Thomson Reuters Beats Q1 Aided by ‘Big 3’ Segments; Lifts FY22 Guidance

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Thomson Reuters Corp. reported first-quarter FY22 revenue growth of 6 percent year-on-year to $1.67 billion, beating the consensus of $1.66 billion.

Organic revenues increased 7 percent, driven by recurring revenues and transaction revenues.

The “Big 3” segments (Legal Professionals, Corporates, and Tax & Accounting Professionals) collectively comprised 81 percent of total revenues and reported organic revenue growth of 7 percent. Legal Professionals’ revenue grew 5 percent Y/Y to $698 million, Corporates’ revenue rose 8 percent Y/Y to $411 million, and Tax & Accounting Professionals’ revenue increased 11 percent Y/Y to $253 million.

Reuters News revenue improved 9 percent Y/Y to $176 million, and the Global Print revenue was flat Y/Y at $142 million.

Adjusted EBITDA margin expanded 50 bps to 35.8 percent due to Change Program costs.

Adjusted EPS of $0.66 beat the consensus of $0.61.

Thomson Reuters generated $275 million in operating cash flow and held $654 million in cash and equivalents.

Dividend

A quarterly dividend per share of $0.445 is payable.

Outlook

Thomson Reuters anticipates FY22 revenue growth of 5.5 percent versus the previous view of 5.0 percent. It reiterated the FY23 revenue growth outlook of 5.5 percent – 6.0 percent.

By Anusuya Lahiri 

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