News agency Reuters has posted better than expected full-year profits and confirmed first-quarter revenue forecasts.
Group operating profits jumped 52 per cent to £198 million compared with £130 million in 2003. Revenues declined 11 per cent to £2.885 billion from the previous year, partly due to currency movements.
Reuters core revenues, which excludes subsidiaries such as electronic trading company Instinet, were £2.361 billion , ahead of the £2.338 billion forecast by analysts .
Operating profits of £357 million were slightly ahead of the £353 million analysts had been expecting. Margins held steady at 15.1 per cent in 2004, compared with 15.3 per cent in 2003, the company said.
The company confirmed earlier guidance of a 1.5 per cent decline in underlying revenue of its core subscription business for first quarter 2005 and said it expects "further gradual improvement" in the second quarter after good January net sales.
Reuters chief executive Mr Tom Glocer said in a statement that the company is beginning "to look beyond recovery to growth."
Reuters said cost cuts associated with its three-year "Fast Forward" turnaround plan were ahead of schedule last year, with £234 million pounds of savings delivered against a target of 220 million pounds.
It is planning to deliver another £105 million of savings in 2005. Reuters expects a 2005 restructuring charge of £80 million , higher than originally planned, because of the one-off costs of moving to new London headquarters.
Reuters has been exploring options, including a possible sale, of its Instinet unit, and said it continues to do so.
"Reuters does not intend to provide any further updates regarding a transaction involving Instinet Group until such time as it deems appropriate," it said in a statement.