Thomson Reuters Reports First-Quarter 2025 Results

Core Viewpoint - Thomson Reuters reported a positive start to 2025 with a solid financial performance and reaffirmed outlook, emphasizing its commitment to innovation and balanced capital allocation [1][6]. Financial Highlights - Total revenues for Q1 2025 were $1,900 million, a 1% increase from $1,885 million in Q1 2024 [2][42]. - Operating profit rose by 1% to $563 million compared to $557 million in the prior year [2][4]. - Diluted earnings per share (EPS) decreased to $0.96 from $1.06, reflecting a 9% decline [2][4]. - Net cash provided by operating activities increased by 4% to $445 million [2][4]. - Free cash flow increased by 3% to $277 million [2][4]. Revenue Breakdown - Revenues increased by 1%, driven by a 2% growth in recurring revenues, which accounted for 76% of total revenues, partially offset by a 1% decline in transaction revenues and a 6% decline in Global Print [3][6]. - Organic revenues grew by 6%, with the "Big 3" segments (Legal Professionals, Corporates, and Tax & Accounting Professionals) reporting a 9% organic revenue growth [3][6]. Segment Performance - Legal Professionals segment revenues decreased by 4% to $693 million, with an organic growth of 8% [5][9]. - Corporates segment revenues increased by 7% to $541 million, with an organic growth of 9% [5][11]. - Tax & Accounting Professionals segment revenues rose by 10% to $360 million, with an organic growth of 11% [5][13]. - Reuters News segment revenues decreased by 7% to $196 million, reflecting a decline in organic revenue [5][15]. - Global Print segment revenues decreased by 6% to $116 million, driven by lower shipment volumes [5][17]. Adjusted EBITDA and Margins - Adjusted EBITDA for Q1 2025 was $809 million, a slight increase from $806 million in Q1 2024, with an adjusted EBITDA margin of 42.3%, down from 42.7% [2][4][7]. - The adjusted EBITDA margin for the "Big 3" segments combined increased to 47.3% from 45.8% [7][10]. Capital Allocation and Dividends - The company announced a 10% increase in its annual common share dividend to $2.38, marking the 32nd consecutive year of dividend increases [6][29]. - Thomson Reuters completed the acquisition of SafeSend for approximately $600 million to enhance its tax automation capabilities [6][28]. 2025 Outlook - The company reaffirmed its full-year 2025 outlook for all metrics, expecting organic revenue growth of approximately 7% and an adjusted EBITDA margin of around 36% for Q2 2025 [22][24].