Reuters’ (LSE:RTR.L) half-year trading profit lift 36 percent underlying to £175 million ($358 million), on 6.4 percent better revenues of £1.27 billion ($2.6 billion), but £21 million ($43 million) costs from the merger with Thomson hit the bottom line. In the media division, revenue was up two percent to £83 million ($168.6 million) but trading profit was down 39 percent, attributed partly to “added investment, particularly in editorial and a new online technology platform”. New clients and the recently launched Africa service contributed to steady growth in text and TV subscription revenues. Strong UK and Asia online advertising helped grow direct-to-consumer revenue five percent.
Reuters won’t sell any subsidiaries before the Thomson merger is complete, which is expected in the final quarter of this year or early next. (Via Reuters). Indeed, it said it is now subject to guidelines because of the imminent formation so did not issue a forecast for next year. FT: CEO Tom Glocer said that no editorial jobs would be cut but that back-end savings would amount to $500 million: “This deal is not about those sort of cost-savings. The real benefit is the long-term revenue acceleration that we expect from this business combination. … This is not about some massive list of people to go.”
Earnings release | Slides