Skip to main content

Thomson Reuters Corp. TRI-T reported rising revenue across its key business lines in the second quarter and nudged its financial targets for the year higher despite rising uncertainty about inflation and economic growth.

Total revenue increased 5 per cent to US$1.6-billion in the quarter that ended June 30, compared with US$1.5-billion in the same period a year ago. The rate at which the news and information provider’s clients renewed their subscriptions has been higher in 2022 than last year, which buffers the business against mounting economic challenges.

Toronto-based Thomson Reuters now expects revenue to rise by about 6 per cent this year, up from a previous target of 5.5 per cent, and its outlook for earnings in 2023 has not changed.

“We don’t at the moment see any worrying signs. The vital signs are still healthy,” said chief executive officer Steve Hasker, in an interview. “Having said that, we’ve got a healthy paranoia about what might transpire.”

That unease stems from concerns about a potential slowdown in revenue from transactions that aren’t subscription-based – such as fees based on use of the company’s software, or digital advertising revenue from its Reuters News business. But four-fifths of the company’s revenue comes from subscriptions, many of them with terms of two or three years, which helps stabilize its income in turbulent times.

In the second quarter, Thomson Reuters reported a net loss of US$115-million, or 24 US cents per share, compared with a profit of US$1.1-billion or US$2.15 in the same period a year earlier.

However, the quarterly loss was driven by a drop in the value of the company’s stake in London Stock Exchange Group (LSEG). After adjusting to exclude the changing value of that investment, the company said it earned 60 US cents per share, while analysts had expected 53 US cents per share, according to data from Refinitiv.

Revenues from each of Thomson Reuters’s three largest divisions increased by 4 per cent in its legal unit, 8 per cent in the business segment serving corporate clients, and 9 per cent in the tax and accounting arm.

In Reuters News, revenue was up 9 per cent year-over-year, driven in large part by a rebound in its events business as pandemic restrictions ease.

Woodbridge Co. Ltd., the Thomson family holding company and controlling shareholder of Thomson Reuters, also owns The Globe and Mail.

Thomson Reuters has cut US$369-million in annual costs, putting it on track to reach a target to reduce expenses by US$500-million by the end of the year. That is part of a two-year transformation plan that seeks to boost the company’s use of technology and improve customer service.

Mr. Hasker told analysts on a Thursday conference call that the investments made under the plan are starting to pay off, but that has yet to deliver the improvement in customer service he anticipates in all areas. “I would say we still have a lot to get done,” he said.

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.