Reuters slows slide in revenues

REUTERS, the news and financial data group struggling to stem its sales decline, fared slightly better than expected in its third quarter but still suffered a near-11% slump in core revenues.

The figures highlight tough conditions for the group, which has been identified as a potential takeover candidate for US media giant McGraw Hill.

Revenues on core repeat business came in at £609m in the three months to 30 September, down 10.9% on the £654m in the same period a year earlier.

However, chief executive Tom Glocer said there were continuing signs the group was gaining 'traction' in the US market.

He upgraded forecasts for the full-year's revenues from an 11% to 12% decline to '11% or slightly better'.

In the third year of a bear market that saw orders for its trading screens collapse, Reuters faces stiff opposition from Bloomberg and Thomson Financial.

But Glocer said the improvement was 'driven by a reduction in the overall rate of net cancellations for the third consecutive quarter'.

Glocer this year launched his £440m 'Fast Forward' cost-cutting programme, which has so far seen 1,000 job losses. Meanwhile, hundreds of jobs are moving to low-cost centres such as Thailand and India.

Last week, Reuters revealed signs of a pick-up at Instinet, a US electronic brokerage affiliate in which it holds 63%. Profits there came in at $4.1m (£2.4m) in the three months to 30 September against a loss of $528m for the same quarter last year.