Financial Performance

Non-IFRS financial measures

In millions of US dollars, except per share amounts and margins (unaudited)

Revenues from ongoing businesses

2014
$12,605
2015
$12,209

Adjusted EBITDA

2014
$3,313
2015
$3,392

Adjusted EBITDA margin %

2014
26.3%
2015
27.8%

Adjusted EBITDA less capital expenditures

2014
$2,345
2015
$2,389

Adjusted EBITDA less capital expenditures margin %

2014
18.6%
2015
19.6%

Underlying operating profit

2014
$2,138
2015
$2,293

Underlying operating profit margin %

2014
17.0%
2015
18.8%

Adjusted earnings per share

2014
$1.85
2015
$2.13

Consolidated income statement

In millions of US dollars, except per share amounts

Year ended December 31,
2015 2014
Revenues $12,209 $12,607
Operating expenses (8,810) (9,209)
Depreciation (347) (397)
Amortization of computer software (752) (778)
Amortization of other identifiable intangible assets (581) (647)
Other operating gains, net 15 969
Operating profit 1,734 2,545
Finance costs, net:
Net interest expense (416) (442)
Other finance income (costs) 39 (85)
Income before tax and equity method investments 1,357 2,018
Share of post-tax earnings in equity method investments 10 3
Tax expense (56) (62)
Net earnings $1,311 $1,959
Earnings attributable to:
Common shareholders 1,255 1,909
Non-controlling interests 56 50
Earnings per share
Basic earnings per share $1.60 $2.36
Diluted earnings per share $1.60 $2.35

Reconciliation of earnings attributable to common shareholders to adjusted earnings1

In millions of US dollars, except as otherwise indicated and except for per share data (unaudited)

Year ended December 31,
2015 2014
Earnings attributable to common shareholders $1,255 $1,909
Adjustments to remove
Operating loss from Other Businesses2 - 6
Fair value adjustments (7) (91)
Other operating gains, net (15) (969)
Other finance (income) costs (39) 85
Share of post-tax earnings in equity method investments (10) (3)
Tax on above items (6) 12
Tax items impacting comparability 1 (10)
Amortization of other identifiable intangible assets 581 647
Tax charge amortization3 (86) (86)
Dividends declared on preference shares (2) (3)
Adjusted earnings $1,672 $1,497
Adjusted earnings per share $2.13 $1.85
Diluted weighted-average common shares (millions) 784.1 810.9

Cash flow4

In millions of US dollars (unaudited)

2014
Free cash flow
$1,445
Free cash flow from ongoing businesses
$1,447
2015
Free cash flow
$1,801
Free cash flow from ongoing businesses
$1,801

Revenue profile

Revenues by media, region and type (ongoing businesses)
Year ended December 31

Revenues by media
Revenues by media chart

93% Electronic, software & services

7% Other

Revenues by region
Revenues by region chart

63% Americas

27% EMEA

10% Asia

Revenues by type
Revenues by type chart

87% Recurring

13% Non-recurring

Business segment revenue

In millions of US dollars (unaudited)

Year ended December 31,
Revenues 2015 2014 Change Organic
Financial & Risk $6,148 $6,538 -6% 0%
Legal 3,354 3,379 -1% 2%
Tax & Accounting 1,417 1,370 3% 7%
Intellectual Property & Science 1,005 1,011 -1% 1%
Corporate & Other (includes Reuters News) 296 319 -7% 1%
Eliminations (11) (12)
Revenues from Ongoing Businesses 5
Before Currency 		12,209 12,605 -3%
2% 		2%
Other Businesses2 - 2
Consolidated Revenues $12,209 $12,607 -3%

Business segment adjusted EBITDA6

In millions of US dollars (unaudited)

Year ended December 31, Margin
Adjusted EBITDA 2015 2014 Change 2015 2014
Financial & Risk $1,701 $1,591 7% 27.7% 24.3%
Legal 1,238 1,238 0% 36.9% 36.6%
Tax & Accounting 456 417 9% 32.2% 30.4%
Intellectual Property & Science 313 328 -5% 31.1% 32.4%
Corporate & Other (includes Reuters News) (316) (261)
Adjusted EBITDA $3,392 $3,313 2% 27.8% 26.3%

Business segment underlying operating profit7

In millions of US dollars (unaudited)

Year ended December 31, Margin
Underlying operating profit 2015 2014 Change 2015 2014
Financial & Risk $1,104 $951 16% 18.0% 14.5%
Legal 985 958 3% 29.4% 28.4%
Tax & Accounting 343 295 16% 24.2% 21.5%
Intellectual Property & Science 221 239 -8% 22.0% 23.6%
Corporate & Other (includes Reuters News) (360) (305)
Underlying operating profit $2,293 $2,138 7% 18.8% 17.0%
Footnotes
Disclaimer
2015 Annual Report Regulatory Filing
PDF – 4.5MB