About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Thomson Reuters Down 54% as a Result of Merger Costs

Subscribe to our newsletter

The US$15.9 billion merger of Thomson Financial and Reuters earlier in the year has had a significant impact on the merged entity’s profits as well as on its staffing levels. Substantial integration costs have caused the media group and financial data provider’s second quarter profits to fall by 54%.

At the time of the merger, Thomson Reuters CEO Tom Glocer reckoned that the merged group would benefit from more diversified revenue streams and, according to the Q2 results, revenues have risen by 73% over the prior year period to US$3.1 billion. However, profits were hit by around US$141 million in costs as a direct result of the merger.

The firm’s cost savings from the merger totalled US$490 million by 30 June.

“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,” says Tom Glocer, CEO of Thomson Reuters.

Revenues increased for the quarter on previous year’s figures by 11% to US$3.4 billion, and pro forma organic revenue growth was 7%. Thomson Reuters attributes this growth to strong performances across core businesses in both the professional and markets divisions.

Glocer continues: “We have made excellent progress on our integration plan, including the realisation 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.”

Pro forma revenues for the enterprise division grew 23% to US$338 million in the quarter, with organic growth of 14%. The firm attributes this to continued demand for data feeds. Trade and 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.

The merged entity’s combined results for the first quarter of 2008 were also positive: revenues were up 12% and revenues from its enterprise data business were up 18% to US$239 million.

With regards to the next half of the year, Tom Glocer says: “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.”

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: How to organise, integrate and structure data for successful AI

25 September 2025 11:00am ET | 3:00pm London | 4:00pm CET Duration: 50 Minutes Artificial intelligence (AI) is increasingly being rolled out across financial institutions, being put to work in applications that are transforming everything from back-office data management to front-office trading platforms. The potential for AI to bring further cost-savings and operational gains are...

BLOG

Leading the Fight Against Corporate Fraud: How Every Business Can Embrace Transparency

By Alexandre Kech, chief executive at GLEIF. With criminals flourishing in the shadows of the global economy, shining a light on the legal entities involved in cross-border transactions is a foundational requirement to restore trust. For even the smallest organisations, this represents a compelling opportunity to make transparency a strategic priority and combat risk by...

EVENT

TradingTech Summit London

Now in its 14th year the TradingTech Summit London brings together the European trading technology capital markets industry and examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

AI in Capital Markets: Practical Insight for a Transforming Industry – Free Handbook

AI is no longer on the horizon – it’s embedded in the infrastructure of modern capital markets. But separating real impact from inflated promises requires a grounded, practical understanding. The AI in Capital Markets Handbook 2025 provides exactly that. Designed for data-driven professionals across the trade life-cycle, compliance, infrastructure, and strategy, this handbook goes beyond...