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Nov 3 (Reuters) - Thomson Reuters Corp said
its revenue rose in the third quarter on gains in its legal and
corporates divisions, as cost cuts helped the news and
information company raise its 2020 free cash flow outlook.
The company said Tuesday's results gave it "increasing
confidence" about its full-year financial forecast, but that the
course of the unfolding COVID-19 pandemic could change this.
Thomson Reuters, which owns Reuters News, said in a
statement that its quarterly revenue rose 2% to $1.44 billion,
while its operating profit rose 21% to $318 million.
"I’m very pleased to report our markets and businesses
continue to prove resilient in the face of a challenging broader
macro-environment," Chief Executive Steve Hasker said.
Adjusted earnings before interest, tax, depreciation and
amortization surged 42% from a $100 million cost cutting program
this year related to the pandemic and higher revenue, Thomson
Reuters said.
"I'm confident we will continue to effectively manage
through this challenging environment and build on this
performance in 2021," Hasker added in the statement.
Thomson Reuters' adjusted earnings of 39 cents per share
were ahead of the 38 cents analysts expected, according to IBES
data from Refinitiv, while the company's quarterly revenue was
also slightly above Wall Street expectations.
The Legal Professionals, Tax & Accounting Professionals and
Corporates divisions all had higher organic quarterly sales and
adjusted profit, Thomson Reuters said.
The company said its results were boosted by strong sales
from Practical Law, Westlaw Edge and its European and Canadian
businesses and a revenue increase from the tax division after a
U.S. tax filing deadline extension from April to July.
Organic revenues at the Reuters News division slipped 2%,
reflecting a decline in the agency business and the ongoing
impact of the coronavirus crisis on its events business.
Thomson Reuters reaffirmed its full-year guidance of revenue
rising between 1% to 2% and increased its free cash flow
forecast to about $1.1 billion, which was at the higher end of
the previous outlook.
(Reporting by Kenneth Li;
Editing by Alexander Smith)