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As the “earnings season” is gathering pace, Thomson Reuters Corp (NYSE:TRI) has just announced its fiscal results for the first three months of 2016.
Below are the highlights for the first quarter ended March 31, 2016:
- Reported revenues of $2.79 billion, down 1% year on year. Before currency, revenues grew 1%. Excluding recoveries, revenues increased 2% (before currency).
- Adjusted EBITDA grew 2% to $748 million with a margin of 26.8% vs. 26.0% in the prior-year period. Currency had a 70 basis point favorable impact on the margin.
- Underlying operating profit increased 8% year on year to $498 million with a margin of 17.8% vs. 16.3% in the prior-year period. Currency had a 70 basis point favorable impact on the margin.
- Adjusted earnings per share (EPS) increased 23% to $0.48, an increase of $0.09 per share. Currency had a $0.01 favorable impact on adjusted EPS.
- Sale process for Intellectual Property & Science commenced, with a closing currently anticipated in the second half of 2016.
Across divisions, we pay special attention to the performance of Financial & Risk operations, where revenues declined 1% compared to the prior-year period. Transactions revenues (which account for 14% of the segment’s revenues in the quarter) decreased 1% due to lower Forex volumes.
Thomson Reuters forecasts that Financial & Risk’s recoveries revenues will decline approximately $100 million in 2016. Recoveries represent revenues for content or services provided by third parties and distributed through Financial & Risk’s platform.
By geography, Financial & Risk revenues in Asia were up 3% and the Americas up 1%, while revenues in Europe, Middle East and Africa (EMEA) were down 3%.
The division saw operating profit increase 22% and the margin increase 400 basis points to 19.5% compared to 15.5% in the prior-year period. Excluding the impact of currency, the margin increased 380 basis points.
For the full report from Thomson Reuters, click here.