Thomson Reuters revenue rises but profit down ahead of sale to Blackstone

Thomson Reuters Corp (NYSE:TRI) reported on Wednesday that second-quarter revenue went up 2% but operating profit slipped as the financial news conglomerate prepared for the sale of a majority stake in its Financial & Risk business to Blackstone Group (NYSE:BX). 

The company said quarterly revenue hit US$1.31bn, compared with US$1.28bn in the same period a year ago. Average consensus was for revenue to reach US$1.31bn. Earnings per share reached US$0.17, from US$0.11 last year and the expected consensus of US$0.11. Foreign currency had no impact on the growth in revenue, it added.

Operating profit fell 6% to US$204mn, which Thomson Reuters said was because of costs and investments ahead of the sale to Blackstone. Cash flow from operations fell US$31mln because of higher tax and interest payments.

Shares of Thomson Reuters closed 0.27% lower to US$40.95 per share.

In January, Thomson Reuters agreed in January to sell the stake to private equity asset managers Blackstone and the deal is expected to close in the fourth quarter of 2018.

The company reaffirmed its May guidance. Thomson Reuters president and chief executive Jim Smith said the firm is “well positioned to strengthen and grow our business.”

Thomson Reuters is a media company which sells terminals for financial news. 

Story by ProactiveInvestors