Tax Professionals provided much of the profit for a smaller Thomson Reuters for the year ended December 31. The company this week reported financial results, which reflect the October spinoff of its Financial & Risk business as Refinitiv.

The company is roughly half the size it was before selling off 55 percent of its ownership of the Financial & Risk business to Blackstone. Refnitiv had $1.56 billion in revenue for the fourth quarter of 2018. That compares to revenue of $1.5 billion for Thomson minus the Refinitiv operations for that period.

 In this week’s earnings webcast, CEO James Smith said of Thomson’s performance, “We have successfully executed against all our key objectives.” He said the goal for 2019 is to maintain last year’s pace" and accelerate growth into 2020. Smith reported EBIDTA was the best since 2008 and he said 2020 will be "the first business-as-usual year".

As part of its post-Refinitv organization, the company renamed its business segments , replacing the Tax & Accounting name with Tax Professionals. For the year, that segment reported  $794 million in revenue last year, a 4-percent rise from $787 million from 2017. The total was down 4 percent when adjusting for foreign currency, up 6 percent in constant currencies.  

Tax Professionals provided an outsized contribution to operating profit when compared to the largest unit, Legal Professionals, which is nearly three times larger. Operating profit last year was $273 million, up 8 percent from the prior year. The increase was down one percent when adjusted for foreign currency, up 9 percent in constant currencies.

Company revenue reached $5.5 billion in 2018, a rise of 4 percent from $5.3 billion. Refnitiv had $1.56 billion in revenue for the fourth quarter of 2018. That compares to revenue of $1.5 billion for Thomson minus the Refinitiv operations for that period. Net earnings for last year were slightly more than $4 billion, up sharply from $1.46 billion in 2017. That included 2018 earnings from discontinued operations of $3.86 billion compared to $822 million for 2017. 

Last modified on Wednesday, 27 March 2019
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