Thomson Reuters Q4 Top-Line Beats Consensus Backed By 'Big 3' Segments; Hikes Dividend

Thomson Reuters Corp TRI reported fourth-quarter FY21 revenue growth of 6% year-on-year to $1.71 billion, beating the consensus of $1.68 billion.
Organic revenues increased 6%, driven by recurring revenues and transactions revenues.
The "Big 3" segments (Legal Professionals, Corporates, and Tax & Accounting Professionals) collectively comprised 79% of total revenues and reported organic revenue growth of 7%. Legal Professionals revenue grew 5% Y/Y to $689 million, Corporates revenue rose 7% Y/Y to $361 million, and Tax & Accounting Professionals revenue increased 9% Y/Y to $309 million.
Reuters News revenue improved 11% Y/Y to $182 million, and the Global Print revenue declined 4% Y/Y to $170 million.
Adjusted EBITDA margin contracted 610 bps to 26.4% due to Change Program costs.
Adjusted EPS of $0.43 missed the consensus of $0.46.
Thomson Reuters generated $397 million in operating cash flow during the quarter. It held $778 million in cash and equivalents.
Dividend: Thomson Reuters raised the quarterly dividend per share from $0.405 to $0.445, up 9.9%.
Outlook: Thomson Reuters anticipates FY22 revenue growth of 5.0% verus previous view of 4.0% - 5.0%. It sees FY23 revenue growth outlook of 5.5% - 6.0% versus prior view of 5.0% - 6.0%.
The company sees FY22 free cash flow of $1.3 billion versus the prior view of $1.2 billion - $1.3 billion. It expects FY23 free cash flow of $1.9 billion - $2.0 billion versus previous view of $1.8 billion - $2.0 billion.
Price Action: TRI shares traded lower by 3.18% at $101.69 on the last check Tuesday.

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