By Kenneth Li
NEW YORK (Reuters) – Thomson Reuters raised its 2022 revenue forecast, citing strength in its legal, tax, accounting and corporate businesses, after reporting better-than-expected second-quarter profit on Thursday.
The global news and information company said it expects 2022 revenue to increase by 6% from 5.5%, adding that revenue from its “Big 3” business segments will increase by 7%.
Thomson Reuters shares rose about 3% in New York after the owner of Reuters News reported adjusted earnings of 60 cents a share. Analysts on average had expected $0.53 a share, according to Refinitiv estimates.
The company said its total revenue for the quarter rose 5% to $1.61 billion, in line with Wall Street estimates, while operating profit rose 24% to $391 million.
While the Big 3 segment grew 6%, Reuters News revenue increased 9% as a result of an increase in events and higher revenues from a deal with Refinitiv, a data company spun off from Thomson Reuters and now owned by the Stock Exchange. from London.
The results come as a group of journalists called NewsGuild said nearly 300 Reuters employees in the United States were on a 24-hour strike over the company’s offer of a three-year contract with guaranteed 1% pay increases.
Thomson Reuters last month appointed Paul Bascobert as president of Reuters News, which earns about half of its sales by providing news to Refinitiv.
The company reported a net loss per share of 24 cents, due to a reduction in the value of its stake in LSEG, which it said was worth $7.1 billion as of July 31.
Thomson Reuters shares have outperformed the broader market this year, with its shares down about 5% versus a 13.3% drop for the S&P 500.
(By Kenneth Li)
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