Thomson Reuters profit improves despite strong dollar

Second-quarter net earnings were $281 million, or 33 cents per share, compared with $260 million, or 31 cents per share, a year ago.

Adjusted for special items, earnings were 52 cents per share. Analysts on average were looking for 50 cents per share.

Revenue fell four per cent to $3.04 billion. Factoring out currency swings and acquisitions, organic revenue rose two per cent. Revenue would have risen two per cent without the impact of a stronger dollar.

“Today’s results reflect the growing momentum within our business,” chief executive James Smith said in a statement issued with the figures. “Our results are in line with our full-year expectations, and on a pre-currency basis, each of our four operating units reported growth for the first time in more than three years. We are entering the second half of 2015 from a position of strength and will continue to prioritize resources behind our highest growth opportunities.”

Reuters news revenues were $74 million, one per cent higher compared with the prior-year period.

In the largest division, the financial and risk business that caters to banks and other financial institutions, organic revenue rose one per cent. F&R has faced declining demand from bank clients as firms have sought to reduce costs and cut jobs. Thomson Reuters has in turn also tried to cut costs and scale back its workforce.

Management reiterated its guidance for this year, where it expects organic revenues to increase.

Thomson Reuters' next quarterly dividend of 33.5 cents a share will be payable on 15 September to shareholders of record on 20 August.

During the second quarter, the company bought back 8.5 million shares for $348 million. ■