Thursday 31 October 2019 12:20 pm

Thomson Reuters reports surge in operating profit

Media conglomerate Thomson Reuters has reported a surge in operating profit for the third quarter, ahead of analysts’ estimates.

Operating profit at the Canada-based company jumped 51 per cent to $262m (£202m) for the three months to September, ahead of $173m for the same period a year ago.

Read more: Thomson Reuters defends boss following reports of hunt for successor

Thomson Reuters said the increase reflected a “revaluation” of the warrants it holds in Refinitiv, which the London Stock Exchange (LSE) agreed to buy from Blackstone for $27bn in August.

Thomson Reuters will hold a 15 per cent stake in LSE following the completion of the deal, and will have a representative on the company’s board, it said.

The media giant, which is dual listed in New York and Toronto, reported a 10 per cent increase in revenue for the quarter, which hit $1.41bn, slightly behind analyst estimates’.

It reported a net loss of $44m – or nine cents per share – for the period, down from a $302m profit a year ago.

Read more: London Stock Exchange seals $27bn Refinitiv deal in bid to build Bloomberg rival

“We are encouraged by our nine-month performance, which positions us to achieve our full-year 2019 and 2020 targets,” said Thomson Reuters president and chief executive Jim Smith.

“The stronger and more stable characteristics of our overall business model should enable the company to sustain an attractive value creation model for shareholders, one that is driven both by growth and returns,” Smith said.

Main image credit: Getty