Reuters Results Better Than Expected

Reuters said that core revenues were down 12% to £658 million in the three months to 30 September, slightly ahead of forecasts. Recurring revenue from subscription products, which accounts for over 90% of core revenues, dropped 10.9%, better than the 11-12% expected.

The third quarter saw the lowest level of net cancellations since Q1 2002 and there has now been an overall reduction in the average rate of cancellations for three successive quarters. This can only be attributed to improving business in the US and Asia for Europe is yet to turn the corner, according to Reuters.

However, the ‘Fast Forward’ cost cutting drive is achieving the anticipated savings (see Reuters Moves Into Profit As Savings Plan Pays Dividends) and the decline in recurring revenue over the full year should not exceed 11%.

“At a time when so much of the Reuters story depends on our ability to deliver, it is particularly encouraging to be able to report that we are executing according to plan,” said Reuters chief executive Tom Glocer.

Shares in the company were up 12.25p at 246.75p by mid-afternoon today.