Thomson Reuters surpassed expectations in the first quarter of this year and increased its financial outlook for the current year. Additionally, it raised its annual dividend by 10% to $2.16 and continues to heavily invest in the field of artificial intelligence.
The news and information company, based in Toronto, announced an 8% increase in first-quarter revenue to $1.88 billion, compared to about $1.74 billion in the same period last year.
Data from the London Stock Exchange indicates that Wall Street expected quarterly earnings of $1.85 billion.
Operating profits increased by 10% to $557 million, falling slightly short of the expected $559 million.
Actual earnings per share, excluding non-recurring items, were around $1.11 per share, while Wall Street projected 95 cents per share.
Thomson Reuters CEO, Steve Hasker, stated, “We intend to invest in content-driven technology that helps professionals make confident decisions.”
Hasker also mentioned their plans to continue leading the reshaping of the industry through a remarkable range of artificial intelligence products and strategic acquisitions.
Thomson Reuters, allocating around $10 billion for acquisitions in the artificial intelligence field, completed two deals in the first quarter. These deals were with Swedish company Pajero, specializing in office automation, and the economic media unit of World Business Media, an insurance media company.
The company raised its annual revenue expectations after its first-quarter performance and currently expects revenue to increase by 6.5% to 7%, compared to 6.5% previously.
Furthermore, an increase in total revenue is anticipated from the three main sectors: legal, tax, and accounting, and corporate, by a range of 8 to 8.5%, compared to an expected increase of only 8% previously.
Reuters News revenue increased by 21% to $210 million, from non-recurring transactions related to the licensing of generative artificial intelligence content. The company did not disclose the partners involved.
(Reuters)
