Thomson Reuters Reports Second-Quarter 2008 Results



    
    Pro forma revenues up 11%

    Pro forma underlying operating profit up 15%

    2008 full year pro forma revenue growth outlook confirmed at 6%-8%

    Integration on target; run-rate savings of $490 million achieved at June
30

    
    NEW YORK, Aug. 12 /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 second quarter
ended June 30, 2008.   Thomson Reuters had pro forma revenues of $3.4 billion,
an increase of 11% over the prior year period.(1) GAAP revenues were $3.1
billion, an increase of 73% over the prior year period, primarily due to the
Reuters acquisition which closed on April 17, 2008.
    
    (Logo:  http://www.newscom.com/cgi-bin/prnh/20080424/NYTH069LOGO )
    
    "Our strong second-quarter results reflect continued momentum among our
diverse set of businesses.  We are encouraged by the robust revenue growth
which we achieved despite the backdrop of a challenging economic environment,"
said Thomas H. Glocer, chief executive officer of Thomson Reuters.  "In light
of our solid first-half results and continued positive sales momentum across
the company, we are confident in confirming our full-year revenue and margin
outlook."
    "We have made excellent progress on our integration plan, including the
realization of cost synergies, the streamlining of our product offerings in
the Markets Division, the pursuit of revenue synergies across both divisions
and the achievement of our goal of becoming one company in one year," said Mr.
Glocer.
    "We operate a diverse and balanced portfolio of businesses, anchored by
our high-margin and resilient Professional Division and our global and pan-
enterprise Markets Division.  In Markets, we are benefiting from leading
positions serving customers in foreign exchange, commodities, energy,
corporate and emerging markets, which have more than offset weakness among our
global investment banking clients, while our enterprise solutions are seeing
strong sales as these large institutions re-engineer their trading operations.
In the near-term, we expect to continue to deliver strong underlying
profitability through integration-related savings and steady revenue growth,
while we transform our Markets Division to be best positioned to capture the
next cycle of strong growth."
    
    Consolidated Pro Forma Financial Highlights - Second-Quarter 2008
    
    -- Pro forma revenues increased 11% to $3.4 billion, and pro forma
organic revenue growth was 7%, driven by strong performances across core
businesses in both the Professional and Markets Divisions.
    -- Pro forma underlying operating profit grew 15% to $708 million.  Pro
forma underlying operating profit excludes amortization, impairments and the
costs associated with the integration programs.
    -- Pro forma underlying operating profit margin increased 60 basis points
to 20.7%.
    (1) Pro forma financial information disclosed in this news release
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. 
For more information, see the explanatory note on page 5.
    
    Professional Division
    
    -- Revenues for the Professional Division grew 10% to $1.4 billion, led
by organic revenue growth of 6% with acquisitions adding 3% and foreign
exchange contributing 1%. Online, services and software comprised 77% of total
revenues and grew 13%. Print and CD represented 23% of total revenues and grew
1%.
    -- Operating profit for the Professional Division was $412 million, a 10%
increase from the prior year period.  Operating profit margin for the second
quarter was 30.0%, compared with 30.1% in the second quarter of 2007.  Second-
quarter operating profit margin improved in all segments except for Tax &
Accounting which was held back by the impact of recent acquisitions.
    
    Legal
    
    -- Revenues increased 8% to $923 million. Organic revenue growth was 6%,
driven by strength across Legal's portfolio of businesses anchored by Westlaw.
Westlaw Litigator continued to deliver strong results, growing 18% in the
quarter, with online solutions continuing to perform well in both the U.S. and
internationally.  Organic revenues also benefited from robust growth for
Software and Services, as FindLaw registered strong growth due to new sales
and new products and Consulting Services recorded strong utilization rates.
    -- Operating profit grew 9% to $321 million.  Operating profit margin for
the quarter increased 30 basis points to 34.8% compared with the prior year
period.
    
    Tax & Accounting
    
    -- Revenues increased 22% to $189 million.  Organic revenues grew 7% and
acquisitions contributed 15%.  Organic revenue growth was driven by the strong
performance of core products Checkpoint, UltraTax and InSource.  Corporate
Software and Services grew 8% organically and 49% overall, driven by the first
quarter 2008 acquisition of TaxStream and the fourth quarter 2007 acquisition
of Property Tax Services.
    -- Operating profit increased 6% to $33 million for the quarter.  The
corresponding operating profit margin was 17.5% compared to 20.0% in the prior
year period, due to lower initial margins for the above-mentioned acquisitions
related to purchase accounting adjustments.  As the acquisition accounting
treatment normalizes during the second half of this year, the margin is
expected to return to historical averages for the full year.
    
    Scientific
    
    -- Revenues grew 10% to $154 million.  Organic revenue growth contributed
3%, acquisitions added 6%, and foreign exchange added 1%.  Pro forma results
for Scientific exclude the impact of Dialog as the business was sold in July
2008.  Organic growth in the second quarter was led by approximately 10%
subscription growth for Web of Science and ISI Web of Knowledge products, as a
new release launched in the fourth quarter of 2007 continues to be well
received by customers.
    -- Operating profit grew 17% to $48 million for the quarter.  Operating
profit margin was 31.2%, a 190 basis point increase compared with the prior
year period.  Operating profit and margin improvement were due to higher
revenues, efficiency initiatives and the timing of expenses.
    
    Healthcare
    
    -- Revenues increased 9%, all of which was organic, to $109 million.
Revenue growth was driven by Payer and Provider businesses.  The Payer
business delivered strong revenue growth of 15%.  Provider was up 7% led by
revenue growth from Micromedex.
    -- Operating profit grew 11% to $10 million for the quarter. Operating
profit margin increased 20 basis points to 9.2%.  Healthcare is highly
seasonal with approximately 70% of its annual operating profit historically
generated in the fourth quarter.
    
    Markets Division
    
    -- Pro forma revenues for the Markets Division grew 12% to $2.1 billion.
Organic revenue growth continued to be strong, increasing 7% in the quarter,
with foreign exchange adding 5%.  Organic growth was driven by strength in
Sales & Trading, Investment & Advisory and Enterprise businesses.  Asia
represented the fastest growing region in the second quarter delivering 15%
organic growth, while Europe, Middle East and Africa was up 9%.
    -- Markets Division pro forma operating profit was $372 million, up 30%
from the prior year.  Operating profit margin for the second quarter was
18.1%, an increase of 240 basis points compared with the second quarter of
2007.  The increase in pro forma operating profit reflected synergies,
efficiency initiatives and foreign exchange.
    
    Sales & Trading
    
    -- Sales & Trading pro forma revenues were $1.0 billion in the second
quarter, an increase of 11% over the prior year, with 5% organic growth.
Growth was driven by Treasury, Commodities & Energy and cross-asset class
trading, offset in part by slower growth in Fixed Income and Equities.
Treasury businesses continued to be very strong driven by foreign exchange
volatility and high transaction volumes.  Commodities & Energy, which
delivered double-digit organic growth, continued to benefit from robust
commodities and energy markets, creating significant demand for our
information products.
    
    Investment & Advisory
    
    -- Pro forma revenues increased 9% to $593 million, driven by organic
growth of 8%.  Growth was led by strength in the Investment Management and
Corporate businesses which delivered organic growth of 12% and 20%,
respectively, on the back of strong demand for both desktop and content feeds.
Investment Management benefited from its focus on advanced analytics, while
Corporate began to capitalize on the former Reuters strong international
network, demonstrating robust growth in Europe and Asia.  Investment Banking
delivered organic growth of 5% driven by European and Asian demand.
    
    Enterprise
    
    -- Pro forma revenues grew 23% to $338 million in the quarter, with
organic growth of 14%, driven by continued demand for data feeds which enable
customers to power electronic and algorithmic trading, increase efficiency of
front- and back-office processes via automation, and meet compliance needs.
Trade & Risk Management pro forma revenues grew 19% organically, with solid
sales of Kondor Plus risk management systems.  Information Management Systems
delivered 18% organic revenue growth, a significant improvement after several
years of declining revenues.
    
    Media
    
    -- Media pro forma revenues increased 12% in the second quarter to $119
million, with 2% organic revenue growth.  Revenue growth from Professional and
Agency businesses of 8% and 6%, respectively, was offset by timing issues on
royalty payments, which are expected to be recovered in the second half of
2008, and weakness in the Consumer business in the Americas related to weaker
advertising spend.
    
    Corporate and Other
    
    -- Pro forma corporate and other expenses increased $123 million to $221
million in the second quarter, compared with $98 million in the second quarter
of 2007.  The increase was primarily due to increases in costs associated with
Thomson Reuters integration programs including severance and consulting
services.
    
    Consolidated Pro Forma Financial Highlights - Six-Months 2008
    
    -- Pro forma revenues from on-going businesses increased 12% to $6.7
billion, fueled by organic revenue growth of 8%, reflecting strength in both
the Professional and Markets Divisions.
    -- First-half 2008 pro forma revenues were 57% from the Americas, 33%
from Europe, the Middle East and Africa and 10% from Asia.
    -- Pro forma underlying operating profit grew 23% to $1.3 billion.  Pro
forma underlying operating profit excludes amortization, impairments and the
costs associated with integration programs.
    -- Pro forma underlying operating profit margin increased 190 basis
points to 19.3%.
    Consolidated GAAP Financial Highlights - Second-Quarter 2008 (GAAP
financial information does not include the results of Reuters prior to the
closing date of April 17, 2008.)
    -- Revenues were $3.1 billion compared to $1.8 billion in the prior year
period, primarily due to the acquisition of Reuters.
    -- Operating profit was $295 million, compared to $352 million in the
second quarter of 2007, as additional profit from existing businesses and from
the Reuters acquisition were more than offset by costs associated with the
acquisition as well as integration programs, and from an impairment on certain
assets held for sale.
    -- At June 30, 2008, Thomson Reuters had achieved run-rate savings of
$490 million for the integration programs.  The cost to achieve the savings
through June 30, 2008 was approximately $154 million.
    -- Earnings attributable to common shares were $172 million, or $0.22 per
share, compared to $375 million, or $0.58 per share, in the same period in
2007.
    -- Net cash provided by operations in the second quarter was $880 million
compared to $443 million a year ago.  Free cash flow was $636 million and
after adjusting for one-time cash costs related to the Reuters acquisition and
integration-related costs, free cash flow was $801 million.
    
    2008 Business Outlook for Thomson Reuters
    
    On May 1, 2008, Thomson Reuters provided a business outlook for 2008 on a
pro forma basis (assumes Thomson acquired Reuters on January 1, 2007).  Based
on its first-half results and continued positive sales momentum across the
company, Thomson Reuters is confident in confirming this outlook.
    -- Pro forma revenue growth (excluding currency effects) is estimated to
be between 6% and 8%.
    -- Pro forma underlying operating profit margin is estimated to be
between 19% and 21%.
    -- Free cash flow margin, excluding synergy and integration costs, is
estimated to be between 11% and 12% of revenues.
    
    Share Buyback Program
    
    In July 2008, Thomson Reuters completed a $500 million share repurchase
program less than three months after its announcement in April 2008. The
program resulted in the buyback of approximately 16.5 million ordinary shares
of Thomson Reuters PLC.
    Thomson Reuters will continue to repurchase shares from time to time as
part of its capital management strategy.  Decisions regarding any future
repurchases will be based on market conditions, share price and other factors
including opportunities to invest capital for growth.   Thomson Reuters may
elect to suspend or discontinue share repurchases at any time in accordance
with applicable laws.
    
    Dividend
    
    As previously announced, Thomson Reuters will pay a dividend of $0.22253
per share on September 15, 2008.  This dividend is based on the 2008 quarterly
dividend rate of $0.27 per share, as adjusted for an interim dividend paid on
May 1, 2008 in connection with the closing of the Reuters acquisition.  As
requested by the London Stock Exchange (LSE), for the dividend payable on
September 15, 2008, Thomson Reuters has adjusted the record date to August 22,
2008 from August 21, 2008.  Thomson Reuters intends to pay a dividend of $0.27
per share on December 15, 2008 to shareholders of record as of November 21,
2008.  The record date for this dividend was previously communicated as
November 20, 2008 and is also being adjusted at the LSE's request.
    
    About 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, scientific, healthcare 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.
    Thomson Reuters will webcast a discussion of its second-quarter results
today beginning at 10:00 a.m. U.S. Eastern Time (ET)/ 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 "News & Events" 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. Beginning with the period ended June 30, 2008,
Thomson Reuters primary financial statements are the consolidated financial
statements of Thomson Reuters Corporation. Those statements account for
Thomson Reuters PLC as a subsidiary.
    This news release includes certain non-GAAP financial measures, including
pro forma financial information as described in this news release. 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. The 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. The 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. The
pro forma financial information should be read in conjunction with historical
financial results for Thomson and Reuters. Pro forma information reflects the
estimated impacts of purchase accounting but excludes deal-related expenses.
The impacts of purchase accounting are based on preliminary estimates and are
therefore subject to change during the course of 2008 pending a final
valuation of the Reuters net assets.
    
    CAUTIONARY NOTE CONCERNING FACTORS THAT MAY AFFECT FUTURE RESULTS
    
    This news release, in particular the section under the heading "2008
Business Outlook for Thomson Reuters", 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.
    In preparing its Business Outlook, Thomson Reuters material assumptions
were that (i) there will be no change to existing prevailing worldwide
macroeconomic conditions; (ii) there will be no material adverse events which
will have a significant impact on Thomson Reuters financial results; (iii) a
portion of Thomson Reuters anticipated 2008 revenue growth will come from
tactical acquisitions made during the year; (iv) the anticipated 2008
underlying operating profit margin includes benefits of savings programs and
excludes synergy and integration costs, acquisition-related expenses of
amortization of intangibles, and impairments; (v) the anticipated 2008 free
cash flow margin excludes synergy and integration-related costs; (vi) the
Outlook reflects the continuing operations of Thomson Reuters business as of
June 30, 2008; (vii) the Outlook includes integration-related costs together
with various cost savings initiatives; (viii) the Outlook assumes Thomson had
acquired Reuters on January 1, 2007; and (ix) the Outlook includes preliminary
estimates of pro forma adjustments based on estimated fair values of assets.
    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.

    
    CONTACTS
    

    
    Fred Hawrysh                        Frank Golden
    Global Director, Corporate Affairs  Senior Vice President,
    1.203 539 8314                      Investor Relations
    fred.hawrysh@thomsonreuters.com     1.203 539 8470
                                        frank.golden@thomsonreuters.com
    


    
    Frank DeMaria                       Victoria Brough
    Global Director,                    Head of Corporate Communications, EMEA
    Corporate Media Relations           +44 (0) 207 542 8763
    1.646 223 5507                      victoria.brough@thomsonreuters.com
    frank.demaria@thomsonreuters.com
    



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

    
                          Three Months Ended          Six Months Ended
                                June 30,                   June 30,
                        2008      2007    Change   2008      2007    Change
    Pro Forma Revenues
     Legal               $923      $852      8%   $1,732    $1,592      9%
     Tax & Accounting     189       155     22%      394       315     25%
     Scientific           154       140     10%      295       267     10%
     Healthcare           109       100      9%      204       192      6%
    Professional
     Division           1,375    1,247      10%    2,625     2,366     11%
     Sales & Trading    1,001       901     11%    1,976     1,799     10%
     Investment &
      Advisory            593       544      9%    1,189     1,071     11%
     Enterprise           338       275     23%      638       530     20%
     Media                119       106     12%      233       207     13%
    Markets Division    2,051     1,826     12%    4,036     3,607     12%
    Intercompany
     eliminations         (4)       (4)              (7)      (10)
    Pro Forma Revenues -
     Ongoing
     Businesses(1)      3,422     3,069     12%    6,654     5,963     12%
    Purchase accounting
     differences(1)        --        --               --      (86)
    Disposals(2)           20        22               42        44
    Pro Forma Revenues  3,442     3,091     11%    6,696     5,921     13%
    

    
    Pro Forma Operating
     Profit
     Legal                321       294      9%      546       500      9%
     Tax & Accounting      33        31      6%       72        69      4%
     Scientific            48        41     17%       77        73      5%
     Healthcare            10         9     11%       13        13      0%
    Professional Division 412       375     10%      708       655      8%
    Markets Division      372       286     30%      715       502     42%
    Corporate and other (221)      (98)            (277)     (208)
    Amortization        (158)     (158)            (316)     (315)
    Pro Forma Operating
      profit - Ongoing
      Businesses(1)       405      405       0%      830       634     31%
    Purchase accounting
     differences(1)        --       --                --      (86)
    Disposals(2)            3        4                 6         6
    Impairment of assets
     held for sale       (72)       --               (72)        --
    Pro Forma Operating
     Profit              $336     $409     -18%      $764      $554    38%
    



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

    
                                  Three Months Ended       Six Months Ended
                                      June 30,                  June 30,
                                2008    2007    Change    2008     2007 Change
    

    
    Pro Forma Operating Profit  $336    $409   -18%      $764      $554    38%
    Adjustments:
     Amortization                158     158              316       315
     Purchase accounting
      differences                 --      --               --        86
     Disposals                   (3)     (4)              (6)       (6)
     Impairment of assets held
      for sale                    72      --               72        --
     Fair value adjustments        4      28             (16)        30
     Integration and synergy
      costs                      141      27              154        61
    Pro Forma Underlying
     Operating Profit(3)        $708    $618    15%    $1,284    $1,040    23%
    Pro Forma Underlying
     Operating Profit Margin % 20.7%   20.1%            19.3%     17.4%
    



    Pro Forma Thomson Reuters    Reconciliation of Underlying Operating
Profit to Adjusted Earnings From
    
                            Continuing Operations
           (millions of U.S. dollars, except per common share data)
                                 (unaudited)
    

    
                                          Three Months Ended  Six Months Ended
                                            June 30, 2008      June 30, 2008
    

    
    Pro Forma Underlying Operating Profit(3)     $708              $1,284
    Integration and synergy costs               (141)               (154)
    Net interest expense(4)                     (112)               (225)
    Income taxes(5)                              (73)               (145)
    Tradeweb ownership interests                  (4)                 (6)
    Dividends declared on preference shares       (1)                 (3)
    Pro Forma Adjusted Earnings -
     Ongoing Businesses(6)                       $377                $751
    Pro Forma Adjusted Basic Earnings
     Per Share - Ongoing Businesses             $0.45               $0.90
    Pro Forma Adjusted Diluted Earnings
     Per Share - Ongoing Businesses             $0.45               $0.90
    

    
    Pro forma basic weighted average
     common shares(7)                           830.9               832.6
    Pro forma diluted weighted average
     common shares(8)                           836.5               837.3
    



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

    
                                       Three Months Ended   Six Months Ended
                                            June 30,            June 30,
    

    
    Pro Forma Depreciation by Segment    2008      2007      2008      2007
    Professional Division
     Legal                               $(61)     $(52)    $(116)    $(100)
     Tax & Accounting                      (7)       (5)      (15)      (11)
     Scientific                            (8)       (7)      (16)      (13)
    Healthcare                             (6)       (6)      (13)      (11)
    Professional Division                 (82)      (70)     (160)     (135)
    Markets Division                     (121)     (126)     (247)     (254)
    Corporate and Other                    (3)       (3)       (4)       (6)
    Pro Forma Depreciation -
     Ongoing Businesses                  (206)     (199)     (411)     (395)
    Disposals                              --        --        (1)       (1)
    Total Pro Forma Depreciation        $(206)    $(199)    $(412)    $(396)
    
    (1) Pro forma revenues from ongoing businesses and pro forma operating
profit from ongoing businesses exclude the results of disposals (see note (2)
below).  Further, these amounts exclude initial one-time purchase accounting
adjustments related to acquired revenue and reflect current estimates of all
other ongoing purchase accounting adjustments.  In order to reconcile these
amounts to the 2007 pro forma revenues and operating profit disclosed in the
Thomson Reuters PLC annual report on Form 20-F for the year ended December 31,
2007, the one-time adjustment to revenue as well as the variance to the
earlier estimate of ongoing purchase accounting adjustments are reflected in
the line "Purchase accounting differences."
    (2) Disposals include the results of businesses sold or held for sale
that do not qualify as discontinued operations.
    (3) Pro forma underlying operating profit is operating profit adjusted
for amortization of acquired intangible assets, the impairment of assets held
for sale, costs associated with the integration of Reuters, expenses for
corporate efficiency initiatives, and other items affecting comparability. 
Pro forma underlying operating profit excludes the results of disposals as
well as the initial one-time purchase accounting adjustments related to
acquired revenue and the variance to earlier estimates of ongoing purchase
accounting adjustments as described in note (1) above.  Pro forma underlying
operating profit margin is the pro forma underlying operating profit expressed
as a percentage of pro forma ongoing revenues.
    (4) Pro forma net interest expense represents a pro rata portion of full
year pro forma interest expense of $450 million.
    (5) Pro forma income taxes are calculated using an effective tax rate of
25%; excluding amortization, the rate is 16%.
    (6) Pro forma adjusted earnings from ongoing operations and pro forma
adjusted earnings per share from ongoing operations include costs associated
with the integration of Reuters and certain expenses for corporate efficiency
initiatives costs, but exclude non-recurring items, discontinued operations,
the results of disposals (see note (2) above) and other items affecting
comparability.   Pro forma adjusted earnings per share from ongoing operations
does not represent actual earnings per share attributable to shareholders.
    (7) Pro forma basic weighted average common shares includes approximately
194.1 million Thomson Reuters PLC shares issued to former Reuters Group PLC
shareholders on April 17, 2008 as if the shares were outstanding from January
1, 2008, the beginning of the periods presented.
    (8) Pro forma diluted weighted average common shares includes the effect
of Reuters Group PLC options assumed in the acquisition from January 1, 2008,
the beginning of the periods presented.



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

    
                                    Three Months Ended       Six Months Ended
                                         June 30,                June 30,
                                     2008        2007        2008        2007
    

    
    Revenues                        $3,128      $1,805      $4,962      $3,467
    Cost of sales, selling, marketing,
     general and administrative
     expenses                      (2,428)     (1,274)     (3,863)     (2,535)
    Depreciation                     (192)       (117)       (313)       (232)
    Amortization                     (141)        (62)       (203)       (123)
    Impairment of assets held for
     sale                             (72)          --        (72)          --
    Operating profit                   295         352         511         577
    Net other (expense) income        (38)           6        (64)          12
    Net interest expense and
     other financing costs            (54)        (51)        (15)       (104)
    Income taxes                      (20)        (45)        (54)        (14)
    Tradeweb ownership interests       (4)          --         (6)          --
    Earnings from continuing
     operations                        179         262         372         471
    Earnings (losses) from discontinued
     operations, net of tax            (6)         115         (5)         130
    Net earnings                       173         377         367         601
    Dividends declared on preference
     shares                            (1)         (2)         (3)         (3)
    Earnings attributable to common
     shares                           $172        $375        $364        $598
    

    
    Basic earnings per common share  $0.22       $0.59       $0.51       $0.93
    Diluted earnings per
     common share                    $0.22       $0.58       $0.51       $0.93
    

    
    Basic weighted average
     common shares             792,544,170 640,884,903 716,323,549 640,978,139
    Diluted weighted average
     common shares             797,766,197 644,161,588 720,098,337 644,004,845
    



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

    
                                                      June 30,   December 31,
                                                        2008          2007
    

    
    Assets
    

    
    Cash and cash equivalents                           $789         $7,497
    Accounts receivable, net of allowances             1,811          1,565
    Prepaid expenses and other current assets            801            512
    Deferred income taxes                                197            104
    

    
    Current assets                                     3,598          9,678
    

    
    Computer hardware and other property, net          1,723            731
    Computer software, net                             1,903            721
    Identifiable intangible assets, net                8,618          3,438
    Goodwill                                          19,994          6,935
    Other non-current assets                           1,994          1,328
    

    
    Total assets                                    $ 37,830       $ 22,831
    


    
    Liabilities and shareholders' equity
    

    
    Liabilities
    Short-term indebtedness                               $4           $183
    Accounts payable and accruals                      2,560          1,536
    Deferred revenue                                   1,235          1,108
    Current portion of long-term debt and
     finance lease obligations                           667            412
    Current liabilities                                4,466          3,239
    

    
    Long-term debt and finance lease obligations       7,733          4,264
    Other non-current liabilities                      1,270            783
    Deferred income taxes                              2,622            974
    

    
    Minority interest in equity of consolidated
     affiliates                                           73             --
    

    
    Shareholders' equity
    Capital                                           11,020          2,932
    Retained earnings                                 10,341         10,355
    Accumulated other comprehensive income               305            284
    

    
    Total shareholders' equity                        21,666         13,571
    

    
    Total liabilities and shareholders' equity      $ 37,830       $ 22,831
    



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

    
                                        Three Months Ended    Six Months Ended
                                             June 30,            June 30,
                                         2008        2007     2008        2007
    Cash provided by (used in):
    Operating activities
    Net earnings                          $173      $377        $367      $601
    Remove earnings from discontinued
     operations                              6     (115)           5     (130)
    Add back (deduct) items not involving
     cash:
      Depreciation                         192       117         313       232
      Amortization                         141        62         203       123
      Net gains on disposals of businesses
       and investments                      --       (2)          --       (8)
      Impairment of assets held for sale    72        --          72        --
      Deferred income taxes               (77)      (19)       (130)      (61)
      Other, net                            96        71         184       135
    Changes in working capital and
     other items                           283         5         170      (96)
    Cash provided by operating activities -
     discontinued operations               (6)      (53)        (20)      (66)
    Net cash provided by operating
     activities                            880       443       1,164       730
    

    
    Investing activities
    Acquisitions, less cash therein    (8,147)      (29)     (8,270)     (183)
    Proceeds from disposals                 --         5         154        11
    Capital expenditures,
     less proceeds from disposals        (232)     (142)       (340)     (240)
    Other investing activities            (11)      (13)        (23)      (23)
    Capital expenditures of discontinued
     operations                             --      (58)          --      (95)
    Other investing activities of
     discontinued operations                --       (2)         (7)       (6)
    Proceeds from disposals of
     discontinued operations,
     net of income taxes paid               --       438        (53)       473
    Acquisitions by discontinued operations --        --          --      (54)
    Net cash (used in) provided by
     investing activities              (8,390)       199     (8,539)     (117)
    

    
    Financing activities
    Repayments of debt                 (4,679)      (20)     (5,079)      (20)
    Net repayments under short-term
     loan facilities                   (1,426)     (380)     (1,072)     (136)
    Proceeds from debt                   5,921        --       7,600        --
    Repurchase of common shares          (458)      (20)       (458)      (75)
    Dividends paid on preference shares    (1)       (2)         (3)       (3)
    Dividends paid on common shares      (144)     (153)       (270)     (306)
    Dividend paid related to
     Reuters Group PLC                   (246)        --       (246)        --
    Other financing activities, net        192         5         194        15
    Net cash (used in) provided by
     financing activities                (841)     (570)         666     (525)
    

    
    Translation adjustments               (82)        --           1        --
    (Decrease) increase in cash and
     cash equivalents                  (8,433)        72     (6,708)        88
    Cash and cash equivalents at
     beginning of period                 9,222       350       7,497       334
    Cash and cash equivalents at
     end of period                        $789      $422        $789      $422
    



    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    Six Months Ended
                                             June 30,             June 30,
                                         2008       2007      2008       2007
    

    
    Net cash provided by operating
     activities                           $880      $443     $ 1,164      $730
    Capital expenditures                 (232)     (142)       (340)     (240)
    Other investing activities            (11)      (13)        (23)      (23)
    Capital expenditures of
     discontinued operations                --      (58)          --      (95)
    Other investing activities of
     discontinued operations                --       (2)         (7)       (6)
    Dividends paid on preference shares    (1)       (2)         (3)       (3)
    Free cash flow                         636       226         791       363
    
    (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, Global Director, Corporate
Affairs, +1-203-539- 8314, fred.hawrysh@thomsonreuters.com, or Frank Golden,
Senior Vice President, Investor Relations, +1-203-539-8470,
frank.golden@thomsonreuters.com, Frank DeMaria, Global Director, Corporate
Media Relations, +1-646-223-5507, frank.demaria@thomsonreuters.com, Victoria
Brough, Head of Corporate Communications, EMEA, +44 (0) 207 542 8763,
victoria.brough@thomsonreuters.com Web Site: http://www.thomsonreuters.com


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