Healthy Thomson Reuters Prepares to Quit LSE, Nasdaq

Business and professional information giant Thomson Reuters has reported results for the second quarter ended June 30, showing revenue growth and margin expansion, with continuing progress on the Reuters integration. Today, shareholders gave it the OK to drop its London and Nasdaq listings.

Citing its balanced spread of activities and subscription-based business model, the group reported solid results in the face of recession. Revenues from ongoing businesses were $3.3bn, an increase of 2% before currency and 5% after currency, compared to second-quarter 2008 pro forma revenues (the Reuters acquisition was completed on April 17, 2008). Underlying operating profit increased 11% to $793m and savings from the integration of the two information giants are said to be moving according to plan: the group reported $925m of run-rate savings (against a 2011 target of $1.4 billion) achieved by quarter-end.

The firm's Professional Division saw revenues of $1.376bn, up 4% (2% organic growth); and operating profit up around 3% from $416m to $430m. The Markets Division saw its revenues virtually unchanged before allowing for currency movements, at $1.908bn; but operating margin was up from 17.9% to 22.2%. The Europe, Middle East and Africa (EMEA) and Asia regions each grew 2%, while revenues from the Americas decreased 2%.

The company reaffirmed its previous outlook, with revenues expected to grow in 2009 and adjusted underlying operating margin and free cash flow to be comparable to 2008. A quarterly dividend of $0.28 per share will be paid on September 15.

The plan to unify the firm's dual listed company (DLC) structure was announced in June this year. Thomson Reuters shares will remain listed on the Toronto Stock Exchange and New York Stock Exchange and will no longer be listed on the London Stock Exchange or Nasdaq. Today's votes in Toronto and London saw shareholders overwhelmingly approve the proposal, which CEO Thomas H. Glocer says will bring a simpler, more efficient and less costly capital structure. He stresses that 'the unification will have no impact on the company's operations, strategy, financial position or employees, and London will remain a key center for Thomson Reuters.'

Pending UK court approval on August 25th, the unification will be completed on September 10, and the last day of trading of Thomson Reuters PLC ordinary shares on the London Stock Exchange and ADSs on Nasdaq will be September 9.

The firm employs more than 50,000 people and operates in over 100 countries. Web site: www.thomsonreuters.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.