Thomson Reuters Corp (TRI.TO) reported higher quarterly sales on Tuesday and raised its full-year revenue forecast for the third time this year as the global news and information company benefits from a recovering global economy.
The parent company of Reuters News said revenues rose 6% to $1.53 billion, compared to expectations of $1.5 billion. Adjusted earnings per share climbed 18% to 46 cents, beating analyst estimates of 38 cents, according to Refinitiv.
“The momentum we saw in the first half of the year continued into the third quarter with revenue and sales performance above our expectations and consistent across the business,” Thomson Reuters Chief Executive Steve Hasker said in a statement.
Four of Thomson Reuters’ five divisions – Legal Professionals, Tax & Accounting Professionals, Corporates, and Reuters News – showed sales rising 6% on a constant currency basis.
Reuters News revenue benefited from gains in its business with media customers and a 60% rise in sales at its events business that was hurt by the pandemic.
The company now expects full-year revenues to increase 4.5-5.0%, compared with its previous forecast of 4.0-4.5%.
Quarterly operating profit fell 11% compared to the prior year when the company received a “significant” benefit from the revaluation of warrants the company held in Refinitiv.
The London Stock Exchange Group (LSEG.L) in January closed its $27-billion deal for Refinitiv, a data and analytics company that was part of Thomson Reuters until 2018, when Blackstone Group Inc bought a majority stake. Thomson Reuters holds a minority stake in the LSE following the deal, and Refinitiv pays Thomson Reuters for news it distributes on its terminals.
Thomson Reuters said it had repurchased $1.1 billion worth of shares by the end of October, as part of a $1.2 billion buyback program.
Reporting by Kenneth Li Editing by Mark Potter