Overview:Thomson Reuters is a leading international vendor of information services, analytics and news. Headquartered in New York, it also has major operations in London and in Eagan, MN. In addition to being a leading media company through its Reuters news wire service, Thomson Reuters also offers information and decision support tools in these fields:
- Securities Sales & Trading
- Portfolio Management
- Securities Research
- Investment Banking
- Tax & Accounting
Thomson Reuters owns a number of leading brands in these fields, including, but not limited to:
- First Call
Job Openings: See this list of current job openings.
Size: Thomson Reuters reports these figures:
- Employees = 50,000
- Operates in 93 countries
- Revenues from continuing operations = $12.4 billion (2007)
Positives: In its 2008 survey of the Top 100 Global Brands, BusinessWeek ranks Thomson Reuters 44th. The oldest predecessor firm to the Thomson Reuters of today is London-based legal publisher Sweet & Maxwell, founded in 1799. Paul Julius Reuters moved his successful news and stock price information service from Aachen, Germany to London in 1851. Thomson traces its origins to 1934, when Roy Thomson began building a newspaper empire in Canada, later expanding into the U.K.
Despite the challenging business environment (see below), Thomson Reuters reported an 8% increase in revenues and a 17% increase in operating profits in the third quarter of 2008 over their pro-forma results for the same period in 2007.
Negatives: Turmoil in the financial services industry presents Thomson Reuters several challenges. First, as the industry consolidates, the company is bound to lose customers. Second, financial firms can be expected to cut back on non-essential outside data feeds, such as those provided by Thomson Reuters.
Indeed, the company plans to shed about 2,500 positions in its Financial and Risk division, a core function, in 2013 (“Thomson Reuters Cuts Back,” The Wall Street Journal, February 14, 2013). However, about 1,000 of these will be eliminated as the result of selling its Corporate Services division to NASDAQ OMX, a deal expected to close during the second quarter of 2013, and which will transfer these employees to the latter firm.
The merger of Thomson and Reuters took place in 2008, suggesting that there may be unresolved issues with blending the corporate cultures. On the other hand, Thomson has a long history of being an information conglomerate with largely-independent operating units.
Market data is the major revenue source for Thomson Reuters, but it has fallen by just over 5% from 2008 to 2012, from $7.9 billion to $7.5 billion. Meanwhile, global sales of market data grew by about 11% over the same period. Arch-rival Bloomberg has been able to maintain its pricing power, largely due to the superior technology afforded by its terminals. Meanwhile, Thomson Reuters’ estimated $1 billion investment in its Eikon system unveiled in 2010 is not impressing clients, many of whom are banks still under pressure to cut costs and reduce staff. (“Data Don’t Add Up for Thomson Reuters,” The Wall Street Journal, March 28, 2013).
Criminal investigations into the company’s business practices are likely after a former employee alleged that favored clients were given advance alerts of sensitive market news. The former employee says that he was fired after alerting the FBI to these practices; he has filed a wrongful dismissal suit in federal court in New York. See “Reuters accused of favouring clients,” Financial Times, April 5, 2013.