Thomson Reuters raises sales outlook, citing strong core to weather slowdown

The Thomson Reuters logo is seen on the company building in Times Square, New York, US, January 30, 2018. Reuters/Andrew Kelly/File photo

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NEW YORK, Aug 4 (Reuters) – Thomson Reuters Corp (TRI.TO) raised its full-year revenue forecast, saying it reflects strength in its legal, tax and accounting and corporate businesses, as it expected Better report. Thursday’s second quarter profit

The global news and information company said it now expects 2022 revenue to grow 5.5% to 6%, with revenue from its “Big 3” business segments up 7%.

Shares of Thomson Reuters rose 3% in New York and Toronto after the parent company of Reuters News reported adjusted earnings of 60 cents per share in the second quarter. Analysts were expecting an average of 53 cents per share, Refinitiv’s estimates showed.

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Thomson Reuters said its total revenue rose 5% to $1.61 billion in the quarter, matching Wall Street’s estimates, while operating profit rose 24% to $391 million.

“Leading Indicators remains healthy, and we have a resilient, highly recurring business serving growing industries,” Chief Executive Steve Hasker said in a statement.

Thomson Reuters executives have said that since 80% of its revenue is recurring, it has helped shield it from unexpected economic pressures.

“Looking ahead, I believe we are well positioned to navigate broader market concerns such as inflation and slowing economic growth,” Hasker said.

Hasker said on a conference call with financial analysts that the company is looking at potential acquisitions in the legal, tax and accounting and risk, fraud and compliance sectors, with a focus on automation tools.

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‘Healthy paranoia’

Hasker said in an interview that Thomson Reuters saw no major potential to derail its outlook, but still expressed a “healthy paranoia” about the rest of the year.

Digital advertising, which is facing its first slowdown, could have an impact on Reuters News, adding that transaction revenue, which is not recurring, could impact its business segments.

Thomson Reuters said revenue grew in five of its segments.

While the Big 3 segment was up 6%, Reuters news revenue rose 9% as a result of a boost from events and annual growth from payments from a news deal with Refinitiv, a data company spun off from Thomson Reuters and now owned by London. Stock Exchange Group (LSEG) (LSEG.L).

The earnings report comes as Communications Workers of the Newsguild of America said that about 300 Reuters journalists in the United States were going on a 24-hour strike over the company’s offer of a three-year contract with a guaranteed pay increase of 1%.

The current rate of inflation in the US is around 9%.

A Reuters spokesman said Reuters’ salaries and benefits include a competitive annual merit-based salary program in which all guild members participate. “In addition … we have offered a minimum wage increase with the Guild, regardless of the size of the merit pool,” the spokesperson said in a prepared statement.

Thomson Reuters last month named Paul Bascobert as president of Reuters News, which makes nearly half of its sales by giving news to Refinitiv, turning to a tech and media giant to drive growth at the 171-year-old organization . read more

The company reported a net loss of 24 cents per share due to a write-down in the value of its stake in LSEG, which was said to be worth $7.1 billion as of July 31.

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Shares of Thomson Reuters have outperformed the broader market this year, with its US-listed shares down nearly 5% versus 13.3% for the S&P 500 (.SPX).

Its peers include RELX Group’s (REL.L) LexisNexis, Bloomberg LP, News Corp’s DowJones and Wolters Kluwer (WLSNc.AS).

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Reporting by Kenneth Lee in New York; Editing by Alexander Smith

Our Standards: Thomson Reuters Trust Principles.