Thomson Reuters core profit increases in Q2 despite dip in revenues

TORONTO — Thomson Reuters says its core earnings increased to US$221 million in the second quarter despite a small decrease in overall revenues.

The Toronto-based company, which reports in U.S. dollars, says its adjusted profit was 46 cents per share, up from 29 cents per share or $146 million a year earlier.

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Net income for the three months ended June 30 was $126 million or 25 cents per share.

That compared with $180 million or 36 cents per share in the second quarter of 2019, when it benefited from the revaluation of warrants that the company holds in Refinitiv relating to the proposed sale of Refinitiv to London Stock Exchange Group plc.

Revenues were $1.4 billion, down from $1.42 billion a year earlier.

Thomson Reuters was expected to post 38 cents per share in adjusted earnings and 23 cents per share in net profit on $1.4 billion of revenues, according to financial data firm Refinitiv.

The company says Reuters News was negatively impacted by the cancellation of in-person events due to COVID-19 while its Global print business was hurt by a delay in shipping some print materials critical to law firms and government agencies as customers work from home.

"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," said CEO Steve Hasker.

This report by The Canadian Press was first published Aug. 5, 2020.

Companies in this story: (TSX:TRI).

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