Earnings: Thomson Expects Reuters Verdicts ‘In Next Few Weeks’
By Robert Andrews - Thu 07 Feb 2008 05:39 AM PST
The Reuters (NSDQ: RTRSY) acquisition can’t come soon enough. Thomson (NYSE: TOC) reported full-year 2007 operating profit was up four percent to $1.3 billion on 11 percent better revenue of $7.3 billion, but operating profit in the final quarter dropped to three percent despite 10 percent better revenues of $2 billion. On an underlying basis in that period, however, profit was up eight percent.
After a DOJ ruling on the merger was pushed back to coincide with the EC’s decision prior to March 10, Thomson is still putting out eager messages, expecting verdicts - including one from the Canadian Competition Bureau - ”in the next few weeks”. CEO Richard J. Harrington: “I remain convinced that our acquisition of Reuters will be approved given the complementary nature of our businesses, and I continue to expect the transaction to close early in the second quarter. Integration planning efforts are proceeding on course.”
- Online revenue in the legal unit grew at a double-digit rate for the third consecutive quarter but 11 percent growth from services like ISI Web of Knowledge and Web of Science in the scientific division “was partly offset by declines in legacy online products”.
- Eighty-two percent of 2007 company revenue came from electronic, software and services, which saw 13 percent growth.
- The Thomsonplus efficiency drive saved $120 million in 2007 and is forecast to have saved $160 million by the middle of 2008.
Release & Financials | Webcast
Earnings call...
Very little extra in a rather dry nearly 60 minutes. More of the same bravado we heard back when the planned acquisition was announced in May: “We will be the world’s leader in information services… Thomson’s business model will become even more attractive.” No 2008 outlook provided until Q1 results time because the acquisition is awaiting regulatory approval. There’s a 10.2 percent increase in dividends.
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