Reuters Tumbles Into H2 Loss, Hit By Instinet
Media and information group, Reuters, has this morning posted a pre-tax loss of £88 million, with profits hit hard by losses at Instinet, the company’s electronic securities trading division. The figures cover the six months to 30 June 2002.
Instinet saw operating losses of £5 million on revenues down by 38% year on year; the company has been suffering from heavy losses for some time now. However, analysts at ABN Amro believe that the worst is over for Instinet and that the business is now close to recovering profitability.
Overall Reuters group revenue fell by 5% to £1.8 billion, whilst operating profit rose by 32% to £190 million before restructuring. The cost savings resulting from business restructure are expected to reach £205 million in 2002 and £335 million in 2003.
The results are pretty much in line with expectations; the negative figures at Instinet were predicted to drag Reuters into loss for the second half.
By mid-morning today, shares in Reuters had nudged up ½p at 299½p.
