Thomson Reuters upgrades its revenue forecasts on buoyant markets division

City A.M. Reporter
News and data provider Thomson Reuters yesterday raised its full-year revenue forecast after third-quarter revenue in its Markets division, which serves banks and other financial institutions, rose for the first time in nearly two years.

The results suggest the company’s customers, which also include legal and healthcare professionals, are recovering from the recession that caused widespread cost cuts and layoffs.

Thomson Reuters said it expected 2010 revenue to be flat to slightly up, rather than flat to slightly down as it had previously forecast. It continues to expect net sales to be positive for both of its main divisions this year.

Underlying operating profit fell four per cent to $681m (£428m) in the quarter, mainly due to investment in new products, causing the operating profit margin to slip slightly to 21 per cent.

Thomson Reuters has invested $1bn in initiatives including online financial video news service Reuters Insider and Eikon, a desktop trading terminal that it sells to financial professionals.

Adjusted earnings per share rose to 49 cents from 43 cents a year earlier because of lower integration costs related to Thomson Corp’s purchase of Reuters Group in 2008.

Thomson Reuters said revenue from ongoing businesses was $3.256bn in the quarter, up three per cent from a year earlier, excluding currency adjustments.