Those looking for work in business data and news could be forgiven for thinking that the market is in the doldrums, but it seems old faithful Thomson Reuters might just be bucking the trend as it records healthy revenue growth this second quarter.
The Manhattan firm with global reach announced recently that revenue generated by ongoing business grew by three per cent to $3.2billion between April and June – entirely in line with expectations. However the big news is that where other corporations are stalling, Thomson Reuters have recorded a 64% increase in profits taking the total to a nice rounded $935million – up from $572million 12 months ago following the sale of its healthcare business to Veritas.
Thomson Reuters’ companies include financial businesses Thomson Reuters Eikon and Thomson Reuters Elektron, Reuters News Agency, intelligence firm Cortellis, tax and accounting tools OneSource and Checkpoint and a range of healthcare solutions including Thomson Reuters Marketscan Treatment Pathways, Thomson Reuters Healthcare Indexes and the Micromedex Drug Interactions App.
The Figures Speak For Themselves
Adjusted earnings stood at 54 cents per share compared with 51 cents for the same period in 2011, four cents clear of analysts’ predictions of 50 cents, although revenue for the group floundered at $3.31billion – down $14million on last year. Although these numbers might not quite add up to some, it’s worth remembering that while other businesses in the sector are falling by the wayside, recording an overall profit is no mean feat as explained by CEO James Smith.
“Our results for the quarter and first half of the year were on track,” Smith said.
“Our financial and risk year-to-date revenue performance, though tepid, has held up relatively well despite growing headwinds in the global financial services industry.”
In July Thomson Reuters made an offer of $625million for FX Alliance, providers of exchange trading technology – the offer equated to $22 a share in cash, for the business. The company has also entered a deal to purchase MarkMonitor – a business dedicated to online brand protection although the terms of the deal have yet to be revealed.
The fact that the company is still willing to make purchases and take risks with its own cash must instil confidence in shareholders as prices remain solid and never really below $27 thanks to this latest announcement and the impending take overs.
Historically Strong & Future Proof
The Thomson Corporation, set up in 1934 in Ontario, specialized in publishing. Notably the Timmins Daily Press and the Scotsman. Owner Roy Thomson moved to the UK when he acquired the Scotsman and won the franchise for Scottish Television. Further acquisitions eventually gave Thomson control of The Sunday Times and he moved into the airline and oil and gas industries. The company ventured into publishing in the late 1980s and purchased Reuters in 2008.
Reuters grew in London as a business disseminating stock market quotations. It began life in 1851 and by 1865 was the first organization to report the assassination of Abraham Lincoln and was even involved in the development of radio.
With such a proud heritage there really is no wonder the combined talents of both companies have ensured its continued vigour and ability to weather the financial storm.
Acquisitions still form an important part of all arms of the businesses with high-profile purchases including data mining specialists Streamlogics, which of course can provide solutions for training, marketing and lead generation for a wide variety of organizations across a range of sectors.
Vhayhu Technologies provide tick data services, the Hugin Group distributes IR and PR and Point Carbon A/S offers news and analytics for the energy and environmental markets, while RedEgg provides media intelligence to the marketing and PR sectors. All of these businesses and many more owned by Thomson Reuters cover a vast range of services and sectors – some of which will be useful now, some of which will be useful tomorrow, but it seems that through canny investment Thomson Reuters is weathering the storm and continuing to provide a safe haven for those seeking jobs in the media.