NEW YORK (Reuters) – Thomson Reuters Corp (N:) (TO:), parent of the Reuters News agency, reported higher-than-expected quarterly operating profit on Thursday and affirmed its 2019 and 2020 estimates.
The news and information provider posted single-digit sales increases in the third quarter in each of its three largest divisions, Legal Professionals, Corporates and Tax & Accounting Professionals.
Operating profit rose to $262 million, or 27 cents a share, from $173 million or 12 cents a share a year ago, reflecting the revaluation of warrants the company holds in Refinitiv, which the London Stock Exchange (LSE) (L:) has agreed to buy.
Analysts, on average, expected profit of 19 cents a share, according to Refinitiv.
Thomson Reuters affirmed its 2019 and 2020 sales and earnings outlook, which it had raised in August.
The LSE agreed on Aug. 1 to buy the financial-data business, now called Refinitiv, from Blackstone (NYSE:) for $27 billion in an all-share deal.
Thomson Reuters will hold a 15% stake in the LSE on completion of the Refinitiv deal, which is expected in the second half of 2020, the companies said. A Thomson Reuters representative will also sit on the LSE board.
Revenue rose 10% to $1.41 billion in the quarter, slightly below estimates.
Thomson Reuters reported a net loss of $44 million, or 9 cents per share, versus a profit of $302 million, or 39 cents per share, a year ago.
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