Thomson Reuters revenue misses amid uncertainty in Europe
Financial services clients concerned about upcoming EU securities rules
Thomson Reuters on Wednesday reported revenue below investor expectations as financial services clients in Europe and Britain held off on signing deals due to regulatory and political uncertainty.
“We aren’t satisfied with our top-line growth and we are addressing these issues by controlling everything that is within our control,” chief executive Jim Smith told analysts on an earnings call.
Although earnings-per-share beat estimates, in part due to cost controls, the revenue miss pushed shares down 6.5 per cent to $43.81 on the New York Stock Exchange.
British and European financial services clients are concerned about upcoming EU securities rules, set to take effect in January, as well as Brexit, Mr Smith said.
Thomson Reuters still expects year-over-year growth in its financial business in 2017 and 2018.
Third-quarter net earnings rose to $348 million, or 46 cents per share, from $286 million, or 36 cents per share, a year ago. Adjusted for special items, earnings were 68 cents per share.
Total revenue grew 1 per cent excluding currency to $2.79 billion.