For the month of July 2013
|
Commission File Number: 1-31349
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|
THOMSON REUTERS CORPORATION
|
|
|
(Registrant)
|
|||
|
|
|
|
|
By:
|
/s/ Marc E. Gold
|
|
|
|
Name: Marc E. Gold
|
|
|
|
Title: Assistant Secretary
|
|
|
|
|
|
Date: July 30, 2013
|
|
|
|
Exhibit Number
|
|
Description
|
|
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|
News release dated July 30, 2013 – Thomson Reuters Reports Second-Quarter 2013 Results
|
· | Revenues grew 2% before currency |
· | Adjusted EBITDA grew 3% to $858 million with a margin of 27.6%, up 40 basis points |
· | Underlying operating profit up slightly to $569 million with a margin of 18.3%, down 10 basis points |
· | Adjusted earnings per share were $0.48, unchanged from the prior-year period |
· | 2013 Outlook affirmed |
|
Three Months Ended June 30,
(Millions of U.S. dollars, except EPS and margins)
|
|||||||||||
|
||||||||||||
IFRS Financial Measures
|
2013
|
2012
|
Change
|
|||||||||
Revenues
|
$
|
3,163
|
$
|
3,272
|
-3
|
%
|
||||||
Operating profit
|
$
|
597
|
$
|
1,297
|
-54
|
%
|
||||||
Diluted earnings per share (EPS)
|
$
|
0.30
|
$
|
1.08
|
-72
|
%
|
||||||
Cash flow from operations
|
$
|
904
|
$
|
855
|
6
|
%
|
|
Three Months Ended June 30,
(Millions of U.S. dollars, except EPS and margins)
|
|||||||||||||||
Non-IFRS Financial Measures(1)
|
2013
|
2012
|
Change
|
Change Before Currency
|
||||||||||||
Revenues from ongoing businesses
|
$
|
3,108
|
$
|
3,074
|
1
|
%
|
2
|
%
|
||||||||
Adjusted EBITDA
|
$
|
858
|
$
|
836
|
3
|
%
|
3
|
%
|
||||||||
Adjusted EBITDA margin
|
27.6
|
%
|
27.2
|
%
|
40
|
bp
|
20
|
bp
|
||||||||
Underlying operating profit
|
$
|
569
|
$
|
567
|
0
|
%
|
2
|
%
|
||||||||
Underlying operating profit margin
|
18.3
|
%
|
18.4
|
%
|
-10
|
bp
|
-10
|
bp
|
||||||||
Adjusted earnings per share (EPS)
|
$
|
0.48
|
$
|
0.48
|
0
|
%
|
||||||||||
Free cash flow
|
$
|
732
|
$
|
657
|
11
|
%
|
||||||||||
Free cash flow from ongoing businesses
|
$
|
683
|
$
|
598
|
14
|
%
|
· | Revenues from ongoing businesses were $3.1 billion, a 2% increase before currency. |
· | Adjusted EBITDA increased 3% and the corresponding margin was 27.6% versus 27.2% in the prior-year period. |
· | Underlying operating profit was up slightly and the corresponding margin was 18.3% versus 18.4% in the prior-year period. A $20 million increase in depreciation and amortization expense had a 50 basis point impact on the margin. |
· | Adjusted EPS was $0.48, unchanged from the prior-year period. Higher depreciation and amortization and interest expenses were offset by an improvement in EBITDA and a lower effective tax rate. |
(1)
|
These and other non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in the tables appended to this news release. Additional information is provided in the explanatory footnotes to the appended tables.
|
· | Revenues were down 1% as growth of 13% in Governance, Risk & Compliance and strength across the transaction-based businesses was offset by declining subscription revenues driven by the impact of negative net sales over the past 12 months. Organic revenues declined 3%. |
· | Recurring subscription-related revenues decreased 3% due to negative net sales over the past 12 months. Transactions-related revenues increased 22% (5% organic) primarily due to the acquisition of FXall and growth at Tradeweb. Recoveries revenues were down 4% and Outright revenues increased 2% (down 3% organic). |
· | By geography, revenues in Europe, Middle East and Africa (EMEA) were down 4%, revenues in the Americas were up 3% (down 2% organic), while revenues in Asia declined 2%. |
· | EBITDA was $420 million, unchanged from the prior-year period, with the related margin up 40 basis points to 25.3%, due to cost savings initiatives. |
· | Operating profit was $260 million, down 5%, with a related margin of 15.7%. Operating profit margin decreased 40 basis points due to higher depreciation and amortization expense ($12 million). |
· | Eikon desktops totaled approximately 61,000 at the end of the second quarter, up 30% from March 31, 2013. |
· | Revenues decreased 6% with growth in Elektron Managed Services offset by legacy desktop cancellations primarily in Equities and Fixed Income. |
· | Recoveries revenues were down 5%. |
· | Revenues declined 1% versus the prior-year period. Enterprise Content revenues increased 9% offset by a 4% decline in Investment Management revenues. Banking & Research and Wealth Management revenues were essentially unchanged. |
· | Revenues increased 6% (down 1% organic) driven by the acquisition of FXall and growth of 5% at Tradeweb. |
· | Revenues grew 13% to $59 million due to strong sales growth and continued strong demand. |
· | Revenues increased 5% (1% organic). US Law Firm Solutions increased 1% as a 7% increase in Business of Law (FindLaw and Elite) was offset in part by a 1% decline in research-related revenues. Corporate, Government & Academic revenues decreased 1% as a result of continued cost pressures at the federal, state and local levels. Global businesses grew 23% (4% organic) driven by the recent acquisition of Practical Law Company (PLC) in the first quarter of 2013. |
· | US print revenues declined 7% as firms continued to reduce discretionary spending. Excluding US print, revenues grew 8% (2% organic). |
· | EBITDA increased 2% and the corresponding margin was 38.5% compared to 39.3% in the prior-year period. The decrease was due to the decline in revenues from the highly profitable print and research-related businesses and the acquisition of PLC. |
· | Operating profit was up 2% and the corresponding margin was 30.1% compared to 30.9% in the prior-year period. The decline in the margin reflected the same items that impacted EBITDA margin performance. |
· | 80% of Westlaw revenue has been converted to WestlawNext as of the end of the second quarter. |
· | Revenues increased 7% (3% organic) driven by continued growth in subscription revenues and strong performance across all of the business segments except Government (5% of total Tax & Accounting revenues). |
· | EBITDA increased 10% and the related margin grew 130 basis points to 30.2%. Margin expansion was driven by flow-through of higher revenues. |
· | Operating profit increased 12% and the related margin increased 110 basis points to 19.8%. |
· | Small movements in the timing of revenues and expenses can impact margins in any given quarter for the Tax & Accounting business. Full-year margins are more reflective of the segment’s underlying performance. |
· | Revenues increased 9% (down 1% organic). Growth was driven by the MarkMonitor acquisition. Organic revenue was negatively impacted by softness in transactional revenues and the timing of revenues within the Life Sciences business, which are expected to be stronger in the second half of the year. |
· | EBITDA margin was 33.8%, a decline of 90 basis points, primarily due to the dilutive impact of the MarkMonitor acquisition and timing of revenues. |
· | Operating profit was flat with the corresponding margin declining by 210 basis points reflecting the same items that impacted the EBITDA margin. |
· | Small movements in the timing of revenues and expenses can impact margins in any given quarter for the Intellectual Property & Science business. Full-year margins are more reflective of the segment’s underlying performance. |
|
Six Months Ended June 30,
(Millions of U.S. dollars, except EPS and margins)
|
|||||||||||
|
||||||||||||
IFRS Financial Measures
|
2013
|
2012
|
Change
|
|||||||||
Revenues
|
$
|
6,338
|
$
|
6,587
|
-4
|
%
|
||||||
Operating profit
|
$
|
987
|
$
|
1,661
|
-41
|
%
|
||||||
Diluted earnings per share (EPS)
|
$
|
0.26
|
$
|
1.44
|
-82
|
%
|
||||||
Cash flow from operations
|
$
|
1,020
|
$
|
1,122
|
-9
|
%
|
|
Six Months Ended June 30,
(Millions of U.S. dollars, except EPS and margins)
|
|||||||||||||||
Non-IFRS Financial Measures(1)
|
2013
|
2012
|
Change
|
Change Before Currency
|
||||||||||||
Revenues from ongoing businesses
|
$
|
6,205
|
$
|
6,146
|
1
|
%
|
2
|
%
|
||||||||
Adjusted EBITDA
|
$
|
1,615
|
$
|
1,608
|
0
|
%
|
2
|
%
|
||||||||
Adjusted EBITDA margin
|
26.0
|
%
|
26.2
|
%
|
-20
|
bp
|
10
|
bp
|
||||||||
Underlying operating profit
|
$
|
1,031
|
$
|
1,064
|
-3
|
%
|
-1
|
%
|
||||||||
Underlying operating profit margin
|
16.6
|
%
|
17.3
|
%
|
-70
|
bp
|
-40
|
bp
|
||||||||
Adjusted earnings per share (EPS)
|
$
|
0.86
|
$
|
0.87
|
-1
|
%
|
||||||||||
Free cash flow
|
$
|
501
|
$
|
653
|
-23
|
%
|
||||||||||
Free cash flow from ongoing businesses
|
$
|
459
|
$
|
540
|
-15
|
%
|
· | Revenues from ongoing businesses were $6.2 billion, a 2% increase before currency. |
· | Adjusted EBITDA was up slightly and the corresponding margin was 26.0% versus 26.2% in the prior-year period as higher revenues and cost savings initiatives across the company helped to offset $87 million of severance costs (versus $43 million in the first half of 2012). |
· | Underlying operating profit was down 3% and the corresponding margin was 16.6% versus 17.3% in the prior-year period due mainly to severance costs and an increase in depreciation and amortization of $40 million. Excluding the impact of severance, underlying operating profit would have grown by 1% with the related margin unchanged at 18.0% compared to the prior-year period. |
· | Adjusted EPS was $0.86 compared to $0.87 in the prior-year period. The decrease was primarily due to higher severance costs somewhat offset by a lower effective tax rate. Excluding the impact of severance in both periods, adjusted EPS would have increased by $0.04. |
· | Free cash flow was $501 million versus $653 million in the prior-year period. The decline was primarily due to timing of higher capital expenditures, loss of free cash flow from disposals and working capital requirements. For the full year, the company continues to expect to achieve free cash flow between $1.7 billion and $1.8 billion. |
· | revenues to grow low single digits; |
· | adjusted EBITDA margin to range between 26% and 27%; |
· | underlying operating profit margin to range between 16.5% and 17.5%; and |
· | free cash flow to range between $1.7 billion and $1.8 billion in 2013. |
MEDIA
David Crundwell
Head of Corporate Affairs
+1 646 223 5285
david.crundwell@thomsonreuters.com
|
INVESTORS
Frank J. Golden
Senior Vice President, Investor Relations
+1 646 223 5288
frank.golden@thomsonreuters.com
|
|
Three Months Ended
|
|||||||||||||||||||
|
June 30,
|
Change
|
||||||||||||||||||
|
2013
|
2012 (1)
|
Total
|
Before Currency
|
Organic
|
|||||||||||||||
Revenues
|
||||||||||||||||||||
Trading
|
$
|
616
|
$
|
662
|
-7
|
%
|
-6
|
%
|
-6
|
%
|
||||||||||
Investors
|
534
|
545
|
-2
|
%
|
-1
|
%
|
-2
|
%
|
||||||||||||
Marketplaces
|
451
|
434
|
4
|
%
|
6
|
%
|
-1
|
%
|
||||||||||||
Governance, Risk & Compliance
|
59
|
52
|
13
|
%
|
13
|
%
|
11
|
%
|
||||||||||||
Financial & Risk
|
1,660
|
1,693
|
-2
|
%
|
-1
|
%
|
-3
|
%
|
||||||||||||
Legal
|
846
|
812
|
4
|
%
|
5
|
%
|
1
|
%
|
||||||||||||
Tax & Accounting
|
288
|
273
|
5
|
%
|
7
|
%
|
3
|
%
|
||||||||||||
Intellectual Property & Science
|
234
|
216
|
8
|
%
|
9
|
%
|
-1
|
%
|
||||||||||||
Corporate & Other (includes Reuters News)
|
82
|
83
|
-1
|
%
|
2
|
%
|
2
|
%
|
||||||||||||
Eliminations
|
(2
|
)
|
(3
|
)
|
||||||||||||||||
Revenues from ongoing businesses (2)
|
3,108
|
3,074
|
1
|
%
|
2
|
%
|
-1
|
%
|
||||||||||||
Other Businesses (3)
|
55
|
198
|
||||||||||||||||||
Revenues
|
$
|
3,163
|
$
|
3,272
|
-3
|
%
|
|
Change
|
Margin
|
||||||||||||||||||||||||||
Adjusted EBITDA (4)
|
Total
|
Before Currency
|
2013
|
2012
|
Change
|
|||||||||||||||||||||||
Financial & Risk
|
$
|
420
|
$
|
421
|
0
|
%
|
1
|
%
|
25.3
|
%
|
24.9
|
%
|
40
|
bp
|
||||||||||||||
Legal
|
326
|
319
|
2
|
%
|
2
|
%
|
38.5
|
%
|
39.3
|
%
|
-80
|
bp
|
||||||||||||||||
Tax & Accounting
|
87
|
79
|
10
|
%
|
11
|
%
|
30.2
|
%
|
28.9
|
%
|
130
|
bp
|
||||||||||||||||
Intellectual Property & Science
|
79
|
75
|
5
|
%
|
7
|
%
|
33.8
|
%
|
34.7
|
%
|
-90
|
bp
|
||||||||||||||||
Corporate & Other (includes Reuters News)
|
(54
|
)
|
(58
|
)
|
||||||||||||||||||||||||
Adjusted EBITDA
|
$
|
858
|
$
|
836
|
3
|
%
|
3
|
%
|
27.6
|
%
|
27.2
|
%
|
40
|
bp
|
||||||||||||||
|
||||||||||||||||||||||||||||
Underlying Operating Profit (5)
|
||||||||||||||||||||||||||||
Financial & Risk
|
$
|
260
|
$
|
273
|
-5
|
%
|
-2
|
%
|
15.7
|
%
|
16.1
|
%
|
-40
|
bp
|
||||||||||||||
Legal
|
255
|
251
|
2
|
%
|
2
|
%
|
30.1
|
%
|
30.9
|
%
|
-80
|
bp
|
||||||||||||||||
Tax & Accounting
|
57
|
51
|
12
|
%
|
12
|
%
|
19.8
|
%
|
18.7
|
%
|
110
|
bp
|
||||||||||||||||
Intellectual Property & Science
|
59
|
59
|
0
|
%
|
3
|
%
|
25.2
|
%
|
27.3
|
%
|
-210
|
bp
|
||||||||||||||||
Corporate & Other (includes Reuters News)
|
(62
|
)
|
(67
|
)
|
||||||||||||||||||||||||
Underlying operating profit
|
$
|
569
|
$
|
567
|
0
|
%
|
2
|
%
|
18.3
|
%
|
18.4
|
%
|
-10
|
bp
|
|
Six Months Ended
|
|||||||||||||||||||
|
June 30,
|
Change
|
||||||||||||||||||
|
2013
|
2012 (1)
|
Total
|
Before Currency
|
Organic
|
|||||||||||||||
Revenues
|
||||||||||||||||||||
Trading
|
$
|
1,246
|
$
|
1,340
|
-7
|
%
|
-6
|
%
|
-6
|
%
|
||||||||||
Investors
|
1,068
|
1,087
|
-2
|
%
|
-1
|
%
|
-1
|
%
|
||||||||||||
Marketplaces
|
907
|
876
|
4
|
%
|
5
|
%
|
-2
|
%
|
||||||||||||
Governance, Risk & Compliance
|
114
|
103
|
11
|
%
|
11
|
%
|
9
|
%
|
||||||||||||
Financial & Risk
|
3,335
|
3,406
|
-2
|
%
|
-1
|
%
|
-3
|
%
|
||||||||||||
Legal
|
1,640
|
1,583
|
4
|
%
|
4
|
%
|
0
|
%
|
||||||||||||
Tax & Accounting
|
605
|
572
|
6
|
%
|
7
|
%
|
4
|
%
|
||||||||||||
Intellectual Property & Science
|
467
|
425
|
10
|
%
|
11
|
%
|
1
|
%
|
||||||||||||
Corporate & Other (includes Reuters News)
|
163
|
165
|
-1
|
%
|
2
|
%
|
2
|
%
|
||||||||||||
Eliminations
|
(5
|
) |
(5
|
)
|
||||||||||||||||
Revenues from ongoing businesses (2)
|
6,205
|
6,146
|
1
|
%
|
2
|
%
|
-1
|
%
|
||||||||||||
Other Businesses (3)
|
133
|
441
|
||||||||||||||||||
Revenues
|
$
|
6,338
|
$
|
6,587
|
-4
|
%
|
|
Change
|
Margin
|
||||||||||||||||||||||||||
Adjusted EBITDA (4)
|
Total
|
Before Currency
|
2013
|
2012
|
Change
|
|||||||||||||||||||||||
Financial & Risk
|
$
|
780
|
$
|
844
|
-8
|
%
|
-4
|
%
|
23.4
|
%
|
24.8
|
%
|
-140
|
bp
|
||||||||||||||
Legal
|
602
|
589
|
2
|
%
|
2
|
%
|
36.7
|
%
|
37.2
|
%
|
-50
|
bp
|
||||||||||||||||
Tax & Accounting
|
185
|
170
|
9
|
%
|
9
|
%
|
30.6
|
%
|
29.7
|
%
|
90
|
bp
|
||||||||||||||||
Intellectual Property & Science
|
149
|
147
|
1
|
%
|
3
|
%
|
31.9
|
%
|
34.6
|
%
|
-270
|
bp
|
||||||||||||||||
Corporate & Other (includes Reuters News)
|
(101
|
)
|
(142
|
)
|
||||||||||||||||||||||||
Adjusted EBITDA
|
$
|
1,615
|
$
|
1,608
|
0
|
%
|
2
|
%
|
26.0
|
%
|
26.2
|
%
|
-20
|
bp
|
||||||||||||||
|
||||||||||||||||||||||||||||
Underlying Operating Profit (5)
|
||||||||||||||||||||||||||||
Financial & Risk
|
$
|
460
|
$
|
543
|
-15
|
%
|
-10
|
%
|
13.8
|
%
|
15.9
|
%
|
-210
|
bp
|
||||||||||||||
Legal
|
456
|
452
|
1
|
%
|
1
|
%
|
27.8
|
%
|
28.6
|
%
|
-80
|
bp
|
||||||||||||||||
Tax & Accounting
|
126
|
114
|
11
|
%
|
11
|
%
|
20.8
|
%
|
19.9
|
%
|
90
|
bp
|
||||||||||||||||
Intellectual Property & Science
|
110
|
114
|
-4
|
%
|
-2
|
%
|
23.6
|
%
|
26.8
|
%
|
-320
|
bp
|
||||||||||||||||
Corporate & Other (includes Reuters News)
|
(121
|
)
|
(159
|
)
|
||||||||||||||||||||||||
Underlying operating profit
|
$
|
1,031
|
$
|
1,064
|
-3
|
%
|
-1
|
%
|
16.6
|
%
|
17.3
|
%
|
-70
|
bp
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||||||||||
|
2013
|
2012 (1)
|
Change
|
2013
|
2012 (1)
|
Change
|
||||||||||||||||||
|
||||||||||||||||||||||||
Operating profit
|
$
|
597
|
$
|
1,297
|
-54
|
%
|
$
|
987
|
$
|
1,661
|
-41
|
%
|
||||||||||||
Adjustments to remove:
|
||||||||||||||||||||||||
Amortization of other identifiable intangible assets
|
157
|
149
|
317
|
301
|
||||||||||||||||||||
Fair value adjustments
|
(29
|
)
|
(43
|
)
|
(91
|
)
|
(13
|
)
|
||||||||||||||||
Other operating gains, net
|
(136
|
)
|
(798
|
)
|
(130
|
)
|
(820
|
)
|
||||||||||||||||
Operating profit from Other Businesses (3)
|
(20
|
)
|
(38
|
)
|
(52
|
)
|
(65
|
)
|
||||||||||||||||
Underlying operating profit
|
$
|
569
|
$
|
567
|
0
|
%
|
$
|
1,031
|
$
|
1,064
|
-3
|
%
|
||||||||||||
Adjustments to remove:
|
||||||||||||||||||||||||
Depreciation and amortization of computer software (excluding Other Businesses (3))
|
289
|
269
|
584
|
544
|
||||||||||||||||||||
Adjusted EBITDA
|
$
|
858
|
$
|
836
|
3
|
%
|
$
|
1,615
|
$
|
1,608
|
0
|
%
|
||||||||||||
|
||||||||||||||||||||||||
Underlying operating profit margin (5)
|
18.3
|
%
|
18.4
|
%
|
-10
|
bp
|
16.6
|
%
|
17.3
|
%
|
-70
|
bp
|
||||||||||||
Adjusted EBITDA margin (4)
|
27.6
|
%
|
27.2
|
%
|
40
|
bp
|
26.0
|
%
|
26.2
|
%
|
-20
|
bp
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||||||||||
|
2013
|
2012 (1)
|
Change
|
2013
|
2012 (1)
|
Change
|
||||||||||||||||||
|
||||||||||||||||||||||||
Earnings from continuing operations
|
$
|
256
|
$
|
916
|
-72
|
%
|
$
|
239
|
$
|
1,224
|
-80
|
%
|
||||||||||||
Adjustments to remove:
|
||||||||||||||||||||||||
Tax expense
|
209
|
270
|
456
|
230
|
||||||||||||||||||||
Other finance costs (income)
|
17
|
16
|
72
|
(14
|
)
|
|||||||||||||||||||
Net interest expense
|
124
|
107
|
239
|
236
|
||||||||||||||||||||
Amortization of other identifiable intangible assets
|
157
|
149
|
317
|
301
|
||||||||||||||||||||
Amortization of computer software
|
188
|
165
|
376
|
337
|
||||||||||||||||||||
Depreciation
|
101
|
108
|
208
|
217
|
||||||||||||||||||||
EBITDA
|
$
|
1,052
|
$
|
1,731
|
$
|
1,907
|
$
|
2,531
|
||||||||||||||||
Adjustments to remove:
|
||||||||||||||||||||||||
Share of post-tax earnings in equity method investments
|
(9
|
)
|
(12
|
)
|
(19
|
)
|
(15
|
)
|
||||||||||||||||
Other operating gains, net
|
(136
|
)
|
(798
|
)
|
(130
|
)
|
(820
|
)
|
||||||||||||||||
Fair value adjustments
|
(29
|
)
|
(43
|
)
|
(91
|
)
|
(13
|
)
|
||||||||||||||||
EBITDA from Other Businesses (3)
|
(20
|
)
|
(42
|
)
|
(52
|
)
|
(75
|
)
|
||||||||||||||||
Adjusted EBITDA
|
$
|
858
|
$
|
836
|
3
|
%
|
$
|
1,615
|
$
|
1,608
|
0
|
%
|
|
Three Months Ended
June 30, 2013
|
Three Months Ended
June 30, 2012 (1)
|
||||||||||||||||||||||
|
Underlying Operating Profit
|
Add: Depreciation and Amortization of Computer Software **
|
Adjusted EBITDA
|
Underlying Operating Profit
|
Add: Depreciation and Amortization of Computer Software **
|
Adjusted EBITDA
|
||||||||||||||||||
|
||||||||||||||||||||||||
Financial & Risk
|
$
|
260
|
$
|
160
|
$
|
420
|
$
|
273
|
$
|
148
|
$
|
421
|
||||||||||||
Legal
|
255
|
71
|
326
|
251
|
68
|
319
|
||||||||||||||||||
Tax & Accounting
|
57
|
30
|
87
|
51
|
28
|
79
|
||||||||||||||||||
Intellectual Property & Science
|
59
|
20
|
79
|
59
|
16
|
75
|
||||||||||||||||||
Corporate & Other (includes Reuters News)
|
(62
|
)
|
8
|
(54
|
)
|
(67
|
)
|
9
|
(58
|
)
|
||||||||||||||
|
$
|
569
|
$
|
289
|
$
|
858
|
$
|
567
|
$
|
269
|
$
|
836
|
|
Six Months Ended
June 30, 2013
|
Six Months Ended
June 30, 2012 (1)
|
||||||||||||||||||||||
|
Underlying Operating Profit
|
Add: Depreciation and Amortization of Computer Software **
|
Adjusted EBITDA
|
Underlying Operating Profit
|
Add: Depreciation and Amortization of Computer Software **
|
Adjusted EBITDA
|
||||||||||||||||||
|
||||||||||||||||||||||||
Financial & Risk
|
$
|
460
|
$
|
320
|
$
|
780
|
$
|
543
|
$
|
301
|
$
|
844
|
||||||||||||
Legal
|
456
|
146
|
602
|
452
|
137
|
589
|
||||||||||||||||||
Tax & Accounting
|
126
|
59
|
185
|
114
|
56
|
170
|
||||||||||||||||||
Intellectual Property & Science
|
110
|
39
|
149
|
114
|
33
|
147
|
||||||||||||||||||
Corporate & Other (includes Reuters News)
|
(121
|
)
|
20
|
(101
|
)
|
(159
|
)
|
17
|
(142
|
)
|
||||||||||||||
|
$
|
1,031
|
$
|
584
|
$
|
1,615
|
$
|
1,064
|
$
|
544
|
$
|
1,608
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2013
|
2012 (1)
|
2013
|
2012 (1)
|
||||||||||||
Earnings attributable to common shareholders
|
$
|
248
|
$
|
902
|
$
|
217
|
$
|
1,196
|
||||||||
Adjustments to remove:
|
||||||||||||||||
Operating profit from Other Businesses (3)
|
(20
|
)
|
(38
|
)
|
(52
|
)
|
(65
|
)
|
||||||||
Fair value adjustments
|
(29
|
)
|
(43
|
)
|
(91
|
)
|
(13
|
)
|
||||||||
Other operating gains, net
|
(136
|
)
|
(798
|
)
|
(130
|
)
|
(820
|
)
|
||||||||
Other finance costs (income)
|
17
|
16
|
72
|
(14
|
)
|
|||||||||||
Share of post-tax earnings in equity method investments
|
(9
|
)
|
(12
|
)
|
(19
|
)
|
(15
|
)
|
||||||||
Tax on above items
|
36
|
263
|
58
|
208
|
||||||||||||
Discrete tax items
|
151
|
(83
|
)
|
372
|
(109
|
)
|
||||||||||
Amortization of other identifiable intangible assets
|
157
|
149
|
317
|
301
|
||||||||||||
Discontinued operations
|
(6
|
)
|
1
|
(6
|
)
|
3
|
||||||||||
Interim period effective tax rate normalization (7)
|
19
|
46
|
12
|
52
|
||||||||||||
Tax charge amortization (8)
|
(24
|
)
|
-
|
(32
|
)
|
-
|
||||||||||
Dividends declared on preference shares
|
(1
|
)
|
(1
|
)
|
(2
|
)
|
(2
|
)
|
||||||||
Adjusted earnings
|
$
|
403
|
$
|
402
|
$
|
716
|
$
|
722
|
||||||||
Adjusted earnings per share
|
$
|
0.48
|
$
|
0.48
|
$
|
0.86
|
$
|
0.87
|
||||||||
|
||||||||||||||||
Diluted weighted-average common shares (millions)
|
832.5
|
830.7
|
831.5
|
830.5
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
|
2013
|
2012 (1)
|
2013
|
2012 (1)
|
||||||||||||
Net cash provided by operating activities
|
$
|
904
|
$
|
855
|
$
|
1,020
|
$
|
1,122
|
||||||||
Capital expenditures, less proceeds from disposals
|
(188
|
)
|
(207
|
)
|
(538
|
)
|
(487
|
)
|
||||||||
Other investing activities
|
17
|
10
|
21
|
20
|
||||||||||||
Dividends paid on preference shares
|
(1
|
)
|
(1
|
)
|
(2
|
)
|
(2
|
)
|
||||||||
Free cash flow
|
732
|
657
|
501
|
653
|
||||||||||||
Remove: Other Businesses (3)
|
(49
|
)
|
(59
|
)
|
(42
|
)
|
(113
|
)
|
||||||||
Free cash flow from ongoing businesses
|
$
|
683
|
$
|
598
|
$
|
459
|
$
|
540
|
(1) | Prior-period amounts have been revised to reflect the retrospective application of amendments to IAS 19, Employee Benefits and the adoption of IFRS 11, Joint Arrangements. |
(2) | Revenues from ongoing businesses are revenues from reportable segments and Corporate & Other (which includes Reuters News) less eliminations. Other Businesses (see note (3) below) are excluded. |
(3) | Other Businesses are businesses that have been or are expected to be exited through sale or closure that did not qualify for discontinued operations classification. |
(millions of U.S. dollars)
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
Other Businesses
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
||||||||||||||||
Revenues
|
$
|
55
|
$
|
198
|
$
|
133
|
$
|
441
|
||||||||
|
||||||||||||||||
Operating profit
|
$
|
20
|
$
|
38
|
$
|
52
|
$
|
65
|
||||||||
Depreciation and amortization of computer software
|
-
|
4
|
-
|
10
|
||||||||||||
EBITDA
|
$
|
20
|
$
|
42
|
$
|
52
|
$
|
75
|
(4) | Thomson Reuters defines adjusted EBITDA as underlying operating profit excluding the related depreciation and amortization of computer software. Adjusted EBITDA margin is adjusted EBITDA expressed as a percentage of revenues from ongoing businesses. |
(5) | Underlying operating profit is operating profit from reportable segments and Corporate & Other (includes Reuters News). Underlying operating profit margin is the underlying operating profit expressed as a percentage of revenues from ongoing businesses. |
(6) | Adjusted earnings and adjusted earnings per share include dividends declared on preference shares and amortization of the tax charges associated with the consolidation of technology and content assets but exclude the pre-tax impacts of amortization of other identifiable intangible assets as well as the post-tax impacts of fair value adjustments, other operating (gains) and losses, certain impairment charges, the results of Other Businesses (see note (3) above), other finance (income) costs, Thomson Reuters share of post-tax (earnings) losses in equity method investments, discontinued operations and other items affecting comparability. Adjusted earnings per share is calculated using diluted weighted-average shares and does not represent actual earnings or loss per share attributable to shareholders. |
(7) | Adjustment to reflect income taxes based on estimated full-year effective tax rate. Reported earnings or loss for interim periods reflect income taxes based on the estimated effective tax rates of each of the jurisdictions in which Thomson Reuters operates. The adjustment reallocates estimated full-year income taxes between interim periods, but has no effect on full year income taxes. |
(8) | Reflects amortization of the tax charges associated with the consolidation of the ownership and management of technology and content assets. For the non-IFRS measure, the majority of the charges are amortized over seven years, the period over which the tax is expected to be paid. |
(9) | Free cash flow is net cash provided by operating activities less capital expenditures, other investing activities and dividends paid on the company’s preference shares. Other Businesses (see note (3) above) are also removed to arrive at free cash flow from ongoing businesses. |
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
|
2013
|
2012 (1)
|
2013
|
2012 (1)
|
||||||||||||
|
||||||||||||||||
Revenues
|
$
|
3,163
|
$
|
3,272
|
$
|
6,338
|
$
|
6,587
|
||||||||
Operating expenses
|
(2,256
|
)
|
(2,351
|
)
|
(4,580
|
)
|
(4,891
|
)
|
||||||||
Depreciation
|
(101
|
)
|
(108
|
)
|
(208
|
)
|
(217
|
)
|
||||||||
Amortization of computer software
|
(188
|
)
|
(165
|
)
|
(376
|
)
|
(337
|
)
|
||||||||
Amortization of other identifiable intangible assets
|
(157
|
)
|
(149
|
)
|
(317
|
)
|
(301
|
)
|
||||||||
Other operating gains, net
|
136
|
798
|
130
|
820
|
||||||||||||
Operating profit
|
597
|
1,297
|
987
|
1,661
|
||||||||||||
Finance costs, net:
|
||||||||||||||||
Net interest expense
|
(124
|
)
|
(107
|
)
|
(239
|
)
|
(236
|
)
|
||||||||
Other finance (costs) income
|
(17
|
)
|
(16
|
)
|
(72
|
)
|
14
|
|||||||||
Income before tax and equity method investments
|
456
|
1,174
|
676
|
1,439
|
||||||||||||
Share of post-tax earnings in equity method investments
|
9
|
12
|
19
|
15
|
||||||||||||
Tax expense
|
(209
|
)
|
(270
|
)
|
(456
|
)
|
(230
|
)
|
||||||||
Earnings from continuing operations
|
256
|
916
|
239
|
1,224
|
||||||||||||
Earnings (loss) from discontinued operations, net of tax
|
6
|
(1
|
)
|
6
|
(3
|
)
|
||||||||||
Net earnings
|
$
|
262
|
$
|
915
|
$
|
245
|
$
|
1,221
|
||||||||
|
||||||||||||||||
Earnings attributable to:
|
||||||||||||||||
Common shareholders
|
248
|
902
|
217
|
1,196
|
||||||||||||
Non-controlling interests
|
14
|
13
|
28
|
25
|
||||||||||||
|
||||||||||||||||
Basic earnings per share
|
$
|
0.30
|
$
|
1.09
|
$
|
0.26
|
$
|
1.44
|
||||||||
Diluted earnings per share
|
$
|
0.30
|
$
|
1.08
|
$
|
0.26
|
$
|
1.44
|
||||||||
|
||||||||||||||||
Basic weighted-average common shares
|
829,921,311
|
828,482,671
|
829,136,505
|
828,661,765
|
||||||||||||
Diluted weighted-average common shares
|
832,509,774
|
830,744,813
|
831,453,225
|
830,507,227
|
(1) | Prior-period amounts have been revised to reflect the retrospective application of amendments to IAS 19, Employee Benefits and the adoption of IFRS 11, Joint Arrangements. |
|
June 30,
2013
|
December 31,
2012 (1)
|
||||||
Assets
|
||||||||
Cash and cash equivalents
|
$
|
1,613
|
$
|
1,283
|
||||
Trade and other receivables
|
1,760
|
1,818
|
||||||
Other financial assets
|
95
|
72
|
||||||
Prepaid expenses and other current assets
|
567
|
638
|
||||||
Current assets excluding assets held for sale
|
4,035
|
3,811
|
||||||
Assets held for sale
|
56
|
302
|
||||||
Current assets
|
4,091
|
4,113
|
||||||
|
||||||||
Computer hardware and other property, net
|
1,254
|
1,416
|
||||||
Computer software, net
|
1,632
|
1,659
|
||||||
Other identifiable intangible assets, net
|
7,953
|
8,134
|
||||||
Goodwill
|
16,545
|
16,251
|
||||||
Other financial assets
|
299
|
355
|
||||||
Other non-current assets
|
595
|
559
|
||||||
Deferred tax
|
55
|
50
|
||||||
Total assets
|
$
|
32,424
|
$
|
32,537
|
||||
Liabilities and equity
|
||||||||
Liabilities
|
||||||||
Current indebtedness
|
$
|
1,021
|
$
|
1,008
|
||||
Payables, accruals and provisions
|
2,011
|
2,612
|
||||||
Deferred revenue
|
1,344
|
1,222
|
||||||
Other financial liabilities
|
47
|
95
|
||||||
Current liabilities excluding liabilities associated with assets held for sale
|
4,423
|
4,937
|
||||||
Liabilities associated with assets held for sale
|
1
|
35
|
||||||
Current liabilities
|
4,424
|
4,972
|
||||||
|
||||||||
Long-term indebtedness
|
6,907
|
6,223
|
||||||
Provisions and other non-current liabilities
|
2,310
|
2,502
|
||||||
Other financial liabilities
|
84
|
37
|
||||||
Deferred tax
|
1,652
|
1,305
|
||||||
Total liabilities
|
15,377
|
15,039
|
||||||
Equity
|
||||||||
Capital
|
10,431
|
10,371
|
||||||
Retained earnings
|
8,141
|
8,311
|
||||||
Accumulated other comprehensive loss
|
(1,886
|
)
|
(1,537
|
)
|
||||
Total shareholders’ equity
|
16,686
|
17,145
|
||||||
Non-controlling interests
|
361
|
353
|
||||||
Total equity
|
17,047
|
17,498
|
||||||
Total liabilities and equity
|
$
|
32,424
|
$
|
32,537
|
(1) | Prior-period amounts have been revised to reflect the retrospective application of amendments to IAS 19, Employee Benefits and the adoption of IFRS 11, Joint Arrangements. |
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
|
2013
|
2012 (1)
|
2013
|
2012 (1)
|
||||||||||||
Cash provided by (used in):
|
||||||||||||||||
Operating activities
|
||||||||||||||||
Net earnings
|
$
|
262
|
$
|
915
|
$
|
245
|
$
|
1,221
|
||||||||
Adjustments for:
|
||||||||||||||||
Depreciation
|
101
|
108
|
208
|
217
|
||||||||||||
Amortization of computer software
|
188
|
165
|
376
|
337
|
||||||||||||
Amortization of other identifiable intangible assets
|
157
|
149
|
317
|
301
|
||||||||||||
Net gains on disposals of businesses and investments
|
(142
|
)
|
(789
|
)
|
(156
|
)
|
(826
|
)
|
||||||||
Deferred tax
|
70
|
44
|
242
|
(135
|
)
|
|||||||||||
Other
|
60
|
(48
|
)
|
125
|
61
|
|||||||||||
Changes in working capital and other items
|
208
|
311
|
(337
|
)
|
(54
|
)
|
||||||||||
Net cash provided by operating activities
|
904
|
855
|
1,020
|
1,122
|
||||||||||||
|
||||||||||||||||
Investing activities
|
||||||||||||||||
Acquisitions, net of cash acquired
|
(118
|
)
|
(101
|
)
|
(848
|
)
|
(260
|
)
|
||||||||
Proceeds from disposals of businesses and investments, net of taxes paid
|
322
|
1,369
|
352
|
1,983
|
||||||||||||
Capital expenditures, less proceeds from disposals
|
(188
|
)
|
(207
|
)
|
(538
|
)
|
(487
|
)
|
||||||||
Other investing activities
|
17
|
10
|
21
|
20
|
||||||||||||
Investing cash flows from continuing operations
|
33
|
1,071
|
(1,013
|
)
|
1,256
|
|||||||||||
Investing cash flows from discontinued operations
|
-
|
90
|
-
|
90
|
||||||||||||
Net cash provided by (used in) investing activities
|
33
|
1,161
|
(1,013
|
)
|
1,346
|
|||||||||||
|
||||||||||||||||
Financing activities
|
||||||||||||||||
Proceeds from debt
|
854
|
-
|
1,294
|
-
|
||||||||||||
Repayments of debt
|
-
|
(2
|
)
|
(440
|
)
|
(2
|
)
|
|||||||||
Net repayments under short-term loan facilities
|
(332
|
)
|
(287
|
)
|
-
|
(423
|
)
|
|||||||||
Repurchases of common shares
|
-
|
(144
|
)
|
-
|
(168
|
)
|
||||||||||
Dividends paid on preference shares
|
(1
|
)
|
(1
|
)
|
(2
|
)
|
(2
|
)
|
||||||||
Dividends paid on common shares
|
(260
|
)
|
(256
|
)
|
(519
|
)
|
(512
|
)
|
||||||||
Other financing activities
|
(2
|
)
|
12
|
7
|
20
|
|||||||||||
Net cash provided by (used in) financing activities
|
259
|
(678
|
)
|
340
|
(1,087
|
)
|
||||||||||
|
||||||||||||||||
Translation adjustments on cash and cash equivalents
|
(6
|
)
|
(7
|
)
|
(17
|
)
|
(3
|
)
|
||||||||
Increase in cash and cash equivalents
|
1,190
|
1,331
|
330
|
1,378
|
||||||||||||
Cash and cash equivalents at beginning of period
|
423
|
451
|
1,283
|
404
|
||||||||||||
Cash and cash equivalents at end of period
|
$
|
1,613
|
$
|
1,782
|
$
|
1,613
|
$
|
1,782
|
(1) | Prior-period amounts have been revised to reflect the retrospective application of amendments to IAS 19, Employee Benefits and the adoption of IFRS 11, Joint Arrangements. |