-Thomson Reuters beat first quarter revenue expectations, lifted its annual financial forecast and raised its annual dividend by 10% to $2.16 on Thursday as it continued to invest heavily in artificial intelligence.
The Toronto-based news and information provider reported an 8% rise in first quarter revenue to $1.88 billion, from $1.74 billion a year earlier. Wall Street expected $1.85 billion in the quarter, LSEG data showed.
Operating profit, which Thomson Reuters (NYSE:TRI) said rose 10% to $557 million, fell just short of expectations of $559 million.
Adjusted earnings per share, excluding one-time items were $1.11 per share. Wall Street expected 95 cents per share.
“We remain committed to investing in content-driven technology that helps professionals make complex decisions with confidence,” Thomson Reuters CEO Steve Hasker said.
“With an exciting AI product roadmap and strategic acquisitions shaping our core operations, we are confident we will continue to lead the way in transforming professional work,” Hasker added in a statement.
Thomson Reuters, which has earmarked about $10 billion to acquire AI companies, has closed two deals in the quarter – Sweden-based business automation company Pagero and World Business Media Unit, an insurance industry media company.
The company raised its annual total revenue forecast as a result of its first quarter performance and now expects it to rise by between 6.5% and 7%, up from 6.5%.
It forecast total revenue from its big three business segments of legal, tax and accounting and corporates, to rise by between 8% and 8.5%, up from 8%.
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Thomson Reuters’ legal division revenue growth of 1% was hit by lower transaction revenue due to the sales of some divisions.
It said its corporates division’s revenue rose 16%, which included the impact of Pagero purchase.
The tax and accounting division’s revenue rose 17% as it benefited from seasonal strengths, where 60% of revenues are in the fourth and first quarters.
Reuters News revenue rose 21% to $210 million, from the non-recurring transactions from content licensing deals related to generative AI. The company did not disclose the partners.
