| April 30
April 30 Thomson Reuters Corp
on Tuesday reported a 7 percent decline in first-quarter
operating profit because of severance costs and a decrease in
revenue at its Financial & Risk division, which caters to
That decline did not change the company's outlook for the
remainder of the year and it reaffirmed its forecast for 2013
revenue growth in the low single digits.
The global news and information company spent $78 million on
severance costs in the period and also booked a tax charge of
$235 million. It said in February there would be $100 million in
severance costs related to about 2,500 job cuts.
"We are executing more effectively, launching better
products, simplifying our systems and processes and managing
with more rigor and discipline, which is why our confidence
continues to build," Thomson Reuters Chief Executive James Smith
said in a statement.
The company is the midst of a turnaround after Thomson
Corp's $17 billion acquisition of Reuters Group Plc. The 2008
merger coincided with a financial crisis that prompted banks,
which are core customers of Thomson Reuters, to slash costs and
Adding to the challenge was the premature roll out to its
financial clients of its flagship desktop product Eikon.
By the end of the first quarter, the company said that Eikon
desktops totaled nearly 47,000, up 38 percent from the end of
last year. That was a slightly larger increase than the 33
percent rise seen between the third and fourth quarters of 2012.
The company reported that revenue from ongoing businesses
rose 2 percent to $3.1 billion before currency changes on the
strength of its Legal and Tax & Accounting divisions.
First-quarter revenue met analysts' expectations, according to
Thomson Reuters I/B/E/S.
Revenue at Financial & Risk, after subtracting acquisitions,
divestitures, and currency changes fell 3 percent. This is
because the division had negative net sales from the
cancellation of subscriptions in 2012, the company said. Revenue
lags net sales by about 12 months, so investors and analysts
will be closely watching for any comments by company executives
about the outlook for net sales in a conference call on Tuesday
at 8:30 a.m. EDT (1330 GMT).
On a net basis, Thomson Reuters reported a loss of 4 cents
per share against earnings of 35 cents in the year-earlier
period. On an adjusted basis, the company reported earnings per
share of 38 cents against 39 cents a year ago.
Shares of Thomson Reuters touched a year high at $33.74 on
the New York Stock Exchange on Monday.