Thomson Reuters announced a surge of 64 percent in the company's 2012 second-quarter profit, resulting from lower operating expenses and double-digit revenue growth at its tax and accounting division. The company experienced similar results in the first quarter of the year.
Most public accounting and tax professionals know Thomson Reuters as the maker of the CS Suite and GoSystem lines. These are a part of the company's tax and accounting unit, which is only a part of the international technology, financial data and news provider. Tax and accounting division once again had the largest growth, with revenues increasing by 24 percent to $283 million.
The company reported a $359 million increase (64 percent) in profit for the quarter ($922 million in 2Q 2012, compared to $563 million in 2Q 2011). The 2012 figures are equal to $1.11 a share.
Last year, the company restructured its markets business and had changes in leadership in several divisions, and earlier this year, Thomson Reuters sold its healthcare business to a private equity firm for $1.25 billion. The company announced two acquisitions earlier this month: One, that it's Intellectual Property & Science business will acquire MarkMonitor Inc., which provides online brand protection services and products; and twoo, that it will acquire the electronic currencies trading system FX Alliance Inc.
Other data from Thomson Reuter's quarterly report:
- Operating margin improved to 39.8% from 24.2%.
- Its largest business unit, Financial & Risk, saw revenue fall by 2.5% to $1.79 billion.
- The legal division, the biggest outside of Financial & Risk, rose 1.9% to $818 million.