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Acquisitions boosted revenue for the Tax & Accounting business of Thomson Reuters as EBITDA grew by 24 percent and revenue by 20 percent for the third quarter ended September 30. The Tax & Accounting business posted its fifth consecutive quarter of double-digit EBITDA increases, according to information provided in this week's earnings webcast.

The tax and accounting operation had $77 million in EBITDA, compared to $62 million in last year's corresponding period. Operating profit rose to $50 million, a 22-percent increase from $41 million a year earlier. Revenue was $272 million, an increase from last year's $226 million. Out of that 20-percent revenue increase, the company recorded 6-percent organic growth. The acquisitions were Manatron, which markets property tax automation and land registry global software for governments and municipalities, and Mastersaf, which makes tax and accounting applications for companies operating in Brazil. Thomson executives pointed to rising income tax software sales and increased electronic filing, along with growth in the Checkpoint research platform as contributing to results.

 

The company reported $659 million in EBITDA, an 85-percent increase from $356 million in last year's corresponding period. Total revenue was $3.45 billion in third-quarter revenue, an increse of 6 percent from $3.25 billion a year earlier.

"I am pleased with this quarter. We have a very good business," CEO Tom Glocer told those on the webcast. That followed analyst questions that centered often on the issues with the former Markets division. The company fired much of the division's leadership early this year as sales of its  Eikon product failed to meet Thomson's expectations. Since then, Glocer has announced the elimination of the divisional organization. Eikon is a web-based product designed to compete with Bloomberg in the financial markets.

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