Thomson Reuters Q3 net income rises 66%
28 October 2010 | 6731 views | 0
Thomson Reuters has posted a 66% third quarter net income rise and upped its full year revenue forecast as the firm's recession-hit markets unit finally shows signs of recovering.
For the quarter, revenue from ongoing businesses was $3.27 billion, an increase of three per cent before currency.
Underlying operating profit was down four per cent at $681 million but net earnings jumped to $277 million for the quarter from $167 million the previous year. Adjusted earnings per share rose to 49 cents from 43 cents a year earlier.
At the markets unit, revenue rose for the first time in nearly two years, up one per cent before currency to $1.85 billion. Operating profit was down two per cent before currency, to $359 million.
Within markets, the enterprise business, which provides risk management data, was up 10% to $331 million. Sales and trading was flat while investment and advisory, and media both saw slight dips in revenue.
Thomson Reuters says the margin decline was attributable to the development of two new product platforms, Eikon and Elektron. However, customer feedback has been "very positive" on Eikon, claims the vendor, with signed contracts for over 1000 new desktops since its launch in September.
Overall, "improving momentum" means revenues is now expected to be flat to slightly up in 2010 rather than flat to slightly down, as previously forecast.