Monthly Archives: November 2012



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LinkedIn Beats By Dre Uk Anticipations, Boosts Full-year Income See

(Reuters) – Specialist social networking LinkedIn Corp lead Walls Roads third-quarter income and earnings goals, because advertising prices increased as well as revenue from the getting services almost doubled.

Shares regarding LinkedIn obtained nearly 8 % to be able to $115. 15 within after-hours investing on Thursday night, because the company extended the streak regarding beating analyzer expectations each one fourth since its Might 2012 initial general public providing.



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UPDATE 3-Thomson Reuters operating profit down, trading pressured

* Underlying operating profit falls 15 percent on lower

* Third-quarter revenue meets expectations

* Company reiterates full-year outlook

By Jennifer Saba

Nov 2 (Reuters) – Thomson Reuters Corp
reported on Friday a 15 percent fall in operating profit because
of declining revenue and higher costs at its division that
serves the financial industry.

The slip in profit in the third quarter underscored the
problems facing some of Thomson Reuters clients, such as banks
and brokerages that are reducing staff and trimming costs to
cope with increased regulation and the struggling global

This business climate is leading the global news and
information provider to keep a tight grip on costs while at the
same time investing in customer service for its flagship
financial product Eikon.

Thomson Reuters reaffirmed its 2012 forecast, due in part to
stability at its Legal division, which includes WestlawNext.
Revenue there rose 1 percent to $830 million on growth in Latin
America and products such as legal resource provider FindLaw

The companys smaller units, meanwhile, showed strong
growth. Governance, Risk Compliances revenue jumped 17
percent while revenue at the Tax Accounting division rose 8

Still, its trading business, which rivals the Legal division
as the biggest contributor of revenue, saw an 8 percent decline
in revenue to $816 million in the quarter.

The trading performance weighed down the companys operating
profit, which f ell to $585 million from $690 million. The
corresponding margin slipped to 18.5 percent from 21.6 percent
in the same period a year ago.

The company said that in the third quarter last year, its
underlying profit margin was the high-water mark for 2011.

The big headline is the decline in operating profit, said
Claudio Aspesi, senior analyst at Sanford Bernstein Co. Its
clear they need to be aggressive on costs. There is no way of
knowing when the top-line will recover.

Thomson Reuters Chief Executive James Smith said that he
does not expect net sales to financial institutions to turn
positive in the fourth quarter.

The net sales trend is an important gauge of the companys
future performance because subscription-based revenue typically
lags sales by about 12 months.

Were gaining momentum and traction but the down drafts at
the big global banks and in Europe (are) still offsetting
improved traction and momentum, Smith said, declining to
provide net sa l es figures.

We have to keep moving faster at removing complexity in
the organization. There is too much siloed behavior and too many
layers, he said.

The company is attempting to move away from some older
legacy products since the 2008 merger of Thomson Corp and
Reuters Group Plc, and bring clients products like Eikon, its
new desktop for financial professionals.

Thomson Reuters reported that its Eikon desktops totaled
25,600 at the end of the third quarter, up about 35 percent from
the end of the second quarter.

Its a good number, said Doug Arthur, an analyst with
Evercore Partners. Its a positive sign that Eikon is showing
steady growth.

Smith said in a memo to employees that last month the
company sold 1,000 Eikon terminals a week; two-thirds were
upgrades and one-third were new sales.

New York-listed and Toronto-listed shares of Thomson Reuters
were down 1.4 percent in afternoon trade at $28.12 and C$28.01,


The company stood by its full year outlook despite the
struggling global economy. Revenue growth is expected to be in
the low single-digits and underlying operating profit margin is
anticipated in the range of 18 -19 percent.

In the United States, financial companies have announced
plans to cut 28,000 jobs through the first nine months of this
year, compared with 54,000 jobs during the same period in 2011,
according to Challenger, Gray Christmas.

Swiss bank UBS said earlier this week that it
planned to fire 10,000 employees, or 15 percent of its staff, in
an effort to save billions of dollars.

Thomson Reuters is not the only market data provider to feel
the reverberations from the cutbacks occurring in the banking
sector and persistent economic weakness dogging Europe.

In September, FactSet Research Systems reported its
weakest revenue growth in two years..

Privately held Bloomberg LP, which competes with Thomson
Reuters on several fronts, is seeing growth of its terminal
sales to financial institutions slowing, according to a recent
report in the New York Post. A Bloomberg spokeswoman declined to

Third-quarter revenue from ongoing businesses this year rose
1 percent before currency changes to $3.2 billion. That is
in-line with analysts expectations, according to Thomson
Reuters I/B/E/S. Stripping out acquisitions, divestitures and
currency changes, revenue fell 1 percent.

The market for financial professionals is going to pick
up, said Ryan Bushell, a portfolio manager with Leon Frazer
Associates, who manages the IA Clarington Canadian Conservative
Equity Fund. We think that Thomson Reuters is going to survive
and thrive. Leon Frazer holds 2.7 million Thomson Reuters

For the quarter, Thomson Reuters reported adjusted earnings
per share of 54 cents, unchanged from the same period a year
ago. Analysts, on average, had forecast earnings per share of 48

The company recorded a net tax benefit of $140 million in
the period, a reversal of a tax expense of $145 million in the
same period a year earlier. Negotiations with tax authorities
primarily in the United States and Taiwan ended favorably for
the company, reducing Thomson Reuters projected tax rate for
the year to 16 to 18 percent from 21 to 23 percent.



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UPDATE 1-M&C Hotels room revenue falls on weakness in Asia

* Hotels revenue down 4 pct in third quarter

* Singapore RevPAR down 1.6 pct

* Group RevPAR up 2.6 pct

* Shares down nearly 4 pct

By Karen Rebelo

Nov 2 (Reuters) – Millennium Copthorne Hotels Plc
reported a fall in third-quarter average revenue per room in its
hotels in Asia, its biggest market, and said it remained
cautious about the outlook in an uncertain global economy.

Shares in the company, whose hotel brands include
Millennium, Grand Millennium, Copthorne and Kingsgate, fell
about 4 percent on the London Stock Exchange on Friday.

MC Hotels reported a 1.6 percent fall in revenue per
available room (RevPAR) in its Singapore market, which accounted
for about a fifth of its revenue in the quarter.

For sure (in) Singapore, which is our biggest contributor
to the Asia performance, there has been a slowdown, Chief
Executive Wong Hong Ren said in a call with reporters.

Along with subdued corporate spending in Singapore, demand
in Asia was hurt by renovations at the Grand Hyatt hotel in
Taipei, which involved closing more than 500 rooms, MC said.

Excluding Singapore, RevPAR fell 0.7 percent in Asia, which
contributed a little over 18 percent of the companys revenue.

Group RevPAR grew 2.6 percent, boosted by a 20.2 percent
increase in London, home to the 2012 Olympics.

MC, majority-owned by Chairman Kwek Leng Bengs
Singapore-based property company City Developments Ltd
, said total revenue fell 21 percent to 191.2 million
pounds, while revenue from hotels fell 4 percent to 187.7
million pounds.

July-September profit before tax fell 45 percent to 38.1
million pounds ($61.50 million) on a reported currency basis.

Profit in the year-ago quarter included a 33.8 million pound
gain from land sale in Kuala Lampur.

The company said it had not yet fully assessed the impact of
superstorm Sandy on its operations in New York, where its
properties include the Premier in Times Square, One UN and the
Millennium Broadway.

Shares in MC, which operates over 100 hotels around the
world, were down at 492 pence at 1217 GMT on the London Stock
Exchange on Friday.



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SC Department of Revenue didn’t use state cyber security system

But for the systems that a hacker breached, the Revenue Department had not been using a layer of cyber security offered by the state, according to information provided Thursday to The Post and Courier by the SC Budget and Control Board.



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ROVI Rises 11%; Revenue Growth Challenged, Profit Shines

By Tiernan Ray

Shares of interactive television software supplier Rovi (ROVI) are up $1.51, or 11%, at $15.85 after the company last night reported Q3 revenue and profit that comfortably beat consensus estimates, and projected the full year&’s results higher as well.

Price targets and some estimates are going up, though not from everyone. There is a sense revenue growth is challenged, if you will, while the company is able to make up for it on the bottom line.

Todd Mitchell with Brean Capital, who has a Buy on the shares, raised his price target to $20 from $17, after raising his 2012 estimate for profit to $1.85 from $1.65 previously, while raising his 2012 estimate by just $1 million, to $665.

Mitchell raised his 2013 profit estimate to $2.10 from $2, but keeps intact his $688 million estimate.

Writes Mitchell, &“Upside for the quarter was due to better than expected CE segment revenues, while an improved outlook for 2012 non-GAAP EPS is the result of $30+ million in annualized cost reductions.&”

He&’s most encouraged by the fact that &“Management’s “back to the basics” strategy gives us even greater confidence that Rovi can drive sustainable 20% EPS growth.&”

Cowen & Co.&’s Robert Stone, reiterating a Neutral rating on the stock, cut his outlook for this year&’s revenue to $664.9 million from a prior $667.3 million, even though he raised his EPS estimate to $1.85 from $1.65.

And even one bull was disappointed enough to cut his price target.

Mark Harding of JMP Securities, who has a Market Outperform rating, cut estimates for this year and next, and cut his price target to $20 from $31, writing that the company faces slowing trends in both the consumer electronics and the service provider market, which is tough given that last quarter shown specifically because consumer electronics made up for the carrier shortfall:

3Q12 revenue upside was driven solely by significantly better than expected CE revenue, more than offsetting disappointing service provider and other revenue […] Our 2013 revenue reduction is based on a reduced outlook for service provider ad revenue growth as well as slower monthly sub-ARPU growth, while our CE reduction is due to a deteriorating CE outlook and DIVX weakness.

Harding cut his estimate for this year to $668.4 million and $1.86 per share in profit from a prior $676.7 million and $1.85. For 2013, he goes to $678.7 million, down from $715.6 million, while raising his EPS estimate 3 cents to $1.95. He notes that Rovi&’s outlook for 2013 offered back at the end of Q2 was for about $715 million, but that last night the company offered &“very little insight into 2013.&”

  • earnings,
  • software,
  • telecom,
  • television



Comments Closed revenue hit by German tax rules, poor poker

LONDON (Reuters) – Digital Entertainment, the worlds largest listed online gaming group, said a new gaming tax in its core German market and a big drop in poker sales pushed net revenue down 10 percent in its third quarter.

The firm said on Friday net revenue in the three months to October 31 fell to 175.7 million euros compared to the same period a year ago, but added that it had seen a marked recovery in trading since the end of September.

The introduction of a 5 percent turnover tax on sports betting in Germany, revenue decline in poker and continued pressure on consumer spending, particularly in parts of southern Europe, held back our performance in the third quarter, the firm said in a statement.

In Germany, the tax rule which came into effect from July 1 contributed to an 8 percent decline in the amount wagered on sports betting as removed short-odds bets. Year-on-year sports betting revenues fell 2 percent to 828.3 million euros, with unfavourable European soccer results also a factor.

Poker net revenue fell 29 percent year-on-year to 37.0 million euros, continuing a recent decline, although the firm said the imminent integration of its dotcom poker networks would provide a major catalyst for growth.

The group said that a recent upturn in business had been driven by a strong recovery in sports betting, with average daily net revenue in October up 19 percent on the previous quarter. It said it was confident about its full-year result.

Shares in the group were down 1.65 percent at 119 pence by 0842 GMT.

(Reporting by Neil Maidment; Editing by Paul Sandle)



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Clear Channel Outdoor revenue falls short, shares skid

n>(Reuters) – Clear Channel Outdoor Holdings Incs (CCO.N) quarterly revenue fell short of expectations as the outdoor advertising companys international sales slipped, particularly in Europe, sending its shares down 6 percent in early trading.

Advertising companies such as Clear Channel, whose fortunes are closely tied to the health of the economy, have been warning of weak spending because of the euro zone crisis and slowing growth in China, but they have benefited from political advertising in the run-up to the US Presidential election.

Macroeconomic conditions continue to drive uneven performance across our international markets, Chief Financial Officer Tom Casey said on a conference call with analysts after Clear Channel reported a surprise quarterly profit.

But the weakness in southern Europe, France and the Nordic countries has been offset by continued growth in Latin America and the Asia-Pacific region, he added.

Bain Capital Partners LLC, co-founded by US Presidential candidate Mitt Romney, is part of a private equity group that owns Clear Channel Communications Inc, which in turn controls 89 percent of Clear Channel Outdoor.

International revenue, which accounted for more than half of Clear Channel Outdoors total revenue last year, fell by $1 million in the third quarter from the year-earlier period.

Excluding a $6 million reduction in revenue due to the sale of two businesses and the effects of currency rates, international revenue rose 5 percent.

Clear Channel Outdoor, which sells advertising space on billboards, public transport and other outdoor venues, said growth in international revenue resulted mainly from strong demand in Australia, China, and from the Olympics in London.

Competitors include JC Decaux SA (JCDX.PA), CBS Corps (CBS.N) CBS Outdoor and Lamar Advertising Co (LAMR.O).

Net profit jumped five-fold $17.3 million, or 5 cents per share, from $3.2 million, or 1 cent per share, a year earlier, while revenue fell 2 percent to $731 million.

Analysts had expected a loss of 4 cents per share on revenue of $737.1 million, according to Thomson Reuters I/B/E/S.

The companys stock, which has lost about 45 percent of its value this year, was down 6 percent at $6.44 in morning trading on the New York Stock Exchange on Friday.

(Reporting by Sayantani Ghosh in Bangalore; Editing by Akshay Lodaya and Ted Kerr)



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Delta’s key revenue measure up in October, but storm hurt

n>(Reuters) – Delta Air Lines (DAL.N) said on Friday that a key revenue measure improved in October, helped by corporate travel and cancellations in the wake of superstorm Sandy.

The airline, which canceled more than 3,500 flights last month because of the storm, said Sandy had hurt October revenue by $45 million and likely shaved about $20 million from the carriers October profit. It estimated that the storms effect on November revenue and profit would be less than October.

Unit revenue, a measure of pricing power and how full planes are, rose 5.5 percent in October from a year earlier. The cancellations caused a 2 percent reduction in Deltas systemwide capacity in October from a year ago.

Delta said the improvement in unit revenue, also known as passenger revenue per available seat mile, was about one percentage point higher than it would have been without the impact of the hurricane. Cancellations tend to help unit revenue as more travelers are put on remaining flights. Deltas percentage of seats filled systemwide in October was 84.6 percent, up from 82.8 percent a year earlier.

Delta said that it was operating close to a full schedule at New Yorks John F. Kennedy airport and Newark Liberty in New Jersey as its New York operations were restored after the storm, which forced airport closures.

The airline, which is based in Atlanta, said it expected a full schedule on Friday at LaGuardia, where it offers roughly 260 flights a day.

US airlines canceled nearly 20,000 flights this week, and analysts expect a material earnings hit from Sandy.

David Fintzen, a Barclays analyst, said in a note to clients late this week that airline profits could suffer $200 million in the fourth quarter because of the storm. He is projecting a collective pretax profit of $450 million for major airlines excluding AMR Corps (AAMRQ.PK) American, which is operating under Chapter 11 bankruptcy.

He added New York-based JetBlue (JBLU.O) and US Airways (LCC.N), which has a hub in Philadelphia, likely have the most relative exposure to impact from the storm.

We think US airlines overall can still be profitable in an off-peak quarter after accounting for the hurricane, Fintzen wrote.

Shares of Delta were off 1 percent at $9.60. Other airline stocks edged down, with United Continental (UAL.N) off 0.4 percent at $19.41, US Airways down 0.5 percent at $12.49 and Southwest Airlines (LUV.N) down 0.3 percent to $9.02.

(Reporting by Karen Jacobs; Editing by Phil Berlowitz)