Thomson Reuters shares hit record high after Q2 profit surges above US$1 billion

Reuters shares hit high

Shares of Thomson Reuters Corp. rose to a record high after the company raised its full-year outlook and reported a big growth in net income in the second quarter due to an increase in the value of its London Stock Exchange Group investment.

On the Toronto Stock Exchange, Thomson Reuters shares peaked at $141.16 and were up $7.21 or 5.4 per cent at $139.95 in later trading.

The company, which keeps its books in U.S. dollars, says its profit surged to US$1.07 billion or US$2.15 per diluted share, up from US$126 million or 25 cents per share a year earlier.

On an adjusted basis, excluding the LSEG investment, it earned US$240 million or 48 cents per share, compared with US$221 million or 44 cents per share in the second quarter of 2020.

However, operating profit decreased 14 per cent to US$316 million as the prior-year period included a significant benefit from the revaluation of warrants held in financial data firm Refinitiv that was sold to the London Stock Exchange Group in January.

Revenues for the three months ended June 30 grew nine per cent to US$1.53 billion from US$1.41 billion in the prior year quarter with organic revenues rising seven per cent.

Thomson Reuters was expected to report 43 cents per share in adjusted profits on US$1.5 billion in revenues, according to Refinitiv.

"The strong results that we achieved in the first quarter accelerated in the second quarter. Our performance was consistent across the company, above our expectations, and positions us well for the rest of the year and 2022," stated CEO Steve Hasker.

Thomson Reuters announced in February a two-year transition to an operating company from a holding company and to a content-driven technology firm from a content provider that will require an investment of US$500 million to US$600 million.

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