Thomson Reuters Corp ((TSE:TRI)) has held its Q1 earnings call. Read on for the main highlights of the call.
Thomson Reuters Corp’s recent earnings call painted a positive picture for the company’s financial health and future prospects. The call highlighted strong revenue growth and reaffirmed guidance, with notable achievements such as successful product launches, a strategic acquisition, and a dividend increase. Despite challenges like declines in Reuters News and Global Print revenues, the overall sentiment was optimistic, with highlights outweighing the lowlights.
Strong Start to Fiscal Year 2025
The fiscal year 2025 began on a high note for Thomson Reuters, with revenues reaching the high end of the outlook and profits surpassing expectations. Total company organic revenues rose by 6%, driven by a 9% growth in the Big Three segments, setting a robust foundation for the year.
Reaffirmed Full-Year 2025 Outlook
Thomson Reuters reaffirmed its full-year 2025 outlook, projecting organic growth between 7% and 7.5%. The Big Three segments are expected to grow by approximately 9%, with margins anticipated to rise by 75 basis points year-over-year to about 39%.
Successful Product Launches and Acquisitions
The company successfully launched CoCounsel Tax, Audit and Accounting, an AI-powered assistant, and acquired SafeSend for $600 million. These initiatives are off to a strong start, with smooth integration and promising early results.
Dividend Increase
Thomson Reuters announced a 10% increase in its 2025 annual dividend, marking the fourth consecutive year of dividend growth, bringing it to $2.38 per share.
Tax & Accounting Segment Strength
The Tax & Accounting segment demonstrated robust performance, with organic revenue growth of 11%, largely driven by the Latin American business and tax compliance offerings.
Decline in Reuters News Revenue
Reuters News experienced a 7% decline in organic revenues, attributed to a challenging comparison with the previous year’s significant transactional generative AI licensing revenue.
Global Print Revenue Decline
Global Print saw a 5% year-over-year decline in organic revenues, which was in line with expectations, reflecting ongoing challenges in the print industry.
Adjusted EBITDA Margin Decline
Adjusted EBITDA remained stable year-over-year at $809 million, though there was a slight margin decline of 40 basis points to 42.3%.
Forward-Looking Guidance
CEO Steve Hasker provided forward-looking guidance, emphasizing a positive start to the year with a 6% rise in total organic revenues and a 9% increase in the Big Three segments. The company anticipates organic growth between 7% and 7.5% for the full year, with a 75 basis point margin increase to approximately 39%. Key growth drivers include double-digit expansion in products like CoCounsel, SurePrep, and Indirect Tax, alongside strong international business performance.
In summary, Thomson Reuters Corp’s earnings call conveyed an optimistic outlook, underscored by strong revenue growth and strategic initiatives. Despite some challenges, the company’s reaffirmed guidance and successful product launches position it well for continued success in 2025.