The early release of the company’s UltraTax software left organic revenue for the Tax & Accounting segment of Thomson Reuters flat for the first quarter ended March 31. Overall, the operation’s revenue fell by 2 percent because of the impact of currency, the company reported th is week.

Tax & Accounting revenue dropped to $218 million for the most recently ended period, off from $222 million a year earlier. EBIDTA dropped to $84 million, down 8 percent from $92 million in last year’s corresponding period. That was a decrease of 6 percent in constant currency.

The revenue shift occurred because UltraTax was released in December, instead of in January, the previous practice. If UltraTax had been released in January, revenue would have been up 6 percent for the quarter. The change is permanent. The unit was also affected by the sale of the Government business in November.

“We were confident that Tax & Accounting was on track to achieve revenue growth of between 6 percent and 8 percent for the balance of the year prior to the impact we are now expecting to experience from COVID-19,” CEO Stephen John Hasker said during the week’s webcast of earnings for the quarter. The company plans to cut $100 million in costs because of the pandemic’s impact.

Company revenue was $1.52 billion for the first quarter, a rise of 2 percent from $1.49 billon a year earlier. Thomson’s largest segment, Legal Professionals reported revenue of $626 million, an increase of 4 percent from $600 million; up 5 percent in constant currency.

Net earnings rose 86.5 percent to $194 million from $104 million. 

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
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