Reuters parent reports loss due to $3 billion charge

Thomson Reuters, the parent of the Reuters financial news service, reported a fourth-quarter loss after taking a $3 billion charge in its financial services operations, reports Jennifer Saba of Reuters.

Saba writes, “Thomson Reuters’ business has suffered in the wake of the financial crisis, with customers in banking and finance laying off tens of thousands of employees and slashing costs. The global news and information provider’s next generation flagship desktop product, Eikon, has also posted disappointing sales.

“The size of the one-time charge is an indication of the extent of the problems in the financial services business – formerly known as Markets – in the past year, which is reflected in a 30 percent decline in its stock price. It also represents quick recognition of the problems by a largely new management team as it begins its repair effort in financial services.

“Growth has been much stronger in the businesses that cater to legal, tax and accounting firms, formerly known as the Professional division. Professional revenue grew 9 percent in the fourth quarter before currency changes to $1.5 billion, accounting for 42 percent of total revenue.

“Markets, whose products compete with Bloomberg, Factset Research and News Corp’s Dow Jones, posted 2 percent revenue growth before currency changes to $1.85 billion.”

Read more here.