Thomson Reuters reports better-than-expected quarterly profit

By Matt Scuffham

TORONTO (Reuters) - Thomson Reuters Corp on Tuesday reported a smaller-then-expected fall in third-quarter earnings and said it was on track for a solid 2018 and a better performance in 2019.

Adjusted for one-time items, the news and information provider reported earnings per share of 11 cents, down from 27 cents a year ago, but above Wall Street's average estimate of 3 cents, according to IBES data from Refinitiv.

Revenue rose 3 percent, excluding the effect of fluctuating exchange rates, to $1.29 billion. Analysts had expected revenue of $1.32 billion, on average.

"Our year-to-date performance strengthens our confidence that we are on track to deliver a solid year and an even better 2019," Chief Executive Jim Smith said in a statement.

The company reiterated its forecast, originally given in May, for low single-digit revenue growth in 2018. It said it now expects adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of $1.3 billion for the year. It previously said it expected $1.2 billion to $1.3 billion. The year ago figure was $1.6 billion.

For the third quarter, the company's adjusted EBITDA fell 21 percent, excluding the effect of exchange rates, to $302 million, due to higher income tax expense from the company's continuing operations, offsetting higher earnings from its discontinued operations.

Thomson Reuters last month completed the sale of a 55-percent stake in its Financial & Risk unit to private equity firm Blackstone Group LP in a deal that valued the unit, now a standalone business called Refinitiv, at about $20 billion.

The company's Legal business reported revenue of $883 million in the third quarter, up 4 percent excluding currency effects, and its Tax & Accounting unit reported sales of $341 million, up 3 percent on the same basis.

(Reporting by Matt Scuffham in Toronto; Editing by Bill Rigby)