Thomson Reuters operating profit slips, trading faces pressure

Fri Nov 2, 2012 7:00am EDT
 
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* Underlying operating profit falls 15 percent on lower margins

* Third quarter revenue meets expectations

* Company reiterates full-year outlook

By Jennifer Saba

Nov 2 (Reuters) - Thomson Reuters Corp reported on Friday a 15 percent fall in operating profit because of declining revenue and higher costs at its division that serves the financial industry.

The slip in profit in the third quarter underscored the problems facing some of Thomson Reuters' clients, such as banks and brokerages that are reducing staff and trimming costs to cope with increased regulation and the struggling global economy.

At the same time, Thomson Reuters is investing in customer service for its flagship product Eikon, which targets the financial sector.

While the global news and information provider reaffirmed its 2012 forecast, its underlying operating profit, which excludes divestitures, fell to $585 million from $690 million. The corresponding margin slipped to 18.5 percent from 21.6 percent in the same period a year ago.

The company said that in the third quarter last year, its underlying profit margin was "the high-water mark" for 2011.   Continued...