Reuters Chief Sees No Signs Of Recovery As Losses Soar
There are no signs of recovery in the financial information markets, Reuters CEO Tom Glocer told a news conference this morning, as his group posted heavy losses.
Reuters Group as a whole unveiled revenues down by 8% during the year to 31 December 2002, with pre-tax losses coming in at £493 million, largely stemming from disposal costs. The Reuters division of the group saw normalised pre-tax profits rise by 51% to £194 million.
The company has instigated a three year action plan, dubbed “Fast Forward”, which aims to “address the impact of structural change in the financial services industry, including reduced headcount, massive growth in market data volumes, the crisis in investment research and increasing regulation.”
The company is targeting annualised savings of £440 million, resulting in restructuring charges of £340 million between 2003 and 2005. Employee numbers are expected to fall from 16,000 to around 13,000 by the end of 2005.
Reuters Group also announced this morning the acquisition of New York-based financial information provider, Multex, for £4.56 per share in cash. The ultimate cash cost to Reuters will be around £121.0 million.
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