Thomson Reuters Reports First-Quarter 2022 Results
TORONTO, May 3, 2022 /PRNewswire/ -- Thomson Reuters
(TSX/NYSE: TRI) today reported results for the first quarter ended
March 31,
2022:
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- Strong revenue and sales growth continued in the first quarter
- Total company revenue up 6% / organic revenue up 7%
- Organic revenue up 7% for the "Big 3" (Legal Professionals,
Corporates and Tax & Accounting Professionals)
- Raised full-year 2022 revenue guidance
- Total company revenue forecast increased to approximately 5.5%
from approximately 5.0%
- "Big 3" segments revenue forecast increased to approximately
6.5% from a range of 6.0% - 6.5%
- No other changes to full-year 2022 outlook, reaffirmed
full-year 2023 outlook
- Change Program on track - $305
million run-rate operating expense savings at
quarter-end
"The momentum we saw throughout 2021 continued to build in the
first quarter of 2022, with both sales and revenue exceeding our
expectations. The strong start to the year gives us confidence we
are on the right path to achieve our 2022 and 2023 targets," said
Steve Hasker, President and CEO of
Thomson Reuters.
Mr. Hasker added, "Our businesses are benefiting from
significant prevailing tailwinds driven by a step change in the
complexity of compliance in our legal, tax, and risk-related
markets. The resulting need for trusted, accurate and actionable
content and technology plays to our strengths. Against this
backdrop, we will continue to invest in our businesses, our
employees and our customers' success as we work to translate our
current momentum into sustainable long-term value creation."
Consolidated Financial Highlights -
Three Months Ended March 31
Three Months Ended
March 31,
(Millions of U.S. dollars, except for adjusted EBITDA margin and
EPS)
(unaudited)
|
| IFRS Financial Measures(1) |
2022 |
2021 |
Change |
Change at
Constant
Currency |
| Revenues |
$1,674 |
$1,580 |
6% |
|
| Operating profit |
$414 |
$387 |
7% |
|
| Diluted earnings per share (EPS) |
$2.06 |
$10.13 |
-80% |
|
| Net cash provided by operating activities |
$275 |
$380 |
-28% |
|
| Non-IFRS Financial
Measures(1) |
|
|
|
|
| Revenues |
$1,674 |
$1,580 |
6% |
7% |
| Adjusted EBITDA |
$600 |
$558 |
7% |
7% |
| Adjusted EBITDA margin |
35.8% |
35.3% |
50bp |
20bp |
| Adjusted EPS |
$0.66 |
$0.58 |
14% |
14% |
| Free cash flow |
$86 |
$239 |
-64% |
|
(1) In addition to results reported in
accordance with International Financial Reporting Standards (IFRS),
the company uses certain non-IFRS
financial measures as supplemental
indicators of its operating performance and financial position. See
the "Non-IFRS Financial
Measures" section and the tables
appended to this news release for additional information on these
and other non-IFRS financial
measures, including how they are
defined and reconciled to the most directly comparable IFRS
measures. |
Revenues increased 6%, driven by growth across four
of the company's five business segments. Foreign currency had a 1%
negative impact on revenues.
- Organic revenues increased 7%, driven by 7% growth in recurring
revenues (78% of total revenues) as well as 8% growth in
transactions revenues. Global Print revenues were flat compared to
the prior-year period.
- Organic growth of 7% included an approximately 100bp benefit
resulting primarily from transactional revenue that is unlikely to
recur at this level and, to a lesser extent, timing. The company
expects organic growth to normalize in the remainder of the year
and be in line with full-year guidance.
- The company's "Big 3" segments (Legal Professionals, Corporates
and Tax & Accounting Professionals) reported organic revenue
growth of 7% and collectively comprised 81% of total revenues.
Operating profit increased 7% as higher revenues
more than offset higher costs, which included investments
associated with the company's Change Program.
- Adjusted EBITDA increased 7% due to the same
factors as operating profit. The related margin increased to 35.8%
from 35.3% in the prior-year period. Investments in the Change
Program negatively impacted the first-quarter adjusted EBITDA
margin by 210bp.
Diluted earnings per share (EPS) was $2.06 per share compared to $10.13 per share in the prior-year period. The
current period included a benefit from an increase in the value of
the company's investment in London Stock Exchange Group (LSEG),
while the prior-year period included a gain of approximately
$8.1 billion on the sale of Refinitiv
to LSEG.
- Adjusted EPS, which excludes the change in value of the
company's LSEG investment, the gain on the sale of Refinitiv and
other adjustments, increased to $0.66
per share from $0.58 per share in the
prior-year period, primarily due to higher adjusted EBITDA.
Net cash provided by operating activities decreased
due to higher payments associated with the Change Program as well
as higher annual incentive plan bonuses.
- Free cash flow decreased $153 million due to lower cash flows from
operating activities and higher capital expenditures associated
with the Change Program.
Highlights by Customer Segment - Three
Months Ended March 31
(Millions of U.S.
dollars, except for adjusted EBITDA margins)
(unaudited) |
|
|
|
|
|
|
|
Three Months
Ended |
|
|
|
|
March
31, |
|
Change |
|
|
2022 |
2021(2) |
|
Total |
Constant
Currency(1) |
Organic(1)(3) |
| Revenues |
|
|
|
|
|
|
|
| Legal Professionals |
|
$698 |
$668 |
|
4% |
5% |
6% |
| Corporates |
|
411 |
382 |
|
8% |
8% |
8% |
| Tax & Accounting
Professionals |
|
253 |
227 |
|
11% |
11% |
11% |
| "Big 3" Segments
Combined(1) |
|
1,362 |
1,277 |
|
7% |
7% |
7% |
| Reuters News |
|
176 |
165 |
|
7% |
9% |
9% |
| Global Print |
|
142 |
143 |
|
-1% |
0% |
0% |
|
Eliminations/Rounding |
|
(6) |
(5) |
|
|
|
|
| Revenues |
|
$1,674 |
$1,580 |
|
6% |
7% |
7% |
|
|
|
|
|
|
|
|
| Adjusted
EBITDA(1) |
|
|
|
|
|
|
|
| Legal Professionals |
|
$305 |
$279 |
|
9% |
10% |
|
| Corporates |
|
157 |
145 |
|
8% |
7% |
|
| Tax & Accounting
Professionals |
|
122 |
99 |
|
23% |
22% |
|
| "Big 3" Segments
Combined(1) |
|
584 |
523 |
|
11% |
11% |
|
| Reuters News |
|
37 |
28 |
|
31% |
23% |
|
| Global Print |
|
53 |
57 |
|
-8% |
-7% |
|
| Corporate costs |
|
(74) |
(50) |
|
n/a |
n/a |
|
| Adjusted EBITDA |
|
$600 |
$558 |
|
7% |
7% |
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA
Margin(1) |
|
|
|
|
|
|
|
| Legal Professionals |
|
43.7% |
41.8% |
|
190bp |
190bp |
|
| Corporates |
|
38.1% |
38.0% |
|
10bp |
-20bp |
|
| Tax & Accounting
Professionals |
|
48.3% |
43.8% |
|
450bp |
420bp |
|
| "Big 3" Segments
Combined(1) |
|
42.9% |
41.0% |
|
190bp |
160bp |
|
| Reuters News |
|
21.0% |
17.1% |
|
390bp |
240bp |
|
| Global Print |
|
37.0% |
39.9% |
|
-290bp |
-300bp |
|
| Adjusted EBITDA margin |
|
35.8% |
35.3% |
|
50bp |
20bp |
|
|
|
|
|
|
|
|
|
(1) See the "Non-IFRS
Financial Measures" section and the tables appended to this news
release for additional information on these and other non-IFRS
financial measures.
(2) For comparative purposes,
2021 segment results have been revised to reflect the current
period presentation. For additional information, see the "Revision
to Prior-Year Segment Results" section of this news
release.
(3) Computed for revenue
growth only.
n/a: not applicable |
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Unless otherwise noted, all revenue
growth comparisons by customer segment in this news release are
at constant currency (or exclude the
impact of foreign currency) as Thomson Reuters believes this
provides the best basis to measure their performance.
Legal Professionals
Revenues increased 5% (6% organic) to $698 million.
- Recurring revenues grew 6% (94% of total, all organic),
primarily due to strong performances from the Government business,
Westlaw, Practical Law, FindLaw and the segment's business in
Canada and Asia & Emerging Markets.
- Transactions revenues decreased 3% (6% of total, decreased 2%
organic).
Adjusted EBITDA increased 9% to $305 million.
- The margin increased to 43.7% from 41.8%, primarily due to
higher revenues and Change Program savings.
Corporates
Revenues increased 8% (all organic) to $411 million. Revenues benefited from
transactional revenue strength that is unlikely to recur at
first-quarter levels.
- Recurring revenues grew 8% (77% of total, all organic) driven
by Practical Law, CLEAR and Indirect Tax.
- Transactions revenues grew 8% (23% of total, all organic),
driven by Confirmation as well as the company's businesses in
Latin America and Asia & Emerging Markets.
Adjusted EBITDA increased 8% to $157 million.
- The margin increased to 38.1% from 38.0%, as higher expenses
largely offset higher revenues.
Tax & Accounting Professionals
Revenues increased 11% (all organic) to $253 million. Revenues benefited from a change in
the year-over-year timing of the U.S. federal tax filing deadlines
for individuals, which returned to April in 2022 compared to the
extended deadline in May 2021. This
benefited organic revenues by 150bp in the first quarter of 2022
and will reverse in the second quarter of 2022.
- Recurring revenues grew 12% (72% of total, all organic), driven
by strong growth from UltraTax and the company's Latin America businesses.
- Transactions revenues increased 10% (28% of total, all
organic), primarily due to the year-over-year timing of the U.S.
federal tax filing deadlines for individuals and audit
products.
Adjusted EBITDA increased 23% to $122 million.
- The margin increased to 48.3% from 43.8%, primarily due to
higher revenues and Change Program savings.
The Tax & Accounting Professionals segment is the company's
most seasonal business with approximately 60% of full-year revenues
typically generated in the first and fourth quarters. As a result,
the margin performance of this segment has been generally higher in
the first and fourth quarters as costs are typically incurred in a
more linear fashion throughout the year.
Reuters News
Revenues of $176
million increased 9% (all organic), primarily driven by the
Professionals business and the increase in the company's LSEG news
agreement.
Adjusted EBITDA increased 31% to $37 million, primarily due to higher
revenues.
Global Print
Revenues were flat compared to the prior-year
period, which was better than the decline that the company expected
due to higher third-party revenues for printing services and the
timing of new sales.
Adjusted EBITDA decreased 8% to $53 million.
- The margin decreased to 37.0% from 39.9% due to the dilutive
effect of third-party print revenue.
Corporate Costs
Corporate costs at the adjusted EBITDA level were
$74 million and included $34 million of Change Program costs. Corporate
costs were $50 million in the
prior-year period and included $11
million of Change Program costs. Additional information
regarding the Change Program is provided below.
Change Program
In February 2021, the company
announced a two-year Change Program to transition from a holding
company to an operating company, and from a content provider to a
content-driven technology company. The company is 15 months into
the program, which is expected to be largely complete by the end of
2022. The program is projected to require an investment of
approximately $600 million during
that time of which $357 million has
been invested as of March 31, 2022.
The company continues to anticipate that Change Program spending
will be approximately 60% operating expenses and 40% capital
expenditures.
2022 and 2023 Outlook
The company's updated outlook for 2022 and reaffirmed outlook
for 2023 (which is reflected in the table below) incorporates the
forecasted impacts associated with the Change Program, assumes
constant currency rates, and excludes the impact of any future
acquisitions or dispositions that may occur during those periods.
Thomson Reuters believes that this type of guidance provides useful
insight into the performance of its businesses.
The company expects its second-quarter 2022 revenue growth rate
will be comparable to its full-year 2022 outlook targets and
second-quarter 2022 adjusted EBITDA margin to be approximately
200bp below its full-year 2022 outlook targets.
While the company's first-quarter 2022 performance provides it
with increasing confidence about its outlook, the global economy
has recently experienced substantial disruption due to concerns
regarding economic effects associated with the pandemic, ongoing
geopolitical risks and other events and macroeconomic factors. Any
worsening of the global economic or business environment could
impact the company's ability to achieve its outlook.
Updated Full-Year
2022 Outlook
| Total Thomson Reuters |
FY 2022
Outlook
2/23/21 |
FY 2022
Outlook
2/8/22 |
FY 2022
Outlook
5/3/22 |
| Total Revenue Growth |
4.0% - 5.0% |
~ 5% |
~ 5.5% |
| Organic Revenue Growth(1) |
4.0% - 5.0% |
~ 5% |
~ 5.5% |
| Adjusted EBITDA Margin(1) |
34% - 35% |
~ 35% |
Unchanged |
Corporate Costs
Core Corporate Costs
Change Program Opex |
$245 - $280 million
$120 - $130 million
$125 - $150 million |
$280 - $330 million
Unchanged
$160 - $200 million |
Unchanged
Unchanged
Unchanged |
| Free Cash Flow(1) |
$1.2 - $1.3 billion |
~ $1.3 billion |
Unchanged |
Accrued Capex as % of
Revenue(1)
Change Program Accrued Capex |
7.5% - 8.0%
$75 - $100 million |
Unchanged
$100 - $140 million |
Unchanged
Unchanged |
Depreciation & Amortization
of
Computer Software |
$620 - $645 million |
Unchanged |
Unchanged |
| Interest Expense (P&L) |
$190 - $210 million |
Unchanged |
Unchanged |
| Effective Tax Rate on Adjusted
Earnings(1) |
n/a |
19% - 21% |
Unchanged |
| "Big 3" Segments(1) |
FY 2022
Outlook
2/23/21 |
FY 2022
Outlook
2/8/22 |
FY 2022
Outlook
5/3/22 |
| Total Revenue Growth |
5.5% - 6.5% |
6.0% - 6.5% |
~ 6.5% |
| Organic Revenue Growth |
5.5% - 6.5% |
6.0% - 6.5% |
~ 6.5% |
| Adjusted EBITDA Margin |
41% - 42% |
~ 42% |
Unchanged |
|
|
| (1) |
Non-IFRS financial measures. See the
"Non-IFRS Financial Measures" section below as well as the tables
and footnotes appended to this news release for more
information. |
Reported Full-Year
2021 and Updated Full-Year 2022 – 2023 Outlook
| Total Thomson Reuters |
FY 2021
Reported |
FY 2022
Outlook
Updated |
FY 2023
Outlook
Reaffirmed |
| Total Revenue Growth |
6.1% |
~ 5.5% |
5.5% - 6.0% |
| Organic Revenue Growth(1) |
5.2% |
~ 5.5% |
5.5% - 6.0% |
| Adjusted EBITDA Margin(1) |
31.0% |
~ 35% |
39% - 40% |
Corporate Costs
Core Corporate Costs
Change Program Opex |
$325 million
$142 million
$183 million |
$280 - $330 million
$120 - $130 million
$160 - $200 million |
$110 - $120 million
$110 - $120 million
$0 |
| Free Cash Flow(1) |
$1.3 billion |
~ $1.3 billion |
$1.9 – $2.0 billion |
Accrued Capex as % of
Revenue(1)
Change Program Accrued Capex |
8.5%
$112 million |
7.5% - 8.0%
$100 - $140 million |
6.0% - 6.5%
$0 |
Depreciation & Amortization
of
Computer Software |
$651 million |
$620 - $645 million |
$580 - $605 million |
| Interest Expense (P&L) |
$196 million |
$190 - $210 million |
$190 - $210 million |
| Effective Tax Rate on Adjusted
Earnings(1) |
13.9% |
19% - 21% |
n/a |
| "Big 3" Segments(1) |
FY 2021
Reported |
FY 2022
Outlook
Updated |
FY 2023
Outlook
Reaffirmed |
| Total Revenue Growth |
6.9% |
~ 6.5% |
6.5% - 7.0% |
| Organic Revenue Growth |
6.2% |
~ 6.5% |
6.5% - 7.0% |
| Adjusted EBITDA Margin |
38.8% |
~ 42% |
44% – 45% |
|
|
| (1) |
Non-IFRS financial measures. See the
"Non-IFRS Financial Measures" section below as well as the tables
and footnotes appended to this news release for more
information. |
The information in
this section is forward-looking. Actual results, which will
include the impact of currency and future acquisitions and
dispositions completed during 2022 and 2023, may differ materially
from the company's outlook. The information in this section should
also be read in conjunction with the section below entitled
"Special Note Regarding Forward-Looking Statements, Material Risks
and Material Assumptions."
Dividends and Share Repurchases
In February 2022, the company
announced a 10% or $0.16 per share
annualized increase in the dividend to $1.78 per common share, representing the
29th consecutive year of dividend increases. A
quarterly dividend of $0.445 per
share is payable on June 15, 2022 to
common shareholders of record as of May 26,
2022.
The company did not repurchase any of its shares in the first
quarter of 2022.
As of May 2, 2022, Thomson Reuters
had approximately 487.1 million common shares outstanding.
LSEG Ownership Interest
In January 2021, Thomson Reuters
and private equity funds affiliated with Blackstone sold Refinitiv
to LSEG in an all-share transaction. Thomson Reuters indirectly
owns LSEG shares through an entity that it jointly owns with
Blackstone's consortium and a group of current LSEG and former
Refinitiv senior management.
As of May 2, 2022, Thomson Reuters
indirectly owned approximately 72.4 million LSEG shares which had a
market value of approximately $7.2
billion based on LSEG's closing share price on that day.
Thomson Reuters
Thomson Reuters is a leading provider of business information
services. Our products include highly specialized
information-enabled software and tools for legal, tax, accounting
and compliance professionals combined with the world's most global
news service – Reuters. For more information on Thomson Reuters,
visit tr.com and for the latest world
news, reuters.com.
NON-IFRS FINANCIAL MEASURES
Thomson Reuters prepares its
financial statements in accordance with International Financial
Reporting Standards (IFRS), as issued by the International
Accounting Standards Board (IASB).
This news release includes certain
non-IFRS financial measures, which include ratios that incorporate
one or more non-IFRS financial measures, such as adjusted EBITDA
and the related margin (other than at the customer segment level),
free cash flow, adjusted EPS and the effective tax rate on adjusted
EPS, accrued capital expenditures expressed as a percentage of
revenues, selected measures excluding the impact of foreign
currency, changes in revenues computed on an organic basis as well
as all financial measures for the "Big 3". Thomson Reuters uses
these non-IFRS financial measures as supplemental indicators of its
operating performance and financial position as well as for
internal planning purposes and the company's business outlook.
Additionally, Thomson Reuters uses non-IFRS measures as the basis
for management incentive programs. These measures do not have any
standardized meanings prescribed by IFRS and therefore are unlikely
to be comparable to the calculation of similar measures used by
other companies and should not be viewed as alternatives to
measures of financial performance calculated in accordance with
IFRS. Non-IFRS financial measures are defined and reconciled to the
most directly comparable IFRS measures in the appended tables.
The company's outlook contains
various non-IFRS financial measures. The company believes that
providing reconciliations of forward-looking non-IFRS financial
measures in its outlook would be potentially misleading and not
practical due to the difficulty of projecting items that are not
reflective of ongoing operations in any future period. The
magnitude of these items may be significant. Consequently, for
outlook purposes only, the company is unable to reconcile these
non-IFRS measures to the most directly comparable IFRS measures
because it cannot predict, with reasonable certainty, the 2022 and
2023 impacts of changes in foreign exchange rates which impact (i)
the translation of its results reported at average foreign currency
rates for the year, and (ii) other finance income or expense
related to intercompany financing arrangements and foreign exchange
contracts. Additionally, the company cannot reasonably
predict (i) its share of post-tax earnings (losses) in equity
method investments, which is subject to changes in the stock
price of LSEG or (ii) the occurrence or amount of other operating
gains and losses that generally arise from business transactions
that the company does not currently anticipate.
ROUNDING
Other than EPS, the company reports
its results in millions of U.S. dollars, but computes percentage
changes and margins using whole dollars to be more precise. As a
result, percentages and margins calculated from reported amounts
may differ from those presented, and growth components may not
total due to rounding.
REVISION TO PRIOR-YEAR SEGMENT
RESULTS
In the first quarter of 2022, the
company made two changes to its segment reporting to reflect how it
currently manages its businesses. The changes (i) reflect the
transfer of certain revenues from its Corporates business to its
Tax & Accounting Professionals business where they are better
aligned; and (ii) record intercompany revenue in Reuters News for
content-related services that it provides to Legal Professionals,
Corporates and Tax & Accounting Professionals. Previously,
these services had been reported as a transfer of expense from
Reuters News to these businesses. These changes impact the
financial results of the company's segments, but do not change the
company's consolidated financial results. The table below
summarizes the changes to the company's first-quarter 2021
results.
|
|
Three Months Ended
March 31, 2021 |
| (millions of U.S. dollars) |
|
As Reported |
Adjustments |
As Revised |
| Revenues |
|
|
|
|
| Legal Professionals |
|
$668 |
- |
$668 |
| Corporates |
|
384 |
$(2) |
382 |
| Tax & Accounting Professionals |
|
225 |
2 |
227 |
| "Big 3" Segments Combined (1) |
|
1,277 |
- |
1,277 |
| Reuters News |
|
160 |
5 |
165 |
| Global Print |
|
143 |
- |
143 |
| Eliminations/Rounding |
|
- |
(5) |
(5) |
| Revenues |
|
$1,580 |
- |
$1,580 |
|
|
|
|
|
| Adjusted EBITDA(1) |
|
|
|
|
| Legal Professionals |
|
$279 |
- |
$279 |
| Corporates |
|
146 |
$(1) |
145 |
| Tax & Accounting Professionals |
|
98 |
1 |
99 |
| "Big 3" Segments Combined (1) |
|
523 |
- |
523 |
| Reuters News |
|
28 |
- |
28 |
| Global Print |
|
57 |
- |
57 |
| Corporate costs |
|
(50) |
- |
(50) |
| Adjusted EBITDA |
|
$558 |
- |
$558 |
(1) See "Non-IFRS Financial
Measures" section and the tables appended to this news release for
additional information on these and other non-IFRS financial
measures. |
SPECIAL NOTE REGARDING FORWARD-LOOKING
STATEMENTS, MATERIAL RISKS AND MATERIAL ASSUMPTIONS
Certain statements in this news
release, including, but not limited to, statements in Mr. Hasker's
comments and the "Change Program," "2022 and 2023 Outlook" and
"LSEG Ownership Interest" sections, are forward-looking. The words
"will", "expect", "believe", "target", "estimate", "could",
"should", "intend", "predict", "project" and similar expressions
identify forward-looking statements. While the company believes
that it has a reasonable basis for making forward-looking
statements in this news release, they are not a guarantee of future
performance or outcomes and there is no assurance that any of the
other events described in any forward-looking statement will
materialize. Forward-looking statements are subject to a number of
risks, uncertainties and assumptions that could cause actual
results or events to differ materially from current expectations.
Many of these risks, uncertainties and assumptions are beyond the
company's control and the effects of them can be difficult to
predict.
Some of the material risk factors that could cause actual
results or events to differ materially from those expressed in or
implied by forward-looking statements in this news release include,
but are not limited to, those discussed on pages 17-30 in the "Risk
Factors" section of the company's 2021 annual report. These and
other risk factors are discussed in materials that Thomson Reuters
from time to time files with, or furnishes to, the Canadian
securities regulatory authorities and the U.S. Securities and
Exchange Commission (SEC). Thomson Reuters annual and quarterly
reports are also available in the "Investor Relations" section
of tr.com.
The company's business outlook is based on information
currently available to the company and is based on various external
and internal assumptions made by the company in light of its
experience and perception of historical trends, current conditions
and expected future developments, as well as other factors that the
company believes are appropriate under the circumstances. Material
assumptions and material risks may cause actual performance to
differ from the company's expectations underlying its business
outlook. For a discussion of material assumptions and material
risks related to the company's 2022 and 2023 outlook, please see
pages 62-63 of the company's 2021 annual report. Material
assumptions and material risks related to the company's outlook
will also be included in the company's first-quarter management's
discussion and analysis for the period ended March 31, 2022, which is expected to be filed
shortly. The company's quarterly MD&A and annual report are
filed with, or furnished to, the Canadian securities regulatory
authorities and the U.S. SEC and are also available in the
"Investor Relations" section of tr.com.
The company has provided an outlook
for the purpose of presenting information about current
expectations for the periods presented. This information may not be
appropriate for other purposes. You are cautioned not to place
undue reliance on forward-looking statements which reflect
expectations only as of the date of this news release.
Except as may be required by
applicable law, Thomson Reuters disclaims any obligation to update
or revise any forward-looking statements.
CONTACTS
MEDIA
Melissa Cassar
Head of Commercial Communications & Corporate Affairs
+1 437 388 3619
melissa.cassar@tr.com |
INVESTORS
Gary Bisbee
Head of Investor Relations
+1 646 540 3249
gary.bisbee@tr.com |
Thomson Reuters will webcast a
discussion of its first-quarter 2022 results and its business
outlook today beginning at 9:00 a.m. Eastern
Daylight Time (EDT). You can access the webcast by
visiting ir.tr.com. An archive of the webcast will be
available following the presentation.
| Thomson Reuters
Corporation |
| Consolidated Income
Statement |
| (millions of U.S.
dollars, except per share data) |
| (unaudited) |
|
|
Three Months
Ended |
|
March 31, |
|
2022 |
2021 |
| CONTINUING OPERATIONS |
|
|
| Revenues |
$1,674 |
$1,580 |
| Operating expenses |
(1,081) |
(1,018) |
| Depreciation |
(38) |
(46) |
| Amortization of computer software |
(114) |
(115) |
| Amortization of other identifiable intangible
assets |
(26) |
(31) |
| Other operating (losses) gains, net |
(1) |
17 |
| Operating profit |
414 |
387 |
| Finance costs, net: |
|
|
| Net interest expense |
(48) |
(51) |
| Other finance income
(costs) |
94 |
(6) |
| Income before tax and equity method
investments |
460 |
330 |
| Share of post-tax earnings in equity method
investments |
798 |
6,297 |
| Tax expense |
(240) |
(1,594) |
| Earnings from continuing operations |
1,018 |
5,033 |
| (Loss) earnings from discontinued operations, net
of tax |
(11) |
3 |
| Net earnings |
$1,007 |
$5,036 |
| Earnings attributable to common shareholders |
$1,007 |
$5,036 |
|
|
|
| Earnings per share: |
|
|
| Basic earnings (loss) per share: |
|
|
| From continuing operations |
$2.09 |
$10.15 |
| From discontinued operations |
(0.02) |
- |
| Basic earnings per share |
$2.07 |
$10.15 |
|
|
|
| Diluted earnings (loss) per share: |
|
|
| From continuing operations |
$2.09 |
$10.13 |
| From discontinued operations |
(0.03) |
- |
| Diluted earnings per share |
$2.06 |
$10.13 |
|
|
|
| Basic weighted-average common shares |
486,708,758 |
495,939,970 |
| Diluted weighted-average common shares |
487,513,216 |
496,938,318 |
| Thomson Reuters
Corporation |
| Consolidated
Statement of Financial Position |
| (millions of U.S.
dollars) |
| (unaudited) |
|
|
March 31, |
|
December
31, |
| 2022 |
|
2021(1) |
| Assets |
|
|
|
| Cash and cash equivalents |
$654 |
|
$778 |
| Trade and other receivables |
982 |
|
1,057 |
| Other financial assets |
49 |
|
108 |
| Prepaid expenses and other current assets |
445 |
|
462 |
| Current assets excluding assets held
for sale |
2,130 |
|
2,405 |
| Assets held for sale |
211 |
|
48 |
| Current assets |
2,341 |
|
2,453 |
|
|
|
|
| Property and equipment, net |
479 |
|
502 |
| Computer software, net |
826 |
|
822 |
| Other identifiable intangible assets, net |
3,302 |
|
3,331 |
| Goodwill |
5,882 |
|
5,940 |
| Equity method investments |
7,545 |
|
6,736 |
| Other non-current assets |
1,312 |
|
1,226 |
| Deferred tax |
1,142 |
|
1,139 |
| Total assets |
$22,829 |
|
$22,149 |
|
|
|
|
| Liabilities and equity |
|
|
|
| Liabilities |
|
|
|
| Payables, accruals and provisions |
$1,050 |
|
$1,326 |
| Current tax liabilities |
211 |
|
169 |
| Deferred revenue |
824 |
|
874 |
| Other financial liabilities |
78 |
|
175 |
| Current liabilities excluding
liabilities associated with assets held for sale |
2,163 |
|
2,544 |
| Liabilities associated with assets held for
sale |
158 |
|
37 |
| Current liabilities |
2,321 |
|
2,581 |
|
|
|
|
| Long-term indebtedness |
3,800 |
|
3,786 |
| Provisions and other non-current liabilities |
881 |
|
943 |
| Deferred tax |
1,202 |
|
1,005 |
| Total liabilities |
8,204 |
|
8,315 |
|
|
|
|
| Equity |
|
|
|
| Capital |
5,485 |
|
5,496 |
| Retained earnings |
9,974 |
|
9,149 |
| Accumulated other comprehensive loss |
(834) |
|
(811) |
| Total equity |
14,625 |
|
13,834 |
| Total liabilities and equity |
$22,829 |
|
$22,149 |
|
|
| (1) |
Prior-year period amounts have been
revised to reflect the current period presentation. |
|
|
|
|
|
| Thomson Reuters
Corporation |
| Consolidated
Statement of Cash Flow |
| (millions of U.S.
dollars) |
|
(unaudited) |
|
|
Three Months
Ended
March 31, |
|
2022 |
2021 |
| Cash provided by (used in): |
|
|
| Operating activities |
|
|
| Earnings from continuing operations |
$1,018 |
$5,033 |
| Adjustments for: |
|
|
| Depreciation |
38 |
46 |
| Amortization of computer
software |
114 |
115 |
| Amortization of other
identifiable intangible assets |
26 |
31 |
| Share of post-tax earnings in
equity method investments |
(798) |
(6,297) |
| Deferred tax |
166 |
674 |
| Other |
(39) |
30 |
| Changes in working capital and other
items |
(191) |
785 |
| Operating cash flows from continuing
operations |
334 |
417 |
| Operating cash flows from discontinued
operations |
(59) |
(37) |
| Net cash provided by operating activities |
275 |
380 |
| Investing activities |
|
|
| Acquisitions, net of cash acquired |
(8) |
(3) |
| Proceeds from disposals of businesses and
investments |
- |
5 |
| Dividend from sale of LSEG shares |
- |
994 |
| Capital expenditures |
(171) |
(120) |
| Other investing activities |
- |
1 |
| Taxes paid on sale of Refinitiv and LSEG
shares |
- |
(6) |
| Investing cash flows from continuing
operations |
(179) |
871 |
| Investing cash flows from discontinued
operations |
- |
(42) |
| Net cash (used in) provided by investing
activities |
(179) |
829 |
| Financing activities |
|
|
| Payments of lease principal |
(17) |
(21) |
| Repurchases of common shares |
- |
(200) |
| Dividends paid on preference shares |
(1) |
(1) |
| Dividends paid on common shares |
(209) |
(194) |
| Other financing activities |
7 |
5 |
| Net cash used in financing activities |
(220) |
(411) |
| Translation adjustments |
- |
(1) |
| (Decrease) increase in cash and cash
equivalents |
(124) |
797 |
| Cash and cash equivalents at beginning of
period |
778 |
1,787 |
| Cash and cash equivalents at end of period |
$654 |
$2,584 |
| Thomson
Reuters Corporation |
|
| Reconciliation of
Earnings from Continuing Operations to Adjusted
EBITDA(1) |
|
| (millions of U.S.
dollars, except for margins) |
|
| (unaudited) |
|
|
|
|
|
Three Months
Ended |
|
|
Year Ended |
|
March 31, |
|
December
31, |
|
2022 |
2021 |
|
2021 |
| Earnings from continuing
operations |
$1,018 |
$5,033 |
|
$5,687 |
| Adjustments to remove: |
|
|
|
|
| Tax expense |
240 |
1,594 |
|
1,607 |
| Other finance
(income) costs |
(94) |
6 |
|
(8) |
| Net interest
expense |
48 |
51 |
|
196 |
| Amortization of
other identifiable intangible assets |
26 |
31 |
|
119 |
| Amortization of
computer software |
114 |
115 |
|
474 |
| Depreciation |
38 |
46 |
|
177 |
| EBITDA |
$1,390 |
$6,876 |
|
$8,252 |
| Adjustments to remove: |
|
|
|
|
| Share of post-tax
earnings in equity method investments |
(798) |
(6,297) |
|
(6,240) |
| Other operating
losses (gains), net |
1 |
(17) |
|
(34) |
| Fair value
adjustments* |
7 |
(4) |
|
(8) |
| Adjusted
EBITDA(1) |
$600 |
$558 |
|
$1,970 |
| Adjusted EBITDA
margin(1) |
35.8% |
35.3% |
|
31.0% |
|
|
|
|
|
|
|
|
|
|
| * Fair value adjustments, a
component of operating expenses, primarily represent gains or
losses due to changes in foreign currency exchange rates on
intercompany balances that arise in the ordinary course of
business. |
| Thomson Reuters
Corporation |
| Reconciliation of
Net Cash Provided By Operating Activities to Free Cash
Flow(1) |
| (millions of U.S.
dollars) |
| (unaudited) |
|
|
Three Months
Ended |
|
Year Ended |
| March 31, |
|
December 31, |
|
2022 |
2021 |
|
2021 |
| Net cash provided by operating
activities |
$275 |
$380 |
|
$1,773 |
| Capital expenditures |
(171) |
(120) |
|
(487) |
| Other investing activities |
- |
1 |
|
81 |
| Payments of lease principal |
(17) |
(21) |
|
(109) |
| Dividends paid on preference shares |
(1) |
(1) |
|
(2) |
| Free cash flow(1) |
$86 |
$239 |
|
$1,256 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
December
31, |
|
|
|
|
2021 |
| Capital expenditures |
|
|
|
$487 |
| Remove: IFRS adjustment to cash basis |
|
|
|
54 |
| Accrued capital
expenditures (1) |
|
|
|
$541 |
| Accrued capital expenditures as a percentage of
revenues(1) |
|
|
|
8.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Refer to page 18 for additional
information on non-IFRS financial measures. |
|
|
|
|
|
|
|
| Thomson Reuters
Corporation |
|
| Reconciliation of
Net Earnings to Adjusted Earnings(1) |
|
| Reconciliation of
Total Change in Adjusted EPS to Change in Constant
Currency(1) |
|
| (millions of U.S.
dollars, except for share and per share data) |
|
| (unaudited) |
|
|
|
|
|
Three Months
Ended |
|
|
Year Ended |
|
|
March 31, |
|
December
31, |
|
|
2022 |
2021 |
|
2021 |
|
| Net earnings |
$1,007 |
$5,036 |
|
$5,689 |
|
| Adjustments to remove: |
|
|
|
|
|
| Fair value
adjustments* |
7 |
(4) |
|
(8) |
|
| Amortization of
other identifiable intangible assets |
26 |
31 |
|
119 |
|
| Other operating
losses (gains), net |
1 |
(17) |
|
(34) |
|
| Other finance
(income) costs |
(94) |
6 |
|
(8) |
|
| Share of post-tax
earnings in equity method investments |
(798) |
(6,297) |
|
(6,240) |
|
| Tax on above
items(1) |
206 |
1,535 |
|
1,475 |
|
| Tax items
impacting comparability(1) |
(44) |
1 |
|
(24) |
|
| Loss (earnings)
from discontinued operations, net of tax |
11 |
(3) |
|
(2) |
|
| Interim period effective tax rate
normalization(1) |
1 |
1 |
|
- |
|
| Dividends declared on preference
shares |
(1) |
(1) |
|
(2) |
|
| Adjusted
earnings(1) |
$322 |
$288 |
|
$965 |
|
| Adjusted EPS(1) |
$0.66 |
$0.58 |
|
|
|
| Total change |
14% |
|
|
|
|
| Foreign currency |
0% |
|
|
|
|
| Constant currency |
14% |
|
|
|
|
Diluted weighted-average common shares (millions) |
487.5 |
496.9 |
|
|
|
|
|
|
|
|
Year-ended
December 31, |
|
|
2021 |
| Adjusted earnings |
|
$965 |
| Plus: Dividends declared on preference
shares |
|
2 |
| Plus: Tax expense on adjusted
earnings |
|
156 |
| Pre-Tax Adjusted earnings |
|
$1,123 |
|
|
|
| IFRS Tax expense |
|
$1,607 |
| Remove tax related to: |
|
|
| Amortization of other identifiable
intangible assets |
|
26 |
| Share of post-tax earnings in equity
method investments |
|
(1,497) |
| Other operating gains, net |
|
(9) |
| Other items |
|
5 |
| Subtotal - Tax on pre-tax items
removed from adjusted earnings |
|
(1,475) |
| Remove: Tax items impacting
comparability |
|
24 |
| Total: Remove all items above
impacting comparability |
|
(1,451) |
|
|
|
| Tax expense on adjusted
earnings |
|
$156 |
| Effective tax rate on adjusted
earnings |
|
13.9% |
|
|
|
|
|
|
|
|
|
|
|
|
| * Fair value adjustments, a
component of operating expenses, primarily represent gains or
losses due to changes in foreign currency exchange rates on
intercompany balances that arise in the ordinary course of
business. |
|
| (1) Refer to
page 18 for additional information on non-IFRS financial
measures. |
|
|
|
|
|
|
|
|
|
|
|
| Thomson Reuters
Corporation |
| Reconciliation of
Changes in Revenues to Changes in Revenues on a Constant
Currency(1) and Organic
Basis(1) |
| (millions of U.S.
dollars) |
| (unaudited) |
|
|
|
|
Three Months
Ended |
|
|
|
|
|
|
|
|
March 31, |
|
Change |
|
|
2022 |
2021(2) |
|
Total |
Foreign
Currency |
SUBTOTAL
Constant
Currency |
Acquisitions/
(Divestitures) |
Organic |
|
| Total Revenues |
|
|
|
|
|
|
|
|
|
|
| Legal Professionals |
|
$698 |
$668 |
|
4% |
-1% |
5% |
0% |
6% |
|
| Corporates |
|
411 |
382 |
|
8% |
0% |
8% |
0% |
8% |
|
| Tax & Accounting
Professionals |
|
253 |
227 |
|
11% |
0% |
11% |
0% |
11% |
|
| "Big 3" Segments
Combined(1) |
|
1,362 |
1,277 |
|
7% |
0% |
7% |
0% |
7% |
|
| Reuters News |
|
176 |
165 |
|
7% |
-2% |
9% |
0% |
9% |
|
| Global Print |
|
142 |
143 |
|
-1% |
-1% |
0% |
0% |
0% |
|
| Eliminations/Rounding |
|
(6) |
(5) |
|
|
|
|
|
|
|
| Revenues |
|
$1,674 |
$1,580 |
|
6% |
-1% |
7% |
0% |
7% |
|
|
|
|
|
|
|
|
|
|
|
|
| Recurring Revenues |
|
|
|
|
|
|
|
|
|
|
| Legal Professionals |
|
$653 |
$621 |
|
5% |
-1% |
6% |
0% |
6% |
|
| Corporates |
|
316 |
293 |
|
8% |
0% |
8% |
0% |
8% |
|
| Tax & Accounting
Professionals |
|
182 |
162 |
|
12% |
0% |
12% |
0% |
12% |
|
| "Big 3" Segments
Combined(1) |
|
1,151 |
1,076 |
|
7% |
0% |
7% |
0% |
8% |
|
| Reuters News |
|
155 |
149 |
|
5% |
-2% |
6% |
0% |
6% |
|
| Eliminations/Rounding |
|
(6) |
(5) |
|
|
|
|
|
|
|
| Total Recurring Revenues |
|
$1,300 |
$1,220 |
|
7% |
-1% |
7% |
0% |
7% |
|
|
|
|
|
|
|
|
|
|
|
|
| Transactions Revenues |
|
|
|
|
|
|
|
|
|
|
| Legal Professionals |
|
$45 |
$47 |
|
-4% |
-1% |
-3% |
-1% |
-2% |
|
| Corporates |
|
95 |
89 |
|
7% |
-1% |
8% |
0% |
8% |
|
| Tax & Accounting
Professionals |
|
71 |
65 |
|
10% |
0% |
10% |
0% |
10% |
|
| "Big 3" Segments
Combined(1) |
|
211 |
201 |
|
5% |
0% |
6% |
0% |
6% |
|
| Reuters News |
|
21 |
16 |
|
27% |
-5% |
32% |
0% |
32% |
|
| Total Transactions
Revenues |
|
$232 |
$217 |
|
7% |
-1% |
8% |
0% |
8% |
|
|
|
|
Year Ended |
|
|
|
|
|
|
|
|
December
31, |
|
Change |
|
|
2021(2) |
2020(2) |
|
Total |
Foreign
Currency |
SUBTOTAL
Constant
Currency |
Acquisitions/
(Divestitures) |
Organic |
|
| Total Revenues |
|
|
|
|
|
|
|
|
|
|
| Legal Professionals |
|
$2,712 |
$2,535 |
|
7% |
1% |
6% |
0% |
6% |
|
| Corporates |
|
1,440 |
1,361 |
|
6% |
1% |
5% |
0% |
5% |
|
| Tax & Accounting
Professionals |
|
915 |
842 |
|
9% |
0% |
9% |
0% |
9% |
|
| "Big 3" Segments
Combined(1) |
|
5,067 |
4,738 |
|
7% |
1% |
6% |
0% |
6% |
|
| Reuters News |
|
694 |
645 |
|
8% |
1% |
7% |
0% |
7% |
|
| Global Print |
|
609 |
620 |
|
-2% |
1% |
-3% |
0% |
-3% |
|
| Eliminations/Rounding |
|
(22) |
(19) |
|
|
|
|
|
|
|
| Revenues |
|
$6,348 |
$5,984 |
|
6% |
1% |
5% |
0% |
5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Growth percentages are computed
using whole dollars. As a result, percentages calculated from
reported amounts may differ from those presented, and growth
components may not total due to rounding. |
|
|
| (1) |
Refer to page 18 for additional
information on non-IFRS financial measures. |
| (2) |
Revised to reflect the changes made
to the company's segment reporting in the first quarter of
2022. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Thomson Reuters
Corporation |
|
| Reconciliation of
Changes in Adjusted EBITDA(1) to Changes on a
Constant Currency Basis(1) |
|
| (millions of U.S.
dollars) |
|
| (unaudited) |
|
|
|
|
|
|
|
Three Months
Ended |
|
|
|
|
|
|
|
|
March 31, |
|
|
|
Change |
|
|
2022 |
2021(2) |
|
Total |
Foreign
Currency |
Constant
Currency |
| Adjusted
EBITDA(1) |
|
|
|
|
|
|
|
| Legal Professionals |
|
$305 |
$279 |
|
9% |
-1% |
10% |
| Corporates |
|
157 |
145 |
|
8% |
1% |
7% |
| Tax & Accounting
Professionals |
|
122 |
99 |
|
23% |
1% |
22% |
| "Big 3" Segments
Combined(1) |
|
584 |
523 |
|
11% |
0% |
11% |
| Reuters News |
|
37 |
28 |
|
31% |
8% |
23% |
| Global Print |
|
53 |
57 |
|
-8% |
0% |
-7% |
| Corporate costs |
|
(74) |
(50) |
|
n/a |
n/a |
n/a |
| Adjusted EBITDA |
|
$600 |
$558 |
|
7% |
0% |
7% |
|
|
|
|
|
|
|
|
| Adjusted EBITDA
Margin(1) |
|
|
|
|
|
|
|
| Legal Professionals |
|
43.7% |
41.8% |
|
190bp |
0bp |
190bp |
| Corporates |
|
38.1% |
38.0% |
|
10bp |
30bp |
-20bp |
| Tax & Accounting
Professionals |
|
48.3% |
43.8% |
|
450bp |
30bp |
420bp |
| "Big 3" Segments
Combined(1) |
|
42.9% |
41.0% |
|
190bp |
30bp |
160bp |
| Reuters News |
|
21.0% |
17.1% |
|
390bp |
150bp |
240bp |
| Global Print |
|
37.0% |
39.9% |
|
-290bp |
10bp |
-300bp |
| Adjusted EBITDA margin |
|
35.8% |
35.3% |
|
50bp |
30bp |
20bp |
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
December
31, |
|
|
|
2021(2) |
|
| Adjusted
EBITDA(1) |
|
|
|
| Legal Professionals |
|
$1,091 |
|
| Corporates |
|
496 |
|
| Tax & Accounting
Professionals |
|
379 |
|
| "Big 3" Segments
Combined(1) |
|
1,966 |
|
| Reuters News |
|
103 |
|
| Global Print |
|
226 |
|
| Corporate costs |
|
(325) |
|
| Adjusted EBITDA |
|
$1,970 |
|
|
|
|
|
| Adjusted EBITDA
Margin(1) |
|
|
|
| Legal Professionals |
|
40.2% |
|
| Corporates |
|
34.4% |
|
| Tax & Accounting
Professionals |
|
41.3% |
|
| "Big 3" Segments
Combined(1) |
|
38.8% |
|
| Reuters News |
|
14.8% |
|
| Global Print |
|
37.1% |
|
| Adjusted EBITDA margin |
|
31.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| n/a: not applicable |
|
|
| Growth percentages and margins are
computed using whole dollars. As a result, percentages and margins
calculated from reported amounts may differ from those presented,
and growth components may not total due to rounding. |
| (1) |
Refer to page 18 for additional
information on non-IFRS financial measures. |
| (2) |
Revised to reflect the changes made
to the company's segment reporting in the first quarter of
2022. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-IFRS Financial
Measures |
Definition |
Why Useful to the
Company and Investors |
| Adjusted EBITDA and the related margin |
Represents earnings or losses from
continuing operations before tax expense or benefit, net interest
expense, other finance costs or income, depreciation, amortization
of software and other identifiable intangible assets, Thomson
Reuters share of post-tax earnings or losses in equity method
investments, other operating gains and losses, certain asset
impairment charges and fair value adjustments.
Adjusted EBITDA margin is adjusted EBITDA expressed as a percentage
of revenues. |
Provides a consistent
basis to evaluate operating profitability and performance trends by
excluding items that the company does not consider to be
controllable activities for this purpose.
Also, represents a measure commonly reported and widely used by
investors as a valuation metric, as well as to assess the company's
ability to incur and service debt. |
| Adjusted earnings and adjusted EPS |
Net earnings or loss including
dividends declared on preference shares but excluding the post-tax
impacts of fair value adjustments, amortization of other
identifiable intangible assets, other operating gains and losses,
certain asset impairment charges, other finance costs or income,
Thomson Reuters share of post-tax earnings or losses in equity
method investments, discontinued operations and other items
affecting comparability.
The post-tax amount of each item is excluded from adjusted earnings
based on the specific tax rules and tax rates associated with the
nature and jurisdiction of each item.
Adjusted EPS is calculated from adjusted earnings using diluted
weighted-average shares and does not represent actual earnings or
loss per share attributable to shareholders. |
Provides a more
comparable basis to analyze earnings.
These measures are commonly used by shareholders to measure
performance.
|
| Effective tax rate on adjusted earnings |
Adjusted tax expense divided by
pre-tax adjusted earnings. Adjusted tax expense is computed
as income tax (benefit) expense plus or minus the income tax
impacts of all items impacting adjusted earnings (as described
above), and other tax items affecting comparability.
In interim periods, we also make an adjustment to reflect income
taxes based on the estimated full-year effective tax rate. Earnings
or losses for interim periods under IFRS reflect income taxes based
on the estimated effective tax rates of each of the jurisdictions
in which Thomson Reuters operates. The non-IFRS adjustment
reallocates estimated full-year income taxes between interim
periods but has no effect on full-year income taxes. |
Provides a basis to
analyze the effective tax rate associated with adjusted
earnings.
Because the geographical mix of pre-tax profits and losses in
interim periods may be different from that for the full year, our
effective tax rate computed in accordance with IFRS may be more
volatile by quarter. Therefore, we believe that using the expected
full-year effective tax rate provides more comparability among
interim periods. |
| Free cash flow |
Net cash provided by operating
activities, proceeds from disposals of property and equipment, and
other investing activities, less capital expenditures, payments of
lease principal and dividends paid on the company's preference
shares. |
Helps assess the
company's ability, over the long term, to create value for its
shareholders as it represents cash available to repay debt, pay
common dividends and fund share repurchases and acquisitions. |
| Changes before the impact of foreign currency or
at "constant currency" |
The changes in revenues, adjusted
EBITDA and the related margin, and adjusted EPS before currency (at
constant currency or excluding the effects of currency) are
determined by converting the current and equivalent prior period's
local currency results using the same foreign currency exchange
rate. |
Provides better comparability of
business trends from period to period. |
| Changes in revenues computed on an "organic"
basis |
Represents changes in revenues of the
company's existing businesses at constant currency. The metric
excludes the distortive impacts of acquisitions and dispositions
from not owning the business in both comparable periods. |
Provides further insight
into the performance of the company's existing businesses by
excluding distortive impacts and serves as a better measure of the
company's ability to grow its business over the long term. |
| Accrued capital expenditures as a percentage of
revenues |
Accrued capital expenditures divided
by revenues, where accrued capital expenditures include amounts
that remain unpaid at the end of the reporting period.
Prior to December 31, 2021, the company used capital expenditures
paid in this calculation, from its consolidated statement of cash
flow, as measured under IFRS. The prior period has been revised to
reflect the current methodology. |
Reflects the basis on
which the company manages capital expenditures for internal
budgeting purposes. |
| "Big 3" segments |
The company's combined Legal Professionals,
Corporates and Tax & Accounting Professionals segments. All
measures reported for the "Big 3" segments are non-IFRS financial
measures. |
Information for the "Big 3" segments
comprise 81% of revenues and represent the core of the company's
business information service product offerings. |
|
| Please refer to reconciliations for
the most directly comparable IFRS financial measures. |
|
|
|
|
