25 August 2016
Find out more

Thomson Reuters Q3 net profit slides as markets unit sees revenues dip

05 November 2009  |  5380 views  |  0 Stock broker in front of Stock exchange screen

Thomson Reuters posted a 59% fall in net earnings for the third quarter on integration costs and lower revenues at the recession-hit markets division.

Revenues were down four per cent, from $3.2 billion in Q3 2008 to $3.2 billion this year. Net profit for the quarter was $167 million, or 19 cents a share, down from $406 million, or 49 cents a share, in Q3 2008. Operating profit tumbled 32% to £378 million, compared to $553 million a year ago.

However, underlying operating profit, when items including restructuring charges are excluded, was up three per cent to $711 million, driven by currency rates and integration-related savings. Adjusted earnings per share were 43 cents compared with 47 cents in the third quarter of 2008.

The firm's markets division, which accounts for around 60% of all revenues, saw a six per cent fall in revenues after currency movements, to $1.86 billion. However, operating profit for the unit increased 10% to $369 million on integration savings.

Corporate expenses tripled to $163 million in the third quarter, due in part to integration costs. However, the integration has achieved combined run-rate savings of $975 million as at 30 September.

The company reaffirmed its previous outlook that revenues are expected to grow in 2009 and underlying operating profit margin and free cash flow will be comparable with 2008.

However it warns that the "revenue impact of weaker 2009 subscription net sales in Markets and Legal is expected to continue to be a drag on revenues through the first half of 2010".

Tom Glocer, CEO, Thomson Reuters, says: "Our ongoing focus on the Reuters integration and close cost management across the company has enabled us to continue to grow underlying operating profit. While we would welcome a quick return to revenue growth, we understand how to operate in challenging markets and we are confident that we are outperforming the competition."

Shares in the news and information giant were down just over one per cent, at $31.96 per share in afternoon trading.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Thomson Reuters, Bloomberg on media acquisition trail

Thomson Reuters, Bloomberg on media acquisition trail

15 October 2009  |  5788 views  |  0 comments
Oppenheimer signs for Thomson One Wealth Management

Oppenheimer signs for Thomson One Wealth Management

21 September 2009  |  2824 views  |  0 comments
Market data rivals battle for share of wallet as terminal sales wilt

Market data rivals battle for share of wallet as terminal sales wilt

06 August 2009  |  10576 views  |  0 comments
Thomson Reuters to exit from London listing

Thomson Reuters to exit from London listing

23 June 2009  |  4089 views  |  0 comments
Thomson Reuters to invest $1 billion in new products - FT

Thomson Reuters to invest $1 billion in new products - FT

03 March 2009  |  9951 views  |  0 comments
Thomson Reuters calms market nerves with solid Q4

Thomson Reuters calms market nerves with solid Q4

24 February 2009  |  5454 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit capgemini.comVisit equens.comFind out more

Top topics

Most viewed Most shared
hands typing furiouslyBlockchain: what to expect for 2017?
7766 views 0 | 52 tweets | 43 linkedin
hands typing furiouslyBig Data's Three Big Trends in 2016
6579 views 3 | 22 tweets | 12 linkedin
Teenager avoids conviction for CommBank DDoS attackTeenager avoids conviction for CommBank DD...
5976 views comments | 2 tweets | 3 linkedin
Nordea looking for AI and blockchain breakthroughsNordea looking for AI and blockchain break...
5908 views comments | 17 tweets | 17 linkedin

Featured job


Brussels (Belgium) or Paris (France)

Find your next job