NEW YORK Thomson Reuters Corp reported higher-than-expected second quarter profit on Wednesday and reaffirmed its 2020 forecast in the face of global market uncertainty.
The news and information provider, which owns Reuters News, said sales in the company’s legal, tax and corporate businesses are expected to rise in the current quarter.
“Given our performance for the second quarter and first half, we have increasing confidence in how our businesses will perform over the remainder of the year,” Thomson Reuters Chief Executive Steve Hasker said in a statement.
Thomson Reuters said its quarterly revenue dipped 1% to $1.405 billion and operating profit fell 18% to $365 million, from $447 million a year ago, when the quarter included some one-time items.
Adjusted earnings of 44 cents per share were ahead of the 38 cents analysts expected, according to Refinitiv, while the sales figure was in line with Wall Street expectations.
Thomson Reuters expects higher free cash flow for the year, of between $1 and $1.1 billion, and said its three main divisions should grow sales by 3%-4% in the third quarter.
Of its three largest divisions, Legal Professionals and Corporates showed higher quarterly sales and adjusted profit, while the Tax & Accounting Professionals segment saw lower sales and adjusted profit, partly reflecting a delayed U.S. tax filing system during the pandemic.
Reuters News saw organic revenues fall 11%, reflecting the effect of the coronavirus crisis on its events business. The news division’s sales are forecast to be lower in the third quarter and for the full year.
(Writing by Nick Zieminski in New York; Editing by Alexander Smith)
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