Cost cutting aids profits for Thomson Reuters
NEWS and financial data publisher Thomson Reuters reported a better-than-expected second quarter profit yesterday, helped by cost cuts.
The firm stood by its forecast that revenue would grow in 2009 and that its profit margin would be similar to last year’s as markets stabilise.
However, chief executive Tom Glocer said that the fallout from the financial crisis would likely squeeze the Markets division.
Revenue from ongoing businesses, excluding the impact of foreign exchange rates, rose two per cent to $3.28bn (£2bn), in line with market expectations. Overall underlying operating profit rose 11 per cent to $793m from $713m a year earlier.
The company attributed its underlying operating profit growth to cost controls, currency benefits and savings from Thomson’s purchase of Reuters last year.
Shareholders will vote today on a proposal to delist the company’s shares from the London exchange.