Thomson Reuters tops first quarter revenue, operating profit estimates By Reuters

By Kenneth Li and Nick Zieminski

NEW YORK (Reuters) -Thomson Reuters reported higher first quarter revenue and operating profit on Tuesday, helped by its three main divisions and a rebounding economy, saying full-year sales growth will be at the high end of original estimates.

Adjusted earnings per share, which exclude a gain from the sale of the company’s investment in Refinitiv and other adjustments, rose to 58 cents per share, from 48 cents in the prior-year period. That was well ahead of the 42 cents analysts expected, according to Refinitiv estimates.

Thomson Reuters, which owns Reuters News, said in a statement that operating profit rose by a third to $387 million during the first quarter.

Total sales at Thomson Reuters were up 4% to $1.58 billion, ahead of estimates, and the company said they are forecast to grow 3.5% to 4% for the full year.

Its three main divisions, Legal Professionals, Tax & Accounting Professionals, and Corporates, showed sales gains between 3% and 7%.

“Our customers are more confident in an improving economic environment and those positive prevailing tailwinds were reflected in strong sales across our businesses,” Steve Hasker, Thomson Reuters Chief Executive, said in a statement.

However, he cautioned that risk remained as the COVID-19 pandemic has surged in some parts of the world.

The Reuters News segment grew sales by 2% to $160 million.

Reuters last month unveiled a new subscription website as part of a broad initiative to court business professionals, joining many other major news organizations which already charge for their content.

Also in April, Reuters named one of its top editors, Alessandra Galloni, as its next editor-in-chief, the first woman to lead the globe-spanning news organisation in its 170-year history.