Information giant Reuters this morning announced a 10-per cent slump in core revenues for the first three months of the year and warned worse was to come.
The firm's core revenue, excluding its 63 per cent owned electronic broker Instinet and joint ventures, dipped to £670 million sterling (€975 million), not counting exchange rate movements, 10 per cent down on the same period last year.
In the second quarter of the 2003, however, this figure was likely to see its year-on-year decline extend to 11 per cent, with the full-year drop expected to be between 10 and 12 per cent, a Reuters statement said.
The first-quarter drop was broadly what the market expected, and Reuters chief executive Mr Tom Glocer said he was happy with the results.
"We are pleased with the progress we made this quarter in what continues to be a tough market," he said. "Revenues were in line with our expectations and we saw some good sales wins".
Reuters has faced tough times recently as its main clients - banks and brokers - slash costs as the global economy slows and stock markets tumble.
It is also facing fierce competition from rivals such as Bloomberg and Thomson.
In February, Reuters, which has made a series of job cuts in recent months, announced a pre-tax loss for 2002 of £493 million, the biggest in the firm's 151-year history.
AFP