THOMSON REUTERS RELÈVE SES PRÉVISIONS D

Thomson Reuters raises its activity forecast, deeming its solid core business

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NEW YORK (Reuters) – Thomson Reuters reported better-than-expected earnings on Thursday and raised its full-year revenue forecast, which the company says reflects strength in its legal business. , tax and accounting as well as those related to businesses.

The press and information group said it now expects a 6% increase in turnover for 2022, against 5.5% previously, adding that the turnover of its “three big” segments of activity should progress for its part by 7%.

Reuters News’ parent company reported second-quarter adjusted earnings of 60 cents a share. Analysts on average had expected 53 cents per share, according to Refinitiv estimates.

Total revenue rose 5% in the quarter to $1.61 billion (€1.58 billion), in line with Wall Street expectations, while operating profit increased by 24% to $391 million, Thomson Reuters said.

“Leading indicators remain healthy, and we have resilient and highly recurring business from our services to growing industries,” CEO Steve Hasker said in a statement.

“SOUND PARANOIA”

Thomson Reuters executives said the fact that 80% of its revenue is recurring helped it protect itself from the vagaries of the economy.

“Looking ahead, I am confident that we are well positioned to deal with broader market concerns such as inflation and slowing economic growth,” added Steve Hasker.

He added in an interview that Thomson Reuters saw no major factors that could jeopardize its goals, but expressed “healthy paranoia” about the rest of the year.

Thomson Reuters has outperformed the market this year, with its U.S.-listed stock falling about 5% against a 13.3% decline for the S&P 500.

Revenues increased in five of its business segments. The ‘Big 3’ segment grew 6%, while Reuters News revenue rose 9% due to improved event activity and annual revenue repricing from an information supply agreement with Refinitiv, Thomson Reuters said.

Thomson Reuters appointed Paul Bascobert as head of Reuters News last month, choosing a technology and media specialist to accelerate the growth of the 171-year-old news agency.

Reuters News derives around half of its revenue from supplying news to Refinitiv, a data company formerly controlled by Thomson Reuters and now owned by the London Stock Exchange Group (LSEG).

Thomson Reuters reported a net loss per share of 24 cents, due to a writedown in the value of its stake in LSEG which the group said was worth $7.1 billion as of July 31.

(Report Kenneth Li in New York, French version Augustin Turpin, edited by Jean-Michel Bélot)

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