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UPDATE 2-Thomson Reuters tops first-quarter revenue, operating profit estimates

Published 2021-05-04, 07:08 a/m
© Reuters.

(Adds executive comments, detail on LSE stake, forecast)

By Kenneth Li and Nick Zieminski

NEW YORK, May 4 (Reuters) - Thomson Reuters exceeded first quarter revenue and operating profit forecasts on Tuesday, helped by gains in its three main divisions and a rebounding economy, as the global news and information company predicted full-year sales growth at the high end of earlier estimates.

Adjusted earnings per share reported by Thomson Reuters TRI.N TRI.TO , which excluded a gain from the sale of its investment in Refinitiv and other adjustments, rose to 58 cents per share, well ahead of the 42 cents forecast by analysts.

It excludes a gain from the sale of a stake in data and analytics company Refinitiv to the London Stock Exchange Group LSEG.L . Thomson Reuters holds a 15% stake in the LSE following the Refinitiv deal, which closed in January. Reuters, which owns Reuters News, said in a statement that its overall operating profit rose by a third to $387 million during the first quarter.

Total sales were up 4% to $1.58 billion, ahead of estimates, and Thomson Reuters said they are forecast to grow 3.5% to 4% for the full year. It said second-quarter revenue growth will be the year's high point, reflecting the improvement from same period last year when the impact of the COVID-19 pandemic hit.

Thomson Reuters three main divisions, Legal Professionals, Tax & Accounting Professionals, and Corporates, showed sales gains of between 3% and 7%, it said.

"We're pleased with the start of the year and our results and we're cautiously optimistic that the economies in which we operate are starting to recover and showing upside and promise for the rest of the year," Thomson Reuters Chief Executive Steve Hasker said in an interview after the results announcement.

However, Hasker cautioned that risks remained as the coronavirus pandemic has surged in some parts of the world.

Chief Financial Officer Michael Eastwood said Thomson Reuters was continuing to assess acquisitions and has in excess of $700 million it can use to make deals.

The Reuters News segment grew sales by 2% to $160 million, helped by its professional business.

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. 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 organization in its 170-year history. by Nick Zieminski in New York; Editing by Alexander Smith)

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