Thomson Reuters nearly doubles 2Q earnings

AP News
Posted: Jul 28, 2011 9:09 AM
Thomson Reuters nearly doubles 2Q earnings

News and information provider Thomson Reuters Corp. said Thursday that its second-quarter net income nearly doubled thanks to growth in its professional division.

At the same time, the company's markets business, which includes the Reuters news service and terminals, performed below expectations.

The company earned $563 million, or 67 cents per share, up 93 percent from $290 million, or 35 cents per share, in the same period a year earlier.

Excluding discontinued operations and other items, Thomson Reuters earned 51 cents per share in the latest quarter, surpassing Wall Street's expectations.

Revenue rose 7 percent to $3.45 billion from $3.22 billion.

Analysts, on average, were expecting earnings of 49 cents per share on revenue of $3.29 billion, according to a poll by FactSet.

"Thanks to the strong growth of our professional division and margin improvement across the company, Thomson Reuters posted healthy second-quarter results," said CEO Thomas H. Glocer in a statement. "Nonetheless, revenue growth in our markets division is below our expectations."

As a result, the company said it is streamlining its markets division by combining the current sales and trading and investment and advisory businesses into one unit, among other changes.

The company reaffirmed its outlook for revenue growth in the mid-single digits in 2011.

Shares of Thomson Reuters closed at $33.64 on Wednesday and were unchanged in premarket trading Thursday.

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