Reuters raises 2021 revenue forecast once again
Thomson Reuters Corp raised its 2021 revenue forecast for the third time this year as the news and information company benefits from a recovering global economy.
The upgrade came as the parent company of Reuters News reported third-quarter sales and adjusted earnings per share that beat analysts’ forecasts.
Shares of Thomson Reuters rose about 3 per cent on the Toronto Stock Exchange and the New York Stock Exchange.
The company now expects full-year revenues to increase to five per cent, compared with its previous forecast of four and half per cent.
Quarterly revenues climbed six per cent to $1.53bn (£1.12bn), compared to expectations of $1.5bn (£1.1bn), while an 18 per cent rise in adjusted EPS to 46 cents beat analysts’ mean estimate of 38 cents, according to Refinitiv.
Reuters News revenue benefited from gains in its business with media customers and a 60 per cent rise in sales at its events business that was hurt by the pandemic.
Quarterly group operating profit fell 11 per cent compared to the prior year when the company received a “significant” benefit from the revaluation of warrants the company held in Refinitiv.
The LSE in January closed its $27bn (£20bn) deal for Refinitiv. Thomson Reuters holds a minority stake in the LSE following the deal, worth $7.1bn (£5.2bn) at the end of October.
Thomson Reuters still has $700m (£514m) remaining of a $2bn (£1.5bn)mergers and acquisition budget, but chief financial officer Michael Eastwood said the company had much more available for deals.
Thomson Reuters launched in October a $100m (£70m) venture fund to invest in early stage companies serving professional audiences.