Reuters is reporting a 13% fall in first quarter group revenue to £798 million from £912 million after taking account of earnings statements from majority-owned subsidiary Instinet, which has turned in a $34 million first quarter loss.
Instinet today reported a drop in revenue to $240 million from $269 million in the same quarter a year earlier.
Reuters, which has a 63% stake in the electronic interdealer broker, last week reported a 10 per cent slippage in core revenues - excluding Instinet - to £670 million for the first three months of 2003.
Instinet recently announced plans to cut an additional 175 staff, or 12% of its workforce, in a bid to reduce costs by $20 million annually.
In a statement, chief financial officer, John Fay, hints at more cost-cutting to come: "In the first quarter, we reduced our operating costs significantly compared to the fourth quarter. We are operating in a very tough environment and continue to be focused on looking for cost reductions and efficiencies."