Thomson Reuters Q2 profit falls, sees Q3 revenue growth

The second quarter results show that the group is gradually emerging from the shadow of the financial crisis, which triggered layoffs on Wall Street and cancellations of subscriptions to trading terminals and products for legal professionals, Reuters reported.

Underlying operating profit fell 17 per cent in Q2 to $655 million, and adjusted earnings per share fell to 47 cents from 58 cents a year earlier, slightly below analysts’ forecasts. Revenue from ongoing businesses fell two per cent to $3.22 billion.

"While our markets are only slowly improving, we have seen accelerating results in terms of revenues, net sales and customer uptake of our new products," chief executive Tom Glocer said in a statement. "Based on these encouraging trends, we expect that Thomson Reuters will return to revenue growth in the third quarter."

The company reiterated its forecast that 2010 revenue would be flat to slightly down compared with 2009, and that net sales would strengthen this year.

While net sales improved, revenue was still down year-on-year due to the delayed impact of cancelled subscriptions.

In the markets division, which serves the financial industry, revenue fell four per cent from the same quarter a year earlier. Revenue from the division was up from the first quarter, excluding adjustments for currency, marking the second consecutive quarter of sequential growth.

Revenue rose two per cent in the professional division, which sells databases and other information reservoirs to lawyers, accountants, scientists and healthcare workers.

The Reuters news agency business reported a three per cent fall in revenue, but net sales turned positive after it won a contract with CNN.

Earnings call transcript ■