Thomson Reuters raises sales outlook, cites strong core in the face of slowdown

The Thomson Reuters logo is seen at the company building in Times Square, New York, USA, January 30, 2018. REUTERS/Andrew Kelly/File Photo

NEW YORK (Reuters) – Thomson Reuters (TRI.TO) has raised its full-year earnings forecast. He said this reflected the strong performance of the company’s legal, tax, accounting and corporate businesses. Earnings for the second quarter on Thursday.

The global news and information company said it expects revenue to grow by 5.5% to 6% in 2022, adding that revenue from its ‘Big 3’ business segments will grow by 7%.

Thomson Reuters shares rose 3% in New York and Toronto after Reuters News, the parent company of Reuters News, reported second-quarter adjusted earnings of 60 cents a share. Analysts expected an average of 53 cents per share, according to Refinitiv estimates.

According to Thomson Reuters, total revenue rose 5% to $1.61 billion in the fourth quarter, in line with Wall Street estimates, while operating income rose 24% to $391 million.

“Our leading indicators remain healthy and we have a resilient and highly regular business serving a growing industry,” said CEO Steve Husker in a statement.

Thomson Reuters executives say 80% of revenue comes from recurring revenue, which helps shield the company from unpredictable economic pressures.

“Looking ahead, we are confident that we can successfully weather broader market concerns, including inflation and slowing economic growth,” Hasker added.

On a conference call with financial analysts, Hasker said the company is looking at potential acquisitions in the areas of legal, tax, accounting, risk, fraud and compliance, with a focus on automation tools.

“Healthy Paranoia”

Hasker said in an interview that Thomson Reuters did not see any major factors that could derail the outlook, but still expressed “healthy paranoia” for the rest of the year.

Digital advertising, facing the first recession, could affect Reuters News, he said, adding that non-recurring transaction revenues could affect the entire business segment.

Revenue increased in five segments, according to Thomson Reuters.

The Big 3 segment was up 6%, but Reuters News revenue was driven by events and higher annual payouts from a news deal with Refinitiv, a data company spun off from Thomson Reuters and now owned by the Bank of London. The result is a 9% increase. Stock Exchange Group (LSEG) (LSEG.L).

The earnings report said nearly 300 Reuters journalists in the U.S. have been on strike for 24 hours over the company’s offer of a three-year contract guaranteeing a 1% pay rise, News Guild of America said. announced when

The current US inflation rate is about 9%.

A Reuters spokesperson said Reuters pay and benefits include a competitive annual merit-based wage program in which all guild members participate. ‘ said the spokesperson in a prepared statement.

Thomson Reuters last month appointed Paul Bascobert as president of Reuters News. Reuters News makes about half of its sales by providing news to Refinitiv and relies on technology and media veterans to fuel the growth of the 171-year-old organization.read more

The company reported a net loss of 24 cents per share due to a write-down on the value of LSEG’s shares, which it said was worth $7.1 billion as of July 31.

Thomson Reuters stock has outperformed the broader market this year, with U.S. listed stocks down about 5% while the S&P 500 (.SPX) is down 13.3%.

Competitors include RELX Group (REL.L)’s LexisNexis, Bloomberg LP, News Corp’s DowJones and Wolters Kluwer (WLSNc.AS).

Reported by Kenneth Lee, New York.Edited by Alexander Smith

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