(Adds segment revenue excluding foreign-exchange impact and
updated share price.)
DOW JONES NEWSWIRES
Thomson Reuters Corp.'s (TRI) second-quarter profit more than
doubled on Thomson's purchase of Reuters last year and savings in
its markets division because of the merger.
Shares were recently up 2.8% at $33.65 as profit well above
analysts' expectations.
The company's results lately have pointed to a concern for
investors - the company's markets division - as the financial
industry reels from the collapse of major investment banks. Earlier
this year, the company said that revenue from desktop information
services, one of its top-earning businesses, may fall this year
because widespread financial-sector job cuts are curbing demand.
The segment's revenue fell 7% this quarter, but operating profit
jumped 16% on cost savings from the merger.
Thomson Reuters posted income of $315 million, or 38 cents a
share, up from $150 million, or 19 cents a share a year earlier.
Excluding acquisition costs and other charges, earnings rose to 58
cents a share from 39 cents.
Revenue increased 5.1% to $3.29 billion.
Analysts polled by Thomson Reuters expected earnings of 43 cents
and revenue of $3.3 billion.
Revenue from the company's professional information business
edged up 0.8% as profit grew 3.3%. The legal information business,
which includes the Westlaw research service and is part of the
professional segment, saw revenue slip 1.7% as earnings were
flat.
Excluding the impact of foreign currency, markets division
revenue edged up slightly, while legal revenue rose 2%.
About 60% of Thomson Reuters' revenue comes from its markets
unit, with the rest generated from the tax and accounting, legal
and scientific and health-care sectors.
Thomson Reuters said in June it is seeking shareholder approval
to unify its dual-listed structure, a move that would simplify
trading as U.K. investors make up a shrinking portion of its
shareholder base.
-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353;
kerry.benn@dowjones.com