BUSINESS
11/01/2011 07:42 EDT | Updated 01/01/2012 05:12 EST

Thomson Reuters Q3 operating profits rise 10 per cent, revenue up five per cent

NEW YORK, N.Y. - Thomson Reuters Corp. (TSX:TRI) reported rising net profits in the latest quarter as the global information services company generated higher revenues and had lower operating costs.

The company said Tuesday it earned US$381 million or 44 cents a share in the three months ended Sept. 30. That was up from net earnings of US$277 million or 32 cents a share a year earlier.

Excluding special items, Thomson Reuters reported adjusted earnings of 56 cents per share in the latest quarter, surpassing Wall Street's expectations.

Analysts, on average, were expecting earnings of 54 cents per share on revenue of $3.28 billion, according to FactSet.

Three-month revenues rose to $3.45 billion from $3.26 billion, driven by strength in the company's Professional division, which handles tax and accounting clients.

Thomson Reuters had $2.36 billion in operating expenses in the latest quarter, down seven per cent from $2.53 billion a year earlier.

The Professional segment revenue grew 10 per cent to $1.38 billion.

Markets division revenue was up one per cent to $1.89 billion.

The company reaffirmed its outlook for revenue percentage growth in the mid-single digits in 2011. That's the same outlook it has had since February.

In July, Thomson Reuters announced it is streamlining its markets division, which includes the Reuters news service and trading terminals. The division has performed below expectations. The company is combining its sales and trading unit with its investment and advisory business, among other changes.

"We expect the benefit of these changes will improve sales performance in 2012 and benefit 2013 revenue growth," said CEO Tom Glocer said in a statement.

In Tuesday trading on the TSX. Thomson Reuters shares rose 24 cents to C$29.73 amid a broad market decline.

With files from The Associated Press