By Robb M. Stewart
Thomson Reuters is targeting another year of revenue growth after beating market expectations for the final quarter of 2024, despite headwinds to its earnings from a higher tax expense and lower results from discontinued operations.
The Canadian news and information provider reported a fall in fourth-quarter net earnings to $587 million, or $1.30 a share, from $678 million, or $1.49, a year earlier. The prior-year period included an increase in the value of Reuters now exited investment in London Stock Exchange Group.
On an adjusted basis that strips out asset sales and discontinued operations, per-share earnings for the three months rose to $1.01, beating the 96 cents mean estimate of analysts polled by FactSet.
Revenue for the quarter increased 5.2% to $1.91 billion, topping the $1.88 billion expected by analysts. Excluding the effect of deals and currency, organic revenue was also about 5% higher for the quarter, in line with earlier guidance from the company.
Revenue from Reuters' legal professionals segment was up 4.1% on the year before to $729 million, and revenue from services for tax and accounting professionals increased 6.4% to $366 million. The company's Reuters News business recorded a 0.9% decline in revenue to $218 million, and its global print operations saw revenue fall 6.5% to $144 million.
Looking to 2025, Reuters forecast revenue growth for the year of between 3% and 3.5% and a rise in organic revenue of 7% to 7.5%, matching the pace in 2024.
Reuters has been ramping up spending on artificial intelligence for its products over the last two years, particularly for legal professionals. President and Chief Executive Steve Hasker said the company continued to focus on investing in content-driven technology that helps professionals.
The company in January bought Michigan-headquartered cPaperless for $600 million in cash, adding a cloud-focused producer of technology for tax and accounting professionals. In October, it acquired U.S. accounting AI startup company Materia after it earlier that month agreed to sell legal-assistance business FindLaw to Internet Labs.
Reuters and Blackstone last May sold their remaining holdings in London Stock Exchange.
Write to Robb M. Stewart at [email protected]
(END) Dow Jones Newswires
February 06, 2025 07:14 ET (12:14 GMT)
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