Thomson Reuters (TSX / NYSE: TRI) reported results for the second quarter ended June 30, 2012. The company reported revenues from ongoing businesses of $3.2 billion, a 3% increase before currency. Adjusted EBITDA was up slightly from the prior-year period and the corresponding margin was 28.0% versus 28.1% in the second quarter of 2011. Underlying operating profit decreased 8% and the corresponding margin was 19.3% versus 21.2% in the prior-year period. Adjusted earnings per share (EPS) were $0.54 compared to $0.51 in the second quarter of 2011.
“Our results for the quarter and first half of the year were on track,” said James C. Smith, chief executive officer of Thomson Reuters. “Growth in the second quarter was driven by the strong performance of our Legal, Tax & Accounting and Intellectual Property & Sciences businesses. Our Financial & Risk year-to-date revenue performance, though tepid, has held up relatively well despite growing headwinds in the global financial services industry. We have been making progress across the Financial & Risk business with a more rigorous and disciplined approach.”
“I am pleased that we were able to complete the sale of our Healthcare business for $1.25 billion and redeploy some of the proceeds to support key growth businesses as evidenced by our recent announcements to acquire FXall and MarkMonitor,” continued Mr. Smith.
Consolidated revenues from ongoing businesses for first half of 2012 were $6,376 up 4% before foreign exchange effect. Financial & Risk Segment revenues were down 1%. Legal, Tax & Accounting, Intellectual Properties and Corporate segment revenues were up 7%.
Business Outlook (Before Currency): Thomson Reuters today reaffirmed its business outlook for 2012 that was previously communicated in February. Thomson Reuters expects its revenues to grow low single-digits in 2012. Thomson Reuters expects its adjusted EBITDA margin to range between 27% and 28% in 2012. The company forecasts its underlying operating profit margin to range between 18% and 19% in 2012 due to higher depreciation and amortization expense.
Source: Money Extra.uk-wire