Thomson Reuters raises sales outlook on core business strength in slowing economy
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Thomson Reuters Corp reported higher second-quarter operating profit on Thursday and raised its full-year revenue forecast, citing strength in its legal, tax and accounting and corporates businesses.
The news and information company said that it now expects 2022 revenue to rise by 6%, from 5.5%, adding that revenue from its "Big 3" segments is expected to rise by 7% this year.
The parent company of Reuters News reported second quarter adjusted earnings of 60 cents a share. Analysts, on average, had expected 53 cents a share, according to Refinitiv estimates.
Total revenues rose 5% in the quarter to $1.61 billion, matching Wall Street estimates, while operating profit rose 24% to $391 million, Thomson Reuters said.
"Leading indicators remain 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 because 80% of its revenues are recurring, this has helped insulate it from unpredictable economic pressures.
"Looking ahead, I am confident that we are well-positioned to navigate broader market concerns such as inflation and slowing economic growth," Hasker added
Thomson Reuters shares have outperformed the broader market this year, with its U.S.-listed shares down about 5% versus a 13.3% drop for the S&P 500. The company's peers include RELX Group’s LexisNexis, Bloomberg LP, News Corp's DowJones and Wolters Kluwer NV.
Revenue grew across five of its business segments. The big 3 segment rose 6%, while Reuters News revenue rose 9% as a result of a boost from events and annual increases from payments from a news agreement with Refinitiv, Thomson Reuters said.
Last month, the company named Paul Bascobert as president of Reuters News, turning to a tech and media veteran to drive growth at the 171-year-old news organization.
Reuters News earns about half of its sales by supplying news to Refinitiv, a data company spun off from Thomson Reuters and now owned by the London Stock Exchange Group.
