Thomson Reuters has reported an increase in revenue and profit on its first anniversary as a merged global news agency.
The company, formed last April from the merger of Reuters and Thomson, said this afternoon that revenue in the first quarter of 2009 rose three per cent year on year to $3.12bn (£2.1bn) on a like-for-like basis.
And it said it expected 2009 full-year revenues to be ahead of 2008.
Like-for-like operating profit in the first three months of 2009 grew two per cent compared with the same period last year, at $588m (£390m). The profit margin increased from 17.8 per cent to 18.8 per cent.
Reuters Media, which provides newswire services, photos, graphics and video to news organisations – saw revenues fall eight per cent year on year to $89m (£59m).
But the company said revenues at its core Reuters news agency business were down just two per cent, because clients were cutting costs and relying more on agency copy.
Thomson Reuters said it was on track to achieve $975m (£647.5m) in cost savings in its first year as a merged company – slightly below the $1bn originally expected.
Chief executive Tom Glocer said the integration of the two businesses, one year on, had gone “very well”.
“Our ability to continue delivering revenue and profit growth in these challenging markets demonstrates the strength of our business model,” he said.
“While the financial markets remain difficult, we are well positioned.”
He added: “In the near term, close management of expenses and cost synergies from the integration should protect margins.
“Over the longer term, we expect renewed market growth and revenue synergies from the integration to drive significant profit growth.”
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