Thomson Reuters Profit Falls

By Adriano Marchese

Thomson Reuters reported lower profit in the first quarter compared with a year-earlier when the value of its investment in the London Stock Exchange Group was higher.

The Canadian information conglomerate on Thursday posted a lower net income of $478 million, or $1.06 share, down from $756 million, or $1.59 a share, in the comparable quarter a year ago.

Reuters said the decline was largely due to last year's figure being significantly higher on the then value of its investment in LSEG.

Adjusted earnings, which strips out the changes in value of the company's LSEG investment and other one-off items, were $1.11 a share. According to FactSet, analysts were expecting a more modest rise to 94 cents a share.

Operating revenues rose 8% to $1.89 billion, driven by growth in recurring and transactions revenues. Analysts were expecting a rise in the quarter, but to $1.83 billion.

Organic revenues for its 'Big 3' segments, Legal Professionals, Corporates and Tax & Accounting Professionals were up 10% in the quarter. These three segments make up 83% of its total revenue generated in the period.

Thanks to its performance in the quarter, Reuters raised its outlook for total and organic revenue growth in the year to be between 6% and 6.5%, up from a previous guidance of a rise to 6%.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

May 02, 2024 07:19 ET (11:19 GMT)

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