TORONTO — Thomson Reuters Corp. had US$657 million of net earnings in the second quarter, more than triple what it had in the comparable period last year.
Most of the company’s profit during the quarter came from its Financial & Risk business, which is classified as a discontinued operation as part of a plan for Thomson Reuters to sell a 55 per cent interest later this year.
That transaction, with a group led by the Blackstone investment group, and including Canada Pension Plan Investment Board, is expected to close in the fourth quarter.
Thomson Reuters, which reports in U.S. currency, says its second-quarter net earnings were equal to 88 cents per share, including 68 cents per share from discontinued operations.
That compares with 2017 second-quarter earnings of 27 cents per share, including 20 cents from discontinued operations.
Discontinued operations generated US$1.55 billion of revenue, up from $1.50 billion a year earlier.
Revenue from continuing operations, primarily from information services for the legal, tax and accounting professions, was $1.31 billion during the three months ended June 30, up from $1.28 billion in last year’s second quarter.
Earnings from the continuing operations more than tripled to $142 million, or 20 cents per share, from $47 million.
The company says it’s on track to meet the 2018 full-year estimates provided in May.
“I am pleased with our second-quarter and first-half results, which put us on track to deliver a solid year,” said chief executive Jim Smith.
“Following the close of our partnership with Blackstone, Thomson Reuters will be well positioned to strengthen and grow our business.”
The company’s adjusted earnings per share, excluding discontinued operations and other items was 17 cents per share, down two cents from a year earlier, mostly due to costs and investments incurred to reposition Thomson Reuters.
Analysts had estimated 11 cents per share of adjusted earnings from continuing operations, according to Thomson Reuters Eikon, one of the tools provided by the company’s F&R unit.
After the sale of the F&R unit, which provides information services and tools to the financial industry, Thomson Reuters will continue to provide services for the legal and the tax and accounting professions.
It will also continue to own Reuters News, one of the world’s biggest news services. Reuters News will continue to be a supplier to the new F&R partnership under a 30-year agreement.
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