Reuters dips on sales caution

By THIS IS MONEY
Updated:

 

FIRST-quarter revenues at financial data group Reuters grew by 17% to £970m but it warned that growth may slow down in the second three months. The shares dipped 39p to 936p on the news.

Chief executive Peter Job said: 'We anticipate that growth will continue in the current quarter at a slightly lower rate. Our business model remains robust based on repeat revenues which show no signs of eroding.'

Reuters said that after adjustments for acquisitions, disposals and currency fluctuations, underlying revenues grew by 10% in the first quarter, with the financial division and online trading system Instinet making a strong contribution.

Job said Instinet, which is preparing for flotation within the next couple of months, had clocked up its first calendar quarter in which its market share of US equity trading had exceeded 10%.

Analysts had warned that Reuters' growth rate was bound to slow as market turmoil has increased in recent months.

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