CEO James Smith said even though overall revenue was lower than expected he was proud of the progress. The problems in financial services, particularly with its Eikon platform, led to the departure of Smith's predecessor, Tom Glocer, a year ago. But now, Smith said the company is starting to win deals in that area and is no longer "playing not to lose" Within the Financial and Risk segment, company not only will cut jobs, but has been simplifying technology, moving from 40 billing systems to one and retiring 100 legacy products
Acquisitions fueled growth for the tax and accounting business and executives cited increases in sales of software to accounting firms and of its OneSource corporate tax line. However, a drop in government contracts, which represent 5 percent of the business, held down growth as the award of contracts slipped from 2012 to this year.
Tax and Accounting's fourth-quarter operating profit fell to $103 million, down from $110 million a year ago. Revenue was $351 million, up from $341 million in last year's corresponding period. For the year, operating profit was $261 million, an increase of 10 percent from $237 million before the impact of currency changes while revenue rose to just over $1.2 billion, a 15-percent increase from $1.05 billion from 2011. Revenue was up 5 percent organically.
Companywide, the company reported income of $2.12 billion for 2012, a turnaround from $1.4 billion for 2011. Thomson Reuters' revenue was $13.28 billion, down 4 percent from $13.8 billion. Fourth-quarter earnings were $388 million, compared to a loss of $2.6 billion. Revenue for the last three months of 2012 was just under $3.4 billion, down from $3.58 billion in the fourth quarter of 2011.
