Categories: OLD Media Moves

Thomson Reuters reports higher profits

Thomson Reuters, the parent company of the Reuters financial news service, reported higher first-quarter profits, but the division that operates the news service continued to post sluggish results.

Keach Hagey of The Wall Street Journal writes, “The company on Tuesday reported a profit of $314 million, or 38 cents a share, up from $250 million, or 30 cents a share, a year earlier. Revenue excluding foreign-exchange effects climbed 4% to $3.19 billion.

“The news-and-information provider continues to struggle to find solid growth in the largest segment of its business, recently reorganized under the heading Financial & Risk. Revenue increased 1% to $1.81 billion before currency effects as declines in its segments targeting traders and investors were offset by acquisitions and growth in its risk and compliance business. Operating profit in the division fell 4% excluding the impact of currency changes.

“‘In general, we’ve seen a modest uptick in the Americas offset by challenging market conditions in Europe, particularly in desktops in big sell-side banks in Europe,’ Thomson Reuters Chief Executive James Smith said in an interview. Mr. Smith said he doesn’t expect the division to show growth in net sales until the end of the year. ‘You can’t outrun gravity in the near term.’

“Weak sales in the unit, which contains the core of the division previously known as Markets, led to organizational changes and the departure of several top executives last year, including former CEO Tom Glocer. That performance had largely to do with disappointing sales of a new desktop trading product called Eikon.”

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

Dynamo hires former Business Insider executive editor Harrington

Former Business Insider executive editor Rebecca Harrington has been hired by Dynamo to be its…

1 day ago

Bloomberg TV hires Kerubo as desk producer

Bloomberg Television has hired Brenda Kerubo as a desk producer in London. She will be covering Europe's…

1 day ago

Jittery CNBC staff reassured by new boss

In a meeting at CNBC headquarters Thursday afternoon, incoming boss Mark Lazarus presented a bullish…

1 day ago

Making business news accessible to a wider audience

Ritika Gupta, the BBC's North American business correspondent, was interviewed by Global Woman magazine about…

1 day ago

Rest of World hires Lo as China reporter

Rest of World has hired Kinling Lo as a China reporter. Lo was previously a…

1 day ago

Bloomberg rises to No. 7 biz news website

Bloomberg News saw strong unique visitor growth to its website in October, passing Fox Business…

1 day ago