Thomson Reuters in new 'streamlining' as profits slip

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New York (AFP)

Financial information group Thomson Reuters announced Tuesday a new "streamlining" plan as it reported a drop in profits and flat revenues.

"Our core subscription businesses are moving in the right direction, our cost controls are working and we are increasingly confident in our execution capability," chief executive Jim Smith said.

"That is why we are going to pick up the pace of our transformation efforts."

The company, which offers a range of financial and legal information services and operates the Reuters news agency, said net profit dipped 2.5 percent in the third quarter from a year earlier to $273 million.

Revenues were essentially flat from a year earlier at $2.74 billion.

Receipts from "corporate and other" segments which include the Reuters news agency were down 1.35 percent at $73 million.

The company said it was taking a charge of $200 million to $250 million "to accelerate the pace of the company's transformation program by further simplifying and streamlining the business," resulting in cost savings of the same magnitude.

Earlier this year, the group said it was selling for $3.55 billion its Intellectual Property & Science business which serves governments, academic, publishers and corporate clients.

Last month it announced it would open a technology center in Toronto, adding 400 jobs over the next two years.