Financial information giant Thomson Reuters Corp (TSE:TRI, Mkt cap 41.89B, P/E 16.36, Div/yield 0.44/3.27, EPS 3.30, Shares 776.81M) has reported a profit increase, despite weaker-than-expected revenues – the result of a strong dollar, according to the Q3 statement
The New York-based firm, which provides businesses and individuals with financial markets data, saw net profit rise 17% in the third quarter to $293 million, although the jump was at odds with its revenues, which slumped by 4.1% to $2.98 billion – a figure lower than forecast. Judged on constant-currency terms, however, revenues were marginally up, AFP notes.
Thomson Reuters, which has cut thousands of jobs since 2013, said its bottom line was leveraged by “efficiency initiatives, which were partially offset by the impact of foreign currency.”
“I am pleased to report another quarter of steady progress,” said James Smith, president and chief executive.
“I am encouraged by the way we continue to execute against our key priorities, by the progress towards our financial targets and especially by the underlying performance of our subscription revenues.”
The financial arm, which provides terminals used by market professionals, witnessed a 6.8% decline in revenue to $1.5 billion, attributed primarily to currency fluctuations.
Since September, the unit has faced new competition in the shape of Symphony Communications, backed by major banks including Goldman Sachs, JPMorgan Chase, Societe Generale, Natixis and Google.
Meanwhile, Reuters news agency saw revenues drop 6.3% $74 million. Once again, however, the revenues increase on a constant-currency basis.
Thomson Reuters Corporation is a provider of intelligent information for businesses and professionals. The Company is organized into four business units: Financial & Risk, Legal, Tax & Accounting and Intellectual Property & Science. Financial & Risk business unit provides news, information and analytics, enabling transactions and bringing together financial communities. It also provides regulatory and operational risk management solutions. Legal business unit provides online and print information, decision tools, software and services that support legal, investigation, business and government professionals. Tax & Accounting business unit provides integrated tax compliance and accounting information, software and services for professionals in accounting firms, corporations, law firms and government. Intellectual Property & Science business unit provides intellectual property and scientific information, decision support tools and services. More from Reuters »
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