- Total revenues down 2% before currency; Professional division up 2%,

Markets division down 4%

- Underlying operating profit up 3%; operating profit margin up 140 basis

points

- Full-year 2009 guidance reaffirmed

NEW YORK, Nov. 5 /CNW/ -- Thomson Reuters (TSX / NYSE: TRI), the world's leading source of intelligent information for businesses and professionals, today reported results for the third quarter ended September 30, 2009. While net sales began to improve in the third quarter, revenue flow-through from weaker year-to-date net sales in Legal and Markets overshadowed strong performances in Tax & Accounting and Healthcare & Science. Underlying operating profit margin improvement was driven by the benefit of currency, continuing progress on the integration program and strong cost management.

(Logo: http://www.newscom.com/cgi-bin/prnh/20090507/NY12658LOGO )

Three Months Ended September 30,

--------------------------------

(Millions of U.S. dollars, except EPS

and Profit Margin)

IFRS Financial Measures 2009 2008 Change

---- ---- ------

Revenues $3,216 $3,339 -4%

Operating profit $378 $553 - 32%

Diluted earnings per share

(EPS) $0.19 $0.49 - 61%

Cash flow from operations $513 $592 - 13%

Change Before

Non-IFRS Financial Measures(1) 2009 2008 Currency Change

---- ---- -------- ------

Revenues from ongoing

businesses $3,212 $3,331 -2% - 4%

Underlying operating profit $711 $690 3%

Underlying operating profit +140bps

margin 22.1% 20.7%

Adjusted earnings per share

(EPS) $0.43 $0.47 - 9%

Free cash flow $260 $332 - 22%

(1) These non-IFRS financial measures are defined and reconciled to the

most directly comparable IFRS measure in the tables appended to this news

release. Additional information is provided in the explanatory note at the

end of this news release.

-- Revenues from ongoing businesses were $3.2 billion, a decrease of 2%

before currency and 4% after currency. IFRS revenues were down 4% after

currency against the prior year period.

-- Underlying operating profit was up 3% to $711 million, with the related

margin up 140 basis points, driven by the benefit of currency,

integration-related savings and a continued commitment to strong cost

management.

-- Adjusted earnings per share were $0.43 compared with $0.47 in the third

quarter of 2008. The decline was due to higher integration- related

spending, which is included in adjusted earnings but not underlying

operating profit.

-- Free cash flow remained strong in the third quarter, with net cash flow

provided by operations of $513 million and reported free cash flow of

$260 million, down versus the prior period reflecting planned

integration and interest costs.

-- During the quarter, the company further strengthened its capital

structure with the redemption of $600 million of outstanding debt,

financed through cash-on-hand and the issuance of $500 million of 4.70%

notes, due 2019. Year-to-date, the company has refinanced $1.1 billion

of long-term debt, reflecting its continued ability to access and take

advantage of favorable capital markets.

"Despite difficult market conditions, our businesses delivered solid results in the third quarter. Our Tax & Accounting and Healthcare & Science businesses continued to perform very strongly, and sales of subscription products in our Markets and Legal units improved in Q3 over what we expect were their bottom in Q2. While the weak year-to-date net sales experienced in recent quarters are now flowing through into revenues, we expect this dip to be shallow and limited to the next few quarters," said Thomas H. Glocer, chief executive officer of Thomson Reuters.

"Our ongoing focus on the Reuters integration and close cost management across the company has enabled us to continue to grow underlying operating profit. While we would welcome a quick return to revenue growth, we understand how to operate in challenging markets and we are confident that we are outperforming the competition," said Mr. Glocer.

Third-Quarter Business Segment Highlights

Unless otherwise noted, all revenue growth comparisons in this news release are before the impact of foreign currency translation as Thomson Reuters believes this provides the best basis to measure the performance of its business. All revenue growth and operating profit comparisons are based upon results from ongoing businesses and exclude the results of disposals.

Professional Division

Three Months Ended September 30,

--------------------------------

(Millions of U.S. dollars, unless otherwise indicated)

Change Before

Revenues 2009 2008 Change Currency

---- ---- ------ --------

Legal $917 $940 -2% -1%

Tax & Accounting $225 $210 7% 8%

Healthcare & Science $213 $200 7% 8%

---- ----

Professional

Division Total $1,355 $1,350 0.4% 2%

2008

Operating Profit 2009 2008 Change 2009 Margin Margin

---- ---- ------ ----------- ------

Legal $305 $322 -5% 33.3% 34.3%

Tax & Accounting $36 $40 -10% 16.0% 19.0%

Healthcare & Science $50 $38 32% 23.5% 19.0%

--- ---

Professional

Division Total $391 $400 -2% 28.9% 29.6%

-- Revenues were up 2% before currency, with strong growth in Tax &

Accounting, Healthcare & Science and Legal's recurring subscription

businesses.

-- Operating profit decreased 2% and the corresponding margin decreased 70

basis points due to slowing revenue growth, business mix and the

dilutive effect of acquisitions.

Legal

-- Revenues were down 1%. Solid growth in subscription businesses led by

Westlaw, FindLaw and international units was offset by continued

weakness in non-subscription services including Print, Ancillary,

Enterprise software, Consulting Services and Trademarks. As in the

second quarter, small law firms and government units were the fastest

growing customer segments.

-- Operating profit declined 5%, with the related margin decreasing 100

basis points, due primarily to the mix of revenues, partially offset by

cost controls and the benefits of efficiency initiatives.

Tax & Accounting

-- Revenue growth of 8% was driven by robust performances in both the

Corporate and Professional Software and Services businesses. Research

& Guidance revenues declined slightly as double-digit print declines

more than offset Checkpoint growth.

-- Operating profit declined 10% and the related margin decreased 300

basis points. Flow-through on revenue was offset by acquisitions,

changes in the business mix and technology-related product investments.

Tax & Accounting is a seasonal business and close to half of its full

year operating profit is typically generated in the fourth quarter.

Healthcare & Science

-- Revenues increased 8%, driven by a 19% increase in the Payer business

as a result of significant demand for timely healthcare spending

analytics from both the Government and Employer segments. Scientific

and Scholarly Research, driven by Web of Knowledge / Web of Science,

and the Life Sciences business both contributed to growth.

-- Operating profit increased 32% with the corresponding margin increasing

450 basis points, driven by significant revenue flow-through, synergies

realized from combining legacy business units and the timing of certain

expenses.

Markets Division

Three Months Ended September 30,

--------------------------------

(Millions of U.S. dollars, unless otherwise indicated)

Change Before

Revenues 2009 2008 Change Currency

---- ---- ------ --------

Sales & Trading $881 $970 -9% -6%

Investment &

Advisory $570 $600 -5% -5%

Enterprise $318 $307 4% 8%

Media $90 $105 -14% -10%

--- ----

Markets Division

Total $1,859 $1,982 -6% -4%

2008

Operating Profit 2009 2008 Change 2009 Margin Margin

---- ---- ------ ----------- ------

Markets Division

Total $369 $336 10% 19.8% 17.0%

-- Revenues declined 4% due to flow-through from weaker year-to- date net

sales and strong prior period revenue growth of 5%.

-- Subscription revenues declined 0.7%, but remain up 2% year- to-date.

-- Revenues were impacted by softness in transaction, recoveries and

outright revenues.

-- Revenues in Asia were unchanged against the prior year period while

revenues in Europe, Middle East and Africa (EMEA) and the Americas were

down 3% and 6%, respectively.

-- Operating profit increased 10% with the related margin expanding 280

basis points. The margin improvement was driven by integration savings,

effective cost management and the benefit of currency.

Sales & Trading

-- Revenues decreased 6% despite good performances from Commodities &

Energy and Tradeweb. The decrease was due to lower third party

recoveries revenues, declines in transaction revenues (primarily spot

foreign exchange) against very strong prior year period results and

desktop cancellations driven by headcount reductions.

Investment & Advisory

-- Revenues declined 5% reflecting continued pressure on customer budgets

across Investment Management, Corporates and Wealth Management. The

Investment Banking business recovered well in the quarter, with

revenues broadly flat against the comparable 2008 quarter and the

sector showing lower cancellations and increased usage revenues.

Enterprise

-- Revenues increased 8% driven by the continued demand from customers for

risk management and data solutions. The fastest growing business in

Enterprise, Enterprise Information, grew 15%, driven by strong customer

demand for pricing and reference data and low latency feeds to power

trading systems.

Media

-- Revenues declined 10%, attributable to continued challenges in

Professional Publishing and the advertising-driven Consumer business.

The Agency business' revenues declined 6%, a result of consolidation in

traditional media outlets and softness in transactions.

Corporate & Other

Corporate & Other expenses increased $163 million to $244 million. The increase was comprised of a $108 million increase in non-cash fair-value currency-related adjustments and a planned $52 million increase in one-time integration costs. Core Corporate Costs were essentially flat.

Financial Highlights - Nine-Months 2009

Nine Months Ended September 30,

-------------------------------

(Millions of U.S. dollars, except EPS and Profit Margin)

2009 2008 Change

IFRS Financial Measures ---- ---- - -----

Revenues $9,640 $8,312 16%

Operating profit $1,229 $1,035 19%

Diluted earnings per

share (EPS) $0.80 $0.98 - 18%

Cash flow from

operations $1,770 $1,756 1%

Non-IFRS Financial Change Before

Measures 2009 2008(2) Currency Change

---- ------- -------- ------

Revenues from ongoing

businesses $9,621 $9,977 1% - 4%

Underlying operating

profit $2,094 $1,992 5%

Underlying operating +180bps

profit margin 21.8% 20.0%

Adjusted earnings per

share (EPS) $1.41 $1.31 8%

Free cash flow $1,049 $1,123 -7%

(2) This 2008 financial information, other than free cash flow, has been

prepared on a pro forma basis and assumes that Thomson's acquisition of

Reuters closed on January 1, 2007. Thomson Reuters believes that pro

forma financial information provides more meaningful period-to- period

comparisons of its performance because Reuters results prior to the April

17, 2008 closing are not included in IFRS results. 2009 results include

the impact of the acquisition for the entire period. For more

information, see the explanatory note at the end of this news release.

-- Revenues from ongoing businesses increased 1% before currency to $9.6

billion.

-- IFRS revenues increased 16% after currency and include Reuters results

subsequent to its acquisition on April 17, 2008.

-- Underlying operating profit increased 5% to $2.1 billion and the

related margin increased 180 basis points.

-- Adjusted earnings per share increased 8% to $1.41.

-- Net cash provided by operations was $1.8 billion, unchanged from a year

ago. Free cash flow of $1.0 billion was down 7% from a year ago, as

higher cash profits and lower tax payments were offset by higher

interest payments and increased capital expenditures on platform and

product development initiatives.

Integration Programs

Thomson Reuters has achieved combined run-rate savings of $975 million as at September 30, 2009. Given the progress the company continues to make on its integration programs, Thomson Reuters continues to expect to achieve at least $1.0 billion of run-rate savings by year-end 2009. Savings were principally achieved through elimination of redundant positions and the retirement of legacy products.

Recent Developments

Thomson Reuters completed the unification of its dual listed company (DLC) structure on September 10, 2009, receiving strong support from shareholders as well as UK court approval. Specifically, each Thomson Reuters PLC ordinary share was exchanged for one Thomson Reuters Corporation common share, and each Thomson Reuters PLC American Depositary Share (ADS) was exchanged for six Thomson Reuters Corporation common shares. As a result, the company's common shares now have a primary listing on the Toronto Stock Exchange, and are also listed on the New York Stock Exchange (both, symbol: TRI). The last trading day for Thomson Reuters PLC ordinary shares on the London Stock Exchange and ADSs on Nasdaq was September 9, 2009.

In the third quarter, Thomson Reuters exercised its right to redeem approximately $600 million of outstanding debt securities and financed these redemptions through cash-on-hand and the issuance of $500 million of 4.70% notes due 2019. The redemptions were completed on October 22, 2009.

Business Outlook (Before Currency)

Thomson Reuters reaffirms its previous outlook that revenues are expected to grow in 2009 and underlying operating profit margin and free cash flow will be comparable with 2008. The revenue impact of weaker 2009 subscription net sales in Markets and Legal is expected to continue to be a drag on revenues through the first half of 2010; however, good growth in other units, continued focus on effective cost management and the benefits of the integration program are expected to reduce the impact on operating profit and maintain strong free cash flow.

Dividend

Thomson Reuters will pay a quarterly dividend of $0.28 per share on December 15, 2009 to shareholders of record as of November 20, 2009.

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, legal, tax and accounting, healthcare and science and media markets, powered by the world's most trusted news organization. With headquarters in New York and major operations in London and Eagan, Minnesota, Thomson Reuters employs more than 50,000 people and operates in over 100 countries. Thomson Reuters shares are listed on the Toronto and New York Stock Exchanges (symbol: TRI). For more information, go to www.thomsonreuters.com.