Thomson Reuters Q3 Adj. EBITDA Declines, Organic Revenues Up 5%; Increases 2021 Revenue Guidance

(RTTNews) - Thomson Reuters (TRI) said the momentum in the first half of the year continued into the third quarter with revenue and sales performance above its expectations and consistent across the business. However, Adjusted EBITDA declined 7% as higher revenues were more than offset by higher costs, which included costs associated with the company's Change Program. Looking forward, the company has again increased its full-year 2021 revenue guidance.

Third-quarter adjusted profit per share was $0.46 compared to $0.39, prior year. On average, 13 analysts polled by Thomson Reuters expected the company to report profit per share of $0.38, for the quarter. Analysts' estimates typically exclude special items.

Operating profit decreased 11% as the prior-year period included a significant benefit from the revaluation of warrants that the company previously held in Refinitiv, which was sold to London Stock Exchange Group. Loss from continuing operations was $241 million or $0.49 per share compared to profit of $240 million or $0.48 per share. Revenue increased to $1.53 billion from $1.44 billion, a year ago. Analysts on average had estimated $1.50 billion in revenue. Organic revenues increased 5%, driven by 6% growth in recurring revenues, and 8% growth in transactions revenues. Big 3 segments organic revenue growth was 6%. For 2021, total company revenue is now forecasted to increase 4.5% - 5.0%, revised from prior guidance range of 4.0% - 4.5%. Big 3 segments revenue forecast increased to approximately 6.0% from 5.5% - 6.0%. The company also raised 2021 free cash flow guidance to approximately $1.2 billion from $1.1 - $1.2 billion.

Thomson Reuters reaffirmed its full-year 2022 and 2023 guidance, with minor adjustments to 2022 Change Program spend.