Thomson Reuters posts 65 percent jump in 3Q net

AP News
Posted: Oct 28, 2010 1:24 PM
Thomson Reuters posts 65 percent jump in 3Q net

Thomson Reuters Corp. said Thursday its third-quarter profit jumped 65 percent as revenue started growing again for the first time in a year.

The news and information provider has been slowly recovering from last year's downturn, which put a squeeze on the financial companies and law firms that subscribe to its services.

Now the company says the rebound is moving faster than it had forecast, although most of the added growth is coming from recent acquisitions. It is projecting revenue for the full year will come in flat to slightly higher. That compares with a previous estimate of flat to slightly lower.

The company's Markets division, which suffered the worst of the recession as the hard-hit financial sector shed jobs, saw a modest uptick during the quarter as well. The segment's revenue climbed 1 percent excluding the effect of foreign currency fluctuations.

On a conference call with analysts, CEO Tom Glocer said, "What it looks like to us is not spectacular growth, but good, steady progress."

Its shares rose 24 cents to $38.46 in morning trading.

Overall, the company reported net income rose to $268 million, or 32 cents per share, in the quarter ended Sept. 30, up from $162 million, or 19 cents per share, a year earlier.

Stripping out items such as accounting adjustments for valuing assets, Thomson Reuters said it would have earned 49 cents per share, up from 43 cents a share. On average, analysts expected 44 cents.

Revenue edged up 1 percent to $3.26 billion from $3.22 billion a year ago. The latest figure was just above the average forecast of $3.2 billion.

The company's Professional division, which includes services for law, tax and accounting firms and for the health care and sciences industries, grew revenue 5 percent to $1.41 billion.

The Markets division, including financial products such as trading terminals and the Reuters news service, grew revenue 1 percent excluding the effect of currency swings. Including currency, revenue slipped 1 percent to $1.85 billion.