Reuters Group 3Q Results in Line, No Revenue Turnaround in Sight
Reuters Group PLC issued its third quarter trading statement this morning in calls with analysts and portfolio managers in London and New York. These trading statements do not include profit disclosures, which Reuters is obligated to report only twice a year. Group revenues for the three months ended September 30 were �658 million down 12 percent on an actual basis from �716 million in the same year-earlier quarter and were in line with expectations. Chief executive officer Tom Glocer reiterated forecasts of an 11 percent decline in recurring Group revenues for 2003. He will provide 2004 revenue guidance in mid-January. Glocer�s presentations are a bit like reading tealeaves. Analysts and portfolio managers hang on his every word and nuance for signs of a turnaround, i.e., plus signs in front of revenue disclosures as opposed to the steady stream of negative comparisons over the past several years. Most see the turn coming 2005. Glocer disclosed that Reuters would make the JPMorgan eXpress electronic trading platform available to its global customer base as another offensive/defensive move against Bloomberg in the fixed income space. Glocer also said that TIBCO would file a registration statement within the next ten days covering the planned distribution of part of Reuters� 49 percent interest in TIBCO shares. Proceeds from the sale are estimated at US$230 million. Reuters also intends to float a bond issue in the next several weeks with the proceeds being added to working capital. No details were disclosed.