Revenues Flat, Profit Down for Thomson Reuters in 2016

Thomson Reuters (NYSE: TRI) has reported its financial metrics for fourth quarter and full year ending December 31, 2016, which displayed lower profits and flat revenues, according to a Thomson Reuters statement.

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For Q4 2016, Thomson Reuters revealed that revenues were mostly flat when weighed against their 2015 equivalent, coming in at $2.860 billion, a loss of -1.0 percent year-on-year from $2.887 billion in the same period last year. This figure was largely influenced by negative impact of US dollar strength and lower recoveries revenues. Excluding Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term rate fluctuations, revenues increased 1 percent.

Taking a full-year prospective, overall revenues took a step back at Thomson Reuters in 2016 compared to the year prior. In particular, Thomson Reuters saw a total revenue of $11.166 billion, mounting a slight decrease of -1 percent year-on-year from $11.257 billion in 2015.

By geography, revenues in Asia and the Americas were up 1 percent, while decreasing by -1 percent in Europe, Middle East and Africa (EMEA). Subscription revenues grew 5 percent (74 percent of the segment’s revenues in the quarter). However, transactional revenues declined -9 percent due to lower Legal Managed Services and Elite Transactional Revenues.

Profit metrics are negative

In terms of Thomson Reuters’ operating profits for Q4 2016, the figure reflected a weak performance, having yielded a profit of just $294 million – this represents a loss of -32 percent year-on-year from $433 million in Q4 2015. The New York headquartered organization attributed the decrease to the fourth-quarter severance charges of $212 million. Excluding this, underlying operating profit increased 4 percent to $580 million, and the margin increased to 20.3 percent from 19.4 percent.

Another area of weakness for the quarter was Thomson Reuters’ diluted earnings per share (EPS), which declined to $0.31 in Q4 2016, down 44 percent year-on-year from $0.55 in Q4 2015. Excluding fourth-quarter charges, adjusted EPS was $0.60, an increase of 9 percent.

Across the full year interval, operating profit decreased -9 percent to $1.390 billion compared to $1.526 billion in 2015. However, diluted EPS reversed the narrative, rising to $4.13 in 2016 relative to $1.60 in the prior year. The figure was up by 158 percent year-on-year due to the $2.0 billion gain on the sale of the IP & Science business.

Finally, Thomson Reuters’ cash flow from operations, which also encompassed discontinued operations, was up by a factor of 7 percent year-on-year to $755 million from $708 million in Q4 2015.