Although Thomson Reuters reported an 8-percent drop in operating earnings and a 2-percent decline in revenue for the second quarter ended June 30, its Tax and Accounting business showed an 8-percent increase in revenue. The latter's performance came as its Workflow & Software Solutions area recorded a 12-percent increase because of the growth of income tax and the global tax business.
However, company-wide operating profit fell to $435 million in the most recently ended period, down from $475 million a year ago. Revenue was $3.22 billion, down from $3.3 billion in last year's corresponding period. CEO Tom Glocer said in a Webcast that he anticipated a return to revenue growth in the third quarter with the year showing flat revenue.
The Tax & Accounting business reported revenue of $243 million for the second quarter, a rise from $225 million. However, operating profit dropped to $32 million, down 11 percent from $36 million the prior year. While tax software was strong, the research area, which falls under the Business Compliance & Knowledge Solutions area, was flat as a decline in print revenue offset 8-percent growth in the Checkpoint platform.
CEO Robert Daleo noted that the historically strong period for tax software profits is the fourth quarter. He specified what he called the Creative Solutions suite as showing strong revenue growth within the Workflow & Software Solutions area. Creative Solutions suite is the historical name for the line the company markets under the CS Professional Suite label.
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards. Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that. A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
