Thomson Reuters Slashes FY20 Revenue Growth Outlook Amid COVID-19 - Quick Facts

(RTTNews) - While reporting financial results for the first quarter on Tuesday, Thomson Reuters Corp. (TRI, TRI.TO) slashed its revenue and organic revenue growth guidance for the full-year 2020, to reflect its currently estimated impact of the COVID-19 pandemic. It also provided revenue growth outlook for the second quarter.

For fiscal 2020, the company now projects total revenue growth of 1 to 2 percent and organic revenue growth of flat to 1 percent.

Previously, the company expected total revenue growth of 4.5 to 5.5 percent and organic revenue growth of 4 to 4.5 percent.

For the second quarter, the company expects total company revenues to decline 1 to 2 percent and organic revenues to decline 2 to 3 percent, primarily due to cancellations of events in the Reuters News business and delays in shipping of certain Global Print materials.

On average, analysts polled by Thomson Reuters expect the company to report revenue growth of 3.3 percent to $2.87 billion for the quarter and revenue growth of 3.0 percent to $11.67 billion for the year.

The updated outlook assumes diminished economic activity through the second quarter followed by a gradual recovery through the second half of 2020. It also assumes that the company will be able to mitigate the impact of anticipated lower 2020 revenues through its $100 million cost reduction program.