Reuters overall market share slips, high-end gains on Bloomberg
02 April 2004 | 8211 views | 0
Reuters says it lost further market share last year, with its revenue take of the £6bn global financial information market slipping two percentage points to 37% during 2003.
The UK vendor saw a loss of share in the overall end user market last year, which accounts for around 60% of its recurring revenue base.
But Reuters says it is confident of winning business back with new products and claims to have gained against rival vendor Bloomberg at the premium end of the market - where data screens cost around $1000 a month. Reuters says it now commands 28% of the £2.2 billion premium market by revenue, and 34% by user numbers.
In a statement, Reuters chief executive Tom Glocer says the drop in overall market share is not unexpected: "I am confident that the strength of our new products in the mid-tier and our investment in service will be the basis for strengthening our overall position."
The decline had little effect on Reuters' share prices, which were up 1.30% by mid-morning to 405.50 pence after recovering from a slight early loss.
As part of its push into new markets, Reuters has launched an online brokerage service for interest rate (IRS) and overnight index swaps (OIS), called Reuters Matching for Interest Rates.
Traders can use the service to trade Euro denominated IRS and OIS electronically over the Reuters Dealing 3000 products. The system will be extended to cover British pound, US dollar and Swiss franc IRS and OIS trading.
Reuters Matching for Interest Rates has gone live across Europe with 31 banks signing up for the service. The system will gradually be rolled out to North America and Asia.
The vendor has also won a deal to distribute its analytics data over the Nasdaq Online service and has signed HBOS subsidiary Insight Investment Management to its new browser-based desktop product, Reuters Knowledge.
Reuters' Estimates and Fundamentals services have been incorporated into the Nasdaq Online site. The agreement also allows Nasdaq-listed companies to purchase Reuters Knowledge for Corporates - which delivers broker and independent research, morning notes, estimates, market data and charts - at a reduced price.
Also, Insight Investment Management, the asset management arm of UK banking group HBOS, is rolling out Reuters Knowledge desktop to its fund managers and analysts.
The system will integrate news and information provided by Reuters with Insight's own data. Users can then modify the data, add commentary and publish the information as PDF or HTML documents.