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Thomson Reuters Reports First Quarter 2020 Results; Steve Hasker Quoted

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Steve Hasker, President, CEO of Thomson Reuters
Steve Hasker, President, CEO of Thomson Reuters

Thomson Reuters has reported results for the first quarter ended March 31, 2020 and updated its full-year 2020 Outlook to reflect its currently estimated impact of the COVID-19 pandemic, the company announced on Tuesday.

“We are confident that our ‘must-have’ products and solutions, deep and long-term customer relationships, and strong balance sheet and liquidity position will enable us to emerge on the other side even stronger.” said Steve Hasker, president and CEO of Thomson Reuters

Thomson Reuters noted that revenues increased 2 percent due to growth in recurring revenues but also from higher transaction revenues, which were driven by acquisitions. Foreign currency had a $14 million negative impact.

The company reported an organic revenue growth of 2 percent, driven by 4 percent growth in recurring revenues. Thomson Reuters Legal Professionals, Corporates and Tax and Accounting Professionals Thomson Reuters have comprised approximately 80 percent of first-quarter revenues, reported organic revenue growth of 4 percent.

Thomson Reuters’ operating profit increased as higher revenues and lower costs more than offset a negative impact from the revaluation of warrants that the company holds in Refinitiv relating to the proposed sale of Refinitiv to London Stock Exchange Group plc (LSEG).

The company’s adjusted EBITDA, which has excluded the impact of the warrant revaluation among other items, increased 21 percent, reflecting the completion of the F&R separation program, which required significant costs and investments in the prior-year period. The related margin increased to 31.6 percent compared to 26.7 percent in the prior-year period.

Thomson Reuters reported the diluted EPS increased to $0.39 compared to $0.20 per share in the prior-year period as higher operating profit, lower losses from the company’s 45 percent equity interest in Refinitiv and currency benefits from the revaluation of certain intercompany funding arrangements more than offset higher tax expense.

Adjusted EPS increased to $0.48 from $0.36 in the prior-year period, primarily due to higher adjusted EBITDA. Cash flow from operations increased, primarily due to a $167 million pension plan contribution in the prior-year period.

“Given the challenges we are all facing from the COVID-19 pandemic, our main priority remains the health and safety of all of our employees. I want to thank them for how they have stepped up to support our customers around the globe as they help businesses, communities and economies do what they can to move forward,” added Hasker.

About Thomson Reuters

Thomson Reuters is a leading provider of business information services. Our products include highly specialized information-enabled software and tools for legal, tax, accounting and compliance professionals combined with the world’s most global news service – Reuters.