OLD Media Moves

Reuters parent reports profit decline

February 24, 2010

Thomson Reuters Corp., the parent of the Reuters news service, reported declines in fourth-quarter net profit and revenue as it continued to feel the effects of weaker sales of its financial-services and legal products, reported Russell Adams of The Wall Street Journal.

Adams writes, “The company said a better sales environment indicates that the revenue declines won’t persist. ‘Given our improving sales figures, I am confident that 2009 was the bottom of the sales cycle for us and that 2010 will see the corresponding bottom in period-on-period reported revenues,’ Chief Executive Tom Glocer said in a statement. ‘I expect that we will return to revenue growth in the second half of 2010.’

“Thomson Reuters is made up of two units, its markets and professional divisions, that sell information to professionals in various fields. The markets division targets finance professionals and includes the Reuters news service. The professional division serves the legal, tax and accounting and health care and science industries.

“Revenue in the markets division, which accounts for nearly 60% of the company’s total revenue, declined 5% to $1.91 billion. Operating profit in the division declined 12% to $323 million.

“Revenue in the professional division increased slightly to $1.44 billion. Operating profit fell 8% to $421 million.”

Read more here.

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