Reuters News has named one of its top editors, Alessandra Galloni, as its next editor-in-chief, the first woman to lead the globe-spanning news agency in its 170-year history.
A native of Rome, Galloni, 47, will replace Stephen J. Adler, who is retiring this month after leading the newsroom for the past decade. Under his leadership, Reuters has received hundreds of journalism awards, including seven Pulitzer Prizes, the industry’s highest honor.
A speaker of four languages, and with broad experience covering business and political news at Reuters and previously at the Wall Street Journal, Galloni takes the helm as the news agency faces an array of challenges. Some of these are common to all news media. Others are specific to the organization’s complexity: With a worldwide staff of some 2,450 journalists, Reuters serves a range of divergent customers and is also a unit in a much larger information-services business.
Since 2008, Reuters has been part of Thomson Reuters Corp, a corporation with more-lucrative and faster-growing segments than news. Its chief executive, Steve Hasker, who joined Thomson Reuters last year, has focused on aggressively expanding the corporation’s three largest businesses: providing information, software and services to lawyers, corporations and the tax and accounting profession. Hasker’s strategy has helped boost Thomson Reuters stock to all-time highs.
Reuters News comprises about 10% of Thomson Reuters’ total $5.9 billion in revenues. Unlike many news organizations, Reuters is profitable. But it is also a drag on the parent company’s revenue growth and profit margin, analysts say, and the executive who runs the news business, Reuters President Michael Friedenberg, is pushing to increase sales and boost profitability. Looking forward, Thomson Reuters’ chief financial officer last month forecast that sales at its “Big Three” businesses are expected to grow 6% to 7% in 2023, while its news division and printing business “are expected to dilute organic revenue growth by about 1% to 2%.”
Gary Bisbee, an analyst at Bank of America, said he expects Reuters News “will continue to be a drag on the growth of the company,” but added that as other divisions of Thomson Reuters grow faster, that drag would diminish over time.
Thomson Reuters is hoping for a turn-around in the Reuters Events business, which it acquired in October 2019. Almost all in-person conferences last year were canceled or postponed because of the COVID-19 pandemic. But the business has pivoted to a hybrid events strategy for 2021 with both in-person and virtual conferences, and expects its revenues to improve.
