Reuters parent reports drop in earnings
Thomson Reuters Corp. reported on Friday a 15 percent fall in operating profit because of declining revenue and higher costs at its division that serves the financial industry.
Jennifer Saba of Reuters writes, “While the global news and information provider reaffirmed its 2012 forecast, its underlying operating profit, which excludes divestitures, fell to $585 million from $690 million. The corresponding margin slipped to 18.5 percent from 21.6 percent in the same period a year ago.
“The company said that in the third quarter last year, its underlying profit margin was ‘the high-water mark’ for 2011.
“Third-quarter revenue from ongoing businesses this year rose 1 percent before currency changes to $3.2 billion. That is in-line with analysts’ expectations, according to Thomson Reuters I/B/E/S. Stripping out acquisitions, divestitures and currency changes, revenue fell 1 percent.
“Thomson Reuters’ Eikon desktops totaled 25,600 at the end of the third quarter, up about 35 percent from the end of the second quarter.”
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