Price rises boost Reuters' revenues

British financial news and data provider Reuters today reported a better-than-expected 13% rise in first quarter revenues as it benefited from price increases and recent acquisitions.

The firm said total revenues for the first three months of the year rose to £633m from £558m in 2005 after it increased its share of the £6bn financial information market by 1% to 27%.

London-based Reuters said the improvement, helped by its acquisition of financial data provider Telerate last year, meant it now matched arch US rival Bloomberg for market share.

Underlying revenues growth rose 4% in line with company expectations which Reuters said reflected annual price increases, weak comparatives in 2005 and good growth in usage revenue.

It added it had also seen sales rise as a result of its Core Plus growth strategy announced last July.

The Core Plus initiative, aimed at improving revenue, replaced its three-year Fast Forward restructuring programme which saw it cut staff numbers in an attempt to save up to £440m a year.

Tom Glocer, Reuters chief executive, said: “We have delivered a good first quarter, which provides a strong base for the rest of the year.

“Our market share data confirms what our first quarter sales are telling us - that our products are highly competitive and we are winning in the marketplace.”

Reuters, which makes 80% of its revenues from providing data services and trading terminals to the City, predicted full-year revenue growth of 5%.

It said the number of people using its terminals had increased by 1,000 to 347,000 however analysts reacted with caution to the figures.

Keith Bowman, equity analyst at Hargreaves Lansdown Stockbrokers, said: “Although the revenues figure came in ahead on consensus forecasts, investors should not get carried away.

“Unfortunately Reuters has enjoyed many false dawns before, only to disappoint investors later on.”