Reuters reports a loss on $3bn goodwill payout
THOMSON Reuters made a loss in its fourth quarter after forking out $3bn (£1.9bn) due to a goodwill charge on its waning financial services division.
The business news and data provider ended the period $2.6bn out of pocket, down from a $307m profit last year, despite rolling in a three per cent increase revenue of $3.6bn.
This brought revenues for the year to $13.8bn, up six per cent on 2010, while the company made an annual operating loss of $705m.
Thomson Reuters admitted disappointing sales and slow uptake of its desktop product Eikon, which ended the period with 15,000 active users, up from 8,000 last quarter.
Growth was strong in Thomson’s professional legacy division, which caters to legal, tax and accounting firms, with income up nine per cent to $1.5bn – accounting for 42 per cent of total revenues.
However, the group’s markets division, which competes with Bloomberg and Dow Jones, grew just two per cent and incurred a $50m charged related to a restructure.
Thomson Reuters declined to comment on speculation that it is in talks to buy the Financial Times after the pink-tinged newspaper turned down an acquisition offer from Bloomberg.