Thomson Financial has posted its first full year of organic revenue growth since 2000.
Revenues in the financial division of the Canadian corporation increased 15% in 2004 to $1.73 billion, and adjusted operating profit increased 31% to $298 million.
Revenue growth was due largely to acquisitions, however the vendor also believes its efforts to integrate its products under the ONE banner are beginning to bear fruit, as the division recorded its first full year of organic growth for five years. Sales of Thomson ONE workstations increased 56% in 2004, as a result of user migration from legacy products and new client wins.
In the quarter, revenues were $474 million, a 24% increase over the prior-year period and adjusted operating profit increased 59% to $92 million, reflecting higher margins on the incremental revenues. Organic growth in the quarter was six per cent, representing the third consecutive quarter of organic growth for Thomson Financial.
Despite the promising returns from the Financial side, weaker-than-expected results at group level pushed the stock down 25 Canadian cents, at C$43.75 on the Toronto Stock Exchange.
Finextra comment: While the Thomson One rebranding exercise continues apace - the recent acquisitions of TradeWeb and CCBN forced another divisional shake-up in December - the vendor has still to prove that it has the moxy to dislodge Bloomberg and Reuters from the top of the dealing room tree. The return to organic growth is promising, but it would be interesting to know what proportion has been generated from sales to new customers, against legacy migrations of existing customers to the revamped product line.