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UPDATE 2-Thomson Reuters raises sales outlook, citing strong core in slowing economy

·2 min read

(Adds chief executive comment, value of stake in London Stock Exchange Group)

NEW YORK, Aug 4 (Reuters) - Thomson Reuters Corp reported a better-than-expected profit on Thursday and raised its full-year revenue forecast, which it said reflected strength in its legal, tax and accounting and corporates businesses.

The news and information company said that it now expects 2022 revenue to increase by 6%, from 5.5%, adding that revenue from its "Big 3" business segments will rise by 7%.

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.

'HEALTHY PARANOIA'

Hasker said in an interview that Thomson Reuters did not see any major factors that could derail its outlook, but expressed a "healthy paranoia" about the rest of the year.

Transactional revenue across its business, which is not recurring, and digital advertising, which is facing its first recession, could have an impact on Reuters News, he said.

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 (LSEG).

Thomson Reuters reported a net loss per share of 24 cents, due to a write-down in the value of its stake in LSEG, which it said was worth $7.1 billion as of July 31. (Reporting by Kenneth Li in New York; Editing by Alexander Smith)