"Our core business showed resilience and we continued to make progress throughout the second quarter despite a challenging backdrop and turbulent market conditions for many of our largest customers," said Jim Smith , president and chief executive officer of Thomson Reuters. "We are tracking to our full-year target and are well positioned to help our customers navigate the global trends affecting their industries."

IFRS Financial Measures

Revenues declined 1% due to the impact of currency and lower recoveries revenues

Operating profit increased 16% to $401 million

• The increase was driven by favorable fair value adjustments associated with foreign currency derivatives embedded in certain customer contracts

The increase was driven by favorable fair value adjustments associated with foreign currency derivatives embedded in certain customer contracts

Diluted EPS increased 50% to $0.39

• The increase was driven by the favorable changes in fair value described above and the benefit of lower common shares outstanding

The increase was driven by the favorable changes in fair value described above and the benefit of lower common shares outstanding

Cash flow from operations, which includes discontinued operations, decreased 19% to $770 million due to unfavorable timing of movements in working capital

Non-IFRS Financial Measures

Revenues declined 1%. Before currency, revenues were unchanged

• Excluding recoveries, revenues increased 1% (before currency)

Excluding recoveries, revenues increased 1% (before currency)

Adjusted EBITDA decreased 2% to $757 million with a margin of 27.3% vs. 27.5% in the prior-year period. Currency had a 40 basis point favorable impact on the margin

Underlying operating profit decreased 1% to $505 million with a margin of 18.2% unchanged compared to the prior-year period. Currency had a 30 basis point favorable impact on the margin

Adjusted EPS increased 11% to $0.50 , an increase of $0.05 per share. Currency had a $0.01 favorable impact

Other Business Highlights

Repurchased 6.3 million shares at a cost of $258 million in the second quarter. In the first half of the year, the company repurchased 18 million shares at a cost of $690 million
Signed definitive agreement to sell IP & Science business for $3.55 billion in cash, with a closing expected later in the year

Highlights by Business Unit

Unless otherwise noted, all revenue growth comparisons in this news release are before the impact of foreign currency (constant currency) as Thomson Reuters believes this provides the best basis to measure the performance of its business.

Financial & Risk

Revenues decreased 1%. Revenues grew approximately 2% before the impact of lower recoveries revenues and commercial pricing adjustments related to the migration of certain customers to new platforms.

• Recurring revenues were unchanged (77% of the segment's revenues in the quarter) as the impact of an annual price increase and a positive net sales trend was offset by lower revenues resulting from the pricing adjustments referred to above and macro-economic conditions affecting large European banks and banks in several emerging markets.
• Transactions revenues were up 1% (14% of the segment's revenues in the quarter). Transaction volumes were muted in advance of the British referendum on June 23 on EU membership (Brexit) yet experienced a significant increase on the day after the vote as over $480 billion was traded through the company's foreign exchange platforms on that date.
• Low-margin recoveries revenues decreased 17% (9% of the segment's revenues in the quarter) as some third-party partners continue to move to direct billing with their customers. The decline in these revenues is expected to lessen in the second half of the year.
• Recoveries represent revenues for content or services provided by third parties and distributed through Financial & Risk's platform. Reductions in recoveries revenue have no impact on EBITDA or operating profit.

Recurring revenues were unchanged (77% of the segment's revenues in the quarter) as the impact of an annual price increase and a positive net sales trend was offset by lower revenues resulting from the pricing adjustments referred to above and macro-economic conditions affecting large European banks and banks in several emerging markets.

Transactions revenues were up 1% (14% of the segment's revenues in the quarter). Transaction volumes were muted in advance of the British referendum on June 23 on EU membership (Brexit) yet experienced a significant increase on the day after the vote as over $480 billion was traded through the company's foreign exchange platforms on that date.

Low-margin recoveries revenues decreased 17% (9% of the segment's revenues in the quarter) as some third-party partners continue to move to direct billing with their customers. The decline in these revenues is expected to lessen in the second half of the year.

• Recoveries represent revenues for content or services provided by third parties and distributed through Financial & Risk's platform. Reductions in recoveries revenue have no impact on EBITDA or operating profit.

Recoveries represent revenues for content or services provided by third parties and distributed through Financial & Risk's platform. Reductions in recoveries revenue have no impact on EBITDA or operating profit.

By geography, revenues in the Americas were up 1% (up 2% excluding recoveries). Revenues in Asia were up 1% (up 3% excluding recoveries). Revenues in Europe , Middle East and Africa (EMEA) decreased 5% (down 2% excluding recoveries).

EBITDA increased 3% and the margin increased 140 basis points to 29.1% compared to 27.7% in the prior-year period. Excluding the impact of currency, the margin increased 90 basis points. The increase in the margin was primarily due to savings related to efficiency initiatives, platform closures completed in 2015 and the reduction in low margin recoveries revenues.

Operating profit increased 8% and the margin increased 180 basis points to 19.5% compared to 17.7% in the prior-year period. Excluding the impact of currency, the margin increased 130 basis points. The operating profit margin improvement reflected the same factors that impacted EBITDA.

Net sales were positive overall and were positive in all regions, except for EMEA. This marked the ninth consecutive quarter of positive net sales.

Legal

Revenues increased 1%. Excluding US print, revenues grew 3%.

• Solutions businesses grew 3% (44% of the segment's revenues in the quarter). Revenue growth was driven by Legal Enterprise Solutions and businesses in the United Kingdom / Ireland and Latin America .
• US online legal information grew 2% (41% of the segment's revenues in the quarter), reflecting growth for the sixth consecutive quarter.
• US print declined 8% (15% of the segment's revenues in the quarter).

Solutions businesses grew 3% (44% of the segment's revenues in the quarter). Revenue growth was driven by Legal Enterprise Solutions and businesses in the United Kingdom / Ireland and Latin America .

US online legal information grew 2% (41% of the segment's revenues in the quarter), reflecting growth for the sixth consecutive quarter.

US print declined 8% (15% of the segment's revenues in the quarter).

Subscription revenues grew 4% (73% of the segment's revenues in the quarter). However, transactional revenues declined 4% (12% of the segment's revenues in the quarter) due to lower Findlaw transactional revenues which reflected difficult prior-year period comparisons.

EBITDA decreased 3% and the margin decreased 110 basis points to 36.6% compared to 37.7% in the prior-year period. Currency had no impact on the margin.

Operating profit decreased 5% and the margin decreased 120 basis points to 29.2% compared to 30.4% in the prior-year period. Currency had no impact on the margin.

Tax & Accounting

Revenues increased 1%, primarily driven by the Professional business, offset by a decline in the Government business. Recurring revenues increased 7% (87% of the segment's revenues in the quarter).

EBITDA decreased 9% and the margin decreased 220 basis points to 25.3% compared to 27.5% in the prior-year period primarily due to the decline in Government-related revenues and additional expenses related to implementation delays in several large contracts. Excluding the impact of currency, the margin declined 340 basis points.

Operating profit decreased 13% and the margin decreased 230 basis points to 17.0% compared to 19.3% in the prior-year period. Excluding the impact of currency, the margin declined 290 basis points for the same reasons that drove EBITDA margin performance.

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.

Corporate & Other (Including Reuters News)

Reuters News revenues were $79 million , up 7% compared to the prior-year period.

Corporate & Other costs were $94 million compared to $86 million in the prior-year period. The increase was largely due to costs related to the company's Transformation program.

Discontinued Operations – IP & Science

On July 11, 2016 , the company announced that it had agreed to sell its IP & Science business to Onex and Baring Private Equity Asia for $3.55 billion . Net proceeds are expected to be between $3.1 billion and $3.2 billion after taxes and transaction related expenses. The company plans to use $1 billion of the net proceeds to buy back shares as part of its previously announced $1.5 billion program, and it plans to use the balance of proceeds to repay debt and reinvest in the business. Closing of the transaction is expected later in the year following regulatory approvals and satisfaction of other customary closing conditions.

The IP & Science business has been classified as a discontinued operation for 2016 reporting purposes.

IFRS Financial Measures

Revenues declined 1% due to the impact of currency and lower recoveries revenues

Operating profit increased 1% as lower depreciation and amortization of software and other identifiable intangible assets more than offset unfavorable fair value adjustments

Diluted EPS increased 10% to $0.65 due to the same factors that impacted operating profit and the benefit of lower common shares outstanding

Cash flow from operations, which includes discontinued operations, increased 3% due to lower income tax payments

Non-IFRS Financial Measures

Revenues declined 1%. Before currency, revenues increased 1%. Excluding recoveries, revenues increased 2% (before currency)

Adjusted EBITDA was unchanged at $1.5 billion with a margin of 27.1% vs. 26.8% in the prior-year period. Currency had a 50 basis point favorable impact on the margin

Underlying operating profit increased 3% to $1 billion with a margin of 18.0% vs. 17.3% in the prior-year period. Currency had a 40 basis point favorable impact on the margin

Adjusted EPS increased 17% to $0.98 , an increase of $0.14 per share. Currency had a $0.02 favorable impact

Free cash flow for the first six months of the year increased 16% to $748 million compared to $644 million in the prior-year period

Future Changes to Definitions of Adjusted Earnings and Adjusted EPS

When the company reports its results for the third quarter of 2016, it plans to redefine adjusted earnings and adjusted EPS in relation to certain tax computations to better align these definitions with current market practices and to reflect guidance recently issued by the U.S. Securities and Exchange Commission. These changes will not impact the company's reporting of revenues, adjusted EBITDA, underlying operating profit or free cash flow.

Appendix A to this news release reflects the changes that the company plans to make to adjusted earnings and adjusted EPS and also includes reconciliations from earnings attributable to common shareholders to adjusted earnings and adjusted EPS on a redefined basis for 2015, 2014 and 2013. Additional details and reconciliations for 2015, 2014, 2013 and for the first and second quarters of 2016 (excluding the results for IP & Science for each period) may be found in the Investor Relations section of the company's website.

Business Outlook (Before Currency)

Thomson Reuters today re-affirmed its full-year business outlook for 2016, which was previously communicated in February 2016 . The company's 2016 Outlook assumes constant currency rates compared to 2015 and all metrics below (except for free cash flow) exclude the IP & Science business, which has been classified as a discontinued operation for 2016 reporting purposes. The 2016 Outlook is based on the expected performance of the company's remaining businesses and does not factor in the impact of any other acquisitions or divestitures that may occur during the year.

The company continues to expect:

Low single-digit revenue growth

• 2% to 3% revenue growth excluding Financial & Risk's recoveries revenues, which are low margin revenues and are expected to decline as partners move to direct billing with their customers

2% to 3% revenue growth excluding Financial & Risk's recoveries revenues, which are low margin revenues and are expected to decline as partners move to direct billing with their customers

Adjusted EBITDA margin to range between 27.3% and 28.3%

• Comparable 2015 adjusted EBITDA margin (excluding IP & Science business) was 27.3%

Comparable 2015 adjusted EBITDA margin (excluding IP & Science business) was 27.3%

Underlying operating profit margin to range between 18.4% and 19.4%

• Comparable 2015 underlying operating profit margin (excluding IP & Science business) was 18.1%

Comparable 2015 underlying operating profit margin (excluding IP & Science business) was 18.1%

Free cash flow to range between $1.7 billion and $1.9 billion in 2016

The information in this section is forward-looking and should be read in conjunction with the section below entitled "Special Note Regarding Forward-Looking Statements, Material Assumptions and Material Risks."

Dividend and Share Repurchases

In February 2016 , the Thomson Reuters board of directors approved a $0.02 per share annualized increase in the dividend to $1.36 per common share. A quarterly dividend of $0.34 per share is payable on September 15, 2016 to common shareholders of record as of August 18, 2016 .

From January 1, 2016 through June 30, 2016 , the company repurchased approximately 18 million shares at a cost of $690 million . Of this amount, 6.3 million shares were repurchased in the second quarter at a cost of $258 million . Under the current $1.5 billion share repurchase program announced in February 2016 , the company has repurchased approximately 13.3 million shares at a cost of $517 million .