Reuters reports 1st quarter revenue up 13 per cent

News and financial data provider Reuters Group said Wednesday its first-quarter revenue rose 13 per cent. Reuters said revenue for the period ending March 31 came to 633 million pounds ($1.13 billion US), compared with 558 million pounds for the same period in 2005. The results beat analysts' expectations.
Underlying revenue, most of which comes from the company's core trading screens business and strips out the impact of currency changes, were up four per cent, Reuters said. The London-based company said it forecast this figure to rise to five per cent for the full year.
Reuters has struggled to increase sales amid fierce global competition from Bloomberg LP and Thomson Financial, while mergers and consolidations in the banking industry have reduced demand for its financial products among banks.
Chief executive Tom Glocer implemented a cost-cutting program in 2003 and last year started the Core Plus plan, which aims to boost revenue by targeting markets outside the traditional terminals business.
The company said its full year forecast of five per cent growth includes acquisitions and one per centage point of growth from Core Plus. The company acquired U.S. market data company Moneyline Telerate in June 2005. ``We have delivered a good first quarter, which provides a strong base for the rest of the year,'' Glocer said. ``Our Core Plus strategy is also off to a good start with growth in transaction revenues, media and emerging markets like China and India.''
Reuters shares were little changed, down just 0.1 per cent at 3.98 pounds ($7.10) in trading on the London Stock Exchange.

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