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Tax & Accounting Outpaces Thomson Reuters Total E-mail
Written by The Progressive Accountant   
Tuesday, 11 May 2010 01:09

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Tom GlocerWith Thomson Reuters results still showing the impact of a sluggish economy, revenue from its Tax & Accounting business was relatively strong. Strong in this scenario means with the parent showing a 2- percent drop in revenue, the 6-percent growth registered by the tax and accounting operations - with four percentage points from acquisitions - were a bright spot.

CEO Tom Glocer gave a generally upbeat assessment of the quarter as showing economic recovery underway with the prospect for resuming more normal revenue patterns in 2011. "I'm pleased with the first-quarter results," Glocer said in a Webcast, describing them as a little ahead of expectations. "We are past the bottom in terms of real economic activity." However, he expected that revenue will probably drop for the first half from the impact of subscription revenue.

Worldwide revenue for the first quarter ended March 31 was $3.14 billion, down from $3.3 billion in last year's corresponding period. Company-wide net earnings dropped to $134 million for the most recently ended quarter, down 30.6 percent from $193 million a year earlier.

By contrast, tax and accounting revenue in the most recently ended period was $262 million, up from $245 million a year earlier. That came as the legal operations, the company's largest source of income, saw a 1-percent decline for the same period. However, Tax & Accounting's operation profit of $35 million was down 15 percent from $41 million a year earlier. Thomson said this was largely the result of dilution by the acquisitions.

Electronic products and software led the way in the tax and accounting market. CFO Robert Daleo said the new Workflow & Service Solutions group, which includes all tax software products and accounts for two-thirds of Tax & Accounting's revenue, had 10-percent revenue growth. He cited the Insource, CS Professional Suite (UltraTax) and corporate tax products as doing well. The other new unit, Business Compliance & Research Solutions, had 6-percent revenue growth in the Checkpoint research line, but that was more than offset by a 12-percent drop in revenue from print products.

The Progressive Accountant
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