James Smith, Thomson Reuters The Tax & Accounting business of Thomson Reuters continued its usual growth, while overall the parent company saw revenue drop for the year ended December 31. Revenue for Tax & Accounting rose by 7 percent before currency over 2014 as total revenue fell by 3 percent as currency dampened reported numbers. In the fourth quarter, revenue for ongoing business was actually up 2 percent before currency adjustments.

CEO James Smith noted in a recent earnings webcast that Tax & Accounting had a good year, despite a tough comparison its performance in 2014. The unit's revenue for that year were 12 percent higher than in 2103.

Currency had a big impact on corporate results IFRS revenue of $12.2 billion for the most recently ended year was down from $12.6 billion for the prior year. IFRS EBITDA for 2015 was $1.7 billion, a drop of 32 percent from $2.5 billion.
Executives noted that recurring revenue in the tax and accounting business—83 percent of that operations' total—were up 8 percent organically. Net eanings fell to $1.31 billion from $1.96 billion.

Thomson noted the growth of Tax & Accounting revenue overall and internationally. In 2012, that operation had revenue of $1.2 billion with 15 percent from outside the United States. For 2015, revenue was $1.42 billion with 19 percent from other countries. Thomson expects margins for Tax & Accounting will continue to grow.

The $1.42-billion IFRS total rose by three percent from $1.37 billion for 2014; an increase of 8 percent before currency and 7 percent organically. Operating profit for tax and accounting was $343 million for 2015, an increase of 16 percent from $295 the prior year; up 24.2 percent before currency and 21.5 percent organically.

 

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
Last modified on Thursday, 18 February 2016
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