Reuters Stock Falls As Profits Drop 34%
Shares in global news and information provider Reuters have fallen heavily this morning, as the group posted full year profits that were down by 34% and said that the trading environment remains difficult.
Huge restructuring and business start-up costs – the Business Transformation Programme – pushed Reuters’ pre-tax profit for the year to 31 December down by 34% to £304 million.
Whilst the group has created a number of new products that should aid growth from 2003/4 onwards, it is expecting this year to be weak, particularly in recruitment revenues. Underlying subscription revenues are predicted to fall by 2-3% in the first half of 2002.
ABN Amro: Hold
Shares in Reuters were down by 37p – 6.3% – at 555p by mid-morning.
