Reuters Swings to a Profit

But revenue declines, and a company executive said he doesn't expect to see growth in 2004.
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Reuters

(RTRSY)

swung to a profit in the first half of 2003, but revenue declined and a company executive said he doesn't expect to see growth in 2004.

The financial news and information provider said Tuesday that it posted a profit of 4 million British pounds for the first six months of 2003, after losing 73 million pounds a year earlier. Revenue fell 11% from last year's 1.8 billion pounds to 1.6 billion pounds.

Core revenue, which excludes the company's majority-owned brokerage,

Instinet

(INET)

, declined 12% to 1.35 billion pounds from 1.54 billion pounds.

After predicting a full-year decline in recurring revenue of 10% to 12%, Reuters now forecasts an 11% decline. Recurring revenue from the company's financial news and data terminals makes up 93% of its core revenue.

Tom Glocer, the company's chief executive, told reporters that he doesn't expect revenue to rebound in 2004, given the expected declines in 2003. He said he would go ahead with the 3,000 job cuts announced in February but had no plans for more layoffs.

Reuters also announced new contracts with investment banks

Goldman Sachs

(GS) - Get Report

and

Lehman Brothers

(LEH)

.

Shares of Reuters slid 3.16%, or 66 cents, to $20.23 on Tuesday morning.