13 December 2017
visit www.avoka.com

Reuters shares bounce on Q1 results

16 April 2003  |  4443 views  |  0 Reuters Graph 2

Shares in Reuters have bounced in early trading after the news and media group reported a 9.1% decline in recurring revenues for the first quarter - defying analysts worst expectations - and released improved market share statistics for 2002.

Reuters' first quarter statement - which excludes figures from electronic trading subsidiary Instinet - shows a 10% decline in core revenue to £670 million and a 9.1% drop in recurring revenue to £624 million.

By 10.30 BST shares in the group were trading at 127.5 pence, 8.2% up on the overnight close of 117.75 pence, but down from an early morning high of 113.5 pence. Analysts were particularly cheered by remarks from finance director David Grigson that the US market for the company's products may have bottomed out.

As fears over the dividend receded, Reuters released internal statistics indicating a growth in market share for the company over 2002. The data, aggregated from over 50 independent sources and proprietary interviews covering thousands of end-users over the last two years, covers approximately 60% of Reuters recurring revenue base.

At headline level, the survey implies that in 2002 Reuters share of revenue increased by two percentage points to 39%. While top-end rival Bloomberg appeared to have increased its share by four percentage points to around 42%, Reuters says both companies have succeeded in taking market share from smaller competitors. The stats indicate that third-placed Thomson Financial kept its share of the market steady in 2002.

Looking at the past quarter in more detail, user accesses stood at 469,000 at the end of the quarter and were down 17% year-on-year. The decline from the end of 2002 was 5%, reflecting the high level of cancellations in December 2002.

Outright revenue, which represents 3% of core revenue, fell 33% to £21 million due to continuing pressure on customer IT budgets and the narrowing of focus of Reuters Solutions business. The firm says it expects to withdraw a further 200 products from production this year, in addition to the 250 already withdrawn from sale.

Reuters says the overall decline in outright revenue masks encouraging progress in key areas of focus. In risk management, 700 positions of a new product, Reuters Kondor Global Limits, have been sold in the first two weeks since its launch, says the firm and a new version of Reuters flagship risk product, Kondor +, will be launched ahead of schedule in the second half of this year.

As anticipated, Reuters net sales performance in the first quarter of 2003 has shown some improvement on the fourth quarter of 2002, although market conditions remain difficult, says CEO Glocer. Looking ahead, Reuters expects the underlying decline in second quarter recurring revenue to be approximately 11% and, assuming no step change in existing market conditions, for the full year decline to be in the order of 10% to 12%

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

HSBC selects Reuters to deliver outsourced FX services

HSBC selects Reuters to deliver outsourced FX services

14 April 2003  |  5840 views  |  0 comments
Reuters upgrades Kondor; adds NumeriX analytics

Reuters upgrades Kondor; adds NumeriX analytics

08 April 2003  |  4688 views  |  0 comments
Reuters and IBM in Asia Pacific risk ASP deal

Reuters and IBM in Asia Pacific risk ASP deal

03 April 2003  |  5220 views  |  0 comments
Reuters signs three to order management and execution tool

Reuters signs three to order management and execution tool

31 March 2003  |  4903 views  |  0 comments
Reuters hires Microsoft's David Gurle to head collaboration services

Reuters hires Microsoft's David Gurle to head collaboration services

28 March 2003  |  6351 views  |  0 comments
Global volatility spurs record Reuters FX volumes

Global volatility spurs record Reuters FX volumes

27 March 2003  |  4676 views  |  0 comments
Santander and Schleswig-Holstein track credit risk with Reuters

Santander and Schleswig-Holstein track credit risk with Reuters

24 March 2003  |  4989 views  |  0 comments
FXall to use Reuters instant messaging

FXall to use Reuters instant messaging

20 March 2003  |  5611 views  |  0 comments
Reuters crashes below 100 pence a share level; knocks Thomson off GKM

Reuters crashes below 100 pence a share level; knocks Thomson off GKM

12 March 2003  |  7277 views  |  0 comments
Reuters steals positions from Thomson with new Fahnestock contract

Reuters steals positions from Thomson with new Fahnestock contract

06 March 2003  |  5021 views  |  0 comments
Reuters 3000Xtra available for thin client deployment

Reuters 3000Xtra available for thin client deployment

04 March 2003  |  6964 views  |  0 comments
Tony Kirby made redundant as Reuters rethinks STP

Tony Kirby made redundant as Reuters rethinks STP

03 March 2003  |  5956 views  |  0 comments
Reuters shares fall again as Thomson Corporation reports revenue rise

Reuters shares fall again as Thomson Corporation reports revenue rise

27 February 2003  |  4480 views  |  0 comments
Korea First Bank implements Reuters' Kondor+

Korea First Bank implements Reuters' Kondor+

27 February 2003  |  4706 views  |  0 comments
Reuters reports record loss; cuts 3000 jobs

Reuters reports record loss; cuts 3000 jobs

18 February 2003  |  7761 views  |  0 comments
Brief: Reuters appoints Jon Robson global head of fixed income

Brief: Reuters appoints Jon Robson global head of fixed income

17 February 2003  |  8710 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.atos.netvisit www.aciworldwide.comvisit www.solutions.lexisnexis.com

Top topics

Most viewed Most shared
Saxo Bank's 'Outrageous Prediction': Bitcoin to peak at $60k next year before spectacular crashSaxo Bank's 'Outrageous Prediction': Bitco...
12163 views comments | 7 tweets | 7 linkedin
Deutsche Bank paper hails 'huge' blockchain potentialDeutsche Bank paper hails 'huge' blockchai...
9352 views comments | 16 tweets | 22 linkedin
PSD2: Laying the regulatory foundation for a new age in paymentsPSD2: Laying the regulatory foundation for...
7968 views comments | 17 tweets | 35 linkedin
Santander UK poaches Barclays innovation chief Michael HarteSantander UK poaches Barclays innovation c...
7346 views comments | 8 tweets | 17 linkedin
Alior Bank to use Open API platform and accelerator to create fintech marketplaceAlior Bank to use Open API platform and ac...
7189 views comments | 20 tweets | 11 linkedin

Featured job

Competitive
London, UK (or flexible)

Find your next job