Reuters optimistic on revenues improvement

Shares in news and information group Reuters soared 7 per cent today after it said it expected a recent trend of gradual improvement…

Shares in news and information group Reuters soared 7 per cent today after it said it expected a recent trend of gradual improvement to continue into 2005.

The stock topped the FTSE 100 Index with a 23.25p rise to 346.25p after the Fleet Street-based company reported an underlying decline in third quarter recurring revenues of 4.4 per cent to £528 million sterling, ahead of its 5 per cent forecast.

Reuters added that third quarter gross sales outpaced cancellations for the first time since the first quarter of 2001.

The slump in the financial services market since 2001 has hit demand for Reuters data products and the firm faces tough competition from rivals such as Bloomberg.

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However, group chief executive Mr Tom Glocer said the group made good progress towards recovery during the quarter, despite uncertain market conditions.

It has been introducing products such as capital markets information product Reuters Trader, which launched in 2003 and saw user numbers almost double during the quarter to nearly 3,000.

PA