Thomson Reuters profits jump after big cost cuts

Posted 08 18 2009 1:48PM

LONDON (AFP) – Financial and professional information provider Thomson Reuters said Thursday that operating profit jumped 11 percent in the second quarter of the year as it reaped large cost savings.

Underlying operating profit increased to 793 million dollars (552 million euros) in the three months to June 30, compared with 713 million dollars for the same period one year ago.

Thomson Reuters added in a results statement that revenues dropped four percent to 3.282 billion dollars. Stripping out the effect of currency fluctuations, however, revenues rose by two percent.

"Profit increased 11 percent... primarily due to integration-related savings, effective cost management and the benefit of currency," the group said in an earnings release.

Thomson Reuters was formed in April 2008 after Canada's Thomson Corp bought Britain-based news agency company Reuters.

"I am pleased with our solid second-quarter operating results despite the continued weakness in the global economy," said chief executive Thomas H. Glocer in the statement.

"Our revenues continued to grow in both the Professional and Markets divisions, which is a testament not only to the choice and balance of the markets in which we operate, but also the strength of our franchises in the challenging financial services and legal segments."

The formation of Thomson Reuters placed together Thomson Corp's presence in the United States with Reuters' penetration of markets for trading, financial and business information in Britain and Europe.

Last month, the group said it intended to end its dual-listed company structure, a move that will see the group no longer traded in London or on the Nasdaq market.

Shareholders will vote on changing the dual-listed company (DLC) structure at meetings on Friday.

Currently, New York-headquartered Thomson Reuters is divided into Thomson Reuters Corporation in Canada and Britain-based Thomson Reuters Plc.

If unification is approved, Thomson Reuters will remain listed on the Toronto Stock Exchange and New York Stock Exchange and will no longer be listed on the London Stock Exchange and Nasdaq.

Thomson Reuters spans sectors including accounting, finance, healthcare, law, media and science. The group has around 50,000 staff in 93 countries across the world.