'Flat' revenues signal end of Reuters' slide

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The Independent Online

Reuters, the financial news and information group, revealed yesterday that it expected core revenues to be flat in the second quarter of this year, ending a slide that has lasted more than three years.

Reuters, the financial news and information group, revealed yesterday that it expected core revenues to be flat in the second quarter of this year, ending a slide that has lasted more than three years.

The company also reported that, in the first quarter, recurring revenues were down 1.4 per cent on an underlying basis, slightly better than the 1.5 per cent decline that the company had previously indicated.

Analysts expect that for the full-year, Reuters' core subscription revenues - the key measure - will show growth but the company would not commit itself to this target. Tom Glocer, the group's chief executive, said: "If the trend continues and the size of the gap doesn't change dramatically, it's certainly not an unreasonable conclusion to draw, but not one we're hanging out today."

Reuters said that its market share had remained "stable" in 2004 overall, but at the premium end of the market it had gained one percentage point of share.

There was no news on the sale of the company's electronic brokerage, Instinet.

Reuters is believed to be close to agreeing a $1.8bn (£950m) sale of the business to Nasdaq, the US stock exchange.

"It's a story of it's not over till it's over," Mr Glocer said.

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