Thomson Reuters Corp.'s (TRI) first-quarter profit and revenue
rose, helped by Thomson's purchase of Reuters last year, as well as
stronger revenue at its professional and legal businesses.
But the results point to a concern for investors - Thomson
Reuters' markets division - as the financial industry reels from
the collapse of major investment banks. In April, Thomson Reuters
acknowledged that revenue from desktops, one of its top-earning
businesses, may fall this year, as widespread financial-sector job
cuts begin, curbing demand. The segment's revenue edged up 0.4% in
the quarter, while operating profit remained flat. Asia led revenue
growth with a 5% rise. Americas revenue fell 4%.
Thomson's earnings rose to $228 million from $194 million. But
per-share earnings fell to 27 cents from 30 cents as shares
outstanding jumped 30% on the merger. Excluding acquisition and
other impacts, profit fell to 40 cents from 44 cents.
The company's profit rose 73%, to $374 million fom $216 million
a year earlier. On a per-share basis, earnings fell to 27 cents
from 30 cents.
Revenue jumped 70% to $3.12 billion.
Analysts surveyed by Thomson Reuters expected earnings of 35
cents on revenue of $3.18 billion.
The company's professional business saw 5% revenue growth amid
gains in online, software and services revenue.
Thomson Reuters' legal business, which includes the Westlaw
research service, saw revenue increase 3%. Earnings rose 3%, helped
by currency fluctuations.
Roughly 60% of Thomson Reuters' revenue comes from its financial
information services unit, with the rest generated from tax and
accounting, legal and scientific and health-care sectors.
The information provider also reaffirmed its 2009 outlook.
Shares closed at $31.58 on Wednesday and didn't trade
premarket.
-By Mike Barris, Dow Jones Newswires; 201-938-5658;
mike.barris@dowjones.com