Earnings: Thomson Reuters Revs Up 12 Percent; Sees $1 Billion In '08 Cost Savings

This story was written by Joseph Weisenthal.
For its first quarter after the merger, Thomson (NYSE: TOC) Reuters (NSDQ: RTRSY) reported Q1 revenue of $3.3 billion a 12 percent year-over-year increase. Net income decline to $192 million ($.30 per share) from $223 million ($.35 per share), although the quarter was affected by various one-time costs. On a pro-forma basis, so making several adjustments to the numbers, the company said that operating profit grew 37 percent to $579 million. Looking at each separately, Thomson revenue grew 10 percent to $1.8 billion, while Reuters grew 13 percent to $1.4 billion key highlights:

-- The markets division, consisting of various offerings to the financial industry, grew revenue by 11 percent. Within that unit, media revenue was up 12 percent to $91 million.
-- The company expects that the merger will produce $1 billion in cost savings for 2008, which is ahead of schedule, and that it will save another $1.2 billion in 2009 from the deal.
-- For the year, it expects 6 to 8 percent revenue growth.

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By Joseph Weisenthal