UPDATE 3-Thomson Reuters operating profit down, trading pressured

Fri Nov 2, 2012 3:44pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* 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.

This business climate is leading the global news and information provider to keep a tight grip on costs while at the same time investing in customer service for its flagship financial product Eikon.

Thomson Reuters reaffirmed its 2012 forecast, due in part to stability at its Legal division, which includes WestlawNext. Revenue there rose 1 percent to $830 million on growth in Latin America and products such as legal resource provider FindLaw Elite.

The company's smaller units, meanwhile, showed strong growth. Governance, Risk & Compliance's revenue jumped 17 percent while revenue at the Tax & Accounting division rose 8 percent.   Continued...