Thomson Reuters Corp. reported third-quarter FY21 revenue growth of 6 percent year-on-year to $1.53 billion, beating the consensus of $1.50 billion.
Organic revenues increased 5 percent, driven by recurring revenues and transactions revenues. 1 percent favorable impact from foreign currency added to growth.
The “Big 3” segments (Legal Professionals, Corporates, and Tax & Accounting Professionals) collectively comprised 80 percent of total revenues and reported organic revenue growth of 6 percent. Legal Professionals revenue grew 7 percent Y/Y to $682 million, Corporates revenue rose 7 percent Y/Y to $356 million, and Tax & Accounting Professionals revenue increased 6 percent Y/Y to $175 million.
Reuters News revenue improved 6 percent Y/Y to $164 million, and the Global Print revenue declined 3 percent Y/Y to $149 million.
Adjusted EBITDA margin contracted 400 bps to 30 percent due to Change Program costs.
Adjusted EPS of $0.46 beat the consensus of $0.38.
Thomson Reuters generated $383 million in free cash flow and held $1.5 billion in cash and equivalents.
Thomson Reuters raised FY21 revenue growth outlook to 4.5 percent—5.0 percent from 4.0 percent—4.5 percent.
It also lifted the free cash flow guidance to $1.2 billion from $1.1 billion—$1.2 billion.
By Anusuya Lahiri
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