Global news and information company Reuters has exceeded market forecasts with a bounce back to underlying profit for the first half, despite a 10% fall in core subscription revenues.
The world's largest listed provider of news and market data to financial institutions also narrowed its full year 2003 forecast to a fall of around 11% in core subscription revenues.
Reuters, which has been slashing costs, reported pre-tax profit before goodwill amortisation and exceptional items of £87m for the six months ended June 30, compared with market expectations of about £42m and a loss a year earlier of £10m.
Reuters core revenues are generated overwhelmingly by sales of information screen subscriptions to banks, brokerages and fund managers worldwide. They have been falling for the past 18 months as its major clients slash costs to cope with a severe downturn in stock markets over the past three years.
