Reuters revenues down 11%
The world’s largest international multimedia news agency Reuters has announced a decline of almost 11% in revenues in an interim results announcement, including statistics for the Instinet Group.
Revenues were down to £1.4bn (€2bn), a decline of 11%, nearly half of which was attributed by the company to US dollar weakness.
Reuters operating costs fell to £1.1bn (€1.7bn) in the six months to June 2004. This represents a decline of £173m (€261.8m), or 14%, over the same period last year, a slightly bigger decline in percentage terms than the reduction in revenue. The major drivers of this reduction were Fast Forward savings, currency fluctuations, operational gearing linked to revenue decline, and disposals.
Reuters Group pre-tax profit was £332m (€502m) from £19m (€28.7m), driven primarily by profits on disposals of £220m (€332.9m) at Reuters and £11m (€16.6m) at Instinet Group.
Earnings per share for the Reuters Group were 20.4p (2003: 0.5p). The interim dividend remains unchanged at 3.85p per share.
As of June 2004, Reuters has 14,700 staff in 92 countries, including some 2,400 editorial staff in 197 bureaux serving approximately 130 countries.
"At the mid-point of its three-year Fast Forward programme, Reuters is making good progress on transforming itself into a more competitive, less complex, more customer service-driven and more efficient business," Reuters said in today's statement.
Reuters expects the decline in recurring revenue in the third quarter of 2004 to be around 5%, with further gradual improvement in the fourth quarter.
