Thomson Reuters Bares Better Sales Results In 2nd Quarter

Thomson Reuters Corp. reported better-than-expected results in the second quarter with higher sales across its main divisions and raised its annual revenue forecast, Kenneth Li and Nick Ziemenski reported for Reuters.

Photo Insert: Reuters News Agency along the River Thames, London, UK

Underscoring its upbeat outlook, fueled by a recovering global economy, the global news and information company said it would buy back up to $1.2 billion of its shares. The company said it is monitoring whether the spread of the Delta variant of COVID-19 is affecting its businesses.

"We do not think that there is a significant financial impact for our customers, and therefore for us through the rest of this year," Chief Executive Steve Hasker said, adding that the course of the pandemic was unpredictable.

The Thomson Reuters print and events businesses are among the areas most vulnerable in case of a worsening of the COVID-19 situation, Chief Financial Officer Michael Eastwood said.

Thomson Reuters, which is the parent company of Reuters News, said its total revenues rose 9% to $1.53 billion, compared to expectations of $1.5 billion.

Adjusted earnings per share of 48 cents also topped analyst expectations, based on data from Refinitiv, marking the fifth consecutive quarter that Thomson Reuters' adjusted earnings topped Wall Street estimates.

Operating profit was down 14% to $316 million, reflecting one-time gains in the year-ago quarter. Thomson Reuters' three main divisions, Legal Professionals, Tax & Accounting Professionals, and Corporates, showed higher sales, led by a 15% revenue gain in the tax group, excluding currency fluctuations.

On that basis, the Reuters News segment saw sales up 6% to $168 million in the quarter.

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