Revenue up, Thomson Reuters plans sales to raise cash for core business

It expects to raise about $1 billion from the sale of its enterprise risk management and investment accounting software businesses, the company said on Thursday, along with previously announced sales of its BARBRI legal courses product and Scandinavian legal and tax and accounting units.

Chief executive Tom Glocer said the funds would be reinvested in the core business.

Announcing Q1 2011 financial results, the company said revenue from ongoing businesses was $3.2 billion, up five per cent before currency adjustments, quickening from four per cent growth in the previous quarter.

“I am pleased with our solid results for the first quarter,” Glocer said in a statement accompanying the results. “2011 is playing out much as we anticipated, with accelerating revenue growth which will drive expanded margins and higher cash flow as the year progresses... Based on our good start to the year, we are confident that we will deliver on our expectations for the full year.”

The company reaffirmed its 2011 forecast for mid-single digit revenue growth. It also reiterated that the operating profit margin is expected to increase by at least 100 basis points this year.

First quarter underlying profit increased one per cent, with a corresponding margin of 17.2 per cent. Excluding a $39 million one-time charge, the underlying profit margin was 18.4 per cent compared with 18 per cent in the same period last year.

Adjusted earnings per share, including the one-time charge, rose to 39 cents from 36 cents in the same quarter last year.

Professional division revenue increased eight per cent to $1.38 billion, driven by a 10 per cent increase in legal revenue. The WestlawNext legal database has been sold to more than 18,500 customers since its launch in February 2010, representing 34 per cent of Westlaw's revenue base, the company said.

In the markets division, which competes with Bloomberg and Dow Jones, revenue rose two per cent to $1.87 billion. ■