For the first time in two years, all three of Thomson Reuters Corp.'s business segments delivered positive organic revenue growth on a constant currency basis.
The company reported a 2% year-over-year increase in total revenues on a constant currency basis in the second quarter. The financial and risk segment saw revenues increase by 2%, the legal segment's revenues rose by 1% and the tax and accounting business experienced revenue growth of 8%.
"We expect our revenue growth to continue this gradual acceleration as we continue to invest behind our higher-growth businesses," President and CEO James Smith said in a call to discuss earnings. The company expects to boost those investments in the second half of the year, he added.
Rather than focusing on pure infrastructure, like platform enhancements, Thomson Reuters has looked to increase its investments in four main growth areas. CFO Stephane Bello said those areas are tax, legal solutions, risk and Elektron data feeds.
Elektron has continued to grow over the past few quarters. The CEO attributes this to the high market demand to connect data. Smith said he expects this to continue "to be a solid source of demand going forward."
Second-quarter results demonstrated slightly more optimism in the financial services sector, particularly in the U.S. Given the large subscription-based nature of the business, Smith said he looks at the operating environment on a multiyear scale.
"[Thinking] about the potential of a world in which we return to a more normalized environment for interest rates is certainly encouraging to financial institutions," he said.