Reuters Reports Turnaround

The data and news giant surges 17% on a much-better-than-expected 2003.
By Rebecca Byrne ,

Financial news and data provider

Reuters

(RTRSY)

jumped 17% Tuesday after the company produced better-than-expected earnings for 2003 and said its outlook for this year looks good.

Improved operating performance at brokerage unit Instinet, cost reductions and the absence of impairment charges and goodwill writedowns helped London-based Reuters post a pretax profit of 49 million pounds for the full year, compared to a loss of 493 million pounds in 2002. Earnings per share hit 3.1 pence vs. a loss of 29 pence in 2002.

The firm said it earned 190 million pounds before the amortization of goodwill and intangibles. That was up from 89 million last year and above analysts' estimates of around 130 million pounds.

"Our full-year results show that Reuters is on the road to recovery, with the worst of our revenue declines behind us," said chief executive Tom Glocer.

Revenue declined 11% to 3.2 billion pounds from 3.6 billion pounds. Subscription revenue from financial data terminals slid 10.2% on an underlying basis.

"In the core business, we have made good progress toward becoming more competitive, less complex, more service-oriented and more efficient," Glocer said. Reuters said cost savings totaled 75 million pounds in 2003, well above an original target of 45 million.

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