Thomson Reuters earns more than expected
News and data provider Thomson Reuters is looking to the future with slightly more optimism following surprisingly strong business performance over the summer. The company announced on Wednesday that it now expects to reach the upper end of its profit forecast for the full year.
In the third quarter, net profit rose by a good fifth to 348 million dollars, exceeding market expectations. However, this was also due to extraordinary sales proceeds.
Excluding currency effects, turnover increased by one percent to 2.79 billion dollars. Analysts had expected more here. According to CEO Jim Smith, however, Thomson Reuters is well on the way to gaining further momentum. The restructuring of recent years is paying off and margins are improving.
In the important business with financial market customers, in which Thomson Reuters competes primarily with Bloomberg, there have recently been more terminal sales than terminations - an important indication of future growth. The business has been under pressure across the industry since the financial crisis because many banks, which are customers, are themselves on a cost-cutting course.
Thomson Reuters was formed in 2008 from the takeover of the British news agency Reuters by the Canadian information provider Thomson. (SDA)
