Thomson Reuters Reports Third-Quarter 2024 Results
TORONTO, Nov. 5, 2024 /PRNewswire/ -- Thomson Reuters (TSX/NYSE: TRI) today reported results for the third quarter ended September 30, 2024:
-- Good revenue momentum continued in the third quarter
-- Total company revenues up 8%, organic revenues up 7%
-- Organic revenues up 9% for the "Big 3" segments (Legal
Professionals, Corporates and Tax & Accounting Professionals)
-- Raised total company full-year organic revenue growth outlook to
approximately 7%
-- Raised organic revenue growth outlook for "Big 3" to approximately
8.5%
-- Announced agreement to sell its FindLaw business
"We saw good momentum continue in the third quarter, with revenue and margins moderately ahead of our expectations" said Steve Hasker, President and CEO of Thomson Reuters.
"We remain focused on driving innovation across our portfolio and markets to best serve our customers, demonstrated by our investment in AI now increasing to more than $200 million in 2024. We continue to make progress against our "Build, Partner, Buy" strategy, including launching several new AI product capabilities and making exciting enhancements to CoCounsel, our professional-grade GenAI assistant. In addition, we have closed on the strategic acquisitions of Safe Sign Technologies and Materia, which complement our product roadmap and further accelerate our provision of GenAI tools for professionals."
Mr. Hasker added, "As we look ahead, we are committed to taking a balanced capital allocation approach, focusing on delivering sustained value creation through a long-term investment strategy."
Consolidated Financial Highlights - Three Months Ended September 30
Three Months Ended September 30,
(Millions of U.S. dollars, except for adjusted EBITDA margin and EPS)
(unaudited)
IFRS Financial Measures
(1) 2024 2023 Change Change at
Constant
Currency
--- ---
Revenues $1,724 $1,594 8 %
Operating profit $415 $441 -6 %
Diluted earnings per share (EPS) $0.67 $0.80 -16 %
Net cash provided by operating activities $756 $674 12 %
Non-IFRS Financial Measures
(1)
---
Revenues $1,724 $1,594 8 % 9 %
Adjusted EBITDA $609 $632 -4 % -4 %
Adjusted EBITDA margin 35.3 % 39.6 % -430bp
-450bp
Adjusted EPS $0.80 $0.82 -2 % -2 %
Free cash flow $591 $529 12 %
(1)
In addition to results reported in accordance with International Financial Reporting Standards (IFRS), the company uses certain non-IFRS
financial measures as supplemental indicators of its operating performance and financial position. See the "Non-IFRS Financial
Measures" section and the tables appended to this news release for additional information on these and other non-IFRS financial
measures, including how they are defined and reconciled to the most directly comparable IFRS measures.
Revenues increased 8%, driven by growth in recurring and transactions revenues. Acquisitions had a 1% positive impact and foreign currency had a slightly negative impact on revenue growth.
-- Organic revenues increased 7%, driven by 8% growth in recurring revenues
(84% of total revenues) and 12% growth in transactions revenues. Global
Print revenues decreased 6% organically.
-- The company's "Big 3" segments reported organic revenue growth of 9% and
collectively comprised 81% of total revenues.
Operating profit decreased 6% as higher revenues were more than offset by higher costs which included growth investments and the impact of acquisitions.
-- Adjusted EBITDA decreased 4% primarily due to the same factors that
impacted operating profit. The related margin decreased to 35.3% from
39.6% in the prior-year period. Foreign currency had a 20 basis points
positive impact on the year-over-year change in adjusted EBITDA margin.
Diluted EPS decreased to $0.67 compared to $0.80 in the prior-year period primarily reflecting higher tax expense, as the prior-year period included the release of certain tax reserves.
-- Adjusted EPS, which excludes the release of certain tax reserves, as
well as other adjustments, decreased to $0.80 per share from $0.82 per
share in the prior-year period as lower adjusted EBITDA and higher
income taxes more than offset lower interest expense.
Net cash provided by operating activities increased by $82 million in the third quarter, primarily due to certain component changes in working capital.
-- Free cash flow increased $62 million primarily due to the increase in
cash flow from operating activities.
Highlights by Customer Segment - Three Months Ended September 30
(Millions of U.S. dollars, except for adjusted EBITDA margins)
(unaudited)
Three Months Ended
September 30,
Change
2024 2023 Total Constant Organic
(1)(2)
Currency
(1)
Revenues
---
Legal Professionals $745 $688 8 % 8 % 7 %
Corporates 437 391 12 % 12 % 10 %
Tax & Accounting Professionals 221 203 9 % 11 % 10 %
"Big 3" Segments Combined(1) 1,403 1,282 9 % 10 % 9 %
Reuters News 199 180 10 % 10 % 8 %
Global Print 128 137 -7 % -6 % -6 %
Eliminations/Rounding (6) (5)
Revenues $1,724 $1,594 8 % 9 % 7 %
Adjusted EBITDA(
1)
---
Legal Professionals $334 $338 -1 % -1 %
Corporates 162 164 -1 % -2 %
Tax & Accounting Professionals 59 64 -7 % -5 %
"Big 3" Segments Combined(1) 555 566 -2 % -2 %
Reuters News 40 37 10 % 14 %
Global Print 43 55 -22 % -21 %
Corporate costs (29) (26) n/a
n/a
Adjusted EBITDA $609 $632 -4 % -4 %
Adjusted EBITDA Margin(
1)
---
Legal Professionals 44.9 % 49.1 % -420bp -430bp
Corporates 36.8 % 41.9 % -510bp -520bp
Tax & Accounting Professionals 26.8 % 31.2 % -440bp -430bp
"Big 3" Segments Combined(1) 39.5 % 44.0 % -450bp -460bp
Reuters News 20.4 % 20.4 % 0bp
70bp
Global Print 33.1 % 39.6 % -650bp -640bp
Adjusted EBITDA margin 35.3 % 39.6 % -430bp -450bp
(1)
See the "Non-IFRS Financial Measures" section and the tables appended to this news release for additional information on these and
other non-IFRS financial measures.
To compute segment and consolidated adjusted EBITDA margin, the company excludes fair value
adjustments related to acquired
deferred revenue.
(2)
Computed for revenue growth only.
n/a: not applicable
Unless otherwise noted, all revenue growth comparisons by customer segment in this news release are at constant currency (or exclude the impact of foreign currency) as Thomson Reuters believes this provides the best basis to measure their performance.
Legal Professionals
Revenues increased 8% to $745 million and included a positive impact from acquisitions. Organic revenue growth was 7%.
-- Recurring revenues increased 9% (97% of total, 8% organic). Organic
growth was primarily driven by Westlaw, CoCounsel, Practical Law and the
segment's international businesses.
-- Transactions revenues decreased 11% (3% of total, all organic).
Adjusted EBITDA decreased 1% to $334 million.
-- The margin decreased to 44.9% from 49.1% primarily driven by higher
investments.
Corporates
Revenues increased 12% to $437 million, including the acquisition impact of Pagero. Organic revenue growth was 10%.
-- Recurring revenues increased 12% (89% of total, 9% organic). Organic
growth was primarily driven by Practical Law, Direct and Indirect Tax,
Clear and the segment's international businesses.
-- Transactions revenues increased 12% (11% of total, 13% organic) driven
primarily by Trust, Direct Tax and segment's international businesses.
Adjusted EBITDA decreased 1% to $162 million.
-- The margin decreased to 36.8% from 41.9%, primarily driven by the Pagero
acquisition and higher investments.
Tax & Accounting Professionals
Revenues increased 11% to $221 million. Organic revenue growth was 10%.
-- Recurring revenues increased 10% (77% of total, all organic). Organic
growth was driven by the segment's Latin America business and UltraTax
products.
-- Transactions revenues increased 16% (23% of total, 13% organic)
primarily due to UltraTax, Confirmation and the segment's international
businesses.
Adjusted EBITDA decreased 7% to $59 million.
-- The margin decreased to 26.8% from 31.2%, primarily driven by higher
investments.
The Tax & Accounting Professionals segment is the company's most seasonal business with approximately 60% of full-year revenues typically generated in the first and fourth quarters. As a result, the margin performance of this segment has been generally higher in the first and fourth quarters as costs are typically incurred in a more linear fashion throughout the year.
Reuters News
Revenues of $199 million increased 10% (8% organic) which included a positive impact from acquisitions. Organic revenue growth was driven primarily by Generative AI related content licensing revenue that was largely transactional in nature and by a contractual price increase from our news agreement with the Data & Analytics business of LSEG.
Adjusted EBITDA increased 10% to $40 million driven by higher revenues.
Global Print
Revenues of $128 million decreased 6%, all organic, driven in part by the migration of customers from a Global Print product to Westlaw.
Adjusted EBITDA decreased 22% to $43 million.
-- The margin decreased to 33.1% from 39.6% primarily due to lower
revenues.
Corporate Costs
Corporate costs were $29 million compared to $26 million in the prior-year period.
Consolidated Financial Highlights - Nine Months Ended September 30
Nine Months Ended September 30,
(Millions of U.S. dollars, except for adjusted EBITDA margin and EPS)
(unaudited)
IFRS Financial Measures
(1) 2024 2023 Change Change at
Constant
Currency
--- ---
Revenues $5,349 $4,979 7 %
Operating profit $1,387 $1,774 -22 %
Diluted EPS $3.59 $4.31 -17 %
Net cash provided by operating activities $1,893 $1,636 16 %
Non-IFRS Financial Measures
(1)
---
Revenues $5,349 $4,979 7 % 8 %
Adjusted EBITDA $2,061 $1,971 5 % 5 %
Adjusted EBITDA margin 38.5 % 39.5 % -100bp -120bp
Adjusted EPS $2.76 $2.53 9 % 9 %
Free cash flow $1,403 $1,258 12 %
(1)
In addition to results reported in accordance with IFRS, the company uses certain non-IFRS financial measures as supplemental
indicators of its operating performance and financial position. See the "Non-IFRS Financial Measures" section and the tables appended
to this news release for additional information on these and other non-IFRS financial measures, including how they are defined and
reconciled to the most directly comparable IFRS measures.
Revenues increased 7%, driven by growth in recurring and transactions revenues. Foreign currency had a slightly negative impact on revenue growth.
-- Organic revenues increased 8%, driven by 8% growth in recurring revenues
(80% of total revenues) and 14% growth in transactions revenues. Global
Print revenues decreased 8% organically.
-- The company's "Big 3" segments reported organic revenue growth of 9% and
collectively comprised 82% of total revenues.
Operating profit decreased 22%, primarily because the 2023 period included a gain on the sale of a majority stake in the company's Elite business.
-- Adjusted EBITDA, which excludes the gain on sale of Elite, as well as
other items, increased 5% as higher revenues more than offset growth
investments and the impact of acquisitions. The related margin decreased
to 38.5% from 39.5% in the prior-year period. Foreign currency had a 20
basis points positive impact on the year-over-year change in adjusted
EBITDA margin.
Diluted EPS decreased to $3.59 compared to $4.31 in the prior-year period. The current period reflected lower operating profit and included a $468 million non-cash tax benefit related to tax legislation enacted in Canada. The prior-year period included a significant increase in the value of the company's investment in LSEG. In 2024, diluted EPS also benefited from a reduction in weighted-average common shares outstanding due to share repurchases and the company's June 2023 return of capital transaction.
-- Adjusted EPS, which excludes the gain on sale of Elite, the changes in
value of the company's LSEG investment, the non-cash tax benefit, as
well as other adjustments, increased to $2.76 per share from $2.53 per
share in the prior-year period, primarily due to higher adjusted EBITDA.
In 2024, adjusted EPS also benefited from a reduction in
weighted-average common shares.
Net cash provided by operating activities increased by $257 million due to the cash benefits from higher revenues that more than offset investment spending. The prior-year period also included $80 million of payments associated with the company's Change Program, which was completed at the end of 2022.
-- Free cash flow increased $145 million as higher cash flows from
operating activities more than offset higher capital expenditures and
lower cash flows from other investing activities.
Highlights by Customer Segment - Nine Months Ended September 30
(Millions of U.S. dollars, except for adjusted EBITDA margins)
(unaudited)
Nine Months Ended
September 30,
Change
2024 2023 Total Constant Organic
(1)(2)
Currency
(1)
Revenues
---
Legal Professionals $2,193 $2,107 4 % 4 % 7 %
Corporates 1,386 1,218 14 % 14 % 10 %
Tax & Accounting Professionals 799 714 12 % 14 % 12 %
"Big 3" Segments Combined(1) 4,378 4,039 8 % 9 % 9 %
Reuters News 614 549 12 % 12 % 9 %
Global Print 375 408 -8 % -8 % -8 %
Eliminations/Rounding (18) (17)
Revenues $5,349 $4,979 7 % 8 % 8 %
Adjusted EBITDA(
1)
---
Legal Professionals $1,003 $1,001 0 % 0 %
Corporates 518 481 8 % 7 %
Tax & Accounting Professionals 331 302 10 % 11 %
"Big 3" Segments Combined(1) 1,852 1,784 4 % 4 %
Reuters News 151 111 37 % 39 %
Global Print 133 158 -16 % -16 %
Corporate costs (75) (82) n/a
n/a
Adjusted EBITDA $2,061 $1,971 5 % 5 %
Adjusted EBITDA Margin(
1)
---
Legal Professionals 45.7 % 47.5 % -180bp -180bp
Corporates 37.2 % 39.4 % -220bp -230bp
Tax & Accounting Professionals 41.5 % 41.6 % -10bp -20bp
"Big 3" Segments Combined(1) 42.3 % 44.0 % -170bp -180bp
Reuters News 24.6 % 20.1 % 450bp 460bp
Global Print 35.5 % 38.6 % -310bp -330bp
Adjusted EBITDA margin 38.5 % 39.5 % -100bp -120bp
(1)
See the "Non-IFRS Financial Measures" section and the tables appended to this news release for additional information on these and
other non-IFRS financial measures.
To compute segment and consolidated adjusted EBITDA margin, the company excludes fair value
adjustments related to acquired
deferred revenue.
(2)
Computed for revenue growth only.
n/a: not applicable
2024 Outlook
The company raised its 2024 outlook for organic revenue growth to reflect strong year-to-date performance. All other measures in the outlook were maintained.
The company's outlook for 2024 in the table below assumes constant currency rates and excludes the impact of any future acquisitions or dispositions that may occur during the remainder of the year. Thomson Reuters believes that this type of guidance provides useful insight into the anticipated performance of its businesses.
The company expects its fourth-quarter 2024 organic revenue growth to be approximately 5% and its adjusted EBITDA margin to be approximately 37%.
The company continues to operate in an uncertain macroeconomic environment, reflecting ongoing geopolitical risk, uneven economic growth and an evolving interest rate and inflationary backdrop. Any worsening of the global economic or business environment, among other factors, could impact the company's ability to achieve its outlook.
Reported Full-Year 2023 Results and Full-Year 2024 Outlook
Total Thomson Reuters FY 2023 FY 2024 FY 2024 FY 2024 FY
2024
Reported Outlook Outlook Outlook Outlook
2/8/2024 5/2/2024 8/1/2024 11/5/2024
Total Revenue Growth 3 % ~ 6.5% 6.5% - 7.0% ~ 7.0% Unchanged
Organic Revenue Growth(1) 6 % ~ 6% 6.0% - 6.5% ~ 6.5% ~7.0%
Adjusted EBITDA Margin(1) 39.3 % ~ 38% Unchanged Unchanged Unchanged
Corporate Costs
$115 million
$120 - $130 million Unchanged Unchanged Unchanged
Free Cash Flow(1)
$1.9 billion ~ $1.8 billion Unchanged Unchanged Unchanged
Accrued Capex as % of Revenues(1) 7.8 % ~ 8.5% Unchanged Unchanged Unchanged
Depreciation & Amortization of Computer Software
$628 million
$730 - $750 million Unchanged Unchanged Unchanged
Depreciation & Amortization of Internally
$556 million $595 - $615 million Unchanged $580 - $600 million Unchanged
Developed Software
$72 million ~ $135 million Unchanged ~ $150 million Unchanged
Amortization of Acquired Software
Interest Expense (P&L)(2)
$164 million(2)
$150 - $170 million Unchanged
$125 - $145 Unchanged
million
Effective Tax Rate on Adjusted Earnings(1) 16.5 % ~ 18% Unchanged Unchanged Unchanged
"Big 3" Segments(1) FY 2023 FY 2024 FY 2024 FY 2024 FY
2024
Reported Outlook Outlook Outlook Outlook
2/8/2024 5/2/2024 8/1/2024 11/5/2024
Total Revenue Growth 3 % ~ 8% 8.0% - 8.5% ~ 8.5% Unchanged
Organic Revenue Growth 7 % ~ 7.5% 7.5% - 8.0% ~ 8.0% ~8.5%
Adjusted EBITDA Margin 43.8 % ~ 43% Unchanged Unchanged Unchanged
(1) Non-IFRS financial measures. See the "Non-IFRS Financial Measures" section below as well as the tables and footnotes appended
to this news release for more information.
(2) Full-year 2023 interest expense excludes a $12 million benefit associated with the release of a tax reserve that is removed
from adjusted earnings.
The information in this section is forward-looking. Actual results, which will include the impact of currency and future acquisitions and dispositions completed during 2024 may differ materially from the company's 2024 outlook. The information in this section should also be read in conjunction with the section below entitled "Special Note Regarding Forward-Looking Statements, Material Risks and Material Assumptions."
Dividends and common shares outstanding
A quarterly dividend of $0.54 per share is payable on December 10, 2024 to common shareholders of record as of November 21, 2024.
As of October 31, 2024, Thomson Reuters had approximately 449.9 million common shares outstanding.
Acquisitions
In August 2024, the company acquired Safe Sign Technologies, a U.K-based startup that is developing legal-specific large language models (LLMs).
In October 2024, the company acquired Materia, a US-based startup that has developed an agentic AI assistant for the tax, audit and accounting profession.
Sale agreement
In October 2024, the company announced the signing of a definitive agreement to sell its FindLaw business. FindLaw operates an online legal directory and provides website creation and hosting services, law firm marketing solutions, and peer rating services. The sale is expected to close in the fourth quarter of 2024 contingent on receiving regulatory approvals and satisfaction of other customary closing conditions.
Thomson Reuters
Thomson Reuters (NYSE / TSX: TRI) informs the way forward by bringing together the trusted content and technology that people and organizations need to make the right decisions. The company serves professionals across legal, tax, accounting, compliance, government, and media. Its products combine highly specialized software and insights to empower professionals with the data, intelligence, and solutions needed to make informed decisions, and to help institutions in their pursuit of justice, truth and transparency. Reuters, part of Thomson Reuters, is a world leading provider of trusted journalism and news. For more information, visit tr.com.
NON-IFRS FINANCIAL MEASURES
Thomson Reuters prepares its financial statements in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB).
This news release includes certain non-IFRS financial measures, which include ratios that incorporate one or more non-IFRS financial measures, such as adjusted EBITDA (other than at the customer segment level) and the related margin, free cash flow, adjusted earnings and the effective tax rate on adjusted earnings, adjusted EPS, accrued capital expenditures expressed as a percentage of revenues, selected measures excluding the impact of foreign currency, changes in revenues computed on an organic basis as well as all financial measures for the "Big 3" segments.
Thomson Reuters uses these non-IFRS financial measures as supplemental indicators of its operating performance and financial position as well as for internal planning purposes and the company's business outlook. Additionally, Thomson Reuters uses non-IFRS measures as the basis for management incentive programs. These measures do not have any standardized meanings prescribed by IFRS and therefore are unlikely to be comparable to the calculation of similar measures used by other companies and should not be viewed as alternatives to measures of financial performance calculated in accordance with IFRS. Non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in the appended tables.
The company's outlook contains various non-IFRS financial measures. The company believes that providing reconciliations of forward-looking non-IFRS financial measures in its outlook would be potentially misleading and not practical due to the difficulty of projecting items that are not reflective of ongoing operations in any future period. The magnitude of these items may be significant. Consequently, for outlook purposes only, the company is unable to reconcile these non-IFRS measures to the most directly comparable IFRS measures because it cannot predict, with reasonable certainty, the impacts of changes in foreign exchange rates which impact (i) the translation of its results reported at average foreign currency rates for the year, and (ii) other finance income or expense related to intercompany financing arrangements. Additionally, the company cannot reasonably predict the occurrence or amount of other operating gains and losses that generally arise from business transactions that the company does not currently anticipate.
ROUNDING
Other than EPS, the company reports its results in millions of U.S. dollars, but computes percentage changes and margins using whole dollars to be more precise. As a result, percentages and margins calculated from reported amounts may differ from those presented, and growth components may not total due to rounding.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS, MATERIAL RISKS AND MATERIAL ASSUMPTIONS
Certain statements in this news release, including, but not limited to, statements in Mr. Hasker's comments, the "2024 Outlook" section, and statements relating to the sale of the company's FindLaw business, are forward-looking. The words "will", "expect", "believe", "target", "estimate", "could", "should", "intend", "predict", "project" and similar expressions identify forward-looking statements. While the company believes that it has a reasonable basis for making forward-looking statements in this news release, they are not a guarantee of future performance or outcomes and there is no assurance that any of the other events described in any forward-looking statement will materialize. Forward-looking statements are subject to a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from current expectations. Many of these risks, uncertainties and assumptions are beyond the company's control and the effects of them can be difficult to predict.
Some of the material risk factors that could cause actual results or events to differ materially from those expressed in or implied by forward-looking statements in this news release include, but are not limited to, those discussed on pages 19-35 in the "Risk Factors" section of the company's 2023 annual report. These and other risk factors are discussed in materials that Thomson Reuters from time-to-time files with, or furnishes to, the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission (SEC). Thomson Reuters annual and quarterly reports are also available in the "Investor Relations" section of tr.com.
The company's business outlook is based on information currently available to the company and is based on various external and internal assumptions made by the company in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that the company believes are appropriate under the circumstances. Material assumptions and material risks may cause actual performance to differ from the company's expectations underlying its business outlook. In particular, the global economy has experienced substantial disruption due to concerns regarding economic effects associated with the macroeconomic backdrop and ongoing geopolitical risks. The company's business outlook assumes that uncertain macroeconomic and geopolitical conditions will continue to disrupt the economy and cause periods of volatility, however, these conditions may last substantially longer than expected and any worsening of the global economic or business environment could impact the company's ability to achieve its outlook and affect its results and other expectations. For a discussion of material assumptions and material risks related to the company's 2024 outlook see page 19 of the company's second-quarter management's discussion and analysis (MD&A) for the period ended June 30, 2024. The company's quarterly MD&A and annual report was filed with, or furnished to, the Canadian securities regulatory authorities and the U.S. SEC and are also available in the "Investor Relations" section of tr.com.
The company has provided an outlook for the purpose of presenting information about current expectations for the period presented. This information may not be appropriate for other purposes. You are cautioned not to place undue reliance on forward-looking statements which reflect expectations only as of the date of this news release.
Except as may be required by applicable law, Thomson Reuters disclaims any obligation to update or revise any forward-looking statements.
CONTACTS
MEDIA
INVESTORS
Gehna Singh Kareckas Gary Bisbee, CFA
Senior Director, Corporate Affairs Head of Investor
Relations
+1 613 979 4272 +1 646 540 3249
gehna.singhkareckas@tr.com gary.bisbee
@tr.com
---
Thomson Reuters will webcast a discussion of its third-quarter 2024 results and its 2024 business outlook today beginning at 8:30 a.m. Eastern Standard Time (EST). You can access the webcast by visiting ir.tr.com. An archive of the webcast will be available following the presentation.
Thomson Reuters Corporation
Consolidated Income Statement
(millions of U.S. dollars, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
---
CONTINUING OPERATIONS
Revenues $1,724 $1,594 $5,349 $4,979
Operating expenses (1,117) (958) (3,288) (3,022)
Depreciation (30) (28) (87) (87)
Amortization of computer software (151) (132) (458) (377)
Amortization of other identifiable intangible assets (21) (24) (69) (72)
Other operating gains (losses), net 10 (11) (60) 353
Operating profit 415 441 1,387 1,774
Finance costs, net:
Net interest expense (21) (32) (97) (121)
Other finance (costs) income (32) 117 (8) (75)
Income before tax and equity method investments 362 526 1,282 1,578
Share of post-tax (losses) earnings in equity method (8) (174) 45 815
investments
Tax (expense) benefit (77) 18 258 (397)
Earnings from continuing operations 277 370 1,585 1,996
Earnings (loss) from discontinued operations, net of tax 24 (3) 35 21
Net earnings $301 $367 $1,620 $2,017
Earnings (loss) attributable to:
Common shareholders $301 $367 $1,623 $2,017
Non-controlling interests - (3)
Earnings per share:
Basic earnings (loss) per share:
From continuing operations $0.61 $0.81 $3.51 $4.27
From discontinued operations 0.06 (0.01) 0.08 0.05
Basic earnings per share $0.67 $0.80 $3.59 $4.32
Diluted earnings (loss) per share:
From continuing operations $0.61 $0.81 $3.51 $4.27
From discontinued operations 0.06 (0.01) 0.08 0.04
Diluted earnings per share $0.67 $0.80 $3.59 $4.31
Basic weighted-average common shares 449,886,792 455,458,515 450,788,536 466,078,377
Diluted weighted-average common shares 450,458,885 456,062,363 451,424,716 466,838,142
Thomson Reuters Corporation
Consolidated Statement of Financial Position
(millions of U.S. dollars)
(unaudited)
September 30, December 31,
2024 2023
Assets
Cash and cash equivalents $1,731 $1,298
Trade and other receivables 1,011 1,122
Other financial assets 54 66
Prepaid expenses and other current assets 394 435
Current assets excluding assets held for sale 3,190 2,921
Assets held for sale 168
Current assets 3,358 2,921
Property and equipment, net 430 447
Computer software, net 1,430 1,236
Other identifiable intangible assets, net 3,165 3,165
Goodwill 7,342 6,719
Equity method investments 277 2,030
Other financial assets 380 444
Other non-current assets 623 618
Deferred tax 1,426 1,104
Total assets $18,431 $18,684
Liabilities and equity
Liabilities
Current indebtedness $1,036 $372
Payables, accruals and provisions 1,063 1,114
Current tax liabilities 296 248
Deferred revenue 1,044 992
Other financial liabilities 100 507
Current liabilities excluding liabilities associated with assets held for sale 3,539 3,233
Liabilities associated with assets held for sale 22
Current liabilities 3,561 3,233
Long-term indebtedness 1,847 2,905
Provisions and other non-current liabilities 670 692
Other financial liabilities 243 237
Deferred tax 237 553
Total liabilities 6,558 7,620
Equity
Capital 3,462 3,405
Retained earnings 9,370 8,680
Accumulated other comprehensive loss (959) (1,021)
Total equity 11,873 11,064
Total liabilities and equity $18,431 $18,684
Thomson Reuters Corporation
Consolidated Statement of Cash Flow
(millions of U.S. dollars)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
---
Cash provided by (used in):
Operating activities
Earnings from continuing operations $277 $370 $1,585 $1,996
Adjustments for:
Depreciation 30 28 87 87
Amortization of computer software 151 132 458 377
Amortization of other identifiable intangible assets 21 24 69 72
Share of post-tax losses (earnings) in equity method investments 8 174 (45) (815)
Net (gains) losses on disposals of businesses and investments (1) 6 3 (341)
Deferred tax 8 (251) (687) (369)
Other 56 (89) 173 188
Changes in working capital and other items 206 257 252 417
Operating cash flows from continuing operations 756 651 1,895 1,612
Operating cash flows from discontinued operations - 23 (2) 24
Net cash provided by operating activities 756 674 1,893 1,636
Investing activities
Acquisitions, net of cash acquired (25) (678) (492) (1,201)
Proceeds related to disposals of businesses and investments 33 29 418
Proceeds from sales of LSEG shares - 1,517 1,854 5,393
Capital expenditures (149) (145) (446) (412)
Other investing activities - 14 6 82
Taxes paid on sales of LSEG shares and disposals of businesses (65) (273) (202) (543)
Investing cash flows from continuing operations (206) 435 749 3,737
Investing cash flows from discontinued operations - (1)
Net cash (used in) provided by investing activities (206) 435 749 3,736
Financing activities
Repayments of debt (242) (290)
Net repayments under short-term loan facilities - (1,214) (139) (443)
Payments of lease principal (15) (13) (46) (44)
Payments for return of capital on common shares - (2,045)
Repurchases of common shares - (639) (718)
Dividends paid on preference shares (1) (1) (4) (4)
Dividends paid on common shares (236) (218) (708) (672)
Purchase of non-controlling interests - (384)
Other financing activities 2 (3) 3 2
Net cash used in financing activities (492) (1,449) (2,207) (3,924)
Translation adjustments 3 (2) (2) (1)
Increase (decrease) in cash and cash equivalents 61 (342) 433 1,447
Cash and cash equivalents at beginning of period 1,670 2,858 1,298 1,069
Cash and cash equivalents at end of period $1,731 $2,516 $1,731 $2,516
Thomson Reuters Corporation
Reconciliation of Earnings from Continuing Operations to Adjusted EBITDA(1)
(millions of U.S. dollars, except for margins)
(unaudited)
Three Months Ended Nine Months Ended Year Ended
September 30, September 30, December 31,
2024 2023 2024 2023 2023
---
Earnings from continuing operations $277 $370 $1,585 $1,996 $2,646
Adjustments to remove:
Tax expense (benefit) 77 (18) (258) 397 417
Other finance costs (income) 32 (117) 8 75 192
Net interest expense 21 32 97 121 152
Amortization of other identifiable intangible assets 21 24 69 72 97
Amortization of computer software 151 132 458 377 512
Depreciation 30 28 87 87 116
EBITDA $609 $451 $2,046 $3,125 $4,132
Adjustments to remove:
Share of post-tax losses (earnings) in equity method 8 174 (45) (815) (1,075)
investments
Other operating (gains) losses, net (10) 11 60 (353) (397)
Fair value adjustments* 2 (4) 14 18
Adjusted EBITDA(1) $609 $632 $2,061 $1,971 $2,678
Adjusted EBITDA margin(1) 35.3 % 39.6 % 38.5 % 39.5 % 39.3 %
*
Fair value adjustments primarily represent gains or losses on intercompany balances that arise in the ordinary course of business due to changes in foreign currency exchange rates, which are a component of operating expenses, as well as adjustments related to acquired deferred revenue.
Thomson Reuters Corporation
Reconciliation of Net Cash Provided By Operating Activities to Free Cash Flow(1)
(millions of U.S. dollars)
(unaudited)
Three Months Ended Nine Months Ended Year Ended
September 30, September 30, December 31,
2024 2023 2024 2023 2023
---
Net cash provided by operating activities $756 $674 $1,893 $1,636 $2,341
Capital expenditures (149) (145) (446) (412) (544)
Other investing activities - 14 6 82 137
Payments of lease principal (15) (13) (46) (44) (58)
Dividends paid on preference shares (1) (1) (4) (4) (5)
Free cash flow(1) $591 $529 $1,403 $1,258 $1,871
Thomson Reuters Corporation
Reconciliation of Capital Expenditures to Accrued Capital Expenditures
(1)
(millions of U.S. dollars)
(unaudited)
Year Ended
December 31,
2023
Capital expenditures $544
Remove: IFRS adjustment to cash basis (12)
Accrued capital expenditures (1) $532
Accrued capital expenditures as a percentage of revenues(1) 7.8 %
(1) Refer to page 22 for additional information on non-IFRS
financial measures.
Thomson Reuters Corporation
Reconciliation of Net Earnings to
Adjusted Earnings(1)
Reconciliation of Total Change in Adjusted EPS to Change in Constant Currency(1)
(millions of U.S. dollars, except for share and per share data)
(unaudited)
Three Months Ended Nine Months Ended Year Ended
September 30, September 30,
December 31,
2024 2023 2024 2023 2023
---
Net earnings $301 $367 $1,620 $2,017 $2,695
Adjustments to remove:
Fair value adjustments* 2 (4) 14 18
Amortization of acquired computer software 34 21 109 48 72
Amortization of other identifiable intangible assets 21 24 69 72 97
Other operating (gains) losses, net (10) 11 60 (353) (397)
Interest benefit impacting comparability(2) - (12) (12) (12)
Other finance costs (income) 32 (117) 8 75 192
Share of post-tax losses (earnings) in equity method 8 174 (45) (815) (1,075)
investments
Tax on above items(1) (5) (31) (45) 227 265
Tax items impacting comparability(1) (2) (2) (62) (483) (64) (172)
(Earnings) loss from discontinued operations, net of tax (24) 3 (35) (21) (49)
Interim period effective tax rate normalization(1) 3 2 (7) (1)
Dividends declared on preference shares (1) (1) (4) (4) (5)
Adjusted earnings(1)
(3) $359 $375 $1,247 $1,183 $1,629
Adjusted EPS(1)
(3) $0.80 $0.82 $2.76 $2.53
Total change -2 % 9 %
Foreign currency 0 % 0 %
Constant currency -2 % 9 %
Diluted weighted-average common shares (millions) 450.5 456.1 451.4 466.8
Reconciliation of Effective Tax Rate on Adjusted Earnings(1) Year-ended
December 31,
2023
Adjusted earnings $1,629
Plus: Dividends declared on preference shares 5
Plus: Tax expense on adjusted earnings 324
Pre-tax adjusted earnings $1,958
IFRS Tax expense $417
Remove tax related to:
Amortization of acquired computer software 17
Amortization of other identifiable intangible assets 22
Share of post-tax earnings in equity method investments (253)
Other finance costs 31
Other operating gains, net (81)
Other items (1)
Subtotal - Remove tax expense on pre-tax items removed from adjusted earnings (265)
Remove: Tax items impacting comparability 172
Total - Remove all items impacting comparability (93)
Tax expense on adjusted earnings $324
Effective tax rate on adjusted earnings 16.5 %
*Fair value adjustments
primarily represent gains or losses on intercompany balances that arise in the ordinary course of business due to changes in foreign currency exchange rates, which are a component of operating expenses, as well as adjustments related to acquired deferred revenue.
(1)
Refer to page 22 for additional information on non-IFRS financial measures.
(2) All periods of 2023 included the release of tax and interest reserves due to the expiration of statutes of limitation.
(3) The adjusted earnings impact of non-controlling interests, which was applicable only to the nine months ended September 30,
2024, was not material.
Thomson Reuters Corporation
Reconciliation of Changes in Revenues to Changes in Revenues on a Constant Currency(1) and Organic Basis
(1)
(millions of U.S. dollars)
(unaudited)
Three Months Ended
September 30,
Change
2024 2023 Total SUBTOTAL Net
Constant
Foreign Currency Acquisitions/
Currency (Divestitures)
Organic
Total Revenues
---
Legal Professionals $745 $688 8 % 0 % 8 % 1 % 7 %
Corporates 437 391 12 % 0 % 12 % 2 % 10 %
Tax & Accounting Professionals 221 203 9 % -2 % 11 % 1 % 10 %
"Big 3" Segments Combined(1) 1,403 1,282 9 % 0 % 10 % 1 % 9 %
Reuters News 199 180 10 % 0 % 10 % 2 % 8 %
Global Print 128 137 -7 % 0 % -6 % 0 % -6 %
Eliminations/Rounding (6) (5)
Revenues $1,724 $1,594 8 % 0 % 9 % 1 % 7 %
Recurring Revenues
---
Legal Professionals $721 $661 9 % 0 % 9 % 1 % 8 %
Corporates 390 349 12 % 0 % 12 % 3 % 9 %
Tax & Accounting Professionals 170 160 7 % -3 % 10 % 0 % 10 %
"Big 3" Segments Combined(1) 1,281 1,170 10 % 0 % 10 % 1 % 9 %
Reuters News 167 158 6 % 0 % 6 % 2 % 4 %
Eliminations/Rounding (6) (5)
Total Recurring Revenues $1,442 $1,323 9 % 0 % 10 % 1 % 8 %
Transactions Revenues
---
Legal Professionals $24 $27 -12 % -2 % -11 % 0 % -11 %
Corporates 47 42 12 % 0 % 12 % -1 % 13 %
Tax & Accounting Professionals 51 43 16 % -1 % 16 % 3 % 13 %
"Big 3" Segments Combined(1) 122 112 8 % -1 % 8 % 1 % 8 %
Reuters News 32 22 45 % 3 % 41 % 7 % 35 %
Total Transactions Revenues $154 $134 14 % 0 % 14 % 2 % 12 %
Growth percentages are computed using whole dollars. As a result, percentages calculated from reported amounts may differ from those presented, and growth components may not total due to rounding.
(1)
Refer to page 22 for additional information on non-IFRS financial measures.
Thomson Reuters Corporation
Reconciliation of Changes in Revenues to Changes in Revenues on a Constant Currency(1) and Organic Basis
(1)
(millions of U.S. dollars)
(unaudited)
Nine Months Ended
September 30,
Change
2024 2023 Total SUBTOTAL Net
Constant
Foreign Currency Acquisitions/
Currency (Divestitures)
Organic
Total Revenues
---
Legal Professionals $2,193 $2,107 4 % 0 % 4 % -3 % 7 %
Corporates 1,386 1,218 14 % 0 % 14 % 4 % 10 %
Tax & Accounting Professionals 799 714 12 % -2 % 14 % 2 % 12 %
"Big 3" Segments Combined(1) 4,378 4,039 8 % 0 % 9 % 0 % 9 %
Reuters News 614 549 12 % -1 % 12 % 3 % 9 %
Global Print 375 408 -8 % 0 % -8 % 0 % -8 %
Eliminations/Rounding (18) (17)
Revenues $5,349 $4,979 7 % 0 % 8 % 0 % 8 %
Recurring Revenues
---
Legal Professionals $2,121 $2,000 6 % 0 % 6 % -2 % 8 %
Corporates 1,142 1,015 12 % 0 % 12 % 3 % 10 %
Tax & Accounting Professionals 548 503 9 % -2 % 11 % 0 % 11 %
"Big 3" Segments Combined(1) 3,811 3,518 8 % 0 % 9 % 0 % 9 %
Reuters News 495 468 6 % -1 % 6 % 2 % 4 %
Eliminations/Rounding (18) (17)
Total Recurring Revenues $4,288 $3,969 8 % 0 % 8 % 0 % 8 %
Transactions Revenues
---
Legal Professionals $72 $107 -33 % -2 % -32 % -30 % -1 %
Corporates 244 203 21 % 0 % 21 % 10 % 11 %
Tax & Accounting Professionals 251 211 19 % -1 % 19 % 6 % 13 %
"Big 3" Segments Combined(1) 567 521 9 % -1 % 9 % -1 % 10 %
Reuters News 119 81 47 % 0 % 47 % 7 % 39 %
Total Transactions Revenues $686 $602 14 % -1 % 14 % 0 % 14 %
Year Ended
December 31,
Change
2023 2022 Total SUBTOTAL Net
Constant
Foreign Currency Acquisitions/
Currency (Divestitures)
Organic
Total Revenues
---
Legal Professionals $2,807 $2,803 0 % 0 % 0 % -6 % 6 %
Corporates 1,620 1,536 5 % 0 % 5 % -2 % 7 %
Tax & Accounting Professionals 1,058 986 7 % -2 % 9 % -1 % 10 %
"Big 3" Segments Combined(1) 5,485 5,325 3 % 0 % 4 % -4 % 7 %
Reuters News 769 733 5 % 0 % 5 % 1 % 4 %
Global Print 562 592 -5 % -1 % -4 % -1 % -3 %
Eliminations/Rounding (22) (23)
Revenues $6,794 $6,627 3 % 0 % 3 % -3 % 6 %
Growth percentages are computed using whole dollars. As a result, percentages calculated from reported amounts may differ from those presented, and growth components may not total due to rounding.
(1)
Refer to page 22 for additional information on non-IFRS financial measures.
Thomson Reuters Corporation
Reconciliation of Changes in Adjusted EBITDA(1) and Related Margin(1) to Changes on a Constant Currency Basis(1)
(millions of U.S. dollars, except for margins)
(unaudited)
Three Months Ended
September 30,
Change
2024 2023 Total Foreign Constant
Currency Currency
Adjusted EBITDA
(1)
---
Legal Professionals $334 $338 -1 % 0 % -1 %
Corporates 162 164 -1 % 0 % -2 %
Tax & Accounting Professionals 59 64 -7 % -3 % -5 %
"Big 3" Segments Combined(1) 555 566 -2 % 0 % -2 %
Reuters News 40 37 10 % -4 % 14 %
Global Print 43 55 -22 % 0 % -21 %
Corporate costs (29) (26) n/a n/a n/a
Adjusted EBITDA $609 $632 -4 % 0 % -4 %
Adjusted EBITDA Margin
(1)
---
Legal Professionals 44.9 % 49.1 % -420bp 10bp -430bp
Corporates 36.8 % 41.9 % -510bp 10bp -520bp
Tax & Accounting Professionals 26.8 % 31.2 % -440bp -10bp -430bp
"Big 3" Segments Combined(1) 39.5 % 44.0 % -450bp 10bp -460bp
Reuters News 20.4 % 20.4 % 0bp -70bp 70bp
Global Print 33.1 % 39.6 % -650bp -10bp -640bp
Adjusted EBITDA margin 35.3 % 39.6 % -430bp 20bp -450bp
Thomson Reuters Corporation
Reconciliation of Changes in Adjusted EBITDA(1) and Related Margin(1) to Changes on a Constant Currency Basis(1)
(millions of U.S. dollars, except for margins)
(unaudited)
Nine Months Ended
September 30,
Change
2024 2023 Total Foreign Constant
Currency Currency
Adjusted EBITDA
(1)
---
Legal Professionals $1,003 $1,001 0 % 0 % 0 %
Corporates 518 481 8 % 0 % 7 %
Tax & Accounting Professionals 331 302 10 % -2 % 11 %
"Big 3" Segments Combined(1) 1,852 1,784 4 % 0 % 4 %
Reuters News 151 111 37 % -2 % 39 %
Global Print 133 158 -16 % 0 % -16 %
Corporate costs (75) (82) n/a n/a n/a
Adjusted EBITDA $2,061 $1,971 5 % 0 % 5 %
Adjusted EBITDA Margin
(1)
---
Legal Professionals 45.7 % 47.5 % -180bp 0bp -180bp
Corporates 37.2 % 39.4 % -220bp 10bp -230bp
Tax & Accounting Professionals 41.5 % 41.6 % -10bp 10bp -20bp
"Big 3" Segments Combined(1) 42.3 % 44.0 % -170bp 10bp -180bp
Reuters News 24.6 % 20.1 % 450bp -10bp 460bp
Global Print 35.5 % 38.6 % -310bp 20bp -330bp
Adjusted EBITDA margin 38.5 % 39.5 % -100bp 20bp -120bp
n/a: not applicable
Growth percentages and margins are computed using whole dollars. As a result, percentages and margins calculated from reported amounts may differ from those presented, and growth components may not total due to rounding.
(1)
Refer to page 22 for additional information on non-IFRS financial measures.
Reconciliation of adjusted EBITDA margin((1)
)To compute segment and consolidated adjusted EBITDA margin, the company excludes fair value adjustments related to acquired deferred revenue from its IFRS revenues. The chart below reconciles IFRS revenues to revenues used in the calculation of adjusted EBITDA margin, which excludes fair value adjustments related to acquired deferred revenue.
Three months ended September 30, 2024
IFRS revenues Remove fair
value Revenues excluding Adjusted EBITDA Adjusted EBITDA
adjustments to fair value Margin
acquired
deferred adjustments to
revenue acquired deferred
revenue
Legal Professionals $745 $745 $334 44.9 %
Corporates 437 $2 439 162 36.8 %
Tax & Accounting Professionals 221 221 59 26.8 %
"Big 3" Segments Combined 1,403 2 1,405 555 39.5 %
Reuters News 199 199 40 20.4 %
Global Print 128 128 43 33.1 %
Eliminations/ Rounding (6) (6)
n/a
Corporate costs - (29)
n/a
Consolidated totals $1,724 $2 $1,726 $609 35.3 %
Nine months ended September 30, 2024
IFRS revenues Remove fair
value Revenues excluding Adjusted EBITDA Adjusted EBITDA
adjustments to fair value Margin
acquired
deferred adjustments to
revenue acquired deferred
revenue
Legal Professionals $2,193 $1 $2,194 $1,003 45.7 %
Corporates 1,386 6 1,392 518 37.2 %
Tax & Accounting Professionals 799 799 331 41.5 %
"Big 3" Segments Combined 4,378 7 4,385 1,852 42.3 %
Reuters News 614 1 615 151 24.6 %
Global Print 375 375 133 35.5 %
Eliminations/ Rounding (18) (18)
n/a
Corporate costs - (75)
n/a
Consolidated totals $5,349 $8 $5,357 $2,061 38.5 %
Three months ended September 30, 2023
IFRS revenues Remove fair
value Revenues excluding Adjusted EBITDA Adjusted EBITDA
adjustments to fair value Margin
acquired
deferred adjustments to
revenue acquired deferred
revenue
Legal Professionals $688 $1 $689 $338 49.1 %
Corporates 391 391 164 41.9 %
Tax & Accounting Professionals 203 1 204 64 31.2 %
"Big 3" Segments Combined 1,282 2 1,284 566 44.0 %
Reuters News 180 180 37 20.4 %
Global Print 137 137 55 39.6 %
Eliminations/ Rounding (5) (5)
n/a
Corporate costs - (26)
n/a
Consolidated totals $1,594 $2 $1,596 $632 39.6 %
n/a: not applicable
Margins are computed using whole dollars, as a result, margins calculated from reported amounts may differ from those presented due to rounding.
(1)
Refer to page 22 for additional information on non-IFRS financial measures.
Reconciliation of adjusted EBITDA margin(1)
Nine months ended September 30, 2023
IFRS revenues Remove fair
value Revenues excluding Adjusted EBITDA Adjusted EBITDA
adjustments to fair value Margin
acquired
deferred adjustments to
revenue acquired deferred
revenue
Legal Professionals $2,107 $1 $2,108 $1,001 47.5 %
Corporates 1,218 3 1,221 481 39.4 %
Tax & Accounting Professionals 714 11 725 302 41.6 %
"Big 3" Segments Combined 4,039 15 4,054 1,784 44.0 %
Reuters News 549 549 111 20.1 %
Global Print 408 408 158 38.6 %
Eliminations/ Rounding (17) (17)
n/a
Corporate costs - (82)
n/a
Consolidated totals $4,979 $15 $4,994 $1,971 39.5 %
Thomson Reuters Corporation
"Big 3" Segments and Consolidated Adjusted EBITDA(1) and the Related Margins(1)
(millions of U.S. dollars, except for margins)
(unaudited)
Year Ended
December 31,
2023
2023
Adjusted EBITDA
(1)
---
Legal Professionals $1,299
Corporates 619
Tax & Accounting Professionals 490
"Big 3" Segments Combined(1) 2,408
Reuters News 172
Global Print 213
Corporate costs (115)
Adjusted EBITDA $2,678
"Big 3" Segments Combined
(1)
---
Adjusted EBITDA $2,408
Revenues, excluding $15 million of fair value adjustments to acquired deferred revenue $5,500
Adjusted EBITDA margin 43.8 %
Consolidated
(1)
---
Adjusted EBITDA $2,678
Revenues, excluding $16 million of fair value adjustments to acquired deferred revenue $6,810
Adjusted EBITDA margin 39.3 %
n/a: not applicable
Margins are computed using whole dollars, as a result, margins calculated from reported amounts may differ from those presented due to rounding.
(1)
Refer to page 22 for additional information on non-IFRS financial measures.
Non-IFRS Financial
Definition Why Useful to the Company and Investors
Measures
Adjusted EBITDA Represents earnings or losses from continuing operations before tax Provides a consistent basis to evaluate operating
expense or profitability and
and the related benefit, net interest expense, other finance costs or income, performance trends by excluding items that the company
depreciation, does not
margin amortization of computer software and other identifiable intangible consider to be controllable activities for this
assets, purpose.
Thomson Reuters share of post-tax earnings or losses in equity
method
investments, other operating gains and losses, certain asset
impairment charges
and fair value adjustments, including those related to acquired
deferred revenue.
Also, represents a measure commonly reported and widely
used by
investors as a valuation metric, as well as to assess
the company's
ability to incur and service debt.
The related margin is adjusted EBITDA expressed as a percentage of
revenues. For
purposes of this calculation, revenues are before fair value
adjustments to
acquired deferred revenue.
Adjusted earnings Net earnings or loss including dividends declared on preference
shares but Provides a more comparable basis to analyze earnings.
and adjusted EPS excluding the post-tax impacts of fair value adjustments,
including those related
to acquired deferred revenue, amortization of acquired intangible
assets
(attributable to other identifiable intangible assets and acquired
computer
software), other operating gains and losses, certain asset These measures are commonly used by shareholders to
impairment charges, measure
other finance costs or income, Thomson Reuters share of post-tax
earnings or performance.
losses in equity method investments, discontinued operations and
other items
affecting comparability. Acquired intangible assets contribute to
the generation
of revenues from acquired companies, which are included in the
company's
computation of adjusted earnings.
The post-tax amount of each item is excluded from adjusted
earnings based on
the specific tax rules and tax rates associated with the nature and
jurisdiction of
each item.
Adjusted EPS is calculated from adjusted earnings using diluted
weighted-average
shares and does not represent actual earnings or loss per share
attributable to
shareholders.
Effective tax rate on Adjusted tax expense divided by pre-tax adjusted earnings. Provides a basis to analyze the effective tax rate
Adjusted tax expense associated with
adjusted earnings is computed as income tax (benefit) expense plus or minus the
income tax adjusted earnings.
impacts of all items impacting adjusted earnings (as described
above), and other
tax items impacting comparability.
In interim periods, the company also makes an adjustment to reflect
income
taxes based on the estimated full-year effective tax rate.
Earnings or losses for
interim periods under IFRS reflect income taxes based on the The company's effective tax rate computed in accordance
estimated effective with IFRS
tax rates of each of the jurisdictions in which Thomson Reuters may be more volatile by quarter because the
operates. The geographical mix of
non-IFRS adjustment reallocates estimated full-year income taxes pre-tax profits and losses in interim periods may be
between different from
interim periods but has no effect on full-year income taxes. that for the full year. Therefore, the company believes
that using
the expected full-year effective tax rate provides more
comparability among interim periods.
Free cash flow Net cash provided by operating activities and other investing Helps assess the company's ability, over the long term,
activities, less to create
capital expenditures, payments of lease principal and dividends value for its shareholders as it represents cash
paid on the available to repay
company's preference shares. debt, pay common dividends and fund share repurchases
and
acquisitions.
Changes before the The changes in revenues, adjusted EBITDA and the related margin, Provides better comparability of business trends from
and adjusted period to
impact of foreign EPS before currency (at constant currency or excluding the effects
of currency) period.
currency or at are determined by converting the current and equivalent prior
period's local
"constant currency" currency results using the same foreign currency exchange rate.
Changes in Represent changes in revenues of the company's existing businesses Provides further insight into the performance of the
at constant company's
revenues computed currency. The metric excludes the distortive impacts of existing businesses by excluding distortive impacts and
acquisitions and serves as a
on an "organic" dispositions from not owning the business in both comparable better measure of the company's ability to grow its
periods. business over
basis the long term.
Accrued capital Accrued capital expenditures divided by revenues, where accrued
capital Reflects the basis on which the company manages capital
expenditures as a expenditures include amounts that remain unpaid at the end of the
reporting expenditures for internal budgeting purposes.
percentage of period. For purposes of this calculation, revenues are before fair
value
revenues adjustments to acquired deferred revenue.
"Big 3" segments The company's combined Legal Professionals, Corporates and Tax & The "Big 3" segments comprised approximately 80% of
Accounting revenues
Professionals segments. All measures reported for the "Big 3" and represent the core of the company's business
segments are non- information
IFRS financial measures. service product offerings.
Please refer to reconciliations for the most directly comparable IFRS financial measures.
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