News agency Reuters reported its first underlying loss as a listed firm today as clients cut spending and profits collapsed at its electronic trading unit.
Many of Reuters's financial-market clients are in the worst bear market in 30 years. The group reported a pre-tax loss of £88 million sterling (€139 million) - roughly in line with market forecasts.
Group revenues fell 5 per cent to £1.838 billion, reflecting a 38 per cent slide in revenues at its separately listed subsidiary, Instinet, and general weakness in financial markets.
The loss - the group's first since listing in London in 1984 - stemmed from £156 million in restructuring costs and an operating loss of £61 million at Instinet, which has been caught in a price war with its rivals.
Reuters took a charge of £100 million against profits to pay the severance costs from its latest round of job cuts. It has announced job losses comprising about 10 per cent of its workforce over the past 12 months.
Reuters shares stand at around nine-year lows at around 300 pence. They have fallen about 60 per cent in the past year, underperforming their European media peers by roughly 30 per cent.