Thomson Reuters Reports First-Quarter 2009 Results



    
    Revenues up 3% before currency; Underlying operating profit up 2%

    
    NEW YORK, May 7 /CNW/ -- Thomson Reuters (NYSE:   TRI; TSX: TRI; LSE: TRIL;
Nasdaq:   TRIN), the world's leading source of intelligent information for
businesses and professionals, today reported results for the first quarter
ended March 31, 2009.  Resilient revenue growth despite weak markets, close
management of costs and out-performance on its integration program combined to
deliver good results.
    

    (Logo:  http://www.newscom.com/cgi-bin/prnh/20090507/NY12658LOGO )


    

    
                                        Three Months Ended March 31,
                                        ----------------------------
                      (Millions of U.S. dollars, except EPS and Profit Margin)
    

    
    GAAP Financial Measures             2009      2008              Change
                                        ----      ----              ------
    Revenues                          $3,124    $1,834                 70%
    Operating profit                     374       216                 73%
    Diluted earnings per share         $0.27     $0.30                -10%
    Cash flow from operations            251       284                -12%
    

    
                                                         Change
                                                         Before
    Non-GAAP Financial Measures         2009   2008(1)   Currency    Change
                                        ----   -------   --------    ------
    Revenues from ongoing
     businesses                       $3,121    $3,228        3%       -3%
    Underlying operating profit(2)       588       576                  2%
    Underlying operating profit
     Margin(2)                         18.8%     17.8%             +100bps
    Adjusted earnings per share        $0.40     $0.44                 -9%
    Free cash flow                        51       155                -67%
    

    
    Unless otherwise noted, all revenue growth comparisons are before
    currency as Thomson Reuters believes this provides the best basis
    to measure the performance of its business.

    --  Revenues were $3.1 billion, an increase of 3% before currency compared
        to first-quarter 2008 pro forma revenues.(1)
    --  GAAP revenues increased 70% (after currency) primarily as a result of
        the Reuters acquisition completed on April 17, 2008.
    --  Underlying operating profit increased 2% to $588 million, with the
        related margin increasing 100 basis points primarily due to the
        benefits of currency and integration-related savings.
    --  Earnings per share were $0.40 benefiting from higher underlying
profit,
        offset by higher integration-related costs of $0.07 per share.
    --  First-quarter free cash flow was $51 million, down from the prior
        period, primarily due to a $194 million increase in net interest paid
        related to the acquisition of Reuters.

    --  Integration and legacy savings programs are tracking against the
        accelerated plan with $850 million of run-rate savings (against a 2011
        target of $1.4 billion) achieved by quarter-end.
    

    
    (1) 2008 financial information disclosed in this news release has been
        prepared on a pro forma basis and assumes that Thomson's acquisition
        of Reuters closed on January 1, 2007.  Thomson Reuters believes that
        pro forma financial information provides more meaningful period-to-
        period comparisons of its performance because Reuters results prior to
        the April 17, 2008 closing are not included in GAAP results.  2009
        results include the impact of the acquisition for the entire period.
        For more information, see the explanatory note at the end of this news
        release.
    (2) Underlying operating profit excludes amortization of acquired
        intangible assets, fair value adjustments, integration program costs
        and the results of disposals.

    
    "Our ability to continue delivering revenue and profit growth in these
challenging markets demonstrates the strength of our business model, the
choice of sectors in which we participate and our execution focus," said
Thomas H. Glocer, chief executive officer.

    "We recently marked the one-year anniversary of the Reuters acquisition,
and the integration is ahead of plan and has gone very well.  While the
financial markets remain difficult, we are well positioned with services which
promote transparency, manage risk and automate manual processes.  In addition,
our Legal, Tax & Accounting and Healthcare & Science businesses address major
governmental priorities, such as enhanced regulation, tax reform and
healthcare spending."

    "We are concentrating our investments on key projects that will allow us
to take share in difficult markets and grow strongly once the economy
recovers.  In the near term, close management of expenses and cost synergies
from the integration should protect margins. Over the longer term, we expect
renewed market growth and revenue synergies from the integration to drive
significant profit growth."
    

    First-Quarter Business Segment Highlights

    Professional Division

    

    
                       Three Months Ended March 31,
                       ----------------------------
           (Millions of U.S. dollars, unless otherwise indicated)
    

    
                                                         Change
                                                         Before
    Revenues                 2009      2008    Change   Currency
                             ----      ----    ------   --------
    Legal                    $834      $839       -1%        3%
    Tax & Accounting          239       221        8%       10%
    Healthcare & Science      195       187        4%        7%
                             ----      ----
    Professional
     Division Total         1,268     1,247        2%        5%
    

    
                                                           2009      2008
    Operating Profit         2009      2008    Change    Margin    Margin
                             ----      ----    ------    ------    ------
    Legal                    $241      $233        3%     28.9%     27.8%
    Tax & Accounting           37        40       -8%     15.5%     18.1%
    Healthcare & Science       29        28        4%     14.9%     15.0%
                             ----      ----
    Professional
     Division Total           307       301        2%     24.2%     24.1%


    --  Professional's revenues increased 5%, including 3% organic growth,
with
        all segments contributing positively to growth.
    --  Online, software and services revenues increased 7%, 4% of which was
        organic. This represented 80% of Professional revenues in the first
        quarter.

    --  Operating profit and related margin improvements were primarily
derived
        from the benefits of currency and efficiency initiatives in the Legal
        segment.

    Legal

    --  Legal revenues increased 3%, with organic revenue growth of 2% driven
        by online products including Westlaw, international legal businesses
        and growth by FindLaw.  These gains were somewhat offset by declines
in
        ancillary services, bar exam and preparation classes, consulting
        services and enterprise software-related revenues.

    --  Operating profit increased 3% and the related margin expanded 110
basis
        points, primarily due to the benefit of currency and efficiency
        initiatives.

    Tax & Accounting

    --  Revenues were up 10%, 4% organic, driven by growth of core products,
        such as the UltraTax suite of solutions.  Acquisitions contributed 6%
        growth, primarily from compliance software provider Paisley, which
        closed on December 31, 2008.  Software and services revenues also grew
        solidly in the quarter.

    --  Operating profit and the related margin were down primarily due to the
        dilutive impact of recent acquisitions.

    Healthcare & Science

    --  Strong revenue growth of 7%, all organic, was driven by higher sales
in
        the Payer decision-support business and increased subscriptions for
the
        ISI Web of Knowledge / Web of Science product.  Results for Healthcare
        & Science exclude the impact of Dialog (sold in July 2008) and PDR
        (Physicians Desk Reference) which Thomson Reuters intends to sell and
        which is now reflected as a "disposal" in the financial statements.

    --  Operating profit and the related margin were flat as flow-through from
        strong revenue growth was offset by costs associated with relocating a
        data center.

    Markets Division
    

    
                              Three Months Ended March 31,
                              ----------------------------
                   (Millions of U.S. dollars unless otherwise indicated)
    

    
                                                          Change
                                                          Before
    Revenues               2009    2008      Change      Currency
                           ----    ----      ------      ---------
    Sales & Trading        $890    $981          -9%          -2%
    Investment &
     Advisory               571     596          -4%           1%
    Enterprise              304     300           1%           9%
    Media                    89     108         -18%          -8%
                           ----    ----
    Markets Division
     Total                1,854   1,985          -7%         0.4%
    

    
    Operating                                               2009       2008
     Profit                2009    2008      Change        Margin     Margin
                           ----    ----      ------        ------     ------
    Markets Division
     Total                  337     338           0%        18.2%      17.0%

    --  Revenues grew 0.4% (2% growth in recurring subscription revenues), all
        organic, compared to 9% pro forma organic growth for the same period a
        year ago.  While substantially down, the ability of the Markets
        Division to maintain revenue growth in these very difficult financial
        markets highlights the diversity and balance of its businesses.
    --  Enterprise and the majority of business segments in Investment &
        Advisory performed well, as did key products and services in Sales &
        Trading, such as Commodities & Energy and Post Trade Services. 
        However, lower volumes in transaction services and reductions in
        headcount at clients held back growth.
    --  Operating profit was unchanged from the prior year period.  The
        corresponding margin expanded 120 basis points primarily due to
        benefits from currency, integration-related savings and tight cost
        controls.

    --  Asia led all geographic areas with 5% revenue growth, while Europe,
        Middle East and Africa grew 3%.  Americas revenues decreased 4%, all
        before currency.

    Sales & Trading


    --  Revenues decreased 2% due to lower foreign exchange (FX) transactional
        volumes and a decline in desktop subscriptions.  These declines were
        partly offset by good revenue growth from Commodities & Energy and
        Tradeweb, both of which benefited from higher trading volumes.

    Investment & Advisory


    --  Revenues increased 1%, driven by growth across most business segments,
        offset by sustained weakness in Investment Banking.  Investment
        Management revenue growth was driven by demand for advanced analytics
        product offerings.  Wealth Management benefited from strong growth in
        Asia and back office transaction processing solutions.  Corporate
        Services revenue growth was due to geographic expansion of investor
        relations and business intelligence solutions.

    Enterprise


    --  Revenues grew 9%, reflecting continued strong demand for real-time,
        pricing and reference data as customers seek ways to automate back
        office processes and trade execution, as well as improve pricing
        transparency and meet regulatory requirements.

    Media


    --  Revenues declined 8%, due to a decline in the professional publishing
        and consumer businesses.  The core news agency business declined by
        only 2% as cost savings initiatives by media clients drove increased
        reliance on agency services.

    Corporate and Other

    
    Corporate and Other expenses increased $89 million to $145 million,
primarily due to integration costs.  Core Corporate and Other costs decreased
to $56 million compared to $63 million in the prior period, reflecting lower
headcount.
    

    Integration Programs

    --  Thomson Reuters previously announced that it expects $1 billion in
        annualized cost savings from integration programs by the end of 2011,
        up from $750 million of savings projected in May 2008.  This raised
the
        overall savings target (including legacy efficiency programs) to $1.4
        billion.
    --  Thomson Reuters achieved combined run-rate savings of $850 million in
        the first quarter, placing it on track to achieve its target of $975
        million by the end of 2009. Savings were achieved through real estate
        integration, rationalization of redundant positions and the
        harmonization of infrastructure supporting the business.

    --  The first-quarter costs required to achieve these savings were $88
        million.

    Recent Developments

    
    In the first quarter, Thomson Reuters issued C$750 million (approximately
US$610 million) of 6.00% notes due in March 2016 to further strengthen its
balance sheet and enhance financial flexibility.
    

    Business Outlook (Before Currency)

    
    Based on the current environment in the markets it serves, Thomson
Reuters reaffirms its previous outlook that  revenues are expected to grow in
2009 and underlying operating margin and free cash flow (adjusted for certain
timing-related items) will be comparable to 2008, supported by revenue growth
and the expected savings from integration programs.
    

    Dividend

    
    As previously announced, Thomson Reuters increased its 2009 dividend
amount by $0.04 per share for 2009, resulting in a quarterly dividend of $0.28
per share and an annualized dividend amount of $1.12 per share. Thomson
Reuters will pay a quarterly dividend on June 15, 2009 to shareholders of
record as of May 22, 2009.
    

    Renewal of Share Buyback Facility

    
    Thomson Reuters repurchases shares from time to time as part of its
capital management strategy. Thomson Reuters today announced that it has
received approval from the Toronto Stock Exchange (TSX) to renew its Normal
Course Issuer Bid (NCIB) for Thomson Reuters Corporation common shares for an
additional 12-month period. Under the bid, up to 15 million common shares may
be repurchased in open market transactions on the TSX or the New York Stock
Exchange between May 13, 2009 and May 12, 2010. This amount represents
approximately 1.8% of the aggregate issued and outstanding shares of Thomson
Reuters Corporation and Thomson Reuters PLC as of May 6, 2009. On May 6, 2009,
there were 647,393,892 Thomson Reuters Corporation common shares and
181,229,241 Thomson Reuters PLC ordinary shares outstanding. As required by
English law, Thomson Reuters is seeking shareholder approval at next week's
annual general meeting to renew its buyback authority for up to approximately
27.2 million Thomson Reuters PLC ordinary shares. Thomson Reuters may purchase
up to 378,443 of its common shares during any trading day, which represents
25% of the average daily trading volume on the TSX for the most recently
completed six calendar months prior to TSX acceptance of the notice of the
NCIB. In April 2008, Thomson Reuters commenced a $500 million share repurchase
program, under which approximately 16.5 million Thomson Reuters PLC ordinary
shares were ultimately repurchased through the program completion in July
2008. Thomson Reuters subsequently repurchased an additional 0.9 million
Thomson Reuters PLC ordinary shares at a cost of $21 million during the third
quarter of 2008. The average price paid per ordinary share in the three months
ended June 30, 2008 and September 30, 2008 was $30.59 and $24.68,
respectively. Between June 6, 2008 and May 6, 2009, no common shares were
repurchased under the NCIB.
    

    Thomson Reuters
    
    Thomson Reuters is the world's leading source of intelligent information
for businesses and professionals.  We combine industry expertise with
innovative technology to deliver critical information to leading decision
makers in the financial, legal, tax and accounting, healthcare and science and
media markets, powered by the world's most trusted news organization.  With
headquarters in New York and major operations in London and Eagan, Minnesota,
Thomson Reuters employs more than 50,000 people in 93 countries. Thomson
Reuters shares are listed on the New York Stock Exchange (NYSE:   TRI); Toronto
Stock Exchange (TSX: TRI); London Stock Exchange (LSE: TRIL); and Nasdaq
(Nasdaq:   TRIN). For more information, go to www.thomsonreuters.com.


    CONTACTS

    
    Fred Hawrysh                        Frank Golden
    Senior Vice President,              Senior Vice President,
    Corporate Affairs                   Investor Relations
    +1.646 223 5285                     +1.646 223 5288
    fred.hawrysh@thomsonreuters.com     frank.golden@thomsonreuters.com
    

    
    Victoria Brough
    Head of External Affairs, EMEA
    +44 (0) 207 542 8763
    victoria.brough@thomsonreuters.com

    
    Thomson Reuters will webcast a discussion of its first-quarter results
today beginning at 10:00 a.m. U.S. Eastern Daylight Time (EDT) / 3:00 p.m.
British Summer Time (BST).  To participate in the webcast, please visit
www.thomsonreuters.com and click the "Investor Relations" link located at the
top of the page and then "Earnings Webcasts" on the left side of the "Investor
Relations" page.  A copy of this news release along with slides and other
materials for the webcast are available at www.thomsonreuters.com.

    Thomson Reuters Corporation is incorporated in Ontario, Canada with a
registered office at Suite 2706, Toronto Dominion Bank Tower, P.O. Box 24,
Toronto-Dominion Centre, Toronto, Ontario M5K 1A1, Canada. Thomson Reuters PLC
(registered no. 06141013) is registered in England & Wales with a registered
office at The Thomson Reuters Building, South Colonnade, Canary Wharf, London
E14 5EP, United Kingdom. Thomson Reuters primary financial statements are the
consolidated financial statements of Thomson Reuters Corporation. Those
statements account for Thomson Reuters PLC as a subsidiary.

    All references to growth rate percentages compare the results of the
period to those of the prior year comparable period.
    

    NON-GAAP FINANCIAL MEASURES

    
    This news release includes certain non-GAAP financial measures, including
pro forma financial information as described herein. Thomson Reuters uses
these non-GAAP financial measures as supplemental indicators of its operating
performance and financial position. These measures do not have any
standardized meanings prescribed by Canadian GAAP and therefore are unlikely
to be comparable to the calculation of similar measures used by other
companies, and should not be viewed as alternatives to measures of financial
performance calculated in accordance with Canadian GAAP. Non-GAAP financial
measures (other than pro forma financial information) are defined and
reconciled to the most directly comparable Canadian GAAP measures in the
following tables.
    

    PRO FORMA FINANCIAL INFORMATION

    
    Pro forma financial information included in this news release is for
information purposes only and is unaudited. Pro forma financial information
was prepared in U.S. dollars in a manner consistent with accounting policies
that applied to Thomson under Canadian GAAP prior to the closing of the
acquisition and which currently apply to Thomson Reuters as though Reuters was
acquired on January 1, 2007. Pro forma financial information should not be
considered indicative of actual balance sheet data or operating results that
would have been achieved had Thomson acquired Reuters on January 1, 2007, or
of results which may occur in the future. Pro forma financial information
should be read in conjunction with historical financial results for Thomson
and Reuters. Pro forma information reflects the impacts of purchase accounting
but excludes deal-related expenses.
    

    CAUTIONARY NOTE CONCERNING FACTORS THAT MAY AFFECT FUTURE RESULTS

    
    This news release, in particular the sections under the headings
"Business Outlook" and "Integration Programs" includes forward-looking
statements that are based on certain assumptions and reflect Thomson Reuters
current expectations. Forward-looking statements are those that are not
historical facts and also include Thomson Reuters expectations about its
future prospects.  Forward-looking statements are subject to a number of risks
and uncertainties that could cause actual results or events to differ
materially from current expectations. Some of the factors that could cause
actual results to differ materially from current expectations include risks
related to Thomson Reuters ability to achieve the anticipated benefits from
the Reuters transaction and other integration program initiatives (including
within the time periods currently expected), develop additional products and
services to meet customers' needs, attract new customers, general economic
conditions and actions of competitors.   These and other factors are discussed
in materials that Thomson Reuters Corporation and Thomson Reuters PLC from
time to time file with, or furnish to, securities regulatory authorities. 
Thomson Reuters disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, other than as required by applicable law, rule or
regulation.



    2009 GAAP Results Compared to 2008 Pro Forma Results

    
                      Thomson Reuters Corporation
               Division and Business Segment Information
                       (millions of U.S. dollars)
                               (unaudited)
    

    
                                 Three Months Ended
                                      March 31,
                                 -------------------------------------------
                                 2009        2008(1)(2)     Change   Organic
                                 ----        ----------     ------   -------
    Revenues
         Legal                   $834             $839         -1%       2%
         Tax & Accounting         239              221          8%       4%
         Healthcare & Science     195              187          4%       7%
                                 ----             ----
    Professional Division       1,268            1,247          2%       3%
         Sales & Trading          890              981         -9%      -2%
         Investment & Advisory    571              596         -4%       1%
         Enterprise               304              300          1%       9%
         Media                     89              108        -18%      -8%
                                 ----             ----
    Markets Division            1,854            1,985         -7%       0%
    Eliminations                   (1)              (4)
                                 ----             ----
    Revenues from ongoing
     businesses(3)              3,121            3,228         -3%       2%
    Disposals(3)                    3               26
                                 ----             ----
    Revenues                   $3,124           $3,254         -4%
                               ======           ======
    Operating Profit
       Legal                     $241             $233          3%
       Tax & Accounting            37               40         -8%
       Healthcare & Science        29               28          4%
                                 ----             ----
    Professional Division         307              301          2%
    Markets Division              337              338          0%
    Corporate and Other          (145)             (56)
    Amortization                 (119)            (129)
                                 ----             ----
    Operating profit from
     ongoing businesses(3)        380              454        -16%
    Disposals(3)                   (6)              (2)
                                 ----             ----
    Operating profit             $374             $452        -17%
                                 ====             ====
    



    
                        Thomson Reuters Corporation
      Reconciliation of Operating Profit to Underlying Operating Profit (4)
                         (millions of U.S. dollars)
                                  (unaudited)
    

    
                                              Three Months Ended
                                                  March 31,
                                              -----------------------------
                                              2009       2008(2)     Change
                                              ----       -------     ------
    

    
    Operating profit                          $374         $452       -17%
    Adjustments:
         Amortization                          119          129
         Disposals                               6            2
         Fair value adjustments                  1          (20)
         Integration program costs              88           13
                                              ----         ----
    Underlying operating profit               $588         $576         2%
                                              ====         ====
    Underlying operating profit margin        18.8%        17.8%
                                              ====         ====
    



    2009 GAAP Results Compared to 2008 Pro Forma Results

    
                          Thomson Reuters Corporation
      Reconciliation of Earnings Attributable to Common and Ordinary Shares
                 to Adjusted Earnings from Continuing Operations (5)
           (millions of U.S. dollars, except as otherwise indicated and
                           except for per share data)
                                 (unaudited)
    

    
                                                      Three Months Ended
                                                          March 31,
                                                     ---------------------
                                                     2009          2008(6)
                                                     ----          -------
    Earnings attributable to common and ordinary
     shares                                          $227
    Adjustments:
         Disposals                                      6
         Fair value adjustments                         1
         Net other expense                              1
         Tax on above items                            (5)
    Interim period effective tax rate
     normalization (7)                                (13)
    Amortization                                      119
    Discontinued operations                            (4)
                                                     ----
    Adjusted earnings from continuing operations     $332              $366
                                                     ====              ====
    Adjusted earnings per share from continuing
     operations                                     $0.40             $0.44
                                                    =====             =====
    Weighted average common and ordinary shares
     (in millions)                                  834.6             838.6
                                                    =====             =====
    



    2009 GAAP Results Compared to 2008 Pro Forma Results

    
                           Thomson Reuters Corporation
                    Division and Business Segment Depreciation
                            (millions of U.S. dollars)
                                   (unaudited)
    

    
                                               Three Months Ended
                                                   March 31,
                                          -----------------------------
    Depreciation                          2009                2008(1)(2)
                                          ----                ---------
    

    
       Legal                              $(58)                  $(57)
       Tax & Accounting                    (15)                   (10)
       Healthcare & Science                (13)                   (10)
                                          ----                   ----
    Professional Division                  (86)                   (77)
    Markets Division                      (161)                  (155)
    Corporate and Other                     (5)                    (1)
                                          ----                   ----
    Depreciation - Ongoing Businesses     (252)                  (233)
    Disposals                               (1)                    (2)
                                          ----                   ----
    Total Depreciation                   $(253)                 $(235)
                                         =====                  =====
    

    
    (1) 2008 segment results have been restated to be comparable to the
        presentation for 2009.
    (2) 2008 results are shown on a pro forma basis which assumes that Thomson
        acquired Reuters on January 1, 2007.  These amounts reflect the
        impacts of purchase accounting, but exclude deal-related expenses and
        an initial one-time purchase accounting adjustment related to deferred
        revenue.
    (3) Revenues and operating profit from ongoing businesses exclude the
        results of disposals. Disposals include the results of businesses sold
        or held for sale that do not qualify as discontinued operations.
    (4) Underlying operating profit excludes amortization of acquired
        intangible assets, fair value adjustments, integration program costs
        and the results of disposals.  Underlying operating profit margin is
        the underlying operating profit expressed as a percentage of revenues
        from ongoing businesses.
    (5) Adjusted earnings from continuing operations and adjusted earnings
        per share from continuing operations include integration program
        costs, but exclude the pre-tax impacts of amortization of acquired
        intangible assets, as well as the post-tax impacts of fair value
        adjustments, the results of disposals (see note (3) above)
        non-recurring items and discontinued operations.  Adjusted earnings
        per share from continuing operations is calculated using diluted
        weighted average common and ordinary shares and does not represent
        actual earnings per share attributable to shareholders.
    (6) In 2008, Thomson Reuters calculated its pro forma adjusted earnings
        by deducting from pro forma underlying operating profit certain
        normally recurring items appearing below operating profit on the
        statement of earnings.  Additionally, Thomson Reuters deducted costs
        associated with its integration programs.  The table below presents a
        reconciliation of pro forma underlying operating profit to pro forma
        adjusted earnings from continuing operations for the three months
        ended March 31, 2008.
    

    
       --------------------------------------------------------------------
       (millions of U.S. dollars, except as
        otherwise indicated and except per share data)   Three Months Ended
       Pro forma basis                                    March 31, 2008(a)
       --------------------------------------------------------------------
       Underlying operating profit                                576
       Adjustments:
       Integration program costs                                  (13)
       Net interest expense (calculated as pro rata
        $450 million annualized)                                 (113)
       Income taxes (calculated using an estimated
        effective tax rate of 25%)                                (80)
       Tradeweb ownership interests                                (2)
       Dividends declared on preference shares                     (2)
       --------------------------------------------------------------------
       Adjusted earnings from continuing operations               366
       --------------------------------------------------------------------
       Adjusted earnings per share from continuing
        operations                                              $0.44
       --------------------------------------------------------------------
       Weighted average common and ordinary shares
        (in millions)                                           838.6
       --------------------------------------------------------------------
       (a) This calculation has been restated to be comparable to the 2009
           presentation of disposals.
    

    
        Weighted average common and ordinary shares outstanding reflected the
        actual reported diluted weighted average common and ordinary shares
        outstanding adjusted as if the approximately 194 million Thomson
        Reuters PLC shares issued to Reuters shareholders on April 17, 2008
        were outstanding from the beginning of the period presented, as well
        as the effect of the approximately 34 million Reuters Group PLC share
        options assumed as part of the acquisition.
    (7) Adjustment to reflect income taxes based on estimated full-year
        effective tax rate.  Reported earnings for interim periods reflect
        income taxes based on the estimated effective tax rates of each of the
        jurisdictions in which Thomson Reuters operates. The adjustment
        reallocates estimated full-year income taxes between interim periods,
        but has no effect on full-year income taxes.
    



    Consolidated GAAP Results

    
                             Thomson Reuters Corporation
                         Consolidated Statement of Earnings
                   (millions of U.S. dollars, except per share data)
                                    (unaudited)
    

    
                                                         Three Months Ended
                                                             March 31,
                                                         ------------------
                                                         2009          2008
                                                         ----          ----
    

    
    Revenues                                           $3,124        $1,834
    Cost of sales, selling, marketing, general
     and administrative expenses                       (2,378)       (1,435)
    Depreciation                                         (253)         (121)
    Amortization                                         (119)          (62)
                                                         ----          ----
    Operating profit                                      374           216
    Net other expense                                      (1)          (26)
    Net interest (expense) income and other
     financing costs                                      (96)           39
    Income taxes                                          (49)          (34)
    Tradeweb ownership interests, net of tax               (4)           (2)
                                                         ----          ----
    Earnings from continuing operations                   224           193
    Earnings from discontinued operations, net of tax       4             1
    Net earnings                                          228           194
    Dividends declared on preference shares                (1)           (2)
                                                         ----          ----
    Earnings attributable to common and
     ordinary shares                                     $227          $192
                                                        $0.27         $0.30
                                                        =====         =====
    Basic earnings per share
    Diluted earnings per share                          $0.27         $0.30
                                                        =====         =====
    

    
    Basic weighted average common and
     ordinary shares                              828,249,564   640,067,675
                                                  ===========   ===========
    Diluted weighted average common and
     ordinary shares                              834,622,790   642,373,088
                                                  ===========   ===========
    



    
                             Thomson Reuters Corporation
                              Consolidated Balance Sheet
                             (millions of U.S. dollars)
                                     (unaudited)
    

    
                                                      March 31,   December 31,
                                                        2009          2008
                                                        ----          -----
    Assets
    Cash and cash equivalents                          $1,251           $841
    Accounts receivable, net of allowances              1,760          1,780
    Prepaid expenses and other current assets             926            952
    Deferred income taxes                                 100            100
                                                      -------        -------
    Current assets                                      4,037          3,673
    

    
    Computer hardware and other property, net           1,480          1,555
    Computer software, net                              1,283          1,298
    Identifiable intangible assets, net                 8,406          8,596
    Goodwill                                           19,044         19,348
    Other non-current assets                            1,493          1,550
                                                      -------        -------
    Total assets                                      $35,743        $36,020
                                                      =======        =======
    Liabilities and shareholders' equity
    

    
    Liabilities
    Short-term indebtedness                                $5            $13
    Accounts payable and accruals                       2,216          2,710
    Deferred revenue                                    1,277          1,196
    Current portion of long-term debt and
     finance lease obligations                            664            672
                                                      -------        -------
    Current liabilities                                 4,162          4,591
    

    
    Long-term debt and finance lease obligations        7,370          6,834
    Other non-current liabilities                       1,760          1,723
    Deferred income taxes                               2,769          2,674
    

    
    Minority interest in equity of
     consolidated affiliate                                78             72
    

    
    Shareholders' equity
    Capital                                            11,160         11,135
    Retained earnings                                  10,966         10,969
    Accumulated other comprehensive loss               (2,522)        (1,978)
                                                      -------        -------
    Total shareholders' equity                         19,604         20,126
                                                      -------        -------
    Total liabilities and shareholders' equity        $35,743        $36,020
                                                      =======        =======
    


    
                                            
                            Thomson Reuters Corporation
                        Consolidated Statement of Cash Flow
                             (millions of U.S. dollars)
                                    (unaudited)
    

    
                                                        Three Months Ended
                                                             March 31,
                                                        ------------------
                                                          2009       2008
                                                          ----       ----
    Cash provided by (used in):
    

    
    Operating activities
    Net earnings                                          $228       $194
    Remove earnings from discontinued operations            (4)        (1)
    Add back (deduct) items not involving cash:
      Depreciation                                         253        121
      Amortization                                         119         62
      Deferred income taxes                                (11)       (53)
      Other, net                                            54         88
    Changes in working capital and other items            (388)      (113)
    Cash used in operating activities - discontinued
     operations                                              -        (14)
                                                          ----       ----
    Net cash provided by operating activities              251        284
                                                          ----       ----
    Investing activities
    Acquisitions, less cash acquired                       (20)      (123)
    Proceeds from (payments for) disposals of
     discontinued operations, net of income taxes paid      22        (53)
    Proceeds from other disposals, net of income
     taxes paid                                              -        154
    Capital expenditures, less proceeds from disposals    (193)      (108)
    Other investing activities                              (6)       (12)
    Other investing activities of discontinued
     operations                                              -         (7)
                                                          ----       ----
    Net cash used in investing activities                 (197)      (149)
                                                          ----       ----
    Financing activities
    Proceeds from debt                                     609      1,679
    Repayments of debt                                      (3)      (400)
    Net (repayments) borrowings under short-term loan
     facilities                                            (10)       354
    Dividends paid on preference shares                     (1)        (2)
    Dividends paid on common and ordinary shares          (228)      (126)
    Other financing activities, net                         (2)         2
                                                          ----       ----
    Net cash provided by financing activities              365      1,507
                                                          ----      -----
    Translation adjustments                                 (9)        83
                                                          ----       ----
    Increase in cash and cash equivalents                  410      1,725
    Cash and cash equivalents at beginning of period       841      7,497
                                                          ----      -----
    Cash and cash equivalents at end of period          $1,251     $9,222
                                                        ======     ======
    



    
                         Thomson Reuters Corporation
          Reconciliation of Net Cash Provided by Operating Activities 
                             to Free Cash Flow(1)
                         (millions of U.S. dollars)
                                 (unaudited)
    

    
                                                          Three Months Ended
                                                                March 31,
                                                          ------------------
                                                            2009       2008
                                                            ----       ----
    Net cash provided by operating activities               $251       $284
    Capital expenditures, less proceeds from disposals      (193)      (108)
    Other investing activities                                (6)       (12)
    Other investing activities of discontinued operations      -         (7)
    Dividends paid on preference shares                       (1)        (2)
                                                            ----       ----
    Free cash flow (1)                                       $51       $155
                                                            ====       ====
    

    
    (1) Free cash flow is net cash provided by operating activities less
        capital expenditures, other investing activities and dividends paid
        on preference shares. Thomson Reuters uses free cash flow as a
        performance measure because it represents cash available to repay
        debt, pay dividends and fund new acquisitions.




    




For further information:

For further information: Fred Hawrysh, Senior Vice President, Corporate
Affairs, +1-646-223-5285, fred.hawrysh@thomsonreuters.com, Frank Golden,
Senior Vice President, Investor Relations, +1-646-223-5288,
frank.golden@thomsonreuters.com, or Victoria Brough, Head of External Affairs,
EMEA, +44 (0) 207 542 8763, victoria.brough@thomsonreuters.com Web Site:
http://www.thomson.com


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