NEW YORK Feb 13 Thomson Reuters
reported a 2 percent rise in quarterly operating profit on
Wednesday, largely due to cost cutting, and forecast higher
revenue in 2013 as its division that serves financial
institutions begins to turn around.
The global news and information company said it expects
revenue to increase in the low single digits this year. Analysts
had been forecasting a 2 percent rise.
Profit in the quarter increased on the back of "continued
cost containment and lower reorganization costs", the company
said. Organic revenue was flat.
"We enter 2013 with more confidence and a much stronger
foundation," Thomson Reuters Chief Executive James Smith said in
"2012 will best be known as the year we turned the tide in
our Financial & Risk business," he said. "I said last year that
our journey would entail a multi-quarter turnaround; we are
halfway through that process."
Financial & Risk, which accounts for 54 percent of total
revenue, has struggled in recent years following a troubled
launch for its flagship desktop product Eikon, which is aimed at
bankers, hedge fund managers, and other financial industry
Cost cutting by banks after the financial crisis compounded
the difficulties, especially in Europe.
Thomson Reuters said revenue from ongoing businesses in the
fourth quarter rose 2 percent before currency changes to $3.36
billion. It was not immediately clear what the change in costs
was on the same basis.
Adjusted earnings increased to $497 million, or 60 cents
per share, from $445 million, or 54 cents per share, a year
The number of Eikon desktops installed rose 33 percent in
the fourth quarter from the previous quarter to 33,900.
For the fourth quarter, revenue at the Financial & Risk
division increased 1 percent due to growth in its Governance,
Risk & Compliance business and its acquisition of electronic
foreign exchange platform FXall.
Revenue in the division's Europe, Middle East and Africa
region and in Asia was down 3 percent, respectively, while the
Americas gained 6 percent.
Its Legal division, which includes WestlawNext, reported
that revenue rose 2 percent in the quarter to $861 million.
Thomson Reuters recently acquired London-based Practical Law
Company, which provides guidance and analysis tailored to
specific areas of the law.
The board approved a 2 cent annual dividend increase to
$1.30 per share.
Thomson Reuters' New York and Toronto listed shares are up
15 percent in the past 12 months at $30.65 and C$30.72,