'We've turned the ship' - Thomson Reuters CEO James Smith

The improvement came from cost controls and lower-than-expected tax rates.

Despite volatile markets, the company said it expects two to three per cent revenue growth this year, assuming constant currency rates.

“Today’s results reflect the significant progress we have made putting the company back on solid footing," James Smith, president and chief executive, said in a statement accompanying the figures. "With the ship now turned, we have growing confidence in our strategy as we look to 2016 and 2017.”

In an interview with Reuters, Smith said about global markets: "There is a lot to be worried about there. But when I spoke to our largest customers this year and when I spoke to major regulators this year, no one believes that we are in a place where the fundamentals are anywhere near where they were in 2008 and 2009."

Adjusted for special items, Thomson Reuters' fourth-quarter net earnings were 65 cents per share, up from 43 cents per share a year ago. Analysts, on average, were looking for 58 cents.

Volatile currencies, falling oil prices and worries about slowing growth in China have put pressure on sell-side financial services firms, the core customers of Thomson Reuters Financial & Risk business. Goldman Sachs and other banks are looking to slash expenses further this year.

Smith noted that the fourth quarter is key for Financial & Risk, which makes up about half of the company's revenue, because that is when clients decide whether to renew for the year. "It's generally when the big banks tend to adjust their seat count for the coming year," Smith said.

The division, which provides news and analytics to financial services companies, showed sales outpacing cancellations - a key indicator of future growth, marking its seventh consecutive quarter of positive net sales. Revenue was $1.53 billion for the quarter.

Quarterly revenue was slightly below estimates, down two per cent to $3.15 billion, but would have been up two per cent when factoring out currency. Analysts had forecast $3.17 billion.

The company said it plans to buy back about $1.5 billion of its shares, having largely completed its prior $1 billion share repurchase scheme.

The company's 2016 forecast excludes revenue from its Intellectual Property & Sciences business, which it expects to sell in the second half of this year.

Thomson Reuters announced in November it was exploring strategic options for the business, which provides intellectual property and scientific information and associated tools and services to governments, universities and companies. It had revenue of $1 billion in 2015.

Smith said he would favour using proceeds from the sale to buy back shares and said he has no plans for major acquisitions in 2016. ■