Thomson Reuters rev falls, CEO says worst over

By Robert MacMillan

NEW YORK (Reuters) - Thomson Reuters Corp reported that quarterly revenue in its markets and legal businesses fell as customers cut costs in the wake of the financial crisis, but its CEO said the worst was over.

The news and financial data publisher, whose shares fell about 1 percent, said on Thursday that third-quarter profit beat Wall Street estimates, helped by foreign currency rates and cost savings.

"We think our markets are improving and our results in the business in the third quarter were better than the second, and we think that's a trend that continues," Chief Executive Thomas Glocer said on a call with reporters. "We are past the nadir."

Revenue from ongoing businesses, excluding the impact of foreign exchange rates, fell 2 percent to $3.21 billion. That compared to the average analyst forecast of $3.23 billion.

Markets division third-quarter revenue fell 4 percent to $1.86 billion, excluding currency.

The legal unit, the largest part of the company's professional division by revenue and operating profit, posted a 1 percent decline in revenue.

"Financial firms are watching costs and being very careful on spending money, so a lot of discretionary expenses regarding services are being cut back," said Benchmark Co analyst Edward Atorino.

The company, formed last year by the merger of Thomson Corp and Reuters Group Plc, said underlying operating profit rose 3 percent to $711 million, from $690 million a year earlier.