NEW YORK: The one of the biggest news agencies in the world, Thomson Reuters, has said that the company’s revenues dropped by 2 per cent to $3.2 billion in the fourth quarter and posted $1.1 billion net profit in the final three months of 2014 as compared with a loss of $351 million in the same period a year earlier.
Thomson Reuters Corp on Wednesday reported quarterly earnings that missed analysts forecasts, sending its shares lower even as the news and information company forecast a return to organic revenue growth.
Both adjusted fourth quarter profit and revenue missed analysts’ forecasts as a strengthening U.S. dollar took its toll on Thomson Reuters, many of whose financial clients are overseas. Thomson Reuters shares, which have gained 24 percent over the last 12 months, were down 3.4 percent in early afternoon trade.
While full-year 2014 revenue factoring out currency changes or acquisitions was flat, Thomson Reuters said it expects such organic revenue to grow in 2015 after sales of its financial products outpaced cancellations in 2014 for the first time in six years.
The company has struggled in recent years to regain its footing after Thomson Corp acquired Reuters Group Plc in 2008, in a $17 billion merger that was completed just as the financial industry crisis started.
Total revenue for the year was up 1 percent before currency adjustments at $12.6 billion. The company’s board approved a 2 cent annual dividend increase to $1.34 per share.
Shares of Thomson Reuters were down 3.4 percent at $38.26 on the New York Stock Exchange. The Toronto-listed shares were down 2.9 percent, trading at C$48.33.
