Thomson Reuters provides information for businesses and professionals in the financial, legal, tax and accounting, healthcare and science and media markets. Thomson Reuters is a dual listed company consisting of the Thomson Reuters Corporation (Canada), and Thomson Reuters PLC (U.K.). The professional publisher is comprised of four divisions: Financial & Risk, Legal, Tax & Accounting, and Intellectual Property & Science.
Key Company Developments in 2012 & 2013
2012 sales were in line with expectations, based on earlier investments in fast-growing emerging markets and higher-growth market segments. While total corporate revenues decreased from 13.81 billion USD in 2011 to 13.278 billion USD, revenues from ongoing business grew 3% in constant currencies. The latter exclude the alienated other businesses, which account for 379 million USD against 1.06 billion USD in 2011, including the Healthcare business and others. Operating profit increased in 2012 principally due to a 3 billion USD goodwill impairment charge in 2011 “due to weaker than expected performance by our former Markets division which consisted largely of businesses now in our Financial & Risk segment,” according to the 2012 annual report.
The divisions experienced revenue growth across all segments.
Ownership, Mergers & Acquisition, Internal Organization:
Thomson Reuters made 29 acquisitions (compared to 39 in 2011), which should support higher growing market segments and adjacent market segments, as acquisitions are key to the company’s strategy. While the majority of acquired brands and products are located the U.S., global presence was expanded through smaller acquisitions. Newly acquired businesses increased 2012 revenues by 3%.
The Healthcare business, three Financial & Risk businesses and a Tax & Accounting business were sold.
Legal acquired Practical Law Company in February 2013, which provides workflow tools to law firms and corporate legal departments in the U.S. and the U.K. Legal disposed of the Law School Publishing business in the first quarter of 2013.
In 2012, Tax & Accounting continued its growth and global expansion with new products and an increased presence in Latin America by acquiring FISCOSoft and Dofiscal.
Intellectual Property & Science acquired online brand protection MarkMonitor.
In February 2013, Thomson Reuters announced roughly 2,500 job cuts, hitting employees in the Financial & Risk business and GGO organization.
Fifty-seven percent of 2012 revenues were generated in the U.S.; 31% came from Europe, the Middle East and Africa; and 12% from Asia
The Global Growth & Operations organization was formed in 2012 to act across units and expand Thomson Reuters’s presence in new regions such as Latin America, China, India, the Middle East, Africa, the Association of Southeast Asian Nations/North Asia, Russia and CIS countries, and Turkey. In its first year, the organization completed nine acquisitions.
Ninety-one percent of 2012 revenues came from electronic content delivery, software, and digital services. Legal’s major brand, the online platform WestlawNext, became available as iPad application and mobile site.