designed to give financial professionals news they can use to make trades and other business decisions, but does not replace news articles, Wenig said.
"To me, this is just Reuters News 2.0," he said. Targeting a narrowly defined, paying audience works better for the company, Wenig said. "This isn't infotainment."
Chris Cramer, former president of CNN International who is now global editor of multimedia for Reuters News, said: “The broadcast model, the cable model, is broken. At the moment there is no competition. This is something unique.”
Michael Stepanovich, managing editor of Reuters Insider, said it would rely heavily on “tags” about each video clip, generated from transcripts using software acquired through the 2007 purchase of a “semantic engine” called Clear Forest.
As well as channels for sales and trading or enterprise customers, he said Reuters Insider could be customised to track individual sectors, asset classes, regions, companies and topics, or an investor’s portfolio. “We want to be able to create a [Bernie] Madoff channel,” Stepanovich said.
Users will also be able to watch “highlights reels” drawn from different videos, find sections of video from the relevant passage in the transcript, or send clips to their BlackBerrys.
David Schlesinger, editor-in-chief, said the initiative was a response to the demands of a younger generation.
Reuters experimented with video a decade ago with Reuters TV but abandoned the initiative because of the high costs required before the web video era.
● SOURCE Financial Times
● CLICK to read Chris Cramer’s blog post on narrowcasting.
The service, called Reuters Insider, will provide live and searchable financial markets coverage, analysis and breaking news.
It will not run all day, will not rely on advertising and will be largely unavailable to the public. Clients, however, will be able to access it around the clock. Paying customers will be able to access on-demand news segments in the same way people watch video clips on YouTube. They will be able to select videos on channels grouped by category, such as foreign exchange, equities or political news.
The project is part of a $1 billion programme to update the company's products and infrastructure to make them more appealing to financial professionals accustomed to using the Internet to get information.
Thomson Reuters has been testing the service since last October, and is launching it during a time of uncertainty for media outlets.
Many newspapers, TV stations and news outlets are losing advertising revenue as people get more news online, often for free. Some news and information companies may be forced out of business. Others are trying to figure out how to get people to pay for their news.
Investing during the global economic downturn, which has led to layoffs in the financial industry, is what the company must do to keep performing well, said Devin Wenig, markets division chief executive.
Reuters journalists are contributing to the programming, and Thomson Reuters is recruiting about 120 people to run it from multi-media studios in New York, London and Hong Kong. It hopes clients such as banks and investment companies will also supply video and create their own channels.
The new service is designed to give financial professionals news they can use to make trades and other business decisions, but does not replace news articles, Wenig said.
"To me, this is just Reuters News 2.0," he said. Targeting a narrowly defined, paying audience works better for the company, Wenig said. "This isn't infotainment."
Chris Cramer, former president of CNN International who is now global editor of multimedia for Reuters News, said: “The broadcast model, the cable model, is broken. At the moment there is no competition. This is something unique.”
Michael Stepanovich, managing editor of Reuters Insider, said it would rely heavily on “tags” about each video clip, generated from transcripts using software acquired through the 2007 purchase of a “semantic engine” called Clear Forest.
As well as channels for sales and trading or enterprise customers, he said Reuters Insider could be customised to track individual sectors, asset classes, regions, companies and topics, or an investor’s portfolio. “We want to be able to create a [Bernie] Madoff channel,” Stepanovich said.
Users will also be able to watch “highlights reels” drawn from different videos, find sections of video from the relevant passage in the transcript, or send clips to their BlackBerrys.
David Schlesinger, editor-in-chief, said the initiative was a response to the demands of a younger generation.
Reuters experimented with video a decade ago with Reuters TV but abandoned the initiative because of the high costs required before the web video era.
● SOURCE Financial Times
● CLICK to read Chris Cramer’s blog post on narrowcasting.
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.
Tom Glocer on news and newspapers
Wednesday 25 February 2009
The Reuters journalist who reported Thomson Reuters’ Q4 results on Tuesday has added something that was not included in the wire story: the public thoughts of CEO Tom Glocer on news and newspapers.
“During a conference call with reporters, I asked Chief Executive Tom Glocer, who ran Reuters before Thomson Corp bought it, what the company plans to do regarding investing in news,” Robert MacMillan wrote in a Reuters blog.
“I also asked if the company could ever be in the market for another print newspaper. Remember that Thomson Reuters likes to tout the fact that Thomson Corp long ago got out of the newspaper business, thinking there was more of a future in electronic information that you make people pay a lot of money for.”
Glocer on news spending:
“We’ve continued to invest in news and we think 2009 is a very good year in investment for us both in terms of having brought in some of the journalists who have joined from Thomson Financial, but also investments we’re making in new editorial systems, in the video, multimedia presentation of news. So I think one of the good things about the strength of our financial performance is that we can continue to invest when a lot of pure media companies aren’t.”
Glocer on getting “back” into the newspaper business (“I asked whether the Financial Times or the New York Times-owned International Herald Tribune would be good fits, specifically. But why not The New York Times? Everyone with more than a few pennies to rub together is a candidate to buy it these days.”):
“[Thomson was] so early in getting out of newspapers that now to go back in when our business model is so focused on professionals and so overwhemingly electronic doesn’t make a lot of sense to me. … If there were a fantastic information product that was 95 per cent electronic and five per cent a print output device, we would do it — maybe — if it otherwise made sense. I’m not convinced that we know how to run a newspaper any better than the ones running them today.”
Earlier, Glocer said on his blog that newspapers remain dead but journalism is alive and well.
Reporting on a panel debate at the World Economic Forum annual meeting in Davos on the health of the media with Steve Forbes of the eponymous magazine; Jonathan Nelson of Providence Equity Partners, the media-focused buyout firm; Shobhana Bhartia of the Indian Parliament and the Hindustan Times; and John Graham of Fleishman-Hillard, the global PR firm, he wrote:
“While we broke little new ground, the discussion was uncharacteristically animated for a 9:00am audience. While Luddites and Refusniks remain, there seems to be growing acceptance of the point I and others have been making for years: Newsprint is an output device, not an end in itself. What matters is quality journalism which can and does thrive in multiple media.
“There are several advantages of paper: it is light to carry, highly legible, and can be folded, written upon and read on the train or in the small tiled room. However, paper has its limitations: it is relatively expensive, must be physically delivered, is less environmentally friendly than digital bits, and cannot be easily searched or processed. This latter point has resulted in the near destruction of the print newspaper model as classified advertising has fled online.
“While these trends are not universal (Shobhana reminded us that newspapers in India continue to thrive), the combination of these structural challenges with the tremendous cyclical pressures being experienced in most markets should not make one optimistic about the future of the print-only model.
“Instead, of lamenting that the Fourth Estate is dead, we should celebrate the innovations of the current age that can now be applied to telling the story, such as blogs, wikis, IPTV, social media, the mobile web, Kindle, electronic ink, etc.. For those who can make the leap while not abandoning their journalistic values, new audiences await.”
● SOURCE Reuters Blogs | Tom Glocer’s Blog
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
Niall Fitzgerald favoured to chair BP
Sunday 22 February 2009
Niall Fitzgerald, Thomson Reuters’ deputy chairman, is one of the favourites to succeed fellow Irishman Peter Sutherland as chairman of BP, The Independent on Sunday reported.
Fitzgerald, 63, has been approached by a head-hunter to take over when Sutherland steps down in April after 12 years at the helm of the oil giant.
“Sources close to Mr Fitzgerald say he is interested in taking on one of the UK’s most prestigious industrial jobs. He was chairman and chief executive of Unilever, after working for the Anglo-Dutch household goods group for more than three decades, and chairman of Reuters until it merged with Thomson... After the merger, he took on the deputy chair,” The Independent said.
Fitzgerald has no direct experience of the oil industry. “He is interested in the environment – a big issue for BP – through his work as chairman of the Investment Climate Facility for Africa and serves on the International Business Council, the World Economic Forum, China’s Tsinghua University, as well as advising Morgan Stanley,” the newspaper added.
● SOURCE The Independent on Sunday
Fitzgerald, 63, has been approached by a head-hunter to take over when Sutherland steps down in April after 12 years at the helm of the oil giant.
“Sources close to Mr Fitzgerald say he is interested in taking on one of the UK’s most prestigious industrial jobs. He was chairman and chief executive of Unilever, after working for the Anglo-Dutch household goods group for more than three decades, and chairman of Reuters until it merged with Thomson... After the merger, he took on the deputy chair,” The Independent said.
Fitzgerald has no direct experience of the oil industry. “He is interested in the environment – a big issue for BP – through his work as chairman of the Investment Climate Facility for Africa and serves on the International Business Council, the World Economic Forum, China’s Tsinghua University, as well as advising Morgan Stanley,” the newspaper added.
● SOURCE The Independent on Sunday
On the nose: Thomson Reuters logo on AT&T Williams F1 cars
Thursday 19 February 2009
In its tenth season of Formula One™ sponsorship, Reuters – now Thomson Reuters – is putting its brand on the nose of AT&T Williams cars. The Thomson Reuters logo will also be on driver and mechanic overalls.
The new branding position on the test and race cars is said to provide an additional measure to encourage global awareness of the company’s brand identity.
Why does the company sponsor a F1™ team?
“With over 600 million unique viewers watching F1™ races around the world in 188 markets, Formula One™ is one of the world’s most popular sports. Our relationship with the AT&T Williams team affords significant brand exposure and unique experiences for many of our most valued customers,” the company said.
It said Thomson Reuters and AT&T Williams share many similarities, including the reliance on teamwork, high technology and expert data – telemetry in the case of F1™ – to achieve high performance.
The first outing for the new branding will be at the inaugural race of the 2009 season in Melbourne, Australia on 29 March.
The new branding position on the test and race cars is said to provide an additional measure to encourage global awareness of the company’s brand identity.
Why does the company sponsor a F1™ team?
“With over 600 million unique viewers watching F1™ races around the world in 188 markets, Formula One™ is one of the world’s most popular sports. Our relationship with the AT&T Williams team affords significant brand exposure and unique experiences for many of our most valued customers,” the company said.
It said Thomson Reuters and AT&T Williams share many similarities, including the reliance on teamwork, high technology and expert data – telemetry in the case of F1™ – to achieve high performance.
The first outing for the new branding will be at the inaugural race of the 2009 season in Melbourne, Australia on 29 March.
Thomson Reuters restructures multimedia operations
Wednesday 18 February 2009
Thomson Reuters is restructuring its multimedia operations to face a growing challenge from digital and video competitors like Bloomberg and The Associated Press.
Chris Cramer (pictured), former CNN chief, comes out on top. Cramer, named head of multimedia in October, will serve as the unit's global editor. His new responsibilities entail the creation of five editorial groups, including TV, photos, financial video, online and agency. By coordinating them, the company hopes to build on its appeal, even while it strenuously tries to cut costs, the digital media industry website paidContent said.
The five multimedia groups will be led by senior editors. Mike Stepanovich, senior vice-president and global head of business development, adds the role of managing editor of the financial video service. John Clarke and Tom Szlukovenyi will continue in their jobs overseeing TV and photos respectively. The two others – online global editor and agency global editor – are new posts and have not yet been filled.
Cramer was a president and managing director of CNN International before he retired from the Turner network in 2007. David Schlesinger, Reuters' editor-in-chief, brought him into the company last year to handle the financial video service. Before the latest change, only the teams who worked on financial video and online reported to Cramer.
“As competitors like Bloomberg and Associated Press have become more aggressive on the digital and video front, Thomson Reuters is trying to step up by introducing a new management structure for its multimedia offerings,” paidContent said.
● SOURCE Paid Content
Pay showdown seen after talks collapse
Monday 09 February 2009
Staff and management at Thomson Reuters in London are heading for a showdown over pay this week after talks at the Advisory, Conciliation and Arbitration Service broke down after three hours on Friday, The Guardian reported.
National Union of Journalists officials have rejected a revised 1.25 per cent across-the-board increase, while an attempt by management to force former Thomson London staff to give up their nine-day fortnight in return for a £500-a-year pay rise was rejected as "derisory", it said.
The combined Thomson Reuters NUJ Chapel is due to hold a mandatory meeting on Thursday to discuss the pay offer. A ballot for industrial action could also be held on the issue of former Thomson staff being forced to give up their nine-day fortnight following last April’s merger with Reuters. Reuters staff moved to a five-day week almost a decade ago and in return received a seven per cent across-the-board pay increase.
Management, led by editor-in-chief David Schlesinger, maintain they are changing the company's shift patterns, not the hours worked, The Guardian said. “When Reuters dumped its nine-day fortnight, in contrast, there was an increase in working hours.”
NUJ officials, however, claim that former Thomson Financial News staff are already on significantly lower wages than their Reuters colleagues for doing the same work and any move to a five-day week should be on a voluntary basis.
"Thomson Reuters encourages flexible working and will consider individual requests in line with company policy," a Reuters spokeswoman said in response.
The two sides have been battling over pay for months, the newspaper said. Management initially said there would be no across-the-board annual pay increase from April this year, but up to 2.5 per cent would be paid out on a performance basis.
That has since changed to a 1.25 per cent across-the-board increase, out of a total budget increase of 2.5 per cent, with the rest to be paid based on performance. From next year, management are understood to want to base all pay increases on performance, The Guardian added.
● SOURCE The Guardian
National Union of Journalists officials have rejected a revised 1.25 per cent across-the-board increase, while an attempt by management to force former Thomson London staff to give up their nine-day fortnight in return for a £500-a-year pay rise was rejected as "derisory", it said.
The combined Thomson Reuters NUJ Chapel is due to hold a mandatory meeting on Thursday to discuss the pay offer. A ballot for industrial action could also be held on the issue of former Thomson staff being forced to give up their nine-day fortnight following last April’s merger with Reuters. Reuters staff moved to a five-day week almost a decade ago and in return received a seven per cent across-the-board pay increase.
Management, led by editor-in-chief David Schlesinger, maintain they are changing the company's shift patterns, not the hours worked, The Guardian said. “When Reuters dumped its nine-day fortnight, in contrast, there was an increase in working hours.”
NUJ officials, however, claim that former Thomson Financial News staff are already on significantly lower wages than their Reuters colleagues for doing the same work and any move to a five-day week should be on a voluntary basis.
"Thomson Reuters encourages flexible working and will consider individual requests in line with company policy," a Reuters spokeswoman said in response.
The two sides have been battling over pay for months, the newspaper said. Management initially said there would be no across-the-board annual pay increase from April this year, but up to 2.5 per cent would be paid out on a performance basis.
That has since changed to a 1.25 per cent across-the-board increase, out of a total budget increase of 2.5 per cent, with the rest to be paid based on performance. From next year, management are understood to want to base all pay increases on performance, The Guardian added.
● SOURCE The Guardian
Unfair labor practice charges over union t-shirts in newsrooms
Tuesday 03 February 2009
The New York Newspaper Guild has filed two unfair labor practice charges against Thomson Reuters over the wearing of red union t-shirts in newsrooms.
It says the company unfairly barred workers from their long-standing practice of wearing the t-shirts to show solidarity during labor contract negotiations.
The Guild's charges to the National Labor Relations Board said Thomson Reuters violated federal labor law by banning only Guild t-shirts and by implementing a dress code without bargaining with the union as required.
"This is the first time in the union's more than 30 years at Reuters that management has been so rattled as to ban a display of union support," said Guild President Bill O'Meara. "Our members are more than a little riled at management trying to curb their right to show solidarity with their union."
The company ordered newsroom staffers not to wear the t-shirts if they could be captured by television cameras using the newsrooms in New York and Washington as a backdrop to Thomson Reuters’ new web-based video product, Insider.
The union and the company have had three bargaining sessions aimed at agreeing a new contract to replace the one that expires on 28 February.
● SOURCE PR Newswire
It says the company unfairly barred workers from their long-standing practice of wearing the t-shirts to show solidarity during labor contract negotiations.
The Guild's charges to the National Labor Relations Board said Thomson Reuters violated federal labor law by banning only Guild t-shirts and by implementing a dress code without bargaining with the union as required.
"This is the first time in the union's more than 30 years at Reuters that management has been so rattled as to ban a display of union support," said Guild President Bill O'Meara. "Our members are more than a little riled at management trying to curb their right to show solidarity with their union."
The company ordered newsroom staffers not to wear the t-shirts if they could be captured by television cameras using the newsrooms in New York and Washington as a backdrop to Thomson Reuters’ new web-based video product, Insider.
The union and the company have had three bargaining sessions aimed at agreeing a new contract to replace the one that expires on 28 February.
● SOURCE PR Newswire
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
Reuters Golf Society re-brands
Monday 26 January 2009
Reuters Golf Society has re-branded as Thomson Reuters Golf Society.
The Society is based in London and it’s a continuation of the Reuters Golf Society that has been in existence for over 35 years, John Roche writes.
Membership is open to men and women and members’ immediate family.
Reuters and now Thomson Reuters have continued to support the Golf Society, enabling the ongoing tradition of an egalitarian and ever expanding membership. It offers a rare opportunity for current employees from a diverse variety of job roles and departments, to meet socially. It also provides an opportunity for retired colleagues to meet up and keep in contact with current employees.
Each season eight or nine venues are selected within easy reach of the London orbital M25 motorway. During 2008 the membership was 130 there were more than 400 player days.
The Society’s current president is Thomson Reuters’ deputy chairman Niall FitzGerald.
● Thomson Reuters Golf Society
The Society is based in London and it’s a continuation of the Reuters Golf Society that has been in existence for over 35 years, John Roche writes.
Membership is open to men and women and members’ immediate family.
Reuters and now Thomson Reuters have continued to support the Golf Society, enabling the ongoing tradition of an egalitarian and ever expanding membership. It offers a rare opportunity for current employees from a diverse variety of job roles and departments, to meet socially. It also provides an opportunity for retired colleagues to meet up and keep in contact with current employees.
Each season eight or nine venues are selected within easy reach of the London orbital M25 motorway. During 2008 the membership was 130 there were more than 400 player days.
The Society’s current president is Thomson Reuters’ deputy chairman Niall FitzGerald.
● Thomson Reuters Golf Society
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 starting to feel ‘coherent, focused’
Friday 19 December 2008
At the close of a rollercoaster year of firsts, integration pains and the most challenging market of a lifetime, Thomson Reuters is starting to feel like a coherent, focused business and is on track to become one company in one year, says Devin Wenig, markets division CEO.
There is lots more to do and there are more challenges to come – hold tight for another amazing year, he has told staff.
“We recently held our holiday parties and I have to say that I wasn’t sure how people would react to these parties, given our focus on costs and the uncertainty in the market,” Wenig said in a year-end message. “I think people really had a great time and they understand that our goal was simply to say thanks for an extraordinary effort in an extraordinary year.
“As someone said to me in New York, anybody that has a party in this market environment must be winning!
“And what an amazing year it’s been – no-one could have predicted even a year ago the pace of change that we have seen inside our organization but also what’s happening to the markets and to our customers.
“It’s been a year of highs and lows, of things to celebrate, of getting to know new friends and colleagues, and saying goodbye to colleagues who are no longer with us. And, sadly, it’s also saying goodbye to long-standing institutions like Lehman Brothers who had been a loyal customer and supporter of ours for many, many years.”
It has been a year of firsts, Wenig said – the first year as a new company, the first year of serving a new and diverse customer base and the first year of making a significant step change in service.
“But we had two other important firsts this year. We won our first Pulitzer prize – won by Reuters News for breaking news photography taken by Adrees Latif. And then just recently, we won our first Emmy in recognition of Reuters News and our role in the pursuit of truth and our contribution to society. The Emmy, for lifetime achievement in journalism, was awarded to our own Editor-in-Chief David Schlesinger. I’m incredibly proud of these two achievements, particularly as they come from the US, a part of the world where Reuters News has not always been as well known but is now gaining a really important place in the markets and with our clients.
“Let’s not forget what we were able to achieve together. We’ve pulled the business together; we’ve met our customers’ high expectations of service and benefits; we’ve exceeded our targets for the integration; and we’ve continued to deliver growth in the most challenging market of a lifetime. Most importantly, we’re on a path to become one company in one year. I hear a lot more people these days talk about Thomson Reuters rather than Thomson Financial or Reuters. It’s starting to feel like a coherent, focused business. We have a lot more to do and many challenges to come but I will enter 2009 with the optimism of knowing we have great people, great assets and a focused and high performing team.
“So we’re coming to the end of a rollercoaster year and I want you to know how grateful I am for all of your hard work; for putting up with the pains of integration and for helping me to build the great company that I dream about for all of us.
“Thank you and I hope you all have a wonderful time with family and friends over the holiday period. I know that many of you will be working around the world over the holidays and keeping our content and news flowing – and I thank you for that.
“So here’s to 2009…get some rest and get ready to hold on tight for what undoubtedly will be another amazing year.”
● SOURCE Thomson Reuters
There is lots more to do and there are more challenges to come – hold tight for another amazing year, he has told staff.
“We recently held our holiday parties and I have to say that I wasn’t sure how people would react to these parties, given our focus on costs and the uncertainty in the market,” Wenig said in a year-end message. “I think people really had a great time and they understand that our goal was simply to say thanks for an extraordinary effort in an extraordinary year.
“As someone said to me in New York, anybody that has a party in this market environment must be winning!
“And what an amazing year it’s been – no-one could have predicted even a year ago the pace of change that we have seen inside our organization but also what’s happening to the markets and to our customers.
“It’s been a year of highs and lows, of things to celebrate, of getting to know new friends and colleagues, and saying goodbye to colleagues who are no longer with us. And, sadly, it’s also saying goodbye to long-standing institutions like Lehman Brothers who had been a loyal customer and supporter of ours for many, many years.”
It has been a year of firsts, Wenig said – the first year as a new company, the first year of serving a new and diverse customer base and the first year of making a significant step change in service.
“But we had two other important firsts this year. We won our first Pulitzer prize – won by Reuters News for breaking news photography taken by Adrees Latif. And then just recently, we won our first Emmy in recognition of Reuters News and our role in the pursuit of truth and our contribution to society. The Emmy, for lifetime achievement in journalism, was awarded to our own Editor-in-Chief David Schlesinger. I’m incredibly proud of these two achievements, particularly as they come from the US, a part of the world where Reuters News has not always been as well known but is now gaining a really important place in the markets and with our clients.
“Let’s not forget what we were able to achieve together. We’ve pulled the business together; we’ve met our customers’ high expectations of service and benefits; we’ve exceeded our targets for the integration; and we’ve continued to deliver growth in the most challenging market of a lifetime. Most importantly, we’re on a path to become one company in one year. I hear a lot more people these days talk about Thomson Reuters rather than Thomson Financial or Reuters. It’s starting to feel like a coherent, focused business. We have a lot more to do and many challenges to come but I will enter 2009 with the optimism of knowing we have great people, great assets and a focused and high performing team.
“So we’re coming to the end of a rollercoaster year and I want you to know how grateful I am for all of your hard work; for putting up with the pains of integration and for helping me to build the great company that I dream about for all of us.
“Thank you and I hope you all have a wonderful time with family and friends over the holiday period. I know that many of you will be working around the world over the holidays and keeping our content and news flowing – and I thank you for that.
“So here’s to 2009…get some rest and get ready to hold on tight for what undoubtedly will be another amazing year.”
● SOURCE Thomson Reuters
Thomson Reuters to issue up to $3 billion in debt
Tuesday 16 December 2008
Thomson Reuters filed with US regulators on Tuesday to issue up to $3 billion of debt over the next 25 months.
It said the proceeds would be used for general corporate purposes and the specific terms of the debt securities would be provided later.
A copy of the filing was also filed with Canadian regulators.
● SOURCE Reuters
It said the proceeds would be used for general corporate purposes and the specific terms of the debt securities would be provided later.
A copy of the filing was also filed with Canadian regulators.
● SOURCE Reuters
UK editorial staff meet over pay offer
Wednesday 03 December 2008
Editorial staff at Thomson Reuters in London will hold a union meeting on Wednesday over management’s annual pay offer ahead of a year-end deadline for talks.
The Guardian reported that despite beating forecasts in its latest results – Q3 revenues were eight per cent higher – the company initially threatened to freeze the basic salaries of its 5,000 UK staff next year because of the economic downturn.
Staff would be eligible for a 2.5 per cent increase based on performance.
“However, yesterday management was understood to have offered an improved deal of an across the board pay of 1%, with staff eligible for a further 1.5% in performance-related pay,” the newspaper said.
The National Union of Journalists is holding out for a better offer.
● SOURCE The Guardian
The Guardian reported that despite beating forecasts in its latest results – Q3 revenues were eight per cent higher – the company initially threatened to freeze the basic salaries of its 5,000 UK staff next year because of the economic downturn.
Staff would be eligible for a 2.5 per cent increase based on performance.
“However, yesterday management was understood to have offered an improved deal of an across the board pay of 1%, with staff eligible for a further 1.5% in performance-related pay,” the newspaper said.
The National Union of Journalists is holding out for a better offer.
● SOURCE The Guardian
NUJ members call for strike ballot
Wednesday 03 December 2008
National Union of Journalists members at Thomson Reuters in London rejected a pay offer on Wednesday and instructed officials to hold a strike ballot.
The company says the UK pay budget can rise only 2.5 per cent in 2009 because of the tough economic climate. The latest offer is for a one per cent increase across the board with a further 1.5 per cent based on performance.
The offer was rejected unanimously at the NUJ meeting. A further motion to hold a ballot for industrial action was passed by an overwhelming majority.
A strike over job cuts following the April merger of Thomson and Reuters was averted when management promised there would be no compulsory redundancies in the UK editorial operation.
A company spokeswoman told The Guardian that talks over a pay deal were continuing.
● SOURCE The Guardian
The company says the UK pay budget can rise only 2.5 per cent in 2009 because of the tough economic climate. The latest offer is for a one per cent increase across the board with a further 1.5 per cent based on performance.
The offer was rejected unanimously at the NUJ meeting. A further motion to hold a ballot for industrial action was passed by an overwhelming majority.
A strike over job cuts following the April merger of Thomson and Reuters was averted when management promised there would be no compulsory redundancies in the UK editorial operation.
A company spokeswoman told The Guardian that talks over a pay deal were continuing.
● SOURCE The Guardian
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
Obama pledge a silver lining for Thomson Reuters?
Thursday 13 November 2008
US President-elect Barack Obama’s pledge to unleash a string of new rules and regulations for capital markets in 2009 could be a silver lining in the credit crunch for Thomson Reuters, The Toronto Globe and Mail said on Thursday.
It would mean more work for lawyers and accountants tasked with keeping up with such restructuring and that could prove good for business for Thomson Reuters whose legal and regulatory databases would be relied upon.
“It’s likely that within the first year of the new Obama administration we’ll see far-reaching new regulation of the capital markets and many changes to the tax code. And this will inevitably boost demand for our legal and tax and accounting products,” the newspaper quoted CEO Tom Glocer as telling analysts in a conference call on Wednesday.
Glocer said Thomson Reuters had noticed an increase in the number of hours that clients were logging on to its legal databases and software applications.
“We’ve already seen an interesting tick up in securities lawsuits [and] lots of investigations going on concerning how did AIG fall apart? How did Lehman Brothers fall apart?” he said. “And then over on our tax and accounting side, it looks very likely that campaign promises to the effect there are going to be changes to the tax code [could] have a good effect on our tax and accounting business.”
● SOURCE The Toronto Globe and Mail
It would mean more work for lawyers and accountants tasked with keeping up with such restructuring and that could prove good for business for Thomson Reuters whose legal and regulatory databases would be relied upon.
“It’s likely that within the first year of the new Obama administration we’ll see far-reaching new regulation of the capital markets and many changes to the tax code. And this will inevitably boost demand for our legal and tax and accounting products,” the newspaper quoted CEO Tom Glocer as telling analysts in a conference call on Wednesday.
Glocer said Thomson Reuters had noticed an increase in the number of hours that clients were logging on to its legal databases and software applications.
“We’ve already seen an interesting tick up in securities lawsuits [and] lots of investigations going on concerning how did AIG fall apart? How did Lehman Brothers fall apart?” he said. “And then over on our tax and accounting side, it looks very likely that campaign promises to the effect there are going to be changes to the tax code [could] have a good effect on our tax and accounting business.”
● SOURCE The Toronto Globe and Mail
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
Nixon’s role in creating Thomson Reuters
Monday 03 November 2008
The former Bretton Woods agreement is a topical subject in these uncertain economic times. But when UK Prime Minister Gordon Brown called for a new Bretton Woods agreement at our Canary Wharf office in London recently, he would have been unaware of the pivotal role of the original agreement – or, rather, its ending in 1971 by President Nixon – in the creation of Thomson Reuters.
Had it not been for the collapse of the Bretton Woods agreement, Reuters could conceivably have remained a small news agency, struggling to survive against ever-increasing competition during the last quarter of the 20th Century.
Bretton Woods and Reuters
The United Nations Monetary and Financial Conference in 1944 was a gathering of 730 delegates from all 44 Allied nations at the Mount Washington Hotel, situated in Bretton Woods, New Hampshire.
Its aim: to regulate the international monetary and financial order after the total disruption of the Second World War. As a result, the Bretton Woods system of fixed exchange rate management was set up and remained an important part of the fiscal policy of the 44 signatory nations for the next 27 years.
Everything changed in 1971 when American President Richard Nixon suddenly and unilaterally cancelled the agreement. Within a very short time, the entire framework collapsed worldwide, leading to an immense expansion of foreign exchange dealing. Currency, rather than being a means of purchasing goods and commodities, became a commodity in its own right. The word “Forex” was coined.
The problem for banks and dealers was that there was no adequate structure in place for this rapidly expanding market place and it was impossible to receive quotations with sufficient speed. Dependence upon telephones and telex was unsatisfactory, since by the time an answer to a request for, say, a bank’s dollar/sterling price had been given and transmitted, that price had already been changed. Seconds could be crucial.
Trading goes electronic
It was André Villeneuve of Reuters who first proposed the idea that the company should install computer terminals in the offices of banks and other foreign exchange dealers. Reuters would, in this way, create its own electronic market place.
Market-makers (contributors) would be able to insert their foreign exchange and money rates into the system. At the press of a button, these rates would become available on screen to interested parties (recipients) such as other banks and international businesses. The revolutionary idea was that both parties would be charged for access to this interactive system.
Almost at a stroke was born the entirely new concept of computerised contributed data. Two companies within the US already ran share information services on such a basis. But Reuters was at the very forefront in extending its thinking far beyond this “one-country” idea to the concept of bringing contributed data into the field of foreign exchange, a market which functioned between countries and between continents.
New agreements had to be reached with the London Trade Unions over the idea that data would be inserted, not by telegraphists at Reuters, but by customers. At first several banks could see no merit or point in a system under which they were expected to pay for inserting their own information. Some banks were reluctant to change the working practices of centuries and reveal such information. Brokers feared that they would lose business if the service established itself.
Monitor arrives and changes financial markets
The new system, called Monitor, first ran in London for a full working day on 25 June 1973. There were 15 contributors/recipients and 15 recipients. The breakthrough came between March and June 1974 when Reuters signed 109 contracts. When Monitor started to attract continental clients, the UK banks – at first the main contributors – saw, at last, a potential widening of their market. By June, there were 125 subscribers in the UK, and 121 in the rest of Europe. The Monitor range was subsequently extended to bonds (1975), commodities (1977), equities (1978) and US Government securities (1978). By 1983, company turnover was 14 times that of 1973.
For Reuters, Monitor had become the “goose which laid the golden egg”. In 1981, the Monitor Dealing Service went live, enabling subscribers not only to receive the latest rates and quotations but to buy, sell or lend money through the same screen. “Matching” of deals followed later but the new service was a great advance.
Reuters had been transformed. It was no longer a small news agency, often living from hand to mouth, but had become a successful and prosperous company. The course of events began which led to its flotation as a public company in 1984.
If President Nixon had not unilaterally cancelled America’s obligation to abide by the terms of the Bretton Woods agreement, would any of this have happened? Who can say? But there is little doubt that, for Reuters, it certainly wouldn’t have happened as specifically and with such speed.
Little did Prime Minister Gordon Brown probably realise that, if that agreement to regulate exchange rates had still been in existence, he would, almost certainly not have been speaking at Thomson Reuters office, in that location, on that day.
Such is history.
John Entwisle
Manager, the Reuters archive
Had it not been for the collapse of the Bretton Woods agreement, Reuters could conceivably have remained a small news agency, struggling to survive against ever-increasing competition during the last quarter of the 20th Century.
Bretton Woods and Reuters
The United Nations Monetary and Financial Conference in 1944 was a gathering of 730 delegates from all 44 Allied nations at the Mount Washington Hotel, situated in Bretton Woods, New Hampshire.
Its aim: to regulate the international monetary and financial order after the total disruption of the Second World War. As a result, the Bretton Woods system of fixed exchange rate management was set up and remained an important part of the fiscal policy of the 44 signatory nations for the next 27 years.
Everything changed in 1971 when American President Richard Nixon suddenly and unilaterally cancelled the agreement. Within a very short time, the entire framework collapsed worldwide, leading to an immense expansion of foreign exchange dealing. Currency, rather than being a means of purchasing goods and commodities, became a commodity in its own right. The word “Forex” was coined.
The problem for banks and dealers was that there was no adequate structure in place for this rapidly expanding market place and it was impossible to receive quotations with sufficient speed. Dependence upon telephones and telex was unsatisfactory, since by the time an answer to a request for, say, a bank’s dollar/sterling price had been given and transmitted, that price had already been changed. Seconds could be crucial.
Trading goes electronic
It was André Villeneuve of Reuters who first proposed the idea that the company should install computer terminals in the offices of banks and other foreign exchange dealers. Reuters would, in this way, create its own electronic market place.
Market-makers (contributors) would be able to insert their foreign exchange and money rates into the system. At the press of a button, these rates would become available on screen to interested parties (recipients) such as other banks and international businesses. The revolutionary idea was that both parties would be charged for access to this interactive system.
Almost at a stroke was born the entirely new concept of computerised contributed data. Two companies within the US already ran share information services on such a basis. But Reuters was at the very forefront in extending its thinking far beyond this “one-country” idea to the concept of bringing contributed data into the field of foreign exchange, a market which functioned between countries and between continents.
New agreements had to be reached with the London Trade Unions over the idea that data would be inserted, not by telegraphists at Reuters, but by customers. At first several banks could see no merit or point in a system under which they were expected to pay for inserting their own information. Some banks were reluctant to change the working practices of centuries and reveal such information. Brokers feared that they would lose business if the service established itself.
Monitor arrives and changes financial markets
The new system, called Monitor, first ran in London for a full working day on 25 June 1973. There were 15 contributors/recipients and 15 recipients. The breakthrough came between March and June 1974 when Reuters signed 109 contracts. When Monitor started to attract continental clients, the UK banks – at first the main contributors – saw, at last, a potential widening of their market. By June, there were 125 subscribers in the UK, and 121 in the rest of Europe. The Monitor range was subsequently extended to bonds (1975), commodities (1977), equities (1978) and US Government securities (1978). By 1983, company turnover was 14 times that of 1973.
For Reuters, Monitor had become the “goose which laid the golden egg”. In 1981, the Monitor Dealing Service went live, enabling subscribers not only to receive the latest rates and quotations but to buy, sell or lend money through the same screen. “Matching” of deals followed later but the new service was a great advance.
Reuters had been transformed. It was no longer a small news agency, often living from hand to mouth, but had become a successful and prosperous company. The course of events began which led to its flotation as a public company in 1984.
If President Nixon had not unilaterally cancelled America’s obligation to abide by the terms of the Bretton Woods agreement, would any of this have happened? Who can say? But there is little doubt that, for Reuters, it certainly wouldn’t have happened as specifically and with such speed.
Little did Prime Minister Gordon Brown probably realise that, if that agreement to regulate exchange rates had still been in existence, he would, almost certainly not have been speaking at Thomson Reuters office, in that location, on that day.
Such is history.
John Entwisle
Manager, the Reuters archive
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.
‘Relentless’ cost-cutting in downturn
Wednesday 22 October 2008
Thomson Reuters will cut costs relentlessly to deal with the global financial crisis but further redundancies are not foreseen, online reports said on Wednesday.
In a memo to staff yesterday, Devin Wenig, markets division CEO, laid out an austerity plan to help get the company through the deep and unprecedented malaise gripping the banking industry, The Daily Mail said.
The website Paid Content quoted him as saying: “Many of our big customers are struggling and there is talk of a global recession. We are in a period of unprecedented change that seems to be unfolding in real time... The changes we are witnessing are global and deep and this is very different to a cyclical downturn.”
Wenig admitted the group’s top 25 large accounts are under pressure and said: “The short-term tactical response to this tough market is that we will be relentless about costs, efficiency and challenging the status quo. I don’t apologise for that; every dollar we can drive out of things like travel, entertainment, research that no-one reads, information requests that are not critical and meetings that don’t need to happen, is another dollar we can invest in the critical sales, product, news or service initiatives that will really drive this firm forward.”
Paid Content said a Thomson Reuters spokesperson refuted reports of a coming wave of redundancies. The Mail said Wenig had vowed to accelerate the group’s efforts to strip out costs and slash headcount, crystallising fears that the financial news and data division, which accounts for 60 per cent of group profits, will suffer as banks across the globe shed staff.
“As staff levels plunge at banks, so, too, will demand for Reuters’ news and data terminals,” the Mail said.
“Wenig said he would step up a programme designed to squeeze over £700m in costs out of the combined group by 2011.
“He also signalled that job cuts were creeping up his agenda.
“Wenig told staff: ‘We will be relentless about costs and efficiencies and restrictions on headcount will be followed to the letter’,” the Mail said.
But Paid Content said there were no new numbers in the memo: “just a reminder that Wenig & Co. are taking no prisoners when it comes to cost saving in uncertain times...”
It was not all bad news, however. Wenig said it was an absolute certainty that global economies will recover and that a growing global class of wealthy people would still need financial information and advice.
“The environment may be deteriorating, but we have had several strong sales months and I believe we are winning share,” he added.
● SOURCE The Daily Mail | Paid Content
In a memo to staff yesterday, Devin Wenig, markets division CEO, laid out an austerity plan to help get the company through the deep and unprecedented malaise gripping the banking industry, The Daily Mail said.
The website Paid Content quoted him as saying: “Many of our big customers are struggling and there is talk of a global recession. We are in a period of unprecedented change that seems to be unfolding in real time... The changes we are witnessing are global and deep and this is very different to a cyclical downturn.”
Wenig admitted the group’s top 25 large accounts are under pressure and said: “The short-term tactical response to this tough market is that we will be relentless about costs, efficiency and challenging the status quo. I don’t apologise for that; every dollar we can drive out of things like travel, entertainment, research that no-one reads, information requests that are not critical and meetings that don’t need to happen, is another dollar we can invest in the critical sales, product, news or service initiatives that will really drive this firm forward.”
Paid Content said a Thomson Reuters spokesperson refuted reports of a coming wave of redundancies. The Mail said Wenig had vowed to accelerate the group’s efforts to strip out costs and slash headcount, crystallising fears that the financial news and data division, which accounts for 60 per cent of group profits, will suffer as banks across the globe shed staff.
“As staff levels plunge at banks, so, too, will demand for Reuters’ news and data terminals,” the Mail said.
“Wenig said he would step up a programme designed to squeeze over £700m in costs out of the combined group by 2011.
“He also signalled that job cuts were creeping up his agenda.
“Wenig told staff: ‘We will be relentless about costs and efficiencies and restrictions on headcount will be followed to the letter’,” the Mail said.
But Paid Content said there were no new numbers in the memo: “just a reminder that Wenig & Co. are taking no prisoners when it comes to cost saving in uncertain times...”
It was not all bad news, however. Wenig said it was an absolute certainty that global economies will recover and that a growing global class of wealthy people would still need financial information and advice.
“The environment may be deteriorating, but we have had several strong sales months and I believe we are winning share,” he added.
● SOURCE The Daily Mail | Paid Content
Unilever man to join Thomson Reuters board
Tuesday 14 October 2008
Manvinder Singh Banga of Unilever is to join Thomson Reuters as a non-executive director from 1 January 2009.
Banga, 53, who is based in London, is the President of Unilever’s Foods, Home and Personal Care business and one of the seven-member executive committee reporting to the company’s CEO.
David Thomson, chairman, said, “I am delighted to welcome Vindi to Thomson Reuters, with his wealth of experience in developing and emerging markets. During his career, he has worked in global, regional and national roles in London, Singapore and Mumbai. He has deep knowledge of Asian business which will prove invaluable as Thomson Reuters looks to capitalize further on opportunities in that region.”
Richard Olver, who joined the Reuters board in December 1997, will retire at the end of this year.
“I would like to thank Dick Olver for his long commitment to Reuters and the continuity he has been providing as we move through the important Thomson Reuters integration. His contributions are highly valued by the Board,” Thomson said.
● SOURCE Thomson Reuters
Banga, 53, who is based in London, is the President of Unilever’s Foods, Home and Personal Care business and one of the seven-member executive committee reporting to the company’s CEO.
David Thomson, chairman, said, “I am delighted to welcome Vindi to Thomson Reuters, with his wealth of experience in developing and emerging markets. During his career, he has worked in global, regional and national roles in London, Singapore and Mumbai. He has deep knowledge of Asian business which will prove invaluable as Thomson Reuters looks to capitalize further on opportunities in that region.”
Richard Olver, who joined the Reuters board in December 1997, will retire at the end of this year.
“I would like to thank Dick Olver for his long commitment to Reuters and the continuity he has been providing as we move through the important Thomson Reuters integration. His contributions are highly valued by the Board,” Thomson said.
● SOURCE Thomson Reuters
Thomson Reuters in top 50 for UK women
Tuesday 14 October 2008
Thomson Reuters has been named as one of the 50 best places for women to work in the UK. Companies were rated on three key areas: how they recruit top female talent, how they retain and develop female employees, and case studies of successful female employees.
Susan Taylor-Martin, managing director, UK and Ireland, markets division, said: “It’s fantastic that Thomson Reuters has been recognised in this list of companies that have proven recruitment, retention and development policies for women. We were able to provide real examples of women who use flexible working practices to juggle career, family, study and work in the community.
“We’re also proud of our global women’s affinity group and the role its members play in providing mentoring and support to female employees.”
The list was compiled by Aurora, a marketing company, and published in The Times. It did not rank the top 50 companies.
● SOURCE The Times
Susan Taylor-Martin, managing director, UK and Ireland, markets division, said: “It’s fantastic that Thomson Reuters has been recognised in this list of companies that have proven recruitment, retention and development policies for women. We were able to provide real examples of women who use flexible working practices to juggle career, family, study and work in the community.
“We’re also proud of our global women’s affinity group and the role its members play in providing mentoring and support to female employees.”
The list was compiled by Aurora, a marketing company, and published in The Times. It did not rank the top 50 companies.
● SOURCE The Times
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 ‘to use cash’ for acquisitions - report
Saturday 04 October 2008
Bosses of Thomson Reuters apparently have told analysts that they will be using cash primarily to invest in the business and to make acquisitions, The Times said on Saturday.
The professional division, supplying information to lawyers and accountants, was a priority, the newspaper said under the headline “Rumour of the day”.
“This potentially leaves the door open to acquiring Wolters Kluwer,” UBS said, The Times reported.
Wolters Kluwer is a Dutch information services and publishing company based in Amsterdam. It employs 19,500 people worldwide and in 2007 had revenues of €3.4 billion.
● SOURCE The Times
The professional division, supplying information to lawyers and accountants, was a priority, the newspaper said under the headline “Rumour of the day”.
“This potentially leaves the door open to acquiring Wolters Kluwer,” UBS said, The Times reported.
Wolters Kluwer is a Dutch information services and publishing company based in Amsterdam. It employs 19,500 people worldwide and in 2007 had revenues of €3.4 billion.
● SOURCE The Times
World crisis will hurt us, Tom Glocer says
Thursday 02 October 2008
Thomson Reuters reaffirmed its full-year outlook on Thursday but Tom Glocer said the world financial crisis will hurt the company as banks lose staff and take out trading and information terminals.
“You’ve got to say this is a negative short to middle term,” the CEO told analysts at a London investor day. But he said the banking consolidation now beginning represents a long-term opportunity.
“There’s a lot of compensating work that needs to be done now to stitch together all these trading operations,” Glocer said.
Thomson Reuters’ markets division is exposed to financial services and contributes 59 per cent of group sales. Glocer said the Thomson Financial legal and health professional business would help the company to weather the storm.
In slides for the presentation the company said it expected revenue growth of 6 to 8 per cent, almost all organic, and an underlying profit margin of 19 to 21 per cent for 2008.
It also reiterated targets to generate free cash flow of 11 to 12 per cent of sales for capital expenditure of 8 to 9 per cent of revenue.
The company said it had completed its refinancing needs for Thomson’s acquisition of Reuters in April through long-term debt offerings in June. It had a $2.5 billion credit facility on which it had not drawn.
Devin Wenig, markets division CEO, said the company’s foreign exchange business had its best month ever in September. But he could not predict how long it would take until conditions for the division as a whole would improve.
“We certainly are not viewing this through rose-coloured glasses. We’ve never seen a market like this. There are parts of our business that are really challenged right now,” he said.
● SOURCE Reuters
“You’ve got to say this is a negative short to middle term,” the CEO told analysts at a London investor day. But he said the banking consolidation now beginning represents a long-term opportunity.
“There’s a lot of compensating work that needs to be done now to stitch together all these trading operations,” Glocer said.
Thomson Reuters’ markets division is exposed to financial services and contributes 59 per cent of group sales. Glocer said the Thomson Financial legal and health professional business would help the company to weather the storm.
In slides for the presentation the company said it expected revenue growth of 6 to 8 per cent, almost all organic, and an underlying profit margin of 19 to 21 per cent for 2008.
It also reiterated targets to generate free cash flow of 11 to 12 per cent of sales for capital expenditure of 8 to 9 per cent of revenue.
The company said it had completed its refinancing needs for Thomson’s acquisition of Reuters in April through long-term debt offerings in June. It had a $2.5 billion credit facility on which it had not drawn.
Devin Wenig, markets division CEO, said the company’s foreign exchange business had its best month ever in September. But he could not predict how long it would take until conditions for the division as a whole would improve.
“We certainly are not viewing this through rose-coloured glasses. We’ve never seen a market like this. There are parts of our business that are really challenged right now,” he said.
● SOURCE Reuters
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.
Global women’s network launched
Wednesday 24 September 2008
Women working at Thomson Reuters have launched a global network to help female employees to expand their networks, find opportunities and develop their skills.
The Women's Network was launched through a series of three international telephone conferences on Wednesday. It draws together the legacy Thomson Financial CHIC group and various Reuters women's groups.
“The vision of the network is to develop the talents and champion the contributions of female employees, thus promoting women as equal partners in the success, achievement and profitability of Thomson Reuters,” said Julia Fuller, corporate responsibility manager, who leads the group.
The network operates via global and regional operating committees with local level networks. The UKI network draws women from 20+ locations across England, Ireland, Scotland and Wales. Events, held in person and by teleconference, address themes such as self branding, career development, mentoring and networking. The global group also operates a number of sub-committees including community engagement, mentoring, events management and marketing.
The next event is on 2 October at Canary Wharf, London.
The Women's Network was launched through a series of three international telephone conferences on Wednesday. It draws together the legacy Thomson Financial CHIC group and various Reuters women's groups.
“The vision of the network is to develop the talents and champion the contributions of female employees, thus promoting women as equal partners in the success, achievement and profitability of Thomson Reuters,” said Julia Fuller, corporate responsibility manager, who leads the group.
The network operates via global and regional operating committees with local level networks. The UKI network draws women from 20+ locations across England, Ireland, Scotland and Wales. Events, held in person and by teleconference, address themes such as self branding, career development, mentoring and networking. The global group also operates a number of sub-committees including community engagement, mentoring, events management and marketing.
The next event is on 2 October at Canary Wharf, London.
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.
Thomson Reuters 44th top global brand
Thursday 18 September 2008
Thomson Reuters is ranked 44th in a list of the top 100 global brands compiled by Business Week. The US magazine placed a brand value of $8,313 million on the merged company.
It said: “The data provider cum news organization must prove its post-merger mettle. It plastered subways and stock exchanges with its new logo to raise its profile.”
The 2008 edition of the annual list is topped by Coca-Cola, followed by IBM and Microsoft. Visa was placed 100th in the list.
● SOURCE Business Week
It said: “The data provider cum news organization must prove its post-merger mettle. It plastered subways and stock exchanges with its new logo to raise its profile.”
The 2008 edition of the annual list is topped by Coca-Cola, followed by IBM and Microsoft. Visa was placed 100th in the list.
● SOURCE Business Week
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
Reuters tweaks website branding
Thursday 21 August 2008
Thomson Reuters has changed the branding of the reuters.com group of web sites in line with the look and feel of the merged group’s overall brand.
Thomson Reuters has been removed from the reuters.com branding. Instead the web sites now carry the updated Reuters logo, with the Thomson Reuters kinesis logo added directly to the left of the Reuters word mark.
The company said this week’s change is to enhance further the clarity of the Reuters brand for news content in a way that is consistent with Thomson Reuters branding. The change also applies to daily, monthly and quarterly mailings to customers.
“While reuters.com and its online properties will continue to use the ‘Reuters’ name, our branding will maintain the look and feel of the overall Thomson Reuters organization which was adopted in April,” the company said. “Inspired by the beauty and simplicity of nature, the new Reuters branding reflects the idea that information is dynamic and always in motion.”
● SOURCE Thomson Reuters
Thomson Reuters has been removed from the reuters.com branding. Instead the web sites now carry the updated Reuters logo, with the Thomson Reuters kinesis logo added directly to the left of the Reuters word mark.
The company said this week’s change is to enhance further the clarity of the Reuters brand for news content in a way that is consistent with Thomson Reuters branding. The change also applies to daily, monthly and quarterly mailings to customers.
“While reuters.com and its online properties will continue to use the ‘Reuters’ name, our branding will maintain the look and feel of the overall Thomson Reuters organization which was adopted in April,” the company said. “Inspired by the beauty and simplicity of nature, the new Reuters branding reflects the idea that information is dynamic and always in motion.”
● SOURCE Thomson Reuters
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
Play our winning hand, CEO tells staff
Tuesday 12 August 2008
The Q2 results (April-June 2008) announced on Tuesday were very strong, CEO Tom Glocer said in a message to Thomson Reuters’ staff.
Despite challenging market conditions, both divisions of the company – markets and professional – are performing well.
“I want to congratulate everyone for contributing to these outstanding results,” Glocer said. “Our strong first-half results and continued positive sales momentum across the company give us confidence to confirm our full-year revenue growth and operating profit margin outlook at a time when others have lowered theirs...”
“We are well on our way to becoming ‘one company in one year.’”
“What can we expect in the months ahead? Most analysts predict that the slump in the economy is a long way from over. If so, we are prepared. In economic downturns, the truly great companies extend their lead over the competition, or as Warren Buffett likes to say, ‘You only find out who is swimming naked when the tide goes out.’ At Thomson Reuters, we may be swimming against a stronger tide at the moment, but we are wearing high-performance swimwear and fins. It may not be as much fun to manage through difficult times, when clients are cutting costs, but this can be our time to outperform, to pull away from the pack and emerge even stronger when the cycle turns.”
Glocer said Thomson Reuters could face an economic downturn with quiet confidence for three reasons:
● “We have the right business model: our core strengths match customer needs and market trends;
● “We serve the right markets: professional information markets will continue to grow;
● “We deliver the right products: the need for intelligent information has never been greater.”
He added: “I would not trade our opportunity for that of any other company I know. Sure, there will be some challenges in the coming months, but that’s what makes it interesting. We have a winning hand – let’s play it.”
● SOURCE Tom Glocer’s message to staff 12 August 2008
Despite challenging market conditions, both divisions of the company – markets and professional – are performing well.
“I want to congratulate everyone for contributing to these outstanding results,” Glocer said. “Our strong first-half results and continued positive sales momentum across the company give us confidence to confirm our full-year revenue growth and operating profit margin outlook at a time when others have lowered theirs...”
“We are well on our way to becoming ‘one company in one year.’”
“What can we expect in the months ahead? Most analysts predict that the slump in the economy is a long way from over. If so, we are prepared. In economic downturns, the truly great companies extend their lead over the competition, or as Warren Buffett likes to say, ‘You only find out who is swimming naked when the tide goes out.’ At Thomson Reuters, we may be swimming against a stronger tide at the moment, but we are wearing high-performance swimwear and fins. It may not be as much fun to manage through difficult times, when clients are cutting costs, but this can be our time to outperform, to pull away from the pack and emerge even stronger when the cycle turns.”
Glocer said Thomson Reuters could face an economic downturn with quiet confidence for three reasons:
● “We have the right business model: our core strengths match customer needs and market trends;
● “We serve the right markets: professional information markets will continue to grow;
● “We deliver the right products: the need for intelligent information has never been greater.”
He added: “I would not trade our opportunity for that of any other company I know. Sure, there will be some challenges in the coming months, but that’s what makes it interesting. We have a winning hand – let’s play it.”
● SOURCE Tom Glocer’s message to staff 12 August 2008
Thomson Reuters ‘may struggle’
Monday 11 August 2008
Thomson Reuters is wasting no time integrating the two merged companies’ staff and legacy products, but despite potential economies of scale and product rationalisation it may struggle in today’s financial markets climate, Dow Jones Financial News Online said.
The balance sheets of financial services corporations are bleeding red ink due to massive writedowns on credit derivatives and mortgage instruments, and companies have laid off tens of thousands of employees this year.
“This means fewer traders needing access to Bloomberg or Thomson Reuters screens,” it said.
Robert Iati, partner and head of global consulting at Tabb Group, said data vendors fare poorly when the financial industry goes into cost-cutting mode. More ominously, financial services firms have been cutting data aggregators in favour of direct market feeds to avoid latency or trading delays. “This is not good for the status quo, but it does give them every reason to improve their own products,” Iati said.
Because of its more diverse client base, Thomson Reuters as a merged entity argues it may be better suited to seeing off a downward economic cycle than if each firm was on its own.
Debra Walton, global head of market development, said: “Clearly anyone in financial markets has an eye on the state of the market and the economy. We feel much more comfortable about our ability to be able to deal successfully with the economy now that the merger has taken place.”
Adam Honoré, senior analyst with consultancy Aite Group, agreed that the merger might help them weather the storm. He said: “The Thomson institutional-type business has hardly hiccupped, but for the traditional Reuters business the number of terminals is definitely declining.”
● SOURCE Financial News Online
The balance sheets of financial services corporations are bleeding red ink due to massive writedowns on credit derivatives and mortgage instruments, and companies have laid off tens of thousands of employees this year.
“This means fewer traders needing access to Bloomberg or Thomson Reuters screens,” it said.
Robert Iati, partner and head of global consulting at Tabb Group, said data vendors fare poorly when the financial industry goes into cost-cutting mode. More ominously, financial services firms have been cutting data aggregators in favour of direct market feeds to avoid latency or trading delays. “This is not good for the status quo, but it does give them every reason to improve their own products,” Iati said.
Because of its more diverse client base, Thomson Reuters as a merged entity argues it may be better suited to seeing off a downward economic cycle than if each firm was on its own.
Debra Walton, global head of market development, said: “Clearly anyone in financial markets has an eye on the state of the market and the economy. We feel much more comfortable about our ability to be able to deal successfully with the economy now that the merger has taken place.”
Adam Honoré, senior analyst with consultancy Aite Group, agreed that the merger might help them weather the storm. He said: “The Thomson institutional-type business has hardly hiccupped, but for the traditional Reuters business the number of terminals is definitely declining.”
● SOURCE Financial News Online
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
Merged group joins FTSE4Good Index
Thursday 31 July 2008
Thomson Reuters has been listed as a member of the FTSE4Good Index, which ranks companies according to social, ethical and environmental criteria.
Reuters and Thomson were listed separately in the FTSE Group’s index before the April merger.
“As we work to becoming one company in one year, we will identify existing evidence of best practice which we can use to underpin our corporate responsibility strategy,” said Julia Fuller, corporate responsibility manager for the merged group.
“We will be reviewing our environmental and social impact, building responsibility into our business operations so that quite simply it becomes part of the way we do business.”
Thomson Reuters is also ranked 14th in the annual list of Best 50 Corporate Citizens published by Corporate Knights, a Canadian publication. The ranking takes into account such factors as pension fund quality, diversity, pollution, CEO pay fairness and tax generation as well as environmental criteria.
Thomson was also named as one of 60 Canadian companies within the Jantzi Social Index which measures companies against environmental, social and governance benchmarks.
● SOURCE Reuters
Reuters and Thomson were listed separately in the FTSE Group’s index before the April merger.
“As we work to becoming one company in one year, we will identify existing evidence of best practice which we can use to underpin our corporate responsibility strategy,” said Julia Fuller, corporate responsibility manager for the merged group.
“We will be reviewing our environmental and social impact, building responsibility into our business operations so that quite simply it becomes part of the way we do business.”
Thomson Reuters is also ranked 14th in the annual list of Best 50 Corporate Citizens published by Corporate Knights, a Canadian publication. The ranking takes into account such factors as pension fund quality, diversity, pollution, CEO pay fairness and tax generation as well as environmental criteria.
Thomson was also named as one of 60 Canadian companies within the Jantzi Social Index which measures companies against environmental, social and governance benchmarks.
● SOURCE Reuters
Court orders Messaging switch
Wednesday 30 July 2008
Thomson Reuters changed a critical element of its instant messaging service to avert a customer communications breakdown following a US federal court order to cease using a key piece of software.
The change should prevent any customer disruptions, Thomson Reuters spokesman Joe Christinat said. Banks and brokerages rely on the IM system to complete trades and exchange other sensitive information.
Eran Barak, global head of strategy and collaboration services, said in a court filing on 1 July that the IMAuditor code produced by FaceTime Communications of California was a critical resource. Stripping it from Reuters Messaging would cripple the day-to-day operations of some customers and cause incalculable damage to Thomson Reuters’ reputation, Barak said.
The FaceTime code protected Reuters Messaging from computer hackers and ensured clients complied with Securities and Exchange Commission regulations governing electronic communications.
In a sworn declaration Barak estimated the customer backlash would cost the company several million dollars in revenue. The executive added that the company had no practical immediate substitute for the FaceTime software and predicted it would take several months to develop an alternative.
The issue became a law suit after Reuters missed a 31 January deadline for a $150,000 payment that would have secured the permanent right to use the FaceTime technology. The payment was not made until 15 February, two days after FaceTime notifed Reuters that its option to extend the licensing rights had expired. Reuters had paid FaceTime $1.3 million in licensing fees under a two-year contract signed in 2006.
US District Court Judge Colleen McMahon in Manhattan said on 22 July that Reuters was “desperate to avoid the consequences of its terrible error”.
“This appears to be an open and shut case,” she said. “The option was not exercised in accordance with its terms.” Ruling for the Silicon Valley firm, the judge ordered Thomson Reuters to remove FaceTime software from Reuters Messaging with effect from 1 August.
Thomson Reuters said in a statement: “The contract with FaceTime has been terminated with no effect on clients or their regulatory compliance. FaceTime was a vendor that provided a component of our messaging compliance service. That component has been replaced in-house and in conjunction with an ongoing Thomson Reuters technology partner.”
It said customer migration had been completed and enhancements to the IM service and back-end technology changes had been seamless.
“We have been off the FaceTime product ... since Tuesday,” Christinat said. The alternative application was brought in on a parallel network last Sunday and was running alongside the FaceTime service to ensure its proper operation, he said.
“By Tuesday, we unplugged the FaceTime portion ... there haven’t been any problems.”
● SOURCE MarketWatch | Associated Press | Computerworld
The change should prevent any customer disruptions, Thomson Reuters spokesman Joe Christinat said. Banks and brokerages rely on the IM system to complete trades and exchange other sensitive information.
Eran Barak, global head of strategy and collaboration services, said in a court filing on 1 July that the IMAuditor code produced by FaceTime Communications of California was a critical resource. Stripping it from Reuters Messaging would cripple the day-to-day operations of some customers and cause incalculable damage to Thomson Reuters’ reputation, Barak said.
The FaceTime code protected Reuters Messaging from computer hackers and ensured clients complied with Securities and Exchange Commission regulations governing electronic communications.
In a sworn declaration Barak estimated the customer backlash would cost the company several million dollars in revenue. The executive added that the company had no practical immediate substitute for the FaceTime software and predicted it would take several months to develop an alternative.
The issue became a law suit after Reuters missed a 31 January deadline for a $150,000 payment that would have secured the permanent right to use the FaceTime technology. The payment was not made until 15 February, two days after FaceTime notifed Reuters that its option to extend the licensing rights had expired. Reuters had paid FaceTime $1.3 million in licensing fees under a two-year contract signed in 2006.
US District Court Judge Colleen McMahon in Manhattan said on 22 July that Reuters was “desperate to avoid the consequences of its terrible error”.
“This appears to be an open and shut case,” she said. “The option was not exercised in accordance with its terms.” Ruling for the Silicon Valley firm, the judge ordered Thomson Reuters to remove FaceTime software from Reuters Messaging with effect from 1 August.
Thomson Reuters said in a statement: “The contract with FaceTime has been terminated with no effect on clients or their regulatory compliance. FaceTime was a vendor that provided a component of our messaging compliance service. That component has been replaced in-house and in conjunction with an ongoing Thomson Reuters technology partner.”
It said customer migration had been completed and enhancements to the IM service and back-end technology changes had been seamless.
“We have been off the FaceTime product ... since Tuesday,” Christinat said. The alternative application was brought in on a parallel network last Sunday and was running alongside the FaceTime service to ensure its proper operation, he said.
“By Tuesday, we unplugged the FaceTime portion ... there haven’t been any problems.”
● SOURCE MarketWatch | Associated Press | Computerworld
Business TV channel coming - report
Thursday 24 July 2008
Thomson Reuters is preparing to launch a business television news channel to rival those of Bloomberg and CNBC, The Daily Telegraph reported.
It will appear both on the Internet and some form of cable or digital platform. The launch could be as early as January but may be pushed back as the company is conscious of Reuters’ earlier unsuccessful foray into television, the UK newspaper said.
Thomson Reuters wants an extra avenue through which to channel content and raise revenues, The Daily Telegraph said.
“Going head-to-head with the other rolling business channels is a brave move by chief executive Tom Glocer, as it is an already crowded market,” it said.
The newspaper said the New York newsroom, which will act as the main studio for the channel, was opened yesterday by Devin Wenig, chief executive of the markets division.
It quoted David Schlesinger, editor-in-chief, as saying in an internal memorandum that the new newsroom was all about “multi-media opportunities”.
● SOURCE The Daily Telegraph
It will appear both on the Internet and some form of cable or digital platform. The launch could be as early as January but may be pushed back as the company is conscious of Reuters’ earlier unsuccessful foray into television, the UK newspaper said.
Thomson Reuters wants an extra avenue through which to channel content and raise revenues, The Daily Telegraph said.
“Going head-to-head with the other rolling business channels is a brave move by chief executive Tom Glocer, as it is an already crowded market,” it said.
The newspaper said the New York newsroom, which will act as the main studio for the channel, was opened yesterday by Devin Wenig, chief executive of the markets division.
It quoted David Schlesinger, editor-in-chief, as saying in an internal memorandum that the new newsroom was all about “multi-media opportunities”.
● SOURCE The Daily Telegraph
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
Tom Glocer to appear on Q2 results webcast
Tuesday 22 July 2008
Thomson Reuters said it will report its second quarter 2008 results on 12 August. CEO Tom Glocer will appear in a live webcast on that day at 10:00 am EDT/3:00 pm BST. Executive vice president and CFO Robert Daleo will also appear.
To view the webcast go to ● www.thomsonreuters.com, click on Investor Relations and then News & Events. It will be archived for those who miss the live cast.
● SOURCE Thomson Reuters
To view the webcast go to ● www.thomsonreuters.com, click on Investor Relations and then News & Events. It will be archived for those who miss the live cast.
● SOURCE Thomson Reuters
Editorial automation set to advance
Tuesday 22 July 2008
Automatically-generated financial news and data is set to increase, freeing up journalists to develop exclusives or write analyses.
A Thomson Reuters survey has found that financial firms using advanced algorithmic trading techniques expect IT-driven news analysis tools to substantially shorten the time it takes them to act on new information.
Ventanta Research spoke to 113 specialist financial professionals and found that two-thirds expect increased automation in the analysis of news.
Prior to the April take-over, both Thomson and Reuters were working on products which deliver data and other news to financial services customers in a format that can be read and acted on automatically by computers. Much of that content is also created automatically.
“It’s still the same news – we’re not really providing a different piece of news, we’re just providing it in a different format,” said James Chenery, Thomson Reuters’ business development manager for quantitative and event-driven trading products.
“We’re providing particular pieces of data, which used to be very much textual in their delivery, in a much more structured message whether it’s XML or Reuters’ real time for the market feed.”
“Earnings releases are primarily numerical in nature, but when they are covered by text – a sentence – then it becomes more difficult for a machine to understand and comprehend that information,” Chenery said.
Reuters has begun adding machine-interpretable semantic data to otherwise conventional, human-readable news stories.
Thomson Reuters expects machine-readable news to become an increasingly important part of the company’s business and has said that the automated extraction and delivery of data used by these tools will free journalists to do other, less mechanic work.
“By providing that kind of automation and technology, it allows the journalists to spend more time developing exclusives or writing up more information,” Chenery said.
“We don’t want a relatively highly paid journalist putting a textual number into some sort of system to send it out when we can do that automatically and probably faster and would rather have that journalist writing an analysis piece or something like that.”
● SOURCE Press Gazette
A Thomson Reuters survey has found that financial firms using advanced algorithmic trading techniques expect IT-driven news analysis tools to substantially shorten the time it takes them to act on new information.
Ventanta Research spoke to 113 specialist financial professionals and found that two-thirds expect increased automation in the analysis of news.
Prior to the April take-over, both Thomson and Reuters were working on products which deliver data and other news to financial services customers in a format that can be read and acted on automatically by computers. Much of that content is also created automatically.
“It’s still the same news – we’re not really providing a different piece of news, we’re just providing it in a different format,” said James Chenery, Thomson Reuters’ business development manager for quantitative and event-driven trading products.
“We’re providing particular pieces of data, which used to be very much textual in their delivery, in a much more structured message whether it’s XML or Reuters’ real time for the market feed.”
“Earnings releases are primarily numerical in nature, but when they are covered by text – a sentence – then it becomes more difficult for a machine to understand and comprehend that information,” Chenery said.
Reuters has begun adding machine-interpretable semantic data to otherwise conventional, human-readable news stories.
Thomson Reuters expects machine-readable news to become an increasingly important part of the company’s business and has said that the automated extraction and delivery of data used by these tools will free journalists to do other, less mechanic work.
“By providing that kind of automation and technology, it allows the journalists to spend more time developing exclusives or writing up more information,” Chenery said.
“We don’t want a relatively highly paid journalist putting a textual number into some sort of system to send it out when we can do that automatically and probably faster and would rather have that journalist writing an analysis piece or something like that.”
● SOURCE Press Gazette
Thomson Reuters names new CTO
Monday 21 July 2008
Thomson Reuters named James Powell as its chief technology officer. He replaces Michael Wilens who is leaving to head asset management at Fidelity Investments. At Thomson Reuters Wilens was executive vice president for strategy, technology and innovation.
Powell, currently CTO of the markets division, was previously Reuters’ CTO for enterprise and global head of product development.
Besides advising senior management and the board on new technology he will also be in charge of promoting best practices at Thomson Reuters in areas including search, data mining, databasing, digital platforms and datacentre design. He takes up his new job on 1 August.
● SOURCE Reuters
Powell, currently CTO of the markets division, was previously Reuters’ CTO for enterprise and global head of product development.
Besides advising senior management and the board on new technology he will also be in charge of promoting best practices at Thomson Reuters in areas including search, data mining, databasing, digital platforms and datacentre design. He takes up his new job on 1 August.
● SOURCE Reuters
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
London newsroom strike threat lifted
Wednesday 16 July 2008
The threat of strike action in the London newsroom has been lifted. Some 70 editorial staff have taken voluntary redundancy, avoiding the need for compulsory job losses.
Worldwide, some 140 editorial jobs are being scrapped as part of the process of merging the Thomson and Reuters editorial operations.
The newly merged company had originally refused to rule out compulsory job cuts. National Union of Journalists members called for a ballot on industrial action.
The NUJ said the company has agreed to share with the union the results of quarterly reviews of staffing levels. The union said it believes this offers “a valuable opportunity to monitor the impact of the merger on editorial standards”.
“Months of hard work by the chapel officials has finally removed the threat of compulsory redundancy,” NUJ national organiser Barry Fitzpatrick said. “We can now concentrate on the real task of working with the new company to achieve editorial excellence.”
A Thomson Reuters spokeswoman, speaking to The Guardian, could not rule out compulsory redundancies outside the UK. Talks between staff and management continue at other European bureaux.
The job reduction exercise will leave Reuters News with around 2,500 staff by the end of this year. Up to 700 posts in sales and technical support are also to be eliminated as part of the integration.
● SOURCE CNN/Dow Jones | Press Gazette | The Guardian
Worldwide, some 140 editorial jobs are being scrapped as part of the process of merging the Thomson and Reuters editorial operations.
The newly merged company had originally refused to rule out compulsory job cuts. National Union of Journalists members called for a ballot on industrial action.
The NUJ said the company has agreed to share with the union the results of quarterly reviews of staffing levels. The union said it believes this offers “a valuable opportunity to monitor the impact of the merger on editorial standards”.
“Months of hard work by the chapel officials has finally removed the threat of compulsory redundancy,” NUJ national organiser Barry Fitzpatrick said. “We can now concentrate on the real task of working with the new company to achieve editorial excellence.”
A Thomson Reuters spokeswoman, speaking to The Guardian, could not rule out compulsory redundancies outside the UK. Talks between staff and management continue at other European bureaux.
The job reduction exercise will leave Reuters News with around 2,500 staff by the end of this year. Up to 700 posts in sales and technical support are also to be eliminated as part of the integration.
● SOURCE CNN/Dow Jones | Press Gazette | The Guardian
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
Thomson Reuters launches F1 website
Friday 04 July 2008
Thomson Reuters launched a Formula 1 motor racing website today timed to coincide with Sunday’s British Grand Prix.
Jamie Madill, head of UK sales for Reuters Media, said the site aimed to be the “one-stop shop” for all F1 news and information.
Royal Bank of Scotland sponsors the site and provides additional content.
A Reuters F1 mobile site will launch later this month on UK and Indian platforms.
Thomson Reuters has sponsored the AT&T Williams F1 team for the past eight years. It also sponsors Canadian golf champion Mike Weir.
Thomson Reuters says both embody the company’s core values: “that global business collaboration is key; people make the difference; and performance matters”.
“The sport of Formula 1 also reflects many of the values inherent to Thomson Reuters. Like the environment in which we work, Formula 1 is highly competitive global sport that depends on teamwork, accuracy and reliability to achieve high performance.”
● Reuters F1
Jamie Madill, head of UK sales for Reuters Media, said the site aimed to be the “one-stop shop” for all F1 news and information.
Royal Bank of Scotland sponsors the site and provides additional content.
A Reuters F1 mobile site will launch later this month on UK and Indian platforms.
Thomson Reuters has sponsored the AT&T Williams F1 team for the past eight years. It also sponsors Canadian golf champion Mike Weir.
Thomson Reuters says both embody the company’s core values: “that global business collaboration is key; people make the difference; and performance matters”.
“The sport of Formula 1 also reflects many of the values inherent to Thomson Reuters. Like the environment in which we work, Formula 1 is highly competitive global sport that depends on teamwork, accuracy and reliability to achieve high performance.”
● Reuters F1
Investment and advisory chief quits
Wednesday 02 July 2008
Investment and advisory business chief Suresh Kavan has quit to join a unit of the Daily Mail and General Trust.
He will stay on until 31 July and then become chief executive of DMG Information, Devin Wenig, CEO of Thomson Reuters markets division, said in a statement. Kavan’s new job is based at Stamford, Connecticut.
His successor at Thomson Reuters is Eric Frank, who has led the investment management unit of the Thomson Reuters investment advisory business. He joined Thomson Financial in 2000 after it acquired Carson Group where he was managing director.
Kavan joined Thomson Financial when it bought Primark, a financial and data information company, in 2000.
● SOURCE Thomson Reuters
He will stay on until 31 July and then become chief executive of DMG Information, Devin Wenig, CEO of Thomson Reuters markets division, said in a statement. Kavan’s new job is based at Stamford, Connecticut.
His successor at Thomson Reuters is Eric Frank, who has led the investment management unit of the Thomson Reuters investment advisory business. He joined Thomson Financial in 2000 after it acquired Carson Group where he was managing director.
Kavan joined Thomson Financial when it bought Primark, a financial and data information company, in 2000.
● SOURCE Thomson Reuters
First new brand ad airs on TV
Monday 30 June 2008
Thomson Reuters launched its first advertising push as a newly merged corporation today with an international TV campaign.
The 30-second ad plays off the company’s new strapline “Knowledge to Act”, which replaces Reuters’ former “Know now”.
It begins with the company’s new brand logo emerging in a shot of the New York skyline. The moving orange dots are said to signify the “intelligent information” Thomson Reuters provides for its clients around the world.
The ad will run on CNBC US and Europe and be accompanied by a 10-second animated logo. For the rest of the world, the ad and logo will appear from 11 July on CNBC Asia, CNBC Nikkei and CNBC TV18 (India).
Marcy Simon, global head of strategic marketing communications, said: “This TV campaign is the significant next push to help build upon the great visibility and brand awareness we have as a global brand.
“The ad represents a day in the life of our markets, professionals and our businesses, capturing the breadth and depth of our global reach. It builds on the very strong response both externally and internally when the brand was unveiled on April 17, with press ads and exposure in high-profile locations such as Times Square in New York and on the London Underground and Toronto subway."
CEO Tom Glocer said then that the company’s new branding was a “marked departure” from the historical look and feel of the two companies.
The new TV ad was produced by creative agency Ogilvy.
● SOURCE mad.co.uk
The 30-second ad plays off the company’s new strapline “Knowledge to Act”, which replaces Reuters’ former “Know now”.
It begins with the company’s new brand logo emerging in a shot of the New York skyline. The moving orange dots are said to signify the “intelligent information” Thomson Reuters provides for its clients around the world.
The ad will run on CNBC US and Europe and be accompanied by a 10-second animated logo. For the rest of the world, the ad and logo will appear from 11 July on CNBC Asia, CNBC Nikkei and CNBC TV18 (India).
Marcy Simon, global head of strategic marketing communications, said: “This TV campaign is the significant next push to help build upon the great visibility and brand awareness we have as a global brand.
“The ad represents a day in the life of our markets, professionals and our businesses, capturing the breadth and depth of our global reach. It builds on the very strong response both externally and internally when the brand was unveiled on April 17, with press ads and exposure in high-profile locations such as Times Square in New York and on the London Underground and Toronto subway."
CEO Tom Glocer said then that the company’s new branding was a “marked departure” from the historical look and feel of the two companies.
The new TV ad was produced by creative agency Ogilvy.
● SOURCE mad.co.uk
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
Singapore women launch network
Thursday 26 June 2008
The Singapore chapter of the Thomson Reuters women’s network was launched on 25 June with the support of nearly 100 women at the One Raffles Quay office.
Opening the event, Eddie Haddad, head of sales and customer service, ASEAN, Pacific, South Asia, spoke about the importance of nurturing female talent.
“We have to have Asians running Asia,” he said. “If we don’t let women move up the line, we’re going to have talent flight.”
Participants called for more events, opportunities to interact and exchange views, more pay and access to various job roles.
Celine Ooi of human resources said she wanted more visibility for senior Thomson Reuters women and an opportunity to establish more mentoring relationships.
● SOURCE Thomson Reuters
Opening the event, Eddie Haddad, head of sales and customer service, ASEAN, Pacific, South Asia, spoke about the importance of nurturing female talent.
“We have to have Asians running Asia,” he said. “If we don’t let women move up the line, we’re going to have talent flight.”
Participants called for more events, opportunities to interact and exchange views, more pay and access to various job roles.
Celine Ooi of human resources said she wanted more visibility for senior Thomson Reuters women and an opportunity to establish more mentoring relationships.
● SOURCE Thomson Reuters
Tom Glocer ‘going hard’ after Bloomberg
Monday 23 June 2008
Thomson Reuters is going hard after Bloomberg, long the marquee name on Wall Street for financial information. “For a long time, Bloomberg had it too easy,” CEO Tom Glocer said in an interview with The New York Times.
The two companies are in a dead heat: Thomson Reuters has 34 per cent of the market for financial data, Bloomberg 33 per cent.
The newspaper said Glocer concedes there is some symmetry in Thomson Reuters’ challenge to Bloomberg. “Reuters used to be BOAC,” he said. “Along came Richard Branson and Virgin, and suddenly British Airways became a much better airline. Bloomberg is that Virgin that forced Reuters to sharpen up.”
Glocer thinks he can go after Bloomberg on price and, more important, on flexibility, The New York Times said. It quoted Douglas B. Taylor, managing partner at Burton-Taylor International Consulting and a former executive with both Thomson Financial and Reuters as saying “Bloomberg has a real problem finding new business. They priced themselves at the top of the market. There are different points on a pricing curve that Bloomberg can’t hit but that Thomson Reuters can deliver. It’s going to be hard to figure out where Bloomberg’s new growth opportunities will be that don’t cannibalize its current pricing.”
Price may be a larger factor in emerging markets, particularly Asia, which both companies agree is the next battleground in their war for financial information supremacy, the newspaper said.
“The next stage of the battle may also involve technology. Even before the takeover, both Thomson and Reuters were developing products for so-called black box trading, computer systems that replace human traders. The combined company now leads the business of selling data with minimal time delays for black box systems, a highly profitable line of products, according to Mr. Taylor...
“Even Reuters’s founding business – the news agency that supplies articles and photos to newspapers and Web sites as well as news video to broadcasters and publishers – is growing. As traditional publishers like newspapers shrink their staffs, they rely more on news agencies, Mr. Glocer said. Although he added, perhaps only half-joking, ‘longer term, I hope the patient doesn’t die’.”
● SOURCE The New York Times
The two companies are in a dead heat: Thomson Reuters has 34 per cent of the market for financial data, Bloomberg 33 per cent.
The newspaper said Glocer concedes there is some symmetry in Thomson Reuters’ challenge to Bloomberg. “Reuters used to be BOAC,” he said. “Along came Richard Branson and Virgin, and suddenly British Airways became a much better airline. Bloomberg is that Virgin that forced Reuters to sharpen up.”
Glocer thinks he can go after Bloomberg on price and, more important, on flexibility, The New York Times said. It quoted Douglas B. Taylor, managing partner at Burton-Taylor International Consulting and a former executive with both Thomson Financial and Reuters as saying “Bloomberg has a real problem finding new business. They priced themselves at the top of the market. There are different points on a pricing curve that Bloomberg can’t hit but that Thomson Reuters can deliver. It’s going to be hard to figure out where Bloomberg’s new growth opportunities will be that don’t cannibalize its current pricing.”
Price may be a larger factor in emerging markets, particularly Asia, which both companies agree is the next battleground in their war for financial information supremacy, the newspaper said.
“The next stage of the battle may also involve technology. Even before the takeover, both Thomson and Reuters were developing products for so-called black box trading, computer systems that replace human traders. The combined company now leads the business of selling data with minimal time delays for black box systems, a highly profitable line of products, according to Mr. Taylor...
“Even Reuters’s founding business – the news agency that supplies articles and photos to newspapers and Web sites as well as news video to broadcasters and publishers – is growing. As traditional publishers like newspapers shrink their staffs, they rely more on news agencies, Mr. Glocer said. Although he added, perhaps only half-joking, ‘longer term, I hope the patient doesn’t die’.”
● SOURCE The New York 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
Company banner taken to Mt Everest
Thursday 19 June 2008
A Thomson Reuters banner bearing the new company logo has reached the summit of Mount Everest.
John Soebbing, global head of IT sourcing based in New York, reached the peak of the world’s highest mountain with eight other climbers at 0715 on 24 May amid difficult weather conditions. He had spent two months of preparation on the mountain and trained for more than six months.
It was truly physically challenging, he said, but the blue sky view from the top of Everest was like a window to the world as far as the eye could see.
Conquering Everest was the final achievement in Soebbing’s quest to scale the Seven Summits – a mountaineering challenge which involves climbing the highest peak on each of the seven continents.
His climb was held up by a party of mountaineers who were accompanying the Olympic Torch to the top of Everest. Among the party were three Reuters News journalists who ascended to base camp – Nick Mulvenney, Mark Chisholm and David Gray.
● SOURCE Thomson Reuters
John Soebbing, global head of IT sourcing based in New York, reached the peak of the world’s highest mountain with eight other climbers at 0715 on 24 May amid difficult weather conditions. He had spent two months of preparation on the mountain and trained for more than six months.
It was truly physically challenging, he said, but the blue sky view from the top of Everest was like a window to the world as far as the eye could see.
Conquering Everest was the final achievement in Soebbing’s quest to scale the Seven Summits – a mountaineering challenge which involves climbing the highest peak on each of the seven continents.
His climb was held up by a party of mountaineers who were accompanying the Olympic Torch to the top of Everest. Among the party were three Reuters News journalists who ascended to base camp – Nick Mulvenney, Mark Chisholm and David Gray.
● SOURCE Thomson Reuters
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
Thomson Reuters to raise $1.75 billion
Tuesday 17 June 2008
Thomson Reuters said it plans to raise $1.75 billion through an issue of corporate securities.
The offer is for $750 million of bonds due in 2013 paying an annual interest rate of 5.95 per cent and $1 billion in 6.5 per cent bonds due in 2018. The offer closes on Friday.
The company plans to use the money to repay bank debt used by the former Thomson Corp to pay the cash portion of its cash-and-stock acquisition of Reuters on 17 April.
The deal was worth about $15.8 billion.
● SOURCE CNN
The offer is for $750 million of bonds due in 2013 paying an annual interest rate of 5.95 per cent and $1 billion in 6.5 per cent bonds due in 2018. The offer closes on Friday.
The company plans to use the money to repay bank debt used by the former Thomson Corp to pay the cash portion of its cash-and-stock acquisition of Reuters on 17 April.
The deal was worth about $15.8 billion.
● SOURCE CNN
MP meets management over job cuts
Monday 16 June 2008
British MP Austin Mitchell is to meet Thomson Reuters management in an attempt to help resolve a union wrangle over possible compulsory redundancies, Press Gazette reported.
Mitchell, a Labour politician, is chairman of the National Union of Journalists Parliamentary Group.
NUJ official Barry Fitzpatrick said Mitchell would be discussing options for the company. Some 70 UK editorial positions are under threat, the weekly magazine said. Worldwide, the number of journalists’ jobs to be axed is 140. The losses are part of the shake-out from Thomson’s takeover of Reuters in April.
The NUJ was meeting the company today and Fitzpatrick said it has formally initiated a disputes procedure which gives a deadline of 15 July to resolve differences.
● SOURCE Press Gazette
Mitchell, a Labour politician, is chairman of the National Union of Journalists Parliamentary Group.
NUJ official Barry Fitzpatrick said Mitchell would be discussing options for the company. Some 70 UK editorial positions are under threat, the weekly magazine said. Worldwide, the number of journalists’ jobs to be axed is 140. The losses are part of the shake-out from Thomson’s takeover of Reuters in April.
The NUJ was meeting the company today and Fitzpatrick said it has formally initiated a disputes procedure which gives a deadline of 15 July to resolve differences.
● SOURCE Press Gazette
Staff raise $40,000 for Oxfam
Friday 13 June 2008
Staff from London, Hong Kong and Bangalore have walked a collective 4,151 km in Japan to raise money for British charity Oxfam.
Eleven teams of four people raised ¥4,161,608 (about $40,000) by taking part in a series of team challenge events run by the charity. Thirty-seven of the 44 Thomson Reuters walkers completed the competition.
The fastest Thomson Reuters team comprised Andrew Reeve, Andrew Cross, Mitsuhiro Tsuchida and Oliver Otto. They completed the 100 km trail in 29 hours 2 minutes.
Eleven teams of four people raised ¥4,161,608 (about $40,000) by taking part in a series of team challenge events run by the charity. Thirty-seven of the 44 Thomson Reuters walkers completed the competition.
The fastest Thomson Reuters team comprised Andrew Reeve, Andrew Cross, Mitsuhiro Tsuchida and Oliver Otto. They completed the 100 km trail in 29 hours 2 minutes.
UK editorial staff call for strike ballot
Tuesday 10 June 2008
London newsroom staff are to hold a ballot over possible industrial action, The Guardian reported. It said the decision follows the refusal of management to delay planned redundancies and rejection of an offer from National Union of Journalists’ officials to bring in the UK Advisory, Conciliation and Arbitration Service.
NUJ officials met Thomson Reuters management on Monday but staff concerns about the technicalities of the redundancy process were not met, the newspaper said.
“As a result, the Thomson and Reuters NUJ chapels have now moved to hold strike ballots,” it said.
Thomson Reuters wants to cut 70 journalists from the London newsroom as part of job reductions following the recent merger.
“The NUJ said it had made several requests for management to explain the reasons for the cuts but has not received a satisfactory answer,” The Guardian said.
“Union officials also asked for ACAS to be invited to help resolve the dispute but the conciliation service cannot get involved until after the 90-day consultation period, by which time the job cuts will have taken place.”
The Guardian quoted editor-in-chief David Schlesinger as saying management has “maintained a transparent and cooperative dialogue with staff and relevant global unions” during the merger.
“We are trying the minimise the uncertainty for our UK journalists and we are continuing our ongoing consultation with the NUJ.”
● SOURCE The Guardian
NUJ officials met Thomson Reuters management on Monday but staff concerns about the technicalities of the redundancy process were not met, the newspaper said.
“As a result, the Thomson and Reuters NUJ chapels have now moved to hold strike ballots,” it said.
Thomson Reuters wants to cut 70 journalists from the London newsroom as part of job reductions following the recent merger.
“The NUJ said it had made several requests for management to explain the reasons for the cuts but has not received a satisfactory answer,” The Guardian said.
“Union officials also asked for ACAS to be invited to help resolve the dispute but the conciliation service cannot get involved until after the 90-day consultation period, by which time the job cuts will have taken place.”
The Guardian quoted editor-in-chief David Schlesinger as saying management has “maintained a transparent and cooperative dialogue with staff and relevant global unions” during the merger.
“We are trying the minimise the uncertainty for our UK journalists and we are continuing our ongoing consultation with the NUJ.”
● SOURCE The Guardian
Journalists in UK edge towards strike
Friday 06 June 2008
Journalists at Thomson Reuters in London moved closer to strike action over planned job cuts and attacked management over plans to reshape the company, The Guardian reported.
“At a well-attended union meeting today, journalists from both Thomson and Reuters passed a resolution that could set the wheels in motion as soon as next week for industrial action,” it said.
Reporters are angry about plans to cut jobs in the UK, 73 of them journalist posts, The Guardian said. National Union of Journalists officials argue that management have shortened the window for voluntary redundancies and have not ruled out compulsory job cuts.
“At today’s meeting, staff passed a resolution that will be put to management on Monday: ‘This chapel is prepared to take industrial action in the event the company tries to impose compulsory redundancies and instructs its officers to move ahead with a strike ballot if the company imposes timelines for redundancies without consultation.’”
The Guardian said Thomson Reuters has told staff that the group will ultimately be expanding with new ventures such as web TV and more comment writing.
“However, employees say they are angry at the job cuts, which many believe show reporters are paying for an unjustified expansion into areas not traditionally associated with Reuters or Thomson.
“They argue more comment and new TV ventures will come at the expense of the core coverage of basic financial, general and sports news.”
In two other resolutions, union members said they had no confidence in editorial strategy as explained by management and they believed it will lead to a deterioration in the quality of the service, The Guardian said.
● SOURCE The Guardian
“At a well-attended union meeting today, journalists from both Thomson and Reuters passed a resolution that could set the wheels in motion as soon as next week for industrial action,” it said.
Reporters are angry about plans to cut jobs in the UK, 73 of them journalist posts, The Guardian said. National Union of Journalists officials argue that management have shortened the window for voluntary redundancies and have not ruled out compulsory job cuts.
“At today’s meeting, staff passed a resolution that will be put to management on Monday: ‘This chapel is prepared to take industrial action in the event the company tries to impose compulsory redundancies and instructs its officers to move ahead with a strike ballot if the company imposes timelines for redundancies without consultation.’”
The Guardian said Thomson Reuters has told staff that the group will ultimately be expanding with new ventures such as web TV and more comment writing.
“However, employees say they are angry at the job cuts, which many believe show reporters are paying for an unjustified expansion into areas not traditionally associated with Reuters or Thomson.
“They argue more comment and new TV ventures will come at the expense of the core coverage of basic financial, general and sports news.”
In two other resolutions, union members said they had no confidence in editorial strategy as explained by management and they believed it will lead to a deterioration in the quality of the service, The Guardian said.
● SOURCE The Guardian
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
Integration, takeover concerns cited
Wednesday 04 June 2008
Citing integration risks and concerns about a takeover, US credit ratings agency Fitch Ratings gave Thomson Reuters a mid-level investment-grade rating.
Fitch said the newly-merged company has a sound balance sheet and gave it an initial A- rating. Ratings indicate a company’s ability to repay debt. The highest rating is AAA.
Fitch said its rating reflects the company’s ability to generate meaningful cash flow which will allow it to meet repayment schedules. It is also based on Thomson Reuters’ relative lack of viable competitors and the company’s ability to distribute news and other information electronically.
Some concerns include integration risk and the possibility that the new company could be an acquisition target, Fitch said.
● SOURCE CNN
Fitch said the newly-merged company has a sound balance sheet and gave it an initial A- rating. Ratings indicate a company’s ability to repay debt. The highest rating is AAA.
Fitch said its rating reflects the company’s ability to generate meaningful cash flow which will allow it to meet repayment schedules. It is also based on Thomson Reuters’ relative lack of viable competitors and the company’s ability to distribute news and other information electronically.
Some concerns include integration risk and the possibility that the new company could be an acquisition target, Fitch said.
● SOURCE CNN
US award for Niall FitzGerald
Thursday 29 May 2008
Niall FitzGerald, deputy chairman of Thomson Reuters, has received the Woodrow Wilson Award for Corporate Citizenship.
The award was made in recognition of his distinguished business career and corporate leadership both in the UK and internationally.
Winners must demonstrate a proven commitment to societal matters beyond the bottom line, encourage ties among different sectors of society and promote international cooperation and understanding.
The award was presented by the Woodrow Wilson International Center for Scholars of the Washington-based Smithsonian Institution at a gala dinner in London on 21 May.
“I am honoured to receive the Woodrow Wilson Award for Corporate Citizenship, though I feel I have been singled out for doing something that should be entirely expected and natural,” FitzGerald said. “Business is a part of the society it serves and should go beyond the interests of its own shareholders.”
FitzGerald joined Reuters as a non-executive director in 2003 and became chairman in 2004. He was previously chairman and CEO of Unilever.
● SOURCE Thomson Reuters
The award was made in recognition of his distinguished business career and corporate leadership both in the UK and internationally.
Winners must demonstrate a proven commitment to societal matters beyond the bottom line, encourage ties among different sectors of society and promote international cooperation and understanding.
The award was presented by the Woodrow Wilson International Center for Scholars of the Washington-based Smithsonian Institution at a gala dinner in London on 21 May.
“I am honoured to receive the Woodrow Wilson Award for Corporate Citizenship, though I feel I have been singled out for doing something that should be entirely expected and natural,” FitzGerald said. “Business is a part of the society it serves and should go beyond the interests of its own shareholders.”
FitzGerald joined Reuters as a non-executive director in 2003 and became chairman in 2004. He was previously chairman and CEO of Unilever.
● SOURCE Thomson Reuters
Montreal bureau closes
Wednesday 28 May 2008
Thomson Reuters closed its Montreal bureau with immediate effect, affecting one journalist and several sales people, The Canadian Press reported.
It said the news was given in an internal e-mail circulated to staff on Tuesday.
Most of the company’s Canadian workforce is located in Toronto.
● SOURCE Canadian Press
It said the news was given in an internal e-mail circulated to staff on Tuesday.
Most of the company’s Canadian workforce is located in Toronto.
● SOURCE Canadian Press
Staff given job search tips
Monday 26 May 2008
Thomson Reuters staff have been sent guides on how to apply for internal jobs, UK Press Gazette magazine reported.
Journalists at Thomson Financial Newswires were advised to read two documents on the company’s intranet this month, it said. One was titled Thomson Reuters Introduction to Interviewing, the other Filling Roles: Competency Based Interviewing Guide.
“According to a well-placed source within the company, human resources staff have been holding workshops on tackling interviews for the new company,” Press Gazette said.
Reuters interviews take place in several stages, often before a panel of four or five senior management staff.
“The competence guide advises interviewees to expect tough questions such as: “Give an example of a time when you had to strive hard and make personal sacrifices to achieve an aim which was important to you/the business.”
● SOURCE Press Gazette
Journalists at Thomson Financial Newswires were advised to read two documents on the company’s intranet this month, it said. One was titled Thomson Reuters Introduction to Interviewing, the other Filling Roles: Competency Based Interviewing Guide.
“According to a well-placed source within the company, human resources staff have been holding workshops on tackling interviews for the new company,” Press Gazette said.
Reuters interviews take place in several stages, often before a panel of four or five senior management staff.
“The competence guide advises interviewees to expect tough questions such as: “Give an example of a time when you had to strive hard and make personal sacrifices to achieve an aim which was important to you/the business.”
● SOURCE Press Gazette
Times fires broadside at Tom Glocer yacht
Thursday 22 May 2008
The Times fired a broadside at CEO Tom Glocer for chartering a yacht to moor in the harbour at Monaco just as Thomson Reuters announces 1,500 jobs cuts.
Glocer is entertaining investment bankers during the Monaco Grand Prix this weekend. Reuters sponsors the AT&T Williams team in the Formula One championship.
Under the headline “Tom Glocer sails off on a sea of others’ troubles”, The Times City Diary said: “In an act of callousness that might have brought a blush to the cheeks of Marie Antoinette herself, Tom Glocer, the Thomson Reuters chief executive, has chartered a yacht to moor in the harbour at Monaco just as the newly merged company announces 1,500 job cuts.
“The losses were put down to the urgent need to cut costs, and staffers there are understandably sick to see Glocer, as part of the group’s sponsorship of F1, hire the yacht to entertain investment banking clients to coincide with the grand prix there.
“Thomson Reuters is refusing to comment. Glocer made a £22.5 million windfall out of the merger between Reuters and Thomson that led to the job cuts. So 1,500 relatively poor people become poorer while a rich man, now considerably richer as a consequence, hires a yacht with someone else’s money to entertain some other very rich people. Could there be a more perfect parable for our times?”
A report in the Daily Mail said: “As hundreds of staff sweat over their jobs, Reuters will splash out an estimated £80,000 on boat hire and moorage charges to watch the two-hour race...
“There’ll be no sign of belt tightening as Glocer schmoozes Reuters’ investment banking clients at one of the key events in the European social calendar.
“He’ll need to work as much charm as he can muster – the American must keep his Wall Street customers onside given that the credit crisis shows no sign of ending.”
● SOURCE The Times | Daily Mail
Glocer is entertaining investment bankers during the Monaco Grand Prix this weekend. Reuters sponsors the AT&T Williams team in the Formula One championship.
Under the headline “Tom Glocer sails off on a sea of others’ troubles”, The Times City Diary said: “In an act of callousness that might have brought a blush to the cheeks of Marie Antoinette herself, Tom Glocer, the Thomson Reuters chief executive, has chartered a yacht to moor in the harbour at Monaco just as the newly merged company announces 1,500 job cuts.
“The losses were put down to the urgent need to cut costs, and staffers there are understandably sick to see Glocer, as part of the group’s sponsorship of F1, hire the yacht to entertain investment banking clients to coincide with the grand prix there.
“Thomson Reuters is refusing to comment. Glocer made a £22.5 million windfall out of the merger between Reuters and Thomson that led to the job cuts. So 1,500 relatively poor people become poorer while a rich man, now considerably richer as a consequence, hires a yacht with someone else’s money to entertain some other very rich people. Could there be a more perfect parable for our times?”
A report in the Daily Mail said: “As hundreds of staff sweat over their jobs, Reuters will splash out an estimated £80,000 on boat hire and moorage charges to watch the two-hour race...
“There’ll be no sign of belt tightening as Glocer schmoozes Reuters’ investment banking clients at one of the key events in the European social calendar.
“He’ll need to work as much charm as he can muster – the American must keep his Wall Street customers onside given that the credit crisis shows no sign of ending.”
● SOURCE The Times | Daily Mail
$260,000 China quake relief donation
Thursday 22 May 2008
Thomson Reuters, ● Reuters Foundation and staff have donated a combined $260,000 to help relief work following the earthquake in China’s Szechuan province.
The Foundation has donated $100,000, supplemented by $100,000 from Thomson Reuters, to be distributed through agencies chosen by the Foundation’s ● AlertNet International Disaster Fund (AIDfund), an independent grant-making fund. Often working in partnership with local people, the agencies, which are all members of ● Reuters AlertNet, will receive funding to help them fulfil specific aid programmes.
Thomson Reuters staff across Asia have set up local fundraising initiatives which have raised $60,000, as well as offering generous donations of blankets and clothes for earthquake survivors. These have been passed to local Red Cross Societies.
"The earthquake has prompted a tremendous outpouring of support and humanitarian relief from our staff across the region,” said Kenneth Tsui, managing director for North Asia for the markets division.
“The company, its employees and Foundation have responded rapidly to raise and distribute funds for those affected by the tragedy. In such a disaster situation, we will also continue to enable relief agencies to access and share vital news and information that could help improve the situation."
AIDfund has awarded cash grants to the following non governmental organisations, all of which have a long history of providing relief aid in China:
● Americare $30,000
● Handicap International $30,000
● British Red Cross $40,000
● World Vision International $40,000
● Save the Children $60,000
Selected by a committee of humanitarian experts, the programmes will help with basic utilities, food, tents and other forms of shelter. They will also provide child-friendly spaces to support children in their adjustment following the disaster, as well as trained physiotherapists to support the rehabilitation of those injured during the quake.
Staff who wish to donate can do so through ● AIDfund online. These donations will help to create a fund for future emergencies.
● SOURCE Thomson Reuters
The Foundation has donated $100,000, supplemented by $100,000 from Thomson Reuters, to be distributed through agencies chosen by the Foundation’s ● AlertNet International Disaster Fund (AIDfund), an independent grant-making fund. Often working in partnership with local people, the agencies, which are all members of ● Reuters AlertNet, will receive funding to help them fulfil specific aid programmes.
Thomson Reuters staff across Asia have set up local fundraising initiatives which have raised $60,000, as well as offering generous donations of blankets and clothes for earthquake survivors. These have been passed to local Red Cross Societies.
"The earthquake has prompted a tremendous outpouring of support and humanitarian relief from our staff across the region,” said Kenneth Tsui, managing director for North Asia for the markets division.
“The company, its employees and Foundation have responded rapidly to raise and distribute funds for those affected by the tragedy. In such a disaster situation, we will also continue to enable relief agencies to access and share vital news and information that could help improve the situation."
AIDfund has awarded cash grants to the following non governmental organisations, all of which have a long history of providing relief aid in China:
● Americare $30,000
● Handicap International $30,000
● British Red Cross $40,000
● World Vision International $40,000
● Save the Children $60,000
Selected by a committee of humanitarian experts, the programmes will help with basic utilities, food, tents and other forms of shelter. They will also provide child-friendly spaces to support children in their adjustment following the disaster, as well as trained physiotherapists to support the rehabilitation of those injured during the quake.
Staff who wish to donate can do so through ● AIDfund online. These donations will help to create a fund for future emergencies.
● SOURCE Thomson Reuters
140 editorial jobs go by end 2008
Monday 19 May 2008
Some 140 editorial jobs will be cut by the end of this year as Reuters News absorbs Thomson Financial News, editor-in-chief David Schlesinger told staff.
More than half the cuts will be in Europe while the rest will be scattered, he said.
At the same time Reuters will add about 50 new jobs in growth areas making for 2,500 editorial employees by year’s end.
“When two similar and once competing organisations come together, there is natural overlap and duplication in coverage,” Schlesinger told staff in a memo.
“Wherever possible, we have worked to minimize job losses and to avoid redundancy by moving people into new roles and cancelling open posts that don’t fit within the new organisation,” he added.
The National Union of Journalists said it had not ruled out a strike but would negotiate with the company first.
“The NUJ has been pressing hard to have any job cuts carried out through voluntary redundancies and will continue to do so,” said Myra MacDonald, Mother of the NUJ Chapel in London.
A BBC report said Thomson Reuters could lose about 1,500 jobs from its 50,000-strong payroll in total. The company is cutting as many as 650 jobs in its content, technology and operations division.
● SOURCE Reuters
More than half the cuts will be in Europe while the rest will be scattered, he said.
At the same time Reuters will add about 50 new jobs in growth areas making for 2,500 editorial employees by year’s end.
“When two similar and once competing organisations come together, there is natural overlap and duplication in coverage,” Schlesinger told staff in a memo.
“Wherever possible, we have worked to minimize job losses and to avoid redundancy by moving people into new roles and cancelling open posts that don’t fit within the new organisation,” he added.
The National Union of Journalists said it had not ruled out a strike but would negotiate with the company first.
“The NUJ has been pressing hard to have any job cuts carried out through voluntary redundancies and will continue to do so,” said Myra MacDonald, Mother of the NUJ Chapel in London.
A BBC report said Thomson Reuters could lose about 1,500 jobs from its 50,000-strong payroll in total. The company is cutting as many as 650 jobs in its content, technology and operations division.
● SOURCE Reuters
Up to 700 jobs go in first round
Friday 16 May 2008
Thomson Reuters unveiled details of planned job losses with up to 700 posts to be axed in the first round of cuts.
Internal e-mails to staff seen by mediaguardian.co.uk said the company would be cutting 45 jobs from sales teams in its central Europe, Middle East and Africa division out of a total of 1,305 posts.
“Thomson Reuters announced much more wide-ranging job reductions in its content, technology and operations division, where up to 650 posts will go, with around 250 redundancies,” the website said.
Journalists in the 2,500-strong global news operation, part of the new company’s markets division, are still waiting to hear full details of redundancy plans in their area.
Mediaguardian.co.uk quoted a memo from Peter Moss, head of content, technology and operations, as telling staff: “As the integration proceeds and we are able to remove duplication, this will inevitably mean a reduction in the number of jobs within content, technology and operations. Over the course of 2008, we will reduce approximately 600-650 jobs within our group overall.”
However, he said the number of people leaving the company through redundancies would be “significantly less than this, with our current projections being approximately 250 people”.
A note from Loris Barisa, head of sales and service for continental Europe, Middle East and Africa, quoted by The Guardian said: “You may see some colleagues leave right away, while others will be notified and be transitioning out over a period of weeks as we work through local legal requirements.
“It’s difficult to say goodbye to people who have contributed so significantly to our successes, and that’s why I feel strongly that we conduct this process with the utmost dignity.”
● SOURCE The Guardian
Internal e-mails to staff seen by mediaguardian.co.uk said the company would be cutting 45 jobs from sales teams in its central Europe, Middle East and Africa division out of a total of 1,305 posts.
“Thomson Reuters announced much more wide-ranging job reductions in its content, technology and operations division, where up to 650 posts will go, with around 250 redundancies,” the website said.
Journalists in the 2,500-strong global news operation, part of the new company’s markets division, are still waiting to hear full details of redundancy plans in their area.
Mediaguardian.co.uk quoted a memo from Peter Moss, head of content, technology and operations, as telling staff: “As the integration proceeds and we are able to remove duplication, this will inevitably mean a reduction in the number of jobs within content, technology and operations. Over the course of 2008, we will reduce approximately 600-650 jobs within our group overall.”
However, he said the number of people leaving the company through redundancies would be “significantly less than this, with our current projections being approximately 250 people”.
A note from Loris Barisa, head of sales and service for continental Europe, Middle East and Africa, quoted by The Guardian said: “You may see some colleagues leave right away, while others will be notified and be transitioning out over a period of weeks as we work through local legal requirements.
“It’s difficult to say goodbye to people who have contributed so significantly to our successes, and that’s why I feel strongly that we conduct this process with the utmost dignity.”
● SOURCE The Guardian
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
Leaked e-mail says job cuts soon
Wednesday 14 May 2008
A leaked internal e-mail confirms “significant” redundancies are about to be announced at Thomson Reuters to eliminate duplication caused by the merger.
The Guardian’s ● guardian.co.uk website said the e-mail was sent to senior managers by Devin Wenig, CEO of the markets division which includes the new company’s 2,600-strong global news operation.
It quoted him as writing: “It’s no secret that a significant amount of thought and planning has been dedicated to eliminating duplication and generating savings within our business. Over the next several days, we will communicate department by department the impact of our integration ... these actions will mean an immediate reduction in our headcount.”
Wenig added that the jobs that are impacted are largely the result of duplication between the two organisations. Most job losses will be completed by the end of the year but further cuts could be made if management decided to close certain products down completely.
“Going forward, there may be further merger related reductions in staff, but they will generally be tied to a specific decision to stop a business activity (such as to shut down a product, technology or a process).”
The website said Wenig also stressed that Thomson Reuters intends to grow in the medium term and that new jobs will be created.
It said a separate briefing document sent to managers in the markets division envisaged the cuts will be outlined from 14 to 22 May and consultations with unions and other bodies representing workers will begin on 19 May.
● SOURCE The Guardian
The Guardian’s ● guardian.co.uk website said the e-mail was sent to senior managers by Devin Wenig, CEO of the markets division which includes the new company’s 2,600-strong global news operation.
It quoted him as writing: “It’s no secret that a significant amount of thought and planning has been dedicated to eliminating duplication and generating savings within our business. Over the next several days, we will communicate department by department the impact of our integration ... these actions will mean an immediate reduction in our headcount.”
Wenig added that the jobs that are impacted are largely the result of duplication between the two organisations. Most job losses will be completed by the end of the year but further cuts could be made if management decided to close certain products down completely.
“Going forward, there may be further merger related reductions in staff, but they will generally be tied to a specific decision to stop a business activity (such as to shut down a product, technology or a process).”
The website said Wenig also stressed that Thomson Reuters intends to grow in the medium term and that new jobs will be created.
It said a separate briefing document sent to managers in the markets division envisaged the cuts will be outlined from 14 to 22 May and consultations with unions and other bodies representing workers will begin on 19 May.
● SOURCE The Guardian
$300,000 gift for cyclone relief
Wednesday 14 May 2008
Thomson Reuters and the Reuters Foundation said they will support disaster relief efforts in Myanmar with a donation totalling $300,000. The money will directly fund relief agencies that have gained access to areas devastated by Cyclone Nargis. It is being channelled through the AlertNet International Disaster Fund (AIDfund).
The Foundation is donating $200,000 to AIDfund and Thomson Reuters is giving an additional $100,000. AIDfund is an independent fund which provides immediate support to humanitarian organisations working on the frontline of emergency relief.
Cash grants are going to the following NGOs: Adventist Development and Relief Agency, British Red Cross, Christian Aid, HelpAge International, Muslim Aid and World Vision International. They will provide food parcels including rice, oil, pulses and dried fish, water purification tablets, clean water systems, blankets, clothing and temporary shelter.
“The point of AIDfund is to get cash fast to relief agencies already on the ground in Myanmar,” Foundation CEO Monique Villa said. “These agencies are the ones most able to make a difference in this critical period when lives can still be saved. All the agencies we’ve chosen have been active in the country for years. They have the local knowledge and connections to get relief where it’s needed quickly.”
● SOURCE Reuters Foundation | AlertNet
The Foundation is donating $200,000 to AIDfund and Thomson Reuters is giving an additional $100,000. AIDfund is an independent fund which provides immediate support to humanitarian organisations working on the frontline of emergency relief.
Cash grants are going to the following NGOs: Adventist Development and Relief Agency, British Red Cross, Christian Aid, HelpAge International, Muslim Aid and World Vision International. They will provide food parcels including rice, oil, pulses and dried fish, water purification tablets, clean water systems, blankets, clothing and temporary shelter.
“The point of AIDfund is to get cash fast to relief agencies already on the ground in Myanmar,” Foundation CEO Monique Villa said. “These agencies are the ones most able to make a difference in this critical period when lives can still be saved. All the agencies we’ve chosen have been active in the country for years. They have the local knowledge and connections to get relief where it’s needed quickly.”
● SOURCE Reuters Foundation | AlertNet
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
Journalists said to consider strike
Monday 12 May 2008
Thomson Reuters journalists, bracing for job cuts this week, are contemplating strike action over the way managers are slashing costs, The Guardian reported.
Staff expect CEO Tom Glocer to make an internal announcement on how many jobs will be axed before, or most likely on, 19 May, it said.
“Reports from the newsrooms of both (Thomson and Reuters) news wires tell of an increasingly anxious atmosphere as journalists fear they will be forced out of their jobs because management is expected to opt for compulsory rather than voluntary redundancies to cut out overlap,” The Guardian said.
National Union of Journalists officials say managers have so far refused to commit to using voluntary redundancies, it said. “As a result, staff at Thomson have already voted unanimously to hold a strike ballot.
“Last month a separate proposed ballot for industrial action among Reuters staff was suspended by the NUJ pending further negotiations with the management.
“Once they get details on job cuts from Glocer, union members at Reuters and Thomson say they will meet to discuss possible industrial action,” The Guardian said.
It said management will be under pressure to cut as many costs as possible given rising concerns over the outlook for financial markets.
● SOURCE The Guardian
Staff expect CEO Tom Glocer to make an internal announcement on how many jobs will be axed before, or most likely on, 19 May, it said.
“Reports from the newsrooms of both (Thomson and Reuters) news wires tell of an increasingly anxious atmosphere as journalists fear they will be forced out of their jobs because management is expected to opt for compulsory rather than voluntary redundancies to cut out overlap,” The Guardian said.
National Union of Journalists officials say managers have so far refused to commit to using voluntary redundancies, it said. “As a result, staff at Thomson have already voted unanimously to hold a strike ballot.
“Last month a separate proposed ballot for industrial action among Reuters staff was suspended by the NUJ pending further negotiations with the management.
“Once they get details on job cuts from Glocer, union members at Reuters and Thomson say they will meet to discuss possible industrial action,” The Guardian said.
It said management will be under pressure to cut as many costs as possible given rising concerns over the outlook for financial markets.
● SOURCE The Guardian
Big job cuts expected - Observer
Sunday 11 May 2008
Thomson Reuters could announce thousands of job cuts as early as this week, The Observer reported. The new company, which employs around 50,000 people, has set a 19 May deadline to outline an extensive programme of redundancies, “according to insiders”, the UK Sunday newspaper said. But following months of speculation details of where the axe will fall are expected to be made public by Friday.
“Analysts have been predicting that around 5 per cent of staff – 2,500 people – could be laid off, but the numbers could be higher than that after the group last month raised the amount of cost savings it plans to generate over the next three years from £250m to £375m,” The Observer said. The bulk of the cuts are expected to be made in Europe where Thomson and Reuters both have a large presence.
There is less overlap in North America and virtually none in Asia, The Observer said. Union officials expect at least 100 of Reuters 2,400 journalists to be axed, but that number will be inflated hugely by further cuts, with technicians, salesmen and middle managers worldwide likely to be purged.
Further savings will come from selling or vacating head office buildings and winding down contracts with suppliers, The Observer said. But most cost-cutting in the first year of the three-year programme is likely to come from laying off staff rather than reducing other overheads.
“We are expecting thousands of cuts,” it quoted a London-based union official at the group as saying.
● SOURCE The Observer
“Analysts have been predicting that around 5 per cent of staff – 2,500 people – could be laid off, but the numbers could be higher than that after the group last month raised the amount of cost savings it plans to generate over the next three years from £250m to £375m,” The Observer said. The bulk of the cuts are expected to be made in Europe where Thomson and Reuters both have a large presence.
There is less overlap in North America and virtually none in Asia, The Observer said. Union officials expect at least 100 of Reuters 2,400 journalists to be axed, but that number will be inflated hugely by further cuts, with technicians, salesmen and middle managers worldwide likely to be purged.
Further savings will come from selling or vacating head office buildings and winding down contracts with suppliers, The Observer said. But most cost-cutting in the first year of the three-year programme is likely to come from laying off staff rather than reducing other overheads.
“We are expecting thousands of cuts,” it quoted a London-based union official at the group as saying.
● SOURCE The Observer
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
FT marks a Reuters milestone
Thursday 17 April 2008
On the first day of the new Thomson Reuters company the Financial Times carried the following report under the headline “Journalists shrink under Thomson”:
“Some 157 years after Paul Julius Reuter abandoned a trial with carrier pigeons and began telegraphing share prices between the London and Paris stock exchanges, Reuters’ newswire business accounts for less than 7 per cent of its revenues, writes Andrew Edgecliffe-Johnson.
“Last night, as the company’s journalists faced the prospect of becoming an even smaller part of a larger empire, they met at The Old Bell, their favoured pub when they were based on Fleet Street – once the heart of London’s newspapers and agencies.
“The gathering, described as ‘a wake’ by some insiders, came the day before a celebration at the ExCel centre in Docklands for more than 3,500 staff.
“The Thomson takeover, which will see the company’s far smaller wire business merge with Reuters media division, has triggered many staff moves and renewed questions about morale that last surfaced when the shares touched 100p in 2003.
“Some of the rumblings boil down to annoyances such as changes of e-mail address, but there is another factor, according to David Anderson, editor of IMD Reference.
“‘Anecdotally, one of the worries doing the rounds has been that because Reuters share options would vest, a lot of them [the staff] would become pretty well off and could depart,’ he said.”
● SOURCE Financial Times
‘Old Reuters’ mourned in Fleet Street
Wednesday 16 April 2008
Reuters staff, past and present, met in Fleet Street to mark the passing of the “old Reuters” on the eve of the birth of Thomson Reuters.
The London reunion drew people from editorial, sales and marketing, technical support, finance and administration.
The Old Bell was bursting, with drinkers spilling over to other pubs and wine bars in the neighbourhood including The Cheshire Cheese. The Punch Tavern captured the spirit of the evening with a sign regretting ”the passing of 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
