Categories: OLD Media Moves

Reuters parent reports profit decline

Thomson Reuters Corp., the parent of the Reuters news service, on Tuesday reported a 7 percent decline in first-quarter operating profit because of severance costs and a decrease in revenue at its Financial & Risk division, which caters to banking clients.

Jennifer Saba of Reuters writes, “The global news and information company spent $78 million on severance costs in the period and also booked a tax charge of $235 million. It said in February there would be $100 million in severance costs related to about 2,500 job cuts.

“‘We are executing more effectively, launching better products, simplifying our systems and processes and managing with more rigor and discipline, which is why our confidence continues to build,’ Thomson Reuters Chief Executive James Smith said in a statement.

“The company is the midst of a turnaround after Thomson Corp’s $17 billion acquisition of Reuters Group Plc. The 2008 merger coincided with a financial crisis that prompted banks, which are core customers of Thomson Reuters, to slash costs and cut staff.

“Adding to the challenge was the premature roll out to its financial clients of its flagship desktop product Eikon.

“By the end of the first quarter, the company said that Eikon desktops totaled nearly 47,000, up 38 percent from the end of last year. That was a slightly larger increase than the 33 percent rise seen between the third and fourth quarters of 2012.”

Read more here.

Chris Roush

Chris Roush was the dean of the School of Communications at Quinnipiac University in Hamden, Connecticut. He was previously Walter E. Hussman Sr. Distinguished Professor in business journalism at UNC-Chapel Hill. He is a former business journalist for Bloomberg News, Businessweek, The Atlanta Journal-Constitution, The Tampa Tribune and the Sarasota Herald-Tribune. He is the author of the leading business reporting textbook "Show me the Money: Writing Business and Economics Stories for Mass Communication" and "Thinking Things Over," a biography of former Wall Street Journal editor Vermont Royster.

Recent Posts

Pacific Business News hires Meierdiercks as editor in chief

The Pacific Business News, an American City Business Journals publication, has hired Janis Magin Meierdiercks  as…

20 hours ago

Sifted reporter Nowshin departs

Sadia Nowshin, a reporter at European startup news site Sifted, is leaving to join literary…

20 hours ago

Variety promotes Shanfeld to TV reporter

Variety has promoted Ethan Shanfeld to TV reporter. William Earl of Variety writes, "Shanfeld joins the entertainment…

20 hours ago

Klimasinska named Bloomberg’s DC breaking news team leader

Kasia Klimasinska is the new team leader for DC breaking news at Bloomberg News. She…

22 hours ago

NYC event to honor Ledbetter is next week

  Paul Smalera has organized a gathering of James Ledbetter's friends and colleagues—open to all…

24 hours ago

CoStar hires Scheier to cover San Francisco market

Real estate news service CoStar News has hired Rachel Scheier to cover the San Francisco commercial market.…

24 hours ago