Q3 2024 Thomson Reuters Corp Earnings Call Transcript
Key Points
- Thomson Reuters Corp (TRI) reported a 7% organic revenue growth for the third quarter, surpassing expectations.
- The Big three segments, including Legal, Corporates, and Tax & Accounting, achieved a 9% organic revenue growth.
- The company increased its full-year 2024 organic revenue growth outlook to approximately 7%, with the Big three segments expected to grow by 8.5%.
- Thomson Reuters Corp (TRI) is investing over $200 million annually in AI, which is expected to drive future growth.
- The company remains well-capitalized with an estimated $10 billion of capital capacity through 2027, up from the previously discussed $8 billion through 2026.
- Adjusted EBITDA fell 4% to $609 million, reflecting a 430 basis points margin decline to 35.3%.
- Print revenues declined by 6%, in line with expectations, indicating a continued challenge in this segment.
- The divestiture of Findlaw is expected to reduce total company organic revenue growth by approximately 30 basis points.
- The company faces difficult comparisons for Reuters News in the next two quarters due to previous AI content licensing revenue.
- The acquisitions of Safe Sign Technologies and Material are expected to be loss-making in 2025, although they are absorbed within the financial framework.
Good day and welcome to the Thomson Reuters third-quarter earnings call. Today's conference is being recorded. At this time, I would like to turn the conference over to Gary Bisbee, Head of Investor Relations. Please go ahead, sir.
Thanks. Good morning and thank you all for joining us today for our third quarter 2024 earnings call. I'm joined by Steve Hasker of Chief Executive Officer and our CFO, Michael Eastwood, each of whom will discuss our results, take your questions following their remarks.
To enable us to get to as many questions as possible, we would appreciate it if you'd limit yourself to one question and one follow-up each when we open the phone lines. Throughout today's presentation, fully compare performance period on period we did discuss revenue growth rates before currency as well as on an organic basis. We believe this provides the best basis to measure the underlying performance.
Today's presentation contains forward looking statements and non-IFRS and other
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