Thomson Reuters profit falls as strength in core segments drives revenue growth

By Adriano Marchese

Thomson Reuters’ second-quarter profit fell while revenue rose on strong performance in key segments, prompting the company to raise its full-year revenue target.

The Canadian news and information conglomerate said on Thursday that its net income was $841 million, or $1.86 per share, compared with $894 million, or $1.90 per share, in the same quarter a year earlier.

The company said the decline was mainly due to the same period last year, including a $347 million gain from the sale of a majority stake in Elite.

Adjusted earnings — which exclude special charges and one-time items such as gains from the sale of Elite and changes in the value of the company’s investment in London Stock Exchange Group — were 85 cents a share. The consensus estimate for the period was 82 cents a share, according to a survey of 14 analysts on FactSet.

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

Reuters believes the revenue increase was due to an 8 percent increase in recurring revenue during the period and a 5 percent increase in transaction revenue.

The firm’s core “Big 3” segments saw revenue grow 7%, accounting for 82% of total revenue. They consist of attorneys, corporates, and tax and accounting professionals.

Reuters’ global print business was the only segment to decline, falling 8% over the period.

CEO Steve Hasker said the second-quarter momentum prompted the company to raise its revenue guidance for the year. It now expects total revenue growth to be at the higher end of its previous growth guidance of between 6.5% and 7%.

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

Write to Adriano Marchese at [email protected]

(END) Dow Jones Newswires

August 1, 2024, 07:08 ET (11:08 GMT)