Thomson Reuters beats Q3 Street view; net sales positive

Tue Oct 29, 2013 7:21am EDT
 
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Oct 29 (Reuters) - Thomson Reuters Corp said on Tuesday that net sales in its Financial & Risk division turned positive for the first time since 2011.

The global news and information company reported that third- quarter ongoing revenue rose 2 percent before currency changes to $3.07 billion on strength in its Tax & Accounting and Legal businesses.

On an adjusted basis, the company reported a profit of 48 cents per share, beating Wall Street expectations by 4 cents.

The company said it also planned to take a $350 million charge to accelerate a cost-saving strategy, primarily in the Financial & Risk division.

Jim Smith, the Thomson Reuters chief executive, said in a statement the company has sold more than 100,000 Eikon desktops to date.

"Though we continue to expect challenging conditions in the coming quarters - particularly with the largest global banks - these are significant steps in returning our financial business to a growth footing," he said.

Smith had said he expected net sales in the Financial & Risk division to turn positive in the second half of this year. Net sales strip out cancellations and is an important indicator because it lags revenue by about 12 months.