Thomson Reuters reported better financial results than the forecasted figures for the second quarter of 2020. Though, both revenue and bottom-line figures dropped from a year earlier.
The news and information provider, which keeps its books in U.S. dollars, had a Q2 revenue of $1.40 billion compared with $1.42 billion in the same quarter of last year.
“Revenues decreased 1% as growth in recurring revenues was more than offset by expected declines in Global Print and transactions revenues, as well as a negative impact from foreign currency that reduced revenues by $21 million (approximately 1%),” Reuters said.
The company posted single-digit sales increases, 3 percent on average, in each of its three largest divisions: Legal Professionals, Corporates and Tax & Accounting Professionals. These activities collectively comprised approximately 80% of second-quarter revenues.
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Refinitiv Effect on Revenues
Operating profit fell 18 percent year-on-year to $365 million, or 25 cents a share in the second quarter, from $447 million or 36 cents a share. On an adjusted basis, Thomson Reuters says it earned 44 cents per share for the quarter, which is up from an adjusted profit of 29 cents per share in Q2 of 2019.
The company, controlled by Canada’s Thomson family, said operating profit decreased as this period in the year prior included a significant benefit from the revaluation of its stake in Refinitiv, which was a division of Thomson Reuters until it sold its majority stake to a group led by the Blackstone Group.
The New York-headquartered organization retained a 45 percent stake in the business that sells data and financial information terminals, primarily to financial professionals. Then Reuters agreed with Blackstone to sell their data business Refinitiv to the London Stock Exchange in a $27 billion all-share deal.
“I am pleased to report that the company met or exceeded each of the financial guidance metrics provided in May for the second quarter. And, given our performance for the second quarter and first half, we have increasing confidence in how our businesses will perform over the remainder of the year. Therefore, we are raising our free cash flow outlook and reaffirming the rest of our full-year 2020 guidance,” said Steve Hasker, President and CEO of Thomson Reuters.