Reuters’ parent’s earnings miss projections; projects revenue growth

Thomson Reuters, the parent of the Reuters news service, reported earnings Wednesday that missed analyst expectations, but the company said that it is projecting an increase in revenue for 2015.

Jennifer Saba of Reuters writes, “‘We are entering 2015 in the best place we have been in a long time,’ Chief Executive Jim Smith said in an interview. ‘The underlying sales trajectory are good indicators of our capacity for future revenue growth.’

“Thomson Corp acquired Reuters Group Plc in 2008, in a $17 billion merger that was completed just as the financial industry crisis started.

“The Financial & Risk division, which caters to banks and other financial institutions, represents more than half of the company’s total revenue. For that division, net sales, which strip out cancellations, have lagged since the merger as banks slashed spending and cut headcount.

“Smith pointed that the company’s revamp of desktop products, including its flagship Eikon terminal, have helped push up sales. This year, he said, will be the final year of product migrations.”

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