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Consolidated Financial Highlights - Nine Months Nine Months Ended September 30, (Millions of U.S. dollars, except EPS and margins) -------------------------------------IFRS Financial Measures 2012 2011 Change -------- -------- -------Revenues $ 9,879 $ 10,230 -3%Operating profit $ 2,094 $ 1,888 11%Diluted earnings per share (EPS) $ 2.04 $ 1.41 45%Cash flow from operations $ 1,750 $ 1,655 6%Non-IFRS Financial Measures1 Change Before 2012 2011 Change Currency -------- -------- ------- --------Revenues from ongoing businesses $ 9,541 $ 9,435 1% 3%Adjusted EBITDA $ 2,581 $ 2,516 3% 4%Adjusted EBITDA margin 27.1% 26.7% 40bp 30bpUnderlying operating profit $ 1,747 $ 1,895 -8% -6%Underlying operating profit margin 18.3% 20.1% -180bp -180bpAdjusted earnings per share (EPS) $ 1.52 $ 1.42 7%Free cash flow $ 1,030 $ 933 10%Free cash flow from ongoing operations $ 969 $ 785 23%
•Revenues from ongoing businesses were $9.5 billion, a 3% increase before currency. •Adjusted EBITDA increased 3% and the corresponding margin was 27.1% versus 26.7% in the prior-year period as higher revenues and the elimination of integration expenses in 2012 offset the planned investments in customer service and customer administration. •Underlying operating profit decreased 8% and the corresponding margin was 18.3% versus 20.1% in the prior-year period due to higher depreciation and amortization expense related to new product launches and planned increases in expenses. •Adjusted EPS was $1.52 compared to $1.42 in the prior-year period. The increase was primarily attributable to the elimination of integration expenses and a lower tax rate, partly offset by lower underlying operating profit. •Free cash flow was $1.03 billion, up 10% compared to the prior-year period. Free cash flow from ongoing operations was $969 million, up 23% from the same period in 2011.
Corporate & Other (Including Media)
Third-quarter Media revenues were $79 million, up 1% from the prior-year period (organic growth of 1%). Third-quarter Corporate & Other costs were $43 million compared to $48 million in the prior-year period.
Media revenues for the first nine months of 2012 were $244 million, up 1% from the prior-year period (1% organic). Corporate & Other costs for the first nine months of 2012 were $178 million compared to $186 million in the same period of 2011.
Business Outlook (Before Currency)
Thomson Reuters today reaffirmed its business outlook for 2012 that was previously communicated in February. The company continues to expect its:
•revenues to grow low single-digits in 2012; •adjusted EBITDA margin to range between 27% and 28% in 2012; •underlying operating profit margin to range between 18% and 19% in 2012 due to higher depreciation and amortization expense; and •reported free cash flow to grow 5% to 10% and free cash flow from ongoing operations to grow 15% to 20% in 2012.
