Thomson Reuters raises sales outlook on core business strength in slowing economy

[August 04, 2022]  NEW YORK (Reuters) - Thomson Reuters Corp reported higher second-quarter operating profit on Thursday and raised its full-year revenue forecast, citing strength in its legal, tax and accounting and corporates businesses.

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

The news and information company said that it now expects 2022 revenue to rise by 6%, from 5.5%, adding that revenue from its "Big 3" segments is expected to rise by 7% this year.

The parent company of Reuters News reported second quarter adjusted earnings of 60 cents a share. Analysts, on average, had expected 53 cents a share, according to Refinitiv estimates.

Total revenues rose 5% in the quarter to $1.61 billion, matching Wall Street estimates, while operating profit rose 24% to $391 million, Thomson Reuters said.

"Leading indicators remain healthy, and we have a resilient, highly recurring business serving growing industries," Chief Executive Steve Hasker said in a statement.

Thomson Reuters executives have said that because 80% of its revenues are recurring, this has helped insulate it from unpredictable economic pressures.

"Looking ahead, I am confident that we are well-positioned to navigate broader market concerns such as inflation and slowing economic growth," Hasker added

Thomson Reuters shares have outperformed the broader market this year, with its U.S.-listed shares down about 5% versus a 13.3% drop for the S&P 500. The company's peers include RELX Group’s LexisNexis, Bloomberg LP, News Corp's DowJones and Wolters Kluwer NV.

Revenue grew across five of its business segments. The big 3 segment rose 6%, while Reuters News revenue rose 9% as a result of a boost from events and annual increases from payments from a news agreement with Refinitiv, Thomson Reuters said.

Last month, the company named Paul Bascobert as president of Reuters News, turning to a tech and media veteran to drive growth at the 171-year-old news organization.

Reuters News earns about half of its sales by supplying news to Refinitiv, a data company spun off from Thomson Reuters and now owned by the London Stock Exchange Group.

(Reporting by Kenneth Li in New York; Editing by Alexander Smith)

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