Thomson Reuters, the world's leading source of intelligent information for businesses and professionals, today reported results for the first quarter ended March 31, 2009.
Resilient revenue growth despite weak markets, close management of costs and out-performance on its integration program combined to deliver good results.
- Revenues were $3.1 billion, an increase of 3% before currency compared to first-quarter 2008 pro forma revenues.(1)
- GAAP revenues increased 70% (after currency) primarily as a result of the Reuters acquisition completed on April 17, 2008.
- Underlying operating profit increased 2% to $588 million, with the related margin increasing 100 basis points primarily due to the benefits of currency and integration-related savings.
- Earnings per share were $0.40 benefiting from higher underlying profit, offset by higher integration-related costs of $0.07 per share.
- First-quarter free cash flow was $51 million, down from the prior ngs per share were $0.40 benefiting from higher underlying profit, offset by higher integration-related costs of $0.07 per share.
- First-quarter free cash flow was $51 million, down from the prior period, primarily due to a $194 million increase in net interest paid related to the acquisition of Reuters.
- Integration and legacy savings programs are tracking against the accelerated plan with $850 million of run-rate savings (against a 2011 target of $1.4 billion) achieved by quarter-end.
(1) 2008 financial information disclosed in this news release has been prepared on a pro forma basis and assumes that Thomson's acquisition of Reuters closed on January 1, 2007. Thomson Reuters believes that pro forma financial information provides more meaningful period-to- period comparisons of its performance because Reuters results prior to the April 17, 2008 closing are not included in GAAP results. 2009 results include the impact of the acquisition for the entire period. For more information, see the explanatory note at the end of this news release.
(2) Underlying operating profit excludes amortization of acquired intangible assets, fair value adjustments, integration program costs and the results of disposals.
"Our ability to continue delivering revenue and profit growth in these challenging markets demonstrates the strength of our business model, the choice of sectors in which we participate and our execution focus," said Thomas H. Glocer, chief executive officer.
"We recently marked the one-year anniversary of the Reuters acquisition, and the integration is ahead of plan and has gone very well. While the financial markets remain difficult, we are well positioned with services which promote transparency, manage risk and automate manual processes. In addition, our Legal, Tax & Accounting and Healthcare & Science businesses address major governmental priorities, such as enhanced regulation, tax reform and healthcare spending."
"We are concentrating our investments on key projects that will allow us to take share in difficult markets and grow strongly once the economy recovers. In the near term, close management of expenses and cost synergies from the integration should protect margins. Over the longer term, we expect renewed market growth and revenue synergies from the integration to drive significant profit growth."
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