DOW JONES NEWSWIRES
Thomson Reuters Corp.'s (TRI) fourth-quarter net income jumped
51% on increased revenue and strength at its professional and legal
businesses.
The information provider also boosted its quarterly dividend 17%
to 28 cents a share as it expects revenue to grow in 2009 based on
current market environments. Analysts surveyed by Thomson Reuters
had expected a 3% drop to $13.13 billion.
Thomson Reuters' markets division has been a concern for
investors as the financial industry reels from the collapse of
major investment banks. Some analysts predicted the company's
revenue will fall in 2009 as job and budget cuts pervade the
industry.
The company posted net income of $657 million, or 79 cents a
share, up from $434 million, or 67 cents a share, a year earlier.
There were about 29% more shares outstanding in the most recent
period amid Thomson's purchase in April of Reuters.
Revenue increased 68% to $3.41 billion, and rose 5% on a
pro-forma basis.
Analysts surveyed by Thomson Reuters expected earnings of 43
cents on revenue of $3.39 billion.
Chief Executive Thomas Glocer said the Thomson Reuters continued
to perform well as major economies slid into recession last year.
He said the company was able to accelerate the integration of
Reuters and increase the savings it expects to achieve.
The company's professional business saw 6% revenue growth and 8%
profit growth amid gains in online, software and services revenue.
Thomson Reuters' legal business, which includes the Westlaw
research service and is the segment's biggest portion, saw revenue
increase 6% and earnings rise 4% on strength in international
online products and growth in Westlaw products.
About 60% of Thomson Reuters' revenue comes from its financial
information services unit, with the rest generated from tax and
accounting, legal and scientific and healthcare sectors.
Thomson Reuters' shares closed Monday at $22.58 and haven't
traded premarket.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com