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A-Team Insight Blogs

Thomson Reuters’ Enterprise Division Experiences 4% Increase in Revenue for Second Quarter, Bright Spot in Overall Decline

The fortunes of data giant Thomson Reuters’ Enterprise division seem to be continuing to shine as the vendor’s bright spot for revenue growth this year. Last quarter, the division’s revenue increased 3% on the previous year’s figures for the first quarter and, this quarter, the division experienced a 4% revenue growth on the revenues for the second quarter of 2009. However, much like last quarter, the Markets division’s (in which Enterprise sits) overall figures for the quarter are down on the previous year; this time by 3%.

For the overall markets division, looking at geographical trends: Asia declined 1%, while Europe, Middle East and Africa (EMEA) and the Americas declined 3% and 4%, respectively. By market, growth in Enterprise, Corporates and Commodities & Energy was more than offset by weak performance in Exchange Traded Instruments and Investment Management. Second quarter operating profit was US$319 million (down 25%) with the related margin declining to 17.5%.

According to the vendor, the margin decline was attributable to the flow through from lower revenues, investment in new product platforms and a challenging prior year comparison. Excluding the impact of currency, operating profit declined 15%.

As for the Enterprise division in particular, the Enterprise Information segment, comprised of both real-time and historical data, grew 9%. The Risk Management business grew 6%, led by strong outright sales of software. The Platform business (formerly Information Management Systems) also grew 6%, driven by what the vendor terms as good sales of recurring products. Omgeo’s revenues were flat in the quarter. The overall revenue for the Enterprise division was US$326 million for the quarter, compared to last year’s US$314 million.

These figures should be heartening to those working in the newly restructured Enterprise division, most of whom are currently engaged in ensuring the outstanding integration work across Thomson Reuters’ data solutions is completed. The vendor is currently focusing its energies on joining the Enterprise platform up with its various data content sets.

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