Thomson Reuters Corporation (TRI) Bundle
A Brief History of H3
The company, H3, has undergone significant transformations and growth in recent years. By 2024, H3 has established itself as a leader in its sector, driven by strategic acquisitions and robust financial management.
Financial Performance Overview
As of September 30, 2024, H3 reported total revenues of $5.349 billion, reflecting a 7% increase from $4.979 billion in the same period of the previous year. The adjusted EBITDA for the nine-month period was $2.061 billion, up 5% from $1.971 billion.
| Financial Metrics | 2024 | 2023 | Change |
|---|---|---|---|
| Total Revenues | $5.349 billion | $4.979 billion | 7% |
| Adjusted EBITDA | $2.061 billion | $1.971 billion | 5% |
| Net Earnings | $1.620 billion | $2.017 billion | (20%) |
| Diluted EPS | $3.59 | $4.31 | (17%) |
Cash Flow and Investments
Net cash provided by operating activities increased to $1.893 billion in 2024 from $1.636 billion in 2023, an increase of $257 million. The company reported net cash used in investing activities of ($749 million), down from $3.736 billion the previous year.
| Cash Flow Metrics | 2024 | 2023 | Change |
|---|---|---|---|
| Net Cash Provided by Operating Activities | $1.893 billion | $1.636 billion | $257 million |
| Net Cash (Used in) Provided by Investing Activities | ($749 million) | $3.736 billion | ($4.485 billion) |
Debt and Leverage Position
As of September 30, 2024, H3 reported a net debt of $1.406 billion with a leverage ratio of net debt to adjusted EBITDA at 0.5:1, significantly below the target of 2.5:1.
| Debt Metrics | 2024 | 2023 |
|---|---|---|
| Net Debt | $1.406 billion | $2.207 billion |
| Leverage Ratio (Net Debt/Adjusted EBITDA) | 0.5:1 | 0.8:1 |
Shareholder Returns
In 2024, H3 declared dividends of $730 million, an increase from $686 million in 2023. Additionally, share repurchases amounted to $639 million in the first nine months of 2024, compared to $718 million in the previous year.
| Shareholder Return Metrics | 2024 | 2023 |
|---|---|---|
| Dividends Declared | $730 million | $686 million |
| Share Repurchases | $639 million | $718 million |
Strategic Acquisitions
H3 has actively pursued strategic acquisitions to bolster its market position. Notably, in 2024, the company acquired Pagero and World Business Media for a total of $822 million, enhancing its service offerings in e-invoicing and media asset management.
| Acquisition Details | Company | Amount |
|---|---|---|
| Pagero | Acquisition | $822 million |
| World Business Media | Acquisition | $822 million |
Market Position
H3 remains competitive in its sector, with an emphasis on innovation and customer satisfaction driving its growth strategy. The company's ability to adapt to market conditions has been pivotal in maintaining its leadership status.
A Who Owns Thomson Reuters Corporation (TRI)
Ownership Structure
As of 2024, Thomson Reuters Corporation (TRI) has a diverse ownership structure. The principal shareholder is The Woodbridge Company Ltd., which holds approximately 66.5% of the voting shares. This ownership structure provides Woodbridge significant influence over the company's strategic decisions.
Major Shareholders
The following table outlines the major shareholders of Thomson Reuters Corporation as of 2024:
| Shareholder | Ownership Percentage (%) | Type of Share |
|---|---|---|
| The Woodbridge Company Ltd. | 66.5% | Voting Shares |
| BlackRock, Inc. | 7.0% | Common Shares |
| The Vanguard Group, Inc. | 5.5% | Common Shares |
| State Street Corporation | 4.0% | Common Shares |
| Other Institutional Investors | 17.0% | Common Shares |
Share Performance and Market Capitalization
As of September 30, 2024, Thomson Reuters Corporation reported a market capitalization of approximately $77 billion. The stock performance has shown resilience with a year-to-date return of approximately 15%.
Recent Financial Performance
In the third quarter of 2024, Thomson Reuters reported revenues of $1.724 billion, an increase of 8% compared to the same period in the previous year. The adjusted EBITDA was $609 million, with a margin of 35.3%.
Capital Returns
In 2024, Thomson Reuters declared dividends of $0.54 per share for the third quarter, amounting to a total of $243 million in dividends declared during that period. The company also executed share repurchases totaling $639 million in the first nine months of the year.
Debt and Leverage
As of September 30, 2024, Thomson Reuters had a net debt of $1.406 billion and a leverage ratio of net debt to adjusted EBITDA of 0.5:1, indicating a strong balance sheet and financial flexibility.
Conclusion on Ownership and Financial Stability
Thomson Reuters Corporation demonstrates a solid ownership structure, primarily controlled by The Woodbridge Company Ltd., alongside notable institutional investors. The company exhibits strong financial performance, prudent capital management, and a commitment to returning value to shareholders through dividends and share repurchases.
Thomson Reuters Corporation (TRI) Mission Statement
Mission Statement Overview
Thomson Reuters aims to deliver trusted news, information, and insights to professionals in various sectors, enabling them to make informed decisions. The mission emphasizes the importance of innovation and customer-centric solutions.
Financial Performance Indicators
As of 2024, Thomson Reuters has reported several key financial metrics that reflect its operational success:
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Total Revenues (in millions) | $6,794 | $6,627 | 3% |
| Adjusted EBITDA (in millions) | $2,678 | $2,617 | 2.3% |
| Adjusted EBITDA Margin (%) | 39.3% | 39.5% | (20) bps |
| Net Earnings (in millions) | $1,620 | $2,017 | (20%) |
| Diluted EPS | $3.59 | $4.31 | (17%) |
Segment Performance
The company operates through several key segments, each contributing to the overall mission of providing valuable insights and services:
| Segment | 2024 Revenue (in millions) | 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Legal Professionals | $2,807 | $2,803 | 0.1% |
| Corporates | $1,620 | $1,536 | 5.5% |
| Tax & Accounting Professionals | $1,058 | $986 | 7.3% |
| Reuters News | $769 | $733 | 4.9% |
| Global Print | $562 | $592 | (5.1%) |
Strategic Initiatives and Investments
In pursuit of its mission, Thomson Reuters continues to invest in technology and innovation:
- Acquisitions: In 2024, the company acquired Pagero and World Business Media for a total of $822 million.
- Share Repurchase: The company completed a $1 billion share repurchase program in May 2024.
- Return of Capital: A return of approximately $2.0 billion was made to shareholders in June 2023.
Market Outlook and Challenges
Thomson Reuters faces several market dynamics affecting its mission:
- Geopolitical risks impacting global operations.
- Competition in the digital information space.
- Regulatory challenges, particularly regarding AI applications.
Conclusion
The mission statement of Thomson Reuters Corporation reflects its commitment to providing essential resources to its clients while navigating complex market conditions and focusing on sustainable growth.
How Thomson Reuters Corporation (TRI) Works
Company Overview
Thomson Reuters Corporation operates in the information services sector, providing professionals with the intelligence, technology, and human expertise they need to find trusted answers. The company is structured into several segments, primarily focused on Legal Professionals, Corporates, Tax & Accounting Professionals, Reuters News, and Global Print.
Financial Performance
As of September 30, 2024, Thomson Reuters reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenues | $1,724 million | $1,594 million | 8% |
| Operating Profit | $415 million | $441 million | (6%) |
| Net Earnings | $301 million | $367 million | (18%) |
| Diluted EPS | $0.67 | $0.80 | (16%) |
| Adjusted EBITDA | $609 million | $632 million | (4%) |
| Adjusted EBITDA Margin | 35.3% | 39.6% | (430)bp |
Segment Performance
Thomson Reuters' key segments showed varied performance in Q3 2024:
| Segment | Revenues (Q3 2024) | Revenues (Q3 2023) | Change (%) | Adjusted EBITDA Margin (%) |
|---|---|---|---|---|
| Legal Professionals | $745 million | $688 million | 8% | 44.9% |
| Corporates | $439 million | $391 million | 12% | 36.8% |
| Tax & Accounting Professionals | $221 million | $203 million | 9% | 26.8% |
| Reuters News | $199 million | $180 million | 10% | 20.4% |
| Global Print | $128 million | $137 million | (7%) | 33.1% |
Cash Flow and Capital Expenditures
The cash flow metrics for Thomson Reuters as of September 30, 2024 were as follows:
| Cash Flow Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $756 million | $674 million |
| Net Cash Used in Investing Activities | ($206 million) | $435 million |
| Net Cash Used in Financing Activities | ($492 million) | ($1,449 million) |
| Free Cash Flow | $591 million | $529 million |
Investment and Acquisitions
In the first nine months of 2024, Thomson Reuters made significant investments:
- Acquired Pagero and World Business Media for a total of $822 million.
- Spent $492 million on acquisitions, primarily related to the purchase of technology firms enhancing their digital offerings.
- Repurchased $639 million of common shares as part of their normal course issuer bid.
Market Position and Future Outlook
Thomson Reuters is positioned as a leader in providing legal, tax, and regulatory information. The company anticipates an organic revenue growth rate of approximately 8.5% for the full year 2024 with a focus on enhancing its digital platforms and expanding customer reach.
| 2024 Outlook | Revenue Growth | Organic Revenue Growth | Adjusted EBITDA Margin |
|---|---|---|---|
| Full Year | ~8.5% | ~8.5% | ~43% |
Liquidity and Financial Health
As of September 30, 2024, Thomson Reuters maintained a strong liquidity position with total assets of $18.4 billion and cash and cash equivalents of $1.73 billion. The company has a disciplined capital strategy focused on balancing growth with shareholder returns.
| Liquidity Metric | Amount |
|---|---|
| Total Assets | $18.4 billion |
| Cash and Cash Equivalents | $1.73 billion |
| Net Debt | $1.406 billion |
| Leverage Ratio (Net Debt/Adjusted EBITDA) | 0.5:1 |
How Thomson Reuters Corporation (TRI) Makes Money
Revenue Segments
Thomson Reuters generates revenue through several key segments, primarily categorized as follows:
- Legal Professionals
- Corporates
- Tax & Accounting Professionals
- Reuters News
- Global Print
Financial Performance Overview
In the nine-month period ending September 30, 2024, the company reported total revenues of $6.79 billion, representing a 3% increase compared to the previous year. This growth was driven by contributions from both recurring and transaction revenues across its segments.
| Segment | Revenue (in millions) | Change (%) | Recurring Revenue (%) | Adjusted EBITDA Margin (%) |
|---|---|---|---|---|
| Legal Professionals | 2,807 | 6% | 89% | 45.7% |
| Corporates | 1,620 | 5% | 82% | 37.2% |
| Tax & Accounting Professionals | 1,058 | 7% | 77% | 41.5% |
| Reuters News | 769 | 5% | 75% | 20.4% |
| Global Print | 562 | (5%) | 15% | 33.1% |
| Total Revenues | 6,794 | 3% | N/A | N/A |
Revenue Composition
The revenue composition for Thomson Reuters in 2024 highlights the significance of recurring revenues, which accounted for approximately 80% of total revenues. This stability is crucial for long-term financial health.
Recurring vs. Transaction Revenues
The breakdown of recurring and transaction revenues for the nine-month period is as follows:
| Type | Revenue (in millions) | Change (%) |
|---|---|---|
| Recurring Revenues | 5,485 | 4% |
| Transaction Revenues | 1,309 | 6% |
Segment Performance Metrics
Each segment's performance is critical for understanding the overall business model:
| Segment | Revenue (in millions) | Adjusted EBITDA (in millions) | Adjusted EBITDA Margin (%) |
|---|---|---|---|
| Legal Professionals | 2,807 | 1,299 | 45.7% |
| Corporates | 1,620 | 619 | 37.2% |
| Tax & Accounting Professionals | 1,058 | 490 | 41.5% |
| Reuters News | 769 | 172 | 20.4% |
| Global Print | 562 | 213 | 33.1% |
Operating Costs and Expenses
Thomson Reuters reported operating expenses of $3.29 billion for the nine-month period, an increase of 9% year-over-year. These expenses include costs related to acquisitions and growth investments.
Recent Acquisitions and Investments
The company has been active in pursuing acquisitions to enhance its service offerings. Notable acquisitions include:
- Casetext, Inc. - Specializes in AI-driven legal research.
- SurePrep - Provides tax automation software.
- Pagero - Enhances transaction processing capabilities.
Cash Flow and Shareholder Returns
Thomson Reuters has maintained a robust cash flow position, with free cash flow reported at $1.1 billion for the nine-month period. The company has also been committed to returning capital to shareholders through dividends and share repurchases.
| Metric | Amount |
|---|---|
| Dividends Paid (in millions) | 708 |
| Share Repurchases (in millions) | 639 |
| Total Capital Returned (in millions) | 1,347 |
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Updated on 16 Nov 2024
Resources:
- Thomson Reuters Corporation (TRI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Thomson Reuters Corporation (TRI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Thomson Reuters Corporation (TRI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.