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Thomson Tax & Accounting Rebounds

James Smith, Thomson ReutersThe Tax & Accounting Business of Thomson Reuters resumed its growth path in the third quarter ended September 30. In the second quarter, the unit saw a 13-percent drop in operating profit on a 1-percent increase in revenue. But with the third quarter, operating profit was up 15 percent, 10 percent before currency, with revenue rising 5 percent, 6 percent before currency.

Operating income of $59 million in the September quarter compared to $50 million the prior year. Tax & Accounting revenue of $323 million increased from $307 million.

During the recent earnings webcast, CFO Stephane Bello described Tax & Accounting as rebounding from a disappointing second quarter. He said growth for the corporate and professional segments, which contributed 65 percent of the group's revenue, was strong.

CEO Jim Smith the overall performance showed "Our core subscription businesses are moving in the right direction." Revenue was flat at $2.74 billion—unchanged after currency, up 1 percent before currency when compared to last year's corresponding period.

Earnings from continuing operations rose to $268 million from $263 million. That was offset slightly as earnings from discontinued operated dropped to $18 million from $30 million.

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