Reuters Revenues Jump 2% to $1.62 Billion

Reuters Revenues Jump 2% to $1.62 Billion

Thomson Reuters said that its revenue rose 2% to $1.62 billion, while its operating profit jumped more than 300% to $956 million, reflecting the sale of an investment and other items.

Reuters added on Tuesday in its earnings statement that sales growth is expected to accelerate in the next three years compared to the reported sales growth of 1.3% for 2020.

The company raised its annual dividend by 10 cents to $1.62 a share, after it adjusted its earnings per share to 54 cents. Also, its stake in the London Stock Exchange (LSE) is now around $11.2 billion.

Last month, LSE completed its $27 billion acquisition of Refinitiv, which is 45% owned by Thomson Reuters. Also, Reuters shares in New York and Toronto gained more than 8%.

Meantime, the Toronto-based company will spend between $500-$600 million over two years to invest in artificial intelligence and machine learning to get data faster during the pandemic.

The international news organization aims to cut annual operating expenses by $600 million through eliminating unnecessary jobs, integrating technology, as well as reducing the real estate offices, preparing for the post-pandemic world.