"

Estimated reading time: 1 minute, 23 seconds

Thomson Tax & Accounting Strong in 3Q

With overall Thomson Reuters revenue flat for the third quarter ended September 30, the company's Tax & Accounting business reported relatively strong results with operating profits and revenue each up 8 percent for the most recently ended period, although operating margins remained unchanged at 16 percent. And executives said in yesterday's earnings conference call that the business is expected to get better.

Given a stronger-than-expected performance in the quarter, the company now anticipates ending the year with flat to slightly increased revenue, compared to its prior guidance of flat to slightly lower income, CEO Tom Glocer told Wall Street analysts. The figures given are after the effect of currency adjustments.

Tax & Accounting revenue reached $244 million in the most recently ended quarter, up from $225 million in last year's corresponding period. Operating income rose to $39 million from $36 million a year earlier. The company expects both revenue and operating income to improve during the current quarter.

The unit was led by the Workflow & Service Solutions group, whose products include Thomson's personal and corporate income tax lines, which had a 15-percent increase in revenue. CFO Robert Daleo said this division comprised two-thirds of the Tax & Accounting business.

Business Compliance & Knowledge Solutions, whose operations include the RIA and PPC lines, had a 1-percent drop in revenue despite a 9-percent increase in revenue from the Checkpoint research platform. Part of that stemmed from the continuing decline in print revenue. However, the company expects earnings and margins to continue to improve during the rest of the year.

Company-wide revenue was virtually unchanged at $3.26 billion, compared to $3.22 billion in last year's corresponding quarter. Net income rose to $277 million for the third quarter, an increase from $167 million a year earlier.

Read 4467 times
Rate this item
(0 votes)

Visit other PMG Sites:

Template Settings

Color

For each color, the params below will give default values
Tomato Green Blue Cyan Dark_Red Dark_Blue

Body

Background Color
Text Color

Header

Background Color

Footer

Select menu
Google Font
Body Font-size
Body Font-family
Direction
PMG360 is committed to protecting the privacy of the personal data we collect from our subscribers/agents/customers/exhibitors and sponsors. On May 25th, the European's GDPR policy will be enforced. Nothing is changing about your current settings or how your information is processed, however, we have made a few changes. We have updated our Privacy Policy and Cookie Policy to make it easier for you to understand what information we collect, how and why we collect it.