Financial news and information group Reuters has reported a 1.1% decline in first quarter revenue as the weak dollar hit the value of sales to US customers.
The Londond-based group reported Q1 total revenue of £626 million against £633 million in the year earlier period. Discounting the effect of currency swings and acquisitions, the vendor reported underlying revenue growth of 6.5%, including two percentage points from its Core Plus growth strategy.
Reuters' chief Tom Glocer appeared unfazed by the dip in actual revenue: "Our first quarter results confirm that we have made a strong start to 2007. Reuters continues to benefit from the focused investment we announced with Core Plus, the early indications from FXMarketSpace are encouraging, and we are well-positioned to deliver on our full-year expectations."
Shares in the vendor nonetheless ticked downwards by 4.25 pence, or 0.9%, to 479.75 pence, in early trading as analysts digested the news. Forecasts for a further decline in the dollar and ongoing consolidation among Reuters' tier 1 targets curbing investor's appetite for the stock, despite the underlying growth trend.
The vendor was boosted by a two-year deal with Barclays Wealth to provide 800 desktop terminals, including the 3000 Xtra, at the company's offices in the UK, Monaco, Switzerland, Singapore and Hong Kong.
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