Merger Improved Thomson’s Prospects

Article Excerpt

THOMSON REUTERS CORP. $33 (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 824.3 million; Market cap: $27.2 billion; SI Rating: Above average) divides its operations into two divisions: Markets (60% of revenue), which provides financial information products to banks and other financial institutions; and Professional (40%), which sells specialized information to professionals in the legal, accounting, scientific and healthcare fields. The company took its present form on April 17, 2008 when The Thomson Corp. (old symbol TOC) acquired UK-based information provider Reuters Group plc. Electronic focus a plus The company sells 90% of its products electronically. That cuts its printing and postage costs. Selling information products electronically also makes it easier to expand to new markets such as Latin America and Asia. The Americas region provides 60% of Thomson Reuters’ revenue, followed by Europe (30%) and Asia (10%). If you assume that the merger occurred at the start of 2006, Thomson Reuters’ revenue rose 9.5%, from $11.4 billion in 2006 to $12.4…