Thomson Reuters reports higher fourth quarter revenue

Thomson Reuters Corp on Thursday reported higher than expected profit but sales of divisions impacted total revenue growth, overshadowing sales growth in its three biggest divisions serving legal, tax and accounting businesses. The Toronto-based news and information provider reported a fourth-quarter revenue rise of 3% to $1.8 billion, largely in line with analyst estimates, according to LSEG data.

Thomson Reuters Corp on Thursday reported higher than expected profit but sales of divisions impacted total revenue growth, overshadowing sales growth in its three biggest divisions serving legal, tax and accounting businesses.

The Toronto-based news and information provider reported a fourth-quarter revenue rise of 3% to $1.8 billion, largely in line with analyst estimates, according to LSEG data. The company reported adjusted fourth quarter earnings per share of 98 cents. Wall Street expected a profit per share of 90 cents per share, according to LSEG data. "Last year was one of innovation and accomplishment across our business," said Steve Hasker, President and CEO of Thomson Reuters in a statement. "We made significant progress delivering Generative AI-powered solutions, including the launch of AI-Assisted Research on Westlaw Precision, as well as expanded features and design enhancements across our product portfolio."

The company said it expected to end its $1 billion share buyback by the end of the second quarter and will increase its annualized dividend by 10%. Thomson Reuters anticipates 2024 revenue to rise by about 6%, or slightly ahead of estimates of 5.7%, according to LSEG data.

Operating profit fell 11% to $558 million, factoring in gains from divestitures last year, but rose 12% excluding one-time gains from higher revenue and lower costs. Revenue at three of the five divisions of Thomson Reuters rose in the quarter with a decline in the legal segment, impacted by the sale of business management software company Elite in 2023.

Reuters News revenue rose 11% and adjusted earnings before tax, depreciation and amortization rose 56% from generative AI-related content licensing revenue, the company said. The company, which owns the Westlaw legal database, Reuters news agency and the Checkpoint tax and accounting service has earmarked $10 billion for acquisitions and about $100 million annually to invest further in AI.

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