Thomson Reuters posts lower 2Q profit, revenue

Thomson Reuters posts lower 2nd-quarter profit as revenue slides

Associated Press

NEW YORK (AP) -- Thomson Reuters Corp. said Tuesday that its second-quarter net income and revenue declined amid "challenging market conditions," especially in banking and the legal sector.

The news and financial information company earned $248 million, or 30 cents per share, in the April-June period. That's down 73 percent from $902 million, or $1.08 per share, in the same period a year earlier. Most of the decline was due to hefty gains the company saw in the year-ago quarter from sale of assets, including its health care business.

Adjusted earnings were $403 million, 48 cents per share — virtually unchanged from last year's $402 million, or 48 cents per share. Last year's quarter included one-time gains of $789 million, while the most recent quarter included $142 million of gains as well as a tax-related charge of $161 million.

Revenue fell 3 percent to $3.16 billion from $3.27 billion.

Analysts, on average, were expecting adjusted earnings of 45 cents per share, on revenue of $3.16 billion, according to FactSet.

"We continue to make consistent, tangible progress across the business and we expect the company's performance in the second half of the year will be better than the first half," said CEO James C. Smith in a statement.

Thomson Reuters sells market data, news and information to people in the financial, legal, accounting and scientific research industries. The bulk of its revenue comes from subscriptions to those services.

The company's shares fell $1.46, or 4.1 percent, to $33.99 in afternoon trading. The stock has traded in the 52-week range of $26.65 and $36.98.

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