Reuters parent reports better-than-expected earnings

Thomson Reuters Corp., the parent of the Reuters financial news service, on Tuesday reported higher-than-expected second-quarter earnings, helped by demand for market data, and it increased its full-year earnings forecast.

Jessica Toonkel of Reuters writes, “The Toronto-based information services provider is seeing its business grow at a time when many financial services companies have been cutting headcount.

“Despite this, the need for market data continues to grow, said Jim Smith, chief executive of Thomson Reuters, in an interview Tuesday.

“‘The overall demand for market data last year increased and has never been higher,’ Smith said. ‘It’s just that it’s feeding machines as opposed to educating people behind terminals.’

“Sales in the company’s Financial & Risk division, which accounted for more than half of company revenue, outpaced cancellations, a key indicator of future growth, driven by sales in Europe, Middle East, Africa and Asia. Financial & Risk revenue, excluding currency, was up 2 percent to $1.5 billion.

“The news and information company reported second-quarter net earnings of $206 million, or 27 cents per share, compared with $350 million or 45 cents per share a year ago.”

Read more here.