Thomson Reuters To Record Q4 Charge For Streamlining Business - Quick Facts

(RTTNews) - Thomson Reuters (TRI, TRI.TO) announced that it plans to record a charge of approximately $200 million to $250 million to be incurred in the fourth quarter of 2016. This charge is intended to accelerate the pace of the company's Transformation program by further simplifying and streamlining the business. The majority of the charges will be taken in Financial & Risk and the Enterprise, Technology & Operations Group that was created in January 2016. The company updated its 2016 full-year outlook to reflect the planned charge.

For the full-year 2016, at constant currency rates, the company expects: low single-digit revenue growth, with 2% to 3% revenue growth excluding Financial & Risk's recoveries revenues; adjusted EBITDA margin to range between 25.0% to 26.0% - including planned charge, adjusted EBITDA margin to range between 27.3% and 28.3% - excluding planned charge; and underlying operating profit margin to range between 16.0% to 17.0% - including planned charge, underlying operating profit margin to range between 18.4% and 19.4% - excluding planned charge.

Thomson Reuters expects free cash flow to range between $1.7 billion and $1.9 billion in 2016, as most of cash impact from planned charge will be incurred in 2017. The company said the resulting run-rate cash savings in 2017 are estimated to be of a similar magnitude to the planned charge, with some of the savings to be reinvested in the business.