NEW YORK, Oct. 30, 2014 /PRNewswire/ -- Thomson Reuters (TSX / NYSE: TRI) today reported results for the third quarter ended September 30, 2014.


    --  Revenues from ongoing businesses grew 1% before currency to $3.1 billion
    --  Adjusted EBITDA and underlying operating profit were both down 3%
        --  Adjusted EBITDA margin 26.5%, down 100 basis points; excluding
            charges was 27.0%
        --  Underlying operating profit margin 17.1%, down 70 basis points;
            excluding charges was 17.6%
    --  Adjusted earnings per share were $0.45 versus $0.48 in the prior-year
        period
    --  28.4 million shares repurchased since October 2013 returning $1.0
        billion to shareholders
    --  2014 Outlook affirmed

http://photos.prnewswire.com/prnvar/20130208/MM57185LOGO

"I am pleased to report yet another quarter of results in line with expectations, building on our first-half momentum," said James C. Smith, chief executive officer of Thomson Reuters. "It is particularly encouraging to see sales trends continue to improve in both our financial and legal businesses alongside consistent strong performance from our other units. We are delivering on our overarching objective: building a platform for higher, more sustainable and more profitable future growth."

Consolidated Financial Highlights - Third Quarter



                                     Three Months Ended September 30,

                                         (Millions of U.S. dollars,
                                          except EPS and margins)
                                        ---------------------------


    IFRS Financial Measures                                      2014   2013 Change
                                                                 ----   ---- ------

    Revenues                                                   $3,107 $3,086     1%

    Operating profit                                             $466   $316    47%

    Diluted earnings per share (EPS)                            $0.28  $0.33   -15%

    Cash flow from operations                                    $585   $676   -13%

The increase in operating profit was primarily due to favorable fair value adjustments largely associated with foreign currency embedded derivatives in certain customer contracts. The decline in diluted EPS resulted from higher costs associated with foreign currency fluctuations and income tax expense, which more than offset the increase in operating profit.


    Non-IFRS Financial Measures(1)       2014   2013   Change
                                         ----   ----   ------

    Revenues from ongoing businesses   $3,107 $3,073       1%

    Adjusted EBITDA                      $822   $845      -3%

    Adjusted EBITDA margin              26.5% 27.5%  -100bp

    Underlying operating profit          $530   $548      -3%

    Underlying operating profit margin  17.1% 17.8%   -70bp

    Adjusted earnings per share (EPS)   $0.45  $0.48      -6%

    Free cash flow                       $358   $475     -25%




             (1)    These and
                     other non-
                     IFRS
                     financial
                     measures
                     are defined
                     and
                     reconciled
                     to the most
                     directly
                     comparable
                     IFRS
                     measures in
                     the tables
                     appended to
                     this news
                     release.
                     Additional
                     information
                     is provided
                     in the
                     explanatory
                     footnotes
                     to the
                     appended
                     tables.

    --  Revenues from ongoing businesses were $3.1 billion, a 1% increase before
        currency, reflecting 4% combined growth from the company's Legal, Tax &
        Accounting and Intellectual Property & Science businesses, which was
        offset by a 2% decline in Financial & Risk.
    --  Adjusted EBITDA decreased 3%, and the corresponding margin was 26.5%
        versus 27.5% in the prior-year period, primarily due to higher operating
        costs and charges.
        --  Excluding charges from both periods, the margin was 27.0%, down 80
            basis points from the prior-year period.
        --  Excluding charges from both periods and the negative impact of
            foreign currency the margin was 27.3%, down 10 basis points from the
            prior-year period.
    --  Underlying operating profit decreased 3%, and the corresponding margin
        was 17.1% versus 17.8% in the prior-year period. The decrease was
        primarily due to the same factors that impacted adjusted EBITDA.
        --  Excluding charges from both periods, the margin was 17.6%, down 60
            basis points from the prior-year period.
        --  Excluding charges for both periods and the negative impact of
            foreign currency, the margin was 18.0%, up 20 basis points from the
            prior-year period.

    --  Adjusted EPS was $0.45 compared to $0.48 in the prior-year period, down
        6%.

Third-Quarter Business Segment Highlights
Unless otherwise noted, all revenue growth comparisons in this news release are before the impact of foreign currency as Thomson Reuters believes this provides the best basis to measure the performance of its business.

Financial & Risk


    --  Revenues were down 2% (down 3% organic) due to the impact of negative
        net sales over the prior 12 months and a 5% organic decline in
        transactions-related revenues.
    --  Recurring subscription-related revenues decreased 3% due to the impact
        of negative aggregate net sales over the prior 12 months.
    --  Transactions-related revenues increased 3% (down 5% organic) due to
        lower trading volumes in fixed income markets. Recoveries revenues
        increased 1%.
    --  By geography, revenues in Europe, Middle East and Africa (EMEA) were
        down 4%, and revenues in the Americas and Asia were flat.
    --  Net sales were positive for the quarter and were positive for all
        regions - the Americas, Europe and Asia.
    --  EBITDA decreased 6% due to $18 million in charges and the impact of
        foreign currency. The margin was 25.1% versus 26.4% in the prior-year
        period.
        --  Excluding charges from both periods, the margin was 26.2%, down 50
            basis points from the prior-year period.
        --  Excluding charges from both periods and the negative impact of
            foreign currency, the margin was 27.1%, up 100 basis points from the
            prior-year period.
    --  Operating profit decreased 8% due to the same items that impacted
        EBITDA. The margin was 15.5% compared to 16.8% in the prior-year period.
        --  Excluding charges from both periods, the margin was 16.6%, down 50
            basis points from the prior-year period.
        --  Excluding charges from both periods and the negative impact of
            foreign currency the margin was 17.5%, up 100 basis points from the
            prior-year period.

Legal


    --  Revenues increased 1%. Excluding US print, revenues grew 3% (all
        organic).
    --  Solutions businesses (47% of Legal revenues) grew 7% (6% organic),
        driven by strong growth from Elite, Practical Law and Pangea3. Solutions
        businesses represent all of Legal's revenue excluding US print and US
        online legal information.
    --  US online legal information (38% of Legal revenues) declined 1%.
    --  US print (15% of Legal revenues) declined 8%.
    --  EBITDA increased 1%. The margin was 37.9% compared to 38.0% in the
        prior-year period.
    --  Operating profit increased 2% with a margin of 29.7% versus 29.4% in the
        prior-year period.

Tax & Accounting


    --  Revenues increased 13% (9% organic) with good growth across each segment
        led by the Corporate business.
    --  EBITDA increased 9% and the margin was 23.9% compared to 24.4% in the
        prior-year period. The EBITDA margin decline was primarily related to
        reinvestment in the business.
    --  Operating profit increased 26% and the margin was 14.3% compared to
        12.6% in the prior-year period due to lower depreciation and
        amortization expense.
    --  Small movements in the timing of revenues and expenses can impact
        margins in any given quarter for the Tax & Accounting business.
        Full-year margins are more reflective of the segment's underlying
        performance.

Intellectual Property & Science


    --  Revenues increased 3% driven by recurring revenue growth of 5% (79% of
        revenues) partially offset by a 4% decline in transactions-related
        revenues (21% of revenues).
    --  EBITDA decreased 5% with a corresponding margin of 30.6% compared to
        33.3% in the prior-year period. The EBITDA margin decline was primarily
        due to the dilutive impact of prior-year acquisitions and reinvestments
        in the business.
    --  Operating profit decreased 11% with a corresponding margin of 21.8%
        compared to 25.4% in the prior-year period. The operating profit margin
        decline was a result of the same items that impacted the EBITDA margin.
    --  Small movements in the timing of revenues and expenses can impact
        margins in any given quarter for the Intellectual Property & Science
        business. Full-year margins are more reflective of the segment's
        underlying performance.

Corporate & Other (Including Reuters News)

Reuters News revenues for the third quarter of 2014 were $79 million, down 3% from the prior-year period. Corporate & Other costs for the third quarter of 2014 were $73 million, compared to $70 million in the prior-year period.

Consolidated Financial Highlights - Nine Months




                                     Nine Months Ended September 30,

                                        (Millions of U.S. dollars,
                                          except EPS and margins)
                                       ---------------------------


    IFRS Financial Measures                                     2014   2013 Change
                                                                ----   ---- ------

    Revenues                                                  $9,396 $9,424     0%

    Operating profit                                          $1,206 $1,303    -7%

    Diluted earnings per share (EPS)                           $0.93  $0.58    60%

    Cash flow from operations                                 $1,574 $1,696    -7%

Results for the first nine months of 2013 were impacted by the following significant items: operating profit benefited from a $136 million gain realized on the sale of Financial & Risk's Corporate Services business; and the company also recorded a $396 million tax charge associated with the consolidation of its technology and content assets. No similar items impacted results in the first nine months of 2014.



    Non-IFRS Financial Measures(1)       2014   2013 Change
                                         ----   ---- ------

    Revenues from ongoing businesses   $9,394 $9,278     1%

    Adjusted EBITDA                    $2,519 $2,460     2%

    Adjusted EBITDA margin              26.8% 26.5%  30bp

    Underlying operating profit        $1,639 $1,579     4%

    Underlying operating profit margin  17.4% 17.0%  40bp

    Adjusted earnings per share (EPS)   $1.41  $1.34     5%

    Free cash flow                       $875   $976   -10%

    --  Revenues from ongoing businesses were $9.4 billion, a 1% increase before
        currency.
    --  Adjusted EBITDA increased 2% and the corresponding margin was 26.8%
        versus 26.5% in the prior-year period. The increase was primarily due to
        lower charges compared to the prior-year period. Charges for the
        nine-month period were $58 million versus $97 million in the prior-year
        period. Foreign exchange had a negligible impact on the margin for the
        year-to-date period.
        --  Excluding charges from both periods, adjusted EBITDA increased 1%
            and the related margin was 27.4% versus 27.6% in the prior-year
            period.
    --  Underlying operating profit increased 4% and the corresponding margin
        was 17.4% versus 17.0% in the prior-year period. The increase was
        primarily due to the same factor that impacted adjusted EBITDA.
        --  Excluding charges from both periods, underlying operating profit
            increased 1% and the related margin was 18.1%, unchanged from the
            prior-year period.
    --  Adjusted EPS was $1.41 compared to $1.34 in the prior-year period.
    --  Free cash flow was $875 million versus $976 million in the prior-year
        period. The decrease was primarily due to a $75 million reduction in
        free cash flow from disposals compared to the prior-year period and
        higher severance costs. For the full year, the company continues to
        expect to achieve free cash flow between $1.3 billion and $1.5 billion.



             (1)    These and
                     other non-
                     IFRS
                     financial
                     measures
                     are defined
                     and
                     reconciled
                     to the most
                     directly
                     comparable
                     IFRS
                     measures in
                     the tables
                     appended to
                     this news
                     release.
                     Additional
                     information
                     is provided
                     in the
                     explanatory
                     footnotes
                     to the
                     appended
                     tables.

Business Outlook (Before Currency)

Thomson Reuters today reaffirmed its full-year business outlook for 2014 which was previously communicated in February 2014. The company continues to expect:


    --  revenues to be comparable to 2013;
    --  adjusted EBITDA margin to range between 26% and 27%;
    --  underlying operating profit margin to range between 17.0% and 18.0%; and
    --  free cash flow to range between $1.3 billion and $1.5 billion in 2014.

The company's 2014 outlook includes the impact of $120 million of previously announced charges expected to be incurred this year. The estimated aggregate amount of these charges is $395 million, $275 million of which was incurred in 2013. The free cash flow outlook for 2014 reflects the estimated cash impact of the charges incurred in 2013 and 2014 as well as the impact of the loss of free cash flow from disposals (approximately $375 million in aggregate).

The information in this section is forward-looking and should be read in conjunction with the section below entitled "Special Note Regarding Forward-Looking Statements, Material Assumptions and Material Risks."

Dividend and Share Repurchases

As previously announced in February 2014, Thomson Reuters board of directors approved a $0.02 per share annualized increase in the dividend to $1.32 per share. A quarterly dividend of $0.33 per share is payable on December 15, 2014 to common shareholders of record as of November 20, 2014.

In the third quarter of 2014, the company returned approximately $109 million to shareholders through the repurchase of approximately 2.9 million shares, of which 1.8 million were repurchased under its new $1.0 billion share buyback program announced in July 2014. The company has repurchased 28.4 million shares at a cost of $1.03 billion since it announced its first $1.0 billion share buyback program in October 2013.

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 and risk, legal, tax and accounting, intellectual property and science and media markets, powered by the world's most trusted news organization. Thomson Reuters shares are listed on the Toronto and New York Stock Exchanges (symbol: TRI). For more information, go to www.thomsonreuters.com.

NON-IFRS FINANCIAL MEASURES

Thomson Reuters prepares its financial statements in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB).

This news release includes certain non-IFRS financial measures. Thomson Reuters uses these non-IFRS financial measures as supplemental indicators of its operating performance and financial position. These measures do not have any standardized meanings prescribed by IFRS 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 IFRS. Non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in the appended tables.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS, MATERIAL ASSUMPTIONS AND MATERIAL RISKS

Certain statements in this news release, including, but not limited to, statements in the "Business Outlook (Before Currency)" section and Mr. Smith's comments, are forward-looking. Forward-looking statements also include expectations regarding the 2014 charges. As a result, 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. There is no assurance that the events described in any forward-looking statement will materialize. A business outlook is provided for the purpose of presenting information about current expectations for 2014. This information may not be appropriate for other purposes. You are cautioned not to place undue reliance on forward-looking statements which reflect expectations only as of the date of this news release. Except as may be required by applicable law, Thomson Reuters disclaims any obligation to update or revise any forward-looking statements.

The company's 2014 business outlook is based on various external and internal assumptions. Economic and market assumptions include, but are not limited to, GDP growth in the countries where Thomson Reuters operates. Internal financial and operational assumptions include, but are not limited to, continuing operational improvement in the Financial & Risk business and the successful execution of new sales initiatives, ongoing product release programs, globalization strategy and other growth and efficiency initiatives.

Some of the material risk factors that could cause actual results or events to differ materially from those expressed in or implied by forward-looking statements in this news release include, but are not limited to, changes in the general economy; actions of competitors; failure to develop new products, services, applications and functionalities to meet customers' needs, attract new customers or expand into new geographic markets and identify areas of higher growth; increased accessibility to free or relatively inexpensive information sources; failures or disruptions of network systems or the Internet; failure to maintain a high renewal rate for subscription-based services; dependency on third parties for data, information and other services; changes to law and regulations, including the impact of the Dodd-Frank legislation and similar financial services laws around the world; failure to adapt to recent organizational changes and effectively implement strategic initiatives; failure to recruit, motivate and retain high quality management and key employees; failure to meet the challenges involved in operating globally; failure to derive fully the anticipated benefits from existing or future acquisitions, joint ventures, investments or dispositions; failure to protect the brands and reputation of Thomson Reuters; impairment of goodwill and identifiable intangible assets; inadequate protection of intellectual property rights; threat of legal actions and claims; risk of antitrust/competition-related claims or investigations; downgrading of credit ratings and adverse conditions in the credit markets; fluctuations in foreign currency exchange and interest rates; the effect of factors outside of the control of Thomson Reuters on funding obligations in respect of pension and post-retirement benefit arrangements; and actions or potential actions that could be taken by the company's principal shareholder, The Woodbridge Company Limited. These and other factors are discussed in materials that Thomson Reuters from time to time files with, or furnishes to, the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission. Thomson Reuters annual and quarterly reports are also available in the "Investor Relations" section of www.thomsonreuters.com.



    CONTACTS

    MEDIA                              INVESTORS

    David Crundwell                    Frank J. Golden

    Corporate Affairs                  Senior Vice President, Investor Relations

    +1 646 223 5285                                                              +1 646 223 5288

    david.crundwell@thomsonreuters.com frank.golden@thomsonreuters.com

Thomson Reuters will webcast a discussion of its third-quarter 2014 results today beginning at 8:30 a.m. Eastern Daylight Time (EDT). You can access the webcast by visiting the "Investor Relations" section of www.thomsonreuters.com. An archive of the webcast will be available following the presentation.


                                               Thomson Reuters Corporation

                                              Business Segment Information

                                               (millions of U.S. dollars)

                                                       (unaudited)


                                                                           Three Months Ended

                                                                              September 30,          Change
                                                                              -------------          ------

                                                                                         2014   2013          Total    Before
                                                                                                                    Currency   Organic
                                                                                         ----  ----         -----   --------   -------

    Revenues
    --------

    Financial & Risk                                                                   $1,628 $1,640            -1%        -2%       -3%

    Legal                                                                                 854    843             1%         1%        1%

    Tax & Accounting                                                                      301    270            12%        13%        9%

    Intellectual Property & Science                                                       248    240             3%         3%        3%

    Corporate & Other (includes Reuters News)                                              79     82            -4%        -3%       -3%

    Eliminations                                                                          (3)   (2)
                                                                                          ---    ---

    Revenues from ongoing businesses (1)                                                3,107  3,073             1%         1%        0%

    Other Businesses (2)                                                                    -    13
                                                                                          ---   ---

    Revenues                                                                           $3,107 $3,086             1%
                                                                                       ====== ======



                                                                     Margin
                                                                     ------

    Adjusted EBITDA (3)                                  Change             2014   2013  Change
    ------------------                                   ------             ----   ----  ------

    Financial & Risk                          $408  $433         -6%         25.1% 26.4% -130bp

    Legal                                      324   320          1%         37.9% 38.0%  -10bp

    Tax & Accounting                            72    66          9%         23.9% 24.4%  -50bp

    Intellectual Property & Science             76    80         -5%         30.6% 33.3% -270bp

    Corporate & Other (includes Reuters News) (58) (54)

    Adjusted EBITDA                           $822  $845         -3%         26.5% 27.5% -100bp
                                              ====  ====


    Underlying Operating Profit (4)
    ------------------------------

    Financial & Risk                          $252  $275         -8%         15.5% 16.8% -130bp

    Legal                                      254   248          2%         29.7% 29.4%   30bp

    Tax & Accounting                            43    34         26%         14.3% 12.6%  170bp

    Intellectual Property & Science             54    61        -11%         21.8% 25.4% -360bp

    Corporate & Other (includes Reuters News) (73) (70)
                                               ---   ---

    Underlying operating profit               $530  $548         -3%         17.1% 17.8%  -70bp
                                              ====  ====



                                               Thomson Reuters Corporation

                                              Business Segment Information

                                               (millions of U.S. dollars)

                                                       (unaudited)


                                                                           Nine Months Ended

                                                                             September 30,          Change
                                                                             -------------          ------

                                                                                        2014   2013          Total    Before
                                                                                                                   Currency   Organic
                                                                                        ----  ----         -----   --------   -------

    Revenues
    --------

    Financial & Risk                                                                  $4,941 $4,975            -1%        -2%       -3%

    Legal                                                                              2,507  2,483             1%         1%        0%

    Tax & Accounting                                                                     973    875            11%        13%        9%

    Intellectual Property & Science                                                      742    707             5%         5%        4%

    Corporate & Other (includes Reuters News)                                            240    245            -2%        -2%       -2%

    Eliminations                                                                         (9)   (7)
                                                                                         ---    ---

    Revenues from ongoing businesses (1)                                               9,394  9,278             1%         1%        0%

    Other Businesses (2)                                                                   2    146
                                                                                         ---    ---

    Revenues                                                                          $9,396 $9,424             0%
                                                                                      ====== ======




                                                                       Margin
                                                                       ------

    Adjusted EBITDA (3)                                     Change         2014   2013  Change
    ------------------                                      ------         ----   ----  ------

    Financial & Risk                          $1,233 $1,213         2%      25.0% 24.4%      60bp

    Legal                                        939    922         2%      37.5% 37.1%      40bp

    Tax & Accounting                             285    251        14%      29.3% 28.7%      60bp

    Intellectual Property & Science              233    229         2%      31.4% 32.4%    -100bp

    Corporate & Other (includes Reuters News)  (171) (155)

    Adjusted EBITDA                           $2,519 $2,460         2%      26.8% 26.5%      30bp
                                              ====== ======


    Underlying Operating Profit (4)
    ------------------------------

    Financial & Risk                            $758   $735         3%      15.3% 14.8%      50bp

    Legal                                        730    704         4%      29.1% 28.4%      70bp

    Tax & Accounting                             192    160        20%      19.7% 18.3%     140bp

    Intellectual Property & Science              167    171        -2%      22.5% 24.2%    -170bp

    Corporate & Other (includes Reuters News)  (208) (191)
                                                ----   ----

    Underlying operating profit               $1,639 $1,579         4%      17.4% 17.0%      40bp
                                              ====== ======



                                                                                   Thomson Reuters Corporation

                                                                    Reconciliation of Operating Profit to Adjusted EBITDA (3)

                                                                                    (millions of U.S. dollars)

                                                                                           (unaudited)


                                                                                                                      Three Months Ended                 Nine Months Ended

                                                      September 30,                                                    September 30,
                                                      -------------                                                    -------------

                                                                                                                         2014        2013 Change                  2014         2013 Change
                                                                                                                         ----        ---- ------                  ----         ---- ------


    Operating profit                                                                                                     $466        $316            47%        $1,206       $1,303            -7%

    Adjustments to remove:

         Amortization of other identifiable intangible assets                                                             160         165                          488          482

         Fair value adjustments                                                                                          (88)         70                         (53)        (21)

         Other operating (gains) losses, net                                                                              (9)          6                          (4)       (124)

         Operating loss (profit) from Other Businesses (2)                                                                  1         (9)                           2         (61)
                                                                                                                          ---         ---                          ---          ---

    Underlying operating profit                                                                                          $530        $548            -3%        $1,639       $1,579             4%

    Remove: depreciation and amortization of computer                                                                     292         297                          880          881

       software (excluding Other Businesses (2))

    Adjusted EBITDA                                                                                                      $822        $845            -3%        $2,519       $2,460             2%
                                                                                                                         ====        ====                       ======       ======


    Underlying operating profit margin (4)                                                                              17.1%      17.8%         -70bp         17.4%       17.0%          40bp
                                                                                                                         ====        ====                         ====         ====

    Adjusted EBITDA margin (3)                                                                                          26.5%      27.5%        -100bp         26.8%       26.5%          30bp
                                                                                                                         ====        ====                         ====         ====



                                                                                      Thomson Reuters Corporation

                                                              Reconciliation of Earnings from Continuing Operations to Adjusted EBITDA (3)

                                                                                       (millions of U.S. dollars)

                                                                                              (unaudited)


                                                                                                                       Three Months Ended              Nine Months Ended

                                                     September 30,                                                      September 30,
                                                     -------------                                                      -------------

                                                                                                                          2014        2013 Change                      2014    2013 Change
                                                                                                                          ----        ---- ------                      ----    ---- ------


    Earnings from continuing operations                                                                                   $250        $283        -12%                 $802    $522        54%

    Adjustments to remove:

    Tax expense (benefit)                                                                                                   26        (33)                              53     423

    Other finance costs (income)                                                                                            82        (38)                              25      34

    Net interest expense                                                                                                   110         109                              329     348

    Amortization of other identifiable intangible assets                                                                   160         165                              488     482

    Amortization of computer software                                                                                      195         195                              586     571

    Depreciation                                                                                                            97         102                              294     310
                                                                                                                           ---         ---                              ---     ---

    EBITDA                                                                                                                $920        $783                           $2,577  $2,690

    Adjustments to remove:

    Share of post-tax earnings in equity method                                                                            (2)        (5)                             (3)   (24)

       Investments

    Other operating (gains) losses, net                                                                                    (9)          6                              (4)  (124)

    Fair value adjustments                                                                                                (88)         70                             (53)   (21)

    EBITDA from Other Businesses (2)                                                                                         1         (9)                               2    (61)
                                                                                                                           ---         ---                              ---     ---

    Adjusted EBITDA                                                                                                       $822        $845         -3%               $2,519  $2,460         2%
                                                                                                                          ====        ====                           ======  ======



                                                                                Thomson Reuters Corporation

                                               Reconciliation of Underlying Operating Profit (4) to Adjusted EBITDA (3) by Business Segment

                                                                                (millions of U.S. dollars)

                                                                                        (unaudited)


                                              Three Months Ended                                                          Three Months Ended

                                              September 30, 2014                                                       September 30,  2013
                                              ------------------                                                       -------------------

                                                            Underlying                                  Add:                      Adjusted         Underlying                                Add:     Adjusted

                                                      Operating Profit                          Depreciation                        EBITDA   Operating Profit    Depreciation and Amortization of
                                                                                                                                                                             Computer Software **       EBITDA

                                                                                                       and

                                                                                              Amortization

                                                                                               of Computer
                                                                                              Software  **
                                                                                                                                                                                                                    ---


    Financial & Risk                                              $252                                   $156                           $408                $275                                 $158          $433

    Legal                                                          254                                     70                            324                 248                                   72           320

    Tax & Accounting                                                43                                     29                             72                  34                                   32            66

    Intellectual Property & Science                                 54                                     22                             76                  61                                   19            80

    Corporate & Other (includes Reuters News)                     (73)                                    15                           (58)               (70)                                  16          (54)

                                                                  $530                                   $292                           $822                $548                                 $297          $845
                                                                  ====                                   ====                           ====                ====                                 ====          ====


                                               Nine Months Ended                     Nine Months Ended

                                              September 30, 2014                     September 30, 2013
                                              ------------------                     ------------------

                                                            Underlying         Add:          Adjusted         Underlying                                Add:     Adjusted

                                                      Operating Profit Depreciation            EBITDA   Operating Profit    Depreciation and Amortization of
                                                                                                                                        Computer Software **       EBITDA

                                                                                and

                                                                       Amortization

                                                                        of Computer
                                                                       Software  **
                                                                        -----------


    Financial & Risk                                              $758          $475             $1,233                $735                                 $478        $1,213

    Legal                                                          730           209                939                 704                                  218           922

    Tax & Accounting                                               192            93                285                 160                                   91           251

    Intellectual Property & Science                                167            66                233                 171                                   58           229

    Corporate & Other (includes Reuters News)                    (208)           37              (171)              (191)                                  36         (155)

                                                                $1,639          $880             $2,519              $1,579                                 $881        $2,460
                                                                ======          ====             ======              ======                                 ====        ======



    ** Excludes Other Businesses (2)



                                                                            Thomson Reuters Corporation

                                                          Reconciliation of Earnings Attributable to Common Shareholders

                                                                             to Adjusted Earnings (5)

                                              (millions of U.S. dollars, except as otherwise indicated and except for per share data)

                                                                                    (unaudited)


                                                                                                                                       Three Months
                                                                                                                                           Ended         Nine Months Ended

                                                                                                                                      September 30,        September 30,
                                                                                                                                      -------------        -------------

                                                                                                                                         2014       2013         2014        2013
                                                                                                                                         ----       ----         ----        ----

    Earnings attributable to common shareholders                                                                                         $231       $271         $762        $488

    Adjustments to remove:

    Operating loss (profit) from Other Businesses (2)                                                                                       1        (9)           2        (61)

    Fair value adjustments                                                                                                               (88)        70         (53)       (21)

    Other operating (gains) losses, net                                                                                                   (9)         6          (4)      (124)

    Other finance costs (income)                                                                                                           82       (38)          25          34

    Share of post-tax earnings in equity method  investments                                                                              (2)       (5)         (3)       (24)

    Tax on above items                                                                                                                     14       (18)          10          40

     Discrete tax items                                                                                                                  (10)      (20)        (10)        352

     Amortization of other identifiable intangible assets                                                                                 160        165          488         482

     Discontinued operations                                                                                                                -         -           -        (6)

    Interim period effective tax rate normalization (6)                                                                                     5        (9)           -          3

    Tax charge amortization (7)                                                                                                          (22)      (16)        (65)       (48)

    Dividends declared on preference shares                                                                                               (1)         -         (2)        (2)

    Adjusted earnings                                                                                                                    $361       $397       $1,150      $1,113
                                                                                                                                         ====       ====       ======      ======

    Adjusted earnings per share                                                                                                         $0.45      $0.48        $1.41       $1.34
                                                                                                                                        =====      =====        =====       =====


    Diluted weighted-average common shares (millions)                                                                                   807.6      832.1        814.0       831.7
                                                                                                                                        =====      =====        =====       =====



                      Thomson Reuters Corporation

      Reconciliation of Net Cash Provided by Operating Activities

             to Free Cash Flow from Ongoing Businesses (8)

                       (millions of U.S. dollars)

                              (unaudited)


                                          Three Months
                                              Ended        Nine Months Ended

              September 30,              September 30,
              -------------              -------------

                                            2014       2013        2014        2013
                                            ----       ----        ----        ----

    Net cash provided by
     operating activities                   $585       $676      $1,574      $1,696

    Capital expenditures,
     less proceeds from
     disposals                             (231)     (213)      (704)      (751)

    Other investing
     activities                                5         12           7          33

    Dividends paid on
     preference shares                       (1)         -        (2)        (2)

    Free cash flow                           358        475         875         976

    Remove: Other
     Businesses (2)                          (2)      (24)        (1)       (76)
                                             ---        ---         ---         ---

    Free cash flow from
     ongoing businesses                     $356       $451        $874        $900
                                            ====       ====        ====        ====


    Footnotes
    ---------


             (1)    Revenues from ongoing businesses
                     are revenues from reportable
                     segments and Corporate & Other
                     (which includes Reuters News)
                     less eliminations. Other
                     Businesses (see note (2) below)
                     are excluded.

             (2)    Other Businesses are businesses
                     that have been or are expected to
                     be exited through sale or closure
                     that did not qualify for
                     discontinued operations
                     classification.


    (millions of U.S. dollars)                          Three Months    Nine Months
                                                           Ended           Ended

                                                       September 30,   September 30,
                                                       -------------   -------------

    Other Businesses                                   2014       2013  2014       2013
    ----------------                                   ----       ----  ----       ----


    Revenues                                              -       $13    $2       $146
                                                        ===       ===   ===       ====


    Operating (loss) profit                            ($1)        $9  ($2)       $61

    Depreciation and amortization of computer software    -         -    -         -
                                                        ---       ---  ---       ---

    EBITDA                                             ($1)        $9  ($2)       $61
                                                        ===        ===   ===        ===


             (3)    Thomson Reuters defines adjusted
                     EBITDA as underlying operating
                     profit excluding the related
                     depreciation and amortization of
                     computer software. Adjusted
                     EBITDA margin is adjusted EBITDA
                     expressed as a percentage of
                     revenues from ongoing businesses.

             (4)    Underlying operating profit is
                     operating profit from reportable
                     segments and Corporate & Other
                     (includes Reuters News).
                     Underlying operating profit
                     margin is the underlying
                     operating profit expressed as a
                     percentage of revenues from
                     ongoing businesses.

             (5)    Adjusted earnings and adjusted
                     earnings per share include
                     dividends declared on preference
                     shares and amortization of the
                     2013 tax charges associated with
                     the consolidation of technology
                     and content assets but exclude
                     the pre-tax impacts of
                     amortization of other
                     identifiable intangible assets as
                     well as the post-tax impacts of
                     fair value adjustments, other
                     operating (gains) and losses,
                     certain impairment charges, the
                     results of Other Businesses (see
                     note (2) above), other finance
                     (income) costs, Thomson Reuters
                     share of post-tax (earnings)
                     losses in equity method
                     investments, discontinued
                     operations and other items
                     affecting comparability. Adjusted
                     earnings per share is calculated
                     using diluted weighted-average
                     shares and does not represent
                     actual earnings or loss per share
                     attributable to shareholders.

             (6)    Adjustment to reflect income taxes
                     based on estimated full-year
                     effective tax rate. Reported
                     earnings or loss 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.

             (7)    Reflects amortization of the 2013
                     tax charges associated with the
                     consolidation of the ownership
                     and management of technology and
                     content assets. For the non-IFRS
                     measure, the majority of the
                     charges are amortized over seven
                     years, the period over which the
                     tax is expected to be paid.

             (8)    Free cash flow is net cash
                     provided by operating activities
                     less capital expenditures, other
                     investing activities and
                     dividends paid on the company's
                     preference shares. Other
                     Businesses (see note (2) above)
                     are also removed to arrive at
                     free cash flow from ongoing
                     businesses.



                                                                       Thomson Reuters Corporation

                                                                      Consolidated Income Statement

                                                            (millions of U.S. dollars, except per share data)

                                                                               (unaudited)


                                                                                                                  Three Months Ended             Nine Months Ended

                                                                                                                   September 30,              September 30,
                                                                                                                   -------------              -------------

                                                                                                                     2014               2013        2014               2013
                                                                                                                     ----               ----        ----               ----


    Revenues                                                                                                       $3,107             $3,086      $9,396             $9,424

    Operating expenses                                                                                            (2,198)           (2,302)    (6,826)           (6,882)

    Depreciation                                                                                                     (97)             (102)      (294)             (310)

    Amortization of computer software                                                                               (195)             (195)      (586)             (571)

    Amortization of other identifiable intangible assets                                                            (160)             (165)      (488)             (482)

    Other operating gains (losses), net                                                                                 9                (6)          4                124

    Operating profit                                                                                                  466                316       1,206              1,303

    Finance costs, net:

         Net interest expense                                                                                       (110)             (109)      (329)             (348)

         Other finance (costs) income                                                                                (82)                38        (25)              (34)

    Income before tax and equity method investments                                                                   274                245         852                921

    Share of post-tax earnings in equity method investments                                                             2                  5           3                 24

    Tax (expense) benefit                                                                                            (26)                33        (53)             (423)
                                                                                                                      ---                ---         ---               ----

    Earnings from continuing operations                                                                               250                283         802                522

    Earnings from discontinued operations, net of tax                                                                   -                 -          -                 6
                                                                                                                      ---               ---        ---               ---

    Net earnings                                                                                                     $250               $283        $802               $528
                                                                                                                     ====               ====        ====               ====


    Earnings attributable to:

    Common shareholders                                                                                               231                271         762                488

    Non-controlling interests                                                                                          19                 12          40                 40


    Basic earnings per share                                                                                        $0.29              $0.33       $0.94              $0.59
                                                                                                                    =====              =====       =====              =====

    Diluted earnings per share                                                                                      $0.28              $0.33       $0.93              $0.58
                                                                                                                    =====              =====       =====              =====


    Basic weighted-average common shares                                                                      804,034,944        829,429,587 810,582,179        829,235,273
                                                                                                              ===========        =========== ===========        ===========

    Diluted weighted-average common shares                                                                    807,567,416        832,067,013 813,987,831        831,670,061
                                                                                                              ===========        =========== ===========        ===========



                                   Thomson Reuters Corporation

                           Consolidated Statement of Financial Position

                                    (millions of U.S. dollars)

                                           (unaudited)


                                          September 30,                 December 31,

                     2014                                   2013
                     ----                                   ----

    Assets

    Cash
     and
     cash
     equivalents                                          $1,686                       $1,316

     Trade
     and
     other
     receivables                                           1,694                        1,751

     Other
     financial
     assets                                                  151                          183

     Prepaid
     expenses
     and
     other
     current
     assets                                                  584                          650
                                                             ---                          ---

     Current
     assets                                                4,115                        3,900


     Computer
     hardware
     and
     other
     property,
     net                                                   1,161                        1,291

     Computer
     software,
     net                                                   1,516                        1,622

     Other
     identifiable
     intangible
     assets,
     net                                                   7,367                        7,890

    Goodwill                                              16,653                       16,871

     Other
     financial
     assets                                                  177                          192

     Other
     non-
     current
     assets                                                  602                          583

     Deferred
     tax                                                      69                           90
                                                             ---                          ---

     Total
     assets                                              $31,660                      $32,439
                                                         =======                      =======


    Liabilities and equity

    Liabilities

     Current
     indebtedness                                         $1,117                         $596

     Payables,
     accruals
     and
     provisions                                            2,109                        2,624

     Deferred
     revenue                                               1,255                        1,348

     Other
     financial
     liabilities                                             273                          193
                                                             ---                          ---

     Current
     liabilities                                           4,754                        4,761


     Long-
     term
     indebtedness                                          7,810                        7,470

     Provisions
     and
     other
     non-
     current
     liabilities                                           1,838                        1,759

     Other
     financial
     liabilities                                             113                          102

     Deferred
     tax                                                   1,646                        1,917
                                                           -----                        -----

     Total
     liabilities                                          16,161                       16,009


    Equity

    Capital                                               10,187                       10,347

     Retained
     earnings                                              6,727                        7,303

     Accumulated
     other
     comprehensive
     loss                                                (1,897)                     (1,614)
                                                          ------                       ------

     Total
     shareholders'
     equity                                               15,017                       16,036

    Non-
     controlling
     interests                                               482                          394
                                                             ---                          ---

     Total
     equity                                               15,499                       16,430
                                                          ------                       ------

     Total
     liabilities
     and
     equity                                              $31,660                      $32,439
                                                         =======                      =======



                             Thomson Reuters Corporation

                         Consolidated Statement of Cash Flow

                              (millions of U.S. dollars)

                                     (unaudited)


                                                      Three Months
                                                       Ended          Nine Months Ended

                                                   September 30,        September 30,
                                                   -------------        -------------

                                                     2014        2013         2014        2013
                                                     ----        ----         ----        ----

    Cash provided by (used in):

    Operating activities

    Net earnings                                     $250        $283         $802        $528

    Adjustments for:

    Depreciation                                       97         102          294         310

    Amortization of
     computer software                                195         195          586         571

    Amortization of
     other identifiable
     intangible assets                                160         165          488         482

    Net gains on
     disposals of
     businesses and
     investments                                      (2)        (1)         (1)      (157)

    Deferred tax                                    (112)         54        (187)        296

    Other                                              37          87          148         212

    Changes in working
     capital and other
     items                                           (40)      (209)       (556)      (546)
                                                      ---        ----         ----        ----

    Net cash provided by
     operating
     activities                                       585         676        1,574       1,696
                                                      ---         ---        -----       -----


    Investing activities

    Acquisitions, net of
     cash acquired                                   (28)      (139)       (165)      (987)

    Proceeds from
     disposals of
     businesses and
     investments,                                       2           3           14         355

       net of taxes paid

    Capital
     expenditures, less
     proceeds from
     disposals                                      (231)      (213)       (704)      (751)

    Other investing
     activities                                         5          12            7          33
                                                      ---         ---          ---         ---

    Investing cash flows
     from continuing
     operations                                     (252)      (337)       (848)    (1,350)

    Investing cash flows
     from discontinued
     operations                                         -         10            -         10
                                                      ---        ---          ---        ---

    Net cash used in
     investing
     activities                                     (252)      (327)       (848)    (1,340)
                                                     ----        ----         ----      ------


    Financing activities

    Proceeds from debt                                997           -         997       1,294

    Repayments of debt                                  -    (1,000)           -    (1,440)

    Repurchases of
     common shares                                  (109)      (100)       (726)      (100)

    Dividends paid on
     preference shares                                (1)          -         (2)        (2)

    Dividends paid on
     common shares                                  (258)      (259)       (778)      (778)

    Other financing
     activities                                        19         (3)         148           4
                                                      ---         ---          ---         ---

    Net cash provided by
     (used in) financing
     activities                                       648     (1,362)       (361)    (1,022)
                                                      ---      ------         ----      ------

    Increase (decrease)
     in cash and bank
     overdrafts                                       981     (1,013)         365       (666)

    Translation
     adjustments                                     (17)          5         (14)       (12)

    Cash and bank
     overdrafts at
     beginning of period                              699       1,606        1,312       1,276
                                                      ---       -----        -----       -----

    Cash and bank
     overdrafts at end
     of period                                     $1,663        $598       $1,663        $598
                                                   ======        ====       ======        ====


    Cash and bank overdrafts at end of period
     comprised of:

    Cash and cash
     equivalents                                   $1,686        $607       $1,686        $607

    Bank overdrafts                                  (23)        (9)        (23)        (9)
                                                      ---         ---          ---         ---

                                                   $1,663        $598       $1,663        $598
                                                   ======        ====       ======        ====

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SOURCE Thomson Reuters