Electronic Publishing Sparks Growth at Thomson

Electronic products and services accounted for 53% ($3.15 billion) of Thomson Corp.'s total revenues of $5.94 billion in 2000, the media conglomerate reported. The company had particularly fast growth in Internet-based revenues, which doubled in the year, to about $800 million. The $5.94 billion in revenues represents a 20% increase in sales from Thomson's ongoing operations in 2000 over 1999. Earnings from continuing operations rose 40%, to $571 million.

Thomson's learning group, sparked by a host of acquisitions, had the largest sales gain in the year with revenues jumping 40.4%, to $1.39 billion. The group's higher education division also had a strong year. Thomson Learning will be home to the Harcourt General units that the company plans to buy from Reed Elsevier once Reed's acquisition of Harcourt is completed. As a result of the U.K. government's decision to further review the Reed-Harcourt purchase (News, Feb. 26), Thomson does not expect to close on the deal until the third quarter. In a minor realignment in the learning group, the Gale Group was moved into the academic business group to facilitate electronic solutions for the education market.

The 31.2% increase in revenues in the financial group, to $1.26 billion, was led by double-digit growth in its core operations as well as the purchase of Primark. In February, Thomson announced that the financial group was selling noncore assets, including publications and directories aimed at the banking and financial planning markets.

In the legal and regulatory group, revenues increased 11.6%, to $2.62 billion, driven by double-digit growth at Westlaw plus contributions from newly acquired businesses. Revenue gains were partly offset by adverse currency translation effects. Higher Internet sales at the Institute for Scientific Information and improved performance from its healthcare unit resulted in a 6.9% revenue gain, to $697 million, in the scientific and healthcare group.

Excluding results from Harcourt, Thomson expects revenue growth in 2001 to be in line with gains made in 2000, although the earnings growth will be offset by higher costs associated with the acquisitions made last year. CEO Richard Harrington said the focus in 2001 while be on "fully integrating" the companies acquired in 2000.