By Adriano Marchese
Thomson Reuters' first-quarter profit fell on higher costs and declines in a number of its core business units.
The Canadian news and information provider on Thursday posted a net income of $434 million, or 96 cents a share, down from $478 million, or $1.06 a share, in the comparable quarter a year ago.
Thomson Reuters said the decline was largely due to higher tax expenses and because the prior-year period included currency benefits.
Adjusted earnings, which strips out such one-off costs and exceptional items, were $1.12 a share. According to FactSet, analysts were expecting C$1.07 a share.
Operating revenue rose to $1.9 billion from $1.89 billion, missing analyst expectations of $1.99 billion.
This was driven by 2% growth in recurring revenue, which represents two-thirds of its total, but partly offset by a 1% decline in transactions revenue and a 6% decline in its Global Print segment.
The company's legal professionals segment, its largest, saw a 4% decline to $693 million, while its corporates segment rose 7% to $541 million. The news segment, Reuters News, also saw a decline in revenue, falling 7%.
For the second quarter, organic revenue growth is forecast at about 7% and adjusted earnings before interest, taxes, depreciation and amortization margin is seen about 36%.
Thomson Reuters reiterated its guidance for the full year for 3% to 3.5% revenue growth and an adjusted Ebitda margin of 39%.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
05-01-25 0707ET
