Thomson Reuters feels the pain as bank cutbacks bite

Thomson Reuters feels the pain as bank cutbacks bite

Thomson Reuters is feeling the full force of the depression in financial markets trading, reporting a 15% fall in operating profit for the third quarter.

The news and information group reported a two per cent overall decline in revenue in its financial and risk business, with operating profit down 26% to $283 million, as big bank clients trim their costs in the face of a global economic slowdown. The biggest decline was seen in the trading division, where revenues dipped eight percent before currency fluctuations halved the deficit.

The company continues to invest in its flagship Eikon desktop, reporting 25,600 installations at the end of the Q3, up approximately 35% from the previous quarter.

Thomson Reuters is not alone in feeling the pain, with great rival Bloomberg seeing sales of its proprietary terminals fall off a cliff, with only 1000 units installed in the firt nine months of the year, compared to almost 14,000 shipments in 2011.

Thomson Reuters CEO James Smith says the results are in line with expectations and that the company remains on track to achieve its full-year outlook.

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