Thomson Reuters Revenue Up, Cash Flow Outlook, Share Lift

Thomson Reuters Corp said third-quarter revenue rose on gains in legal and corporate entities and the cost cuts boosted the 2020 free cash flow outlook, which prompted the stock to rise nearly 4 percent on Tuesday.The news and information company said the results made 'Increased confidence' for the full-year financial forecast, although the COVID-19 epidemic could change this.Thomson Reuters, which owns Reuters News, said in a statement that revenue rose 2 percent to $ 1.44 billion in the third quarter, while operating profit rose 21 percent to $ 318 million.

I am delighted to report that the market and our ทางเข้า joker business continue to prove resilient in the face of increasingly challenging macro environments,' said Chief Executive Steve Hasker.The company said adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 42 percent in the third quarter as a result of higher revenues and outbreak-related cost reduction programs.The executive said during a call to analysts that Thomson Reuters had surpassed about $ 30 million in cost-cutting targets to reach a total of about $ 130 million and that the company plans to invest in its core business again in the fourth quarter.



                             


Edward Jones analyst Matt Arnold said in the research that Thomson Reuters was a 'solid quarter' showing a 'solid quarter'. 'Flexibility of the subscription model'Chief Financial Officer Michael Eastwood said in an interview that Thomson Reuters is still assessing acquisition targets and can announce a deal this year or early 2021.The company has about $ 700 million to spend as part of its $ 2 billion budget to grow its legal, tax and accounting businesses. Thomson Reuters adjusted earnings of 39 cents per share, 38 cents higher than analysts expected, according to IBES data from Refinitiv, while the company's quarterly earnings were slightly higher than Wall Street expected.

Legal professionals, tax and accounting professionals, and corporate entities all saw higher quarterly sales and adjusted profits.Thomson Reuters said the results were boosted by strong sales from practice law, Westlaw Edge and European and Canadian businesses, and rising revenues from the tax division following the extension of the April-July U.S. tax filing deadline.Organic revenue at Reuters News division fell 2 percent, reflecting the decline in agency business and the continuing impact of the coronavirus crisis on event businesses.

Thomson Reuters reaffirmed its full-year guidance on revenue rising 1% to 2% and raised its free cash flow forecast to about $ 1.1 billion, above the previous trend.The company also confirmed that the London Stock Exchange's acquisition of Refinitiv's data and analytics business is expected to close in the first quarter of 2021, expected to incur approximately $ 600 million in tax.Thomson Reuters executives said it could fund payments through $ 1.2 billion in free cash flow, cash on hand, or by using credit lines.The sale of Thomson Reuters 45 percent of Refinitiv shares will result in the company holding a 15 percent stake in LSE, estimated to be worth about $ 9 billion, which it plans to sell within five years and reinvest the proceeds into its core business.