Declining revenues made 2015 a challenging year for Thomson Reuters. The company has articulated plans to transform and streamline its business and drive growth, but these efforts have yet to spur a significant turnaround in its financial performance, which is reflected in consensus analyst estimates.
This financial forecast is compounded by the headwinds of change faced by Thomson Reuters and its competitors in information solutions and media. New entrants and disruptors continue to emerge, ready to deploy large pools of capital to pry open old, high-margin models with digital-first solutions. At the same time, Thomson Reuters continues to remain relatively quiet in the market, perpetuating a lack of understanding about the value it provides. These challenges have created a steep climb to sustainable success for the company, and have put significant pressure on the brand’s valuation.
But Thomson Reuters has a long history of evolution and growth. Though it has only existed as a unified organization for seven years, the company’s roots date back to 1851 (Reuters) and 1934 (Thomson). It has, since then, continued to thoughtfully develop and acquire new capabilities to build a global presence and expertise that’s unrivaled in many of its industries.
Recent efforts show that the company is planning for the future by finding new ways to meet customer needs and expectations. From internally transforming in order to go to market as a connected enterprise to targeting emerging markets and industries to bringing discrete offerings into integrated solutions, Thomson Reuters is looking—and moving—forward.
To turn forward momentum into financial performance, the company will need to execute these efforts seamlessly, quantify their value, and, once and for all, find its voice in the global marketplace. If it can accomplish this, Thomson Reuters is positioned to disrupt analysts’ forecasts—and industries, as well.