Thomson Reuters Profit Slides While Core Segments Strength Drives Revenue Growth

By Adriano Marchese

Thomson Reuters's second-quarter profit slipped while revenue rose on the back of strong performances from its core segments, leading the company to upgrade its revenue targets for the full year.

The Canadian news and information conglomerate on Thursday posted lower net income at $841 million, or $1.86 a share, against $894 million, or $1.90 a share, in the comparable quarter a year ago.

The company said the decline was largely due to the prior-year period including a $347 million gain on the sale of a majority stake in the company's Elite business.

Adjusted earnings--which strips out exceptional costs and one-off items such as gains on the sale of Elite and changes in value of the company's London Stock Exchange Group investment--came to 85 cents a share. According to a poll of 14 analysts on FactSet, forecasts were for 82 cents a share in the period.

Sales rose to $1.74 billion from $1.65 billion, in line with analyst forecasts for the period.

Reuters credits the rise in revenue to 8% growth in recurring revenue in the period as well as 5% growth in transaction revenue.

The company's main "Big 3" segments reported revenue growth of 7%, which collectively makes up 82% of total revenue. These are made up of legal professionals, corporates and tax and accounting professionals.

Reuters's global print business was the only segment to see a decline, falling 8% in the period.

Chief Executive Steve Hasker said that the momentum of the second quarter has led the company to raise its revenue outlook for the year. It now expects total revenue growth to be at the higher end of its previous guidance of a rise between 6.5% and 7%.

Dow Jones competes with Thomson Reuters in financial news and information services.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

August 01, 2024 07:08 ET (11:08 GMT)

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