Thomson Reuters (NYSE: TRI) has reported its financial metrics for Q3 2016 ending September 30, 2016, with operating revenues remaining almost flat compared with the same period of 2015, according to a Thomson Reuters statement.
For Q3 2016, Thomson Reuters revealed that revenues were unchanged compared to a year earlier, coming in at $2,744 million, while was down quarter-on-quarter by a factor of -0.9 percent from $2,744 million in Q2 2016. The global information provider attributed the YoY zero change to the growth in subscription revenues which offset the negative impact of U.S. dollar strength and a decline in low margin recoveries revenues.
By geography, revenues in the Americas were up 1%, while they were unchanged in Europe, Middle East and Africa (EMEA). Subscription revenues grew 5% (45% of the segment’s revenues in the quarter). However, transactional revenues declined 9% due to lower Findlaw transactional revenues which reflected difficult prior-year period comparisons.
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Profit metrics are positive
In terms of Thomson Reuters’ operating profits for Q3 2016, the figure reversed the narrative, having yielded a profit of $559 million – this represents a jump of 7 percent YoY from $524 million in Q3 2015. The New York headquartered organization attributed the increase to higher subscription revenues, although it was partially offset by the impact of foreign currency.
Another area of strength for the quarter was Thomson Reuters’ Diluted earnings per share (EPS), which orchestrated a rise up to $0.54 in Q3 2016, up 20 percent YoY from $0.45 in Q3 2015. In addition, Thomson Reuters’ cash flow from operations, which also encompassed discontinued operations, was higher by a factor of 16 percent YoY to $758 million from $680 million in Q3 2015.
Commenting in a recent statement on the quarterly metrics, James C. Smith, President and CEO of Thomson Reuters, said: “It is encouraging to see our continued progress flow through in the third-quarter numbers.”
“Our core subscription businesses are moving in the right direction, our cost controls are working and we are increasingly confident in our execution capability. That is why we are going to pick up the pace of our transformation efforts,” he added.
Earlier in October, Thomson Reuters announced a major expansion to its Canadian operations with the opening of a new technology centre in Toronto and plans to move its chief executive and chief financial officer to the Canadian city next year.