TORONTO – Thomson Reuters Corp. (TSX:TRI) reported a drop in its first-quarter profits compared with a year ago as it was hit fair value adjustments related to foreign currency embedded derivatives in some of its customer contracts.
The news and information company, which keeps its books in U.S. dollar, says it earned US$262 million attributable to common shareholders or 34 cents per diluted share.
That compared with a profit attributable to common shareholders of $305 million or 38 cents per share in the same quarter last year.
Revenue for the quarter slipped to $2.79 billion compared with $2.82 billion in the first three months of 2015.
On an adjusted basis, the company said it earned $367 million or 48 cents per diluted share for the quarter compared with $308 million or 39 cents per diluted share a year ago.
Thomson Reuters chief executive Jim Smith said the results were in line with expectations.
“It is encouraging to see the continued positive trajectory of our business, despite a somewhat volatile and challenging period in external markets during the first quarter,” Smith said in a statement.