Reuters recovery on track

News and financial data group Reuters today said its recovery was continuing as it forecast a slowdown in the decline in its revenues in the first quarter of this year.

The Fleet Street-based company said it expected underlying recurring revenues to fall by about 1.5% in the first three months of 2005 against 8.4% in the same quarter last year.

Although cancellations by subscribers exceeded new sales in the fourth quarter of 2004, net cancellations showed “a considerable improvement” compared to the same quarter in 2003.

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.

However, the group has been introducing new products such as capital markets information product Reuters Trader, which launched in 2003 and almost doubled users in the third quarter.

The group said today’s figures reflected the ongoing focus on upgrading its products and services.

Chief executive Tom Glocer said: “I am pleased that our steady progress towards positive revenues remains on track.”

Shares rose 3% today, up 13p to 394.75p.