Thomson Reuters (NYSE: TRI) has reported its financial metrics for Q2 2017 ending June 30, 2017, with operating revenues remaining almost flat compared with the same period of 2016, according to a Thomson Reuters statement.
For Q2 2017, Thomson Reuters revealed that revenues were mostly flat relative to a year earlier, coming in at $2.78 billion or up less than 1 percent from $2.76 billion reported back in Q2 2016. However, the figure was lower quarter-on-quarter by a factor of -1.0 percent from $2.81 billion in Q1 2017.
The global information provider attributed the flat change in revenues to higher recurring revenues and contributions from acquisitions which offset the negative impact of US dollar strength. At constant currency, Thomson Reuters’ revenues ticked up 2 percent.
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By geography, revenues in the Americas were up 3 percent and 1 percent in Europe, Middle East and Africa (EMEA). Recurring revenues grew 4 percent (76 percent of the segment’s revenues in the quarter). However, transactional and US Print revenues declined 8 percent per each unit.
In terms of Thomson Reuters’ operating profit for Q2 2017, the figure was essentially unchanged, having yielded $399 million – this also represents a flat change year-over-year from $401 million in Q2 2017. However, the company’s net income was lower -10 percent QoQ.
The New York headquartered organization said its profit was similar to the year-ago period as slightly higher revenues and lower expenses, which reflected savings from the company’s simplification initiatives, were offset by the unfavorable impact of fair value adjustments associated with foreign currency derivatives embedded in certain customer contracts.
Thomson Reuters’ diluted earnings per share (EPS) tumbled in the three months through June 2017, shedding -40 percent year-over-year to $0.27 from $0.45 in Q2 2016. This decline was due to discontinued operations as the firm lost earnings from IP & Science following its sale in the fourth quarter of 2016
Commenting in a recent statement on the quarterly metrics, James C. Smith, President and CEO of Thomson Reuters, said: “It is encouraging to see the continued improvement in underlying operating performance,” said Jim Smith, president and chief executive officer of Thomson Reuters. “Based on the solid start to the year, we are increasing full-year EPS guidance. Our execution focus is paying off, and we believe efforts to improve customer experience will keep the trend lines moving in the right direction.”