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Last Updated: Wednesday, 16 April, 2003, 15:49 GMT 16:49 UK
Reuters revenue slide continues
Media giant Reuters has said revenues at the firm fell again during the first three months of the year as the market downturn continued to bite.

It said core revenue fell 10% on an underlying basis to 670m ($1.05bn).

Reuters has been hit by the stock market slowdown of the past three years.

Cash-strapped financial institutions are cutting back on the number of terminals carrying financial data which Reuters supply.

The company has been forced to slash thousands of jobs in an attempt to cut costs.

Richard Ferguson of Barclays Private Clients said it is not only the problems facing investment banks that are troubling Reuters.

"The other issue is that Reuters did very well during the 1990s and as a result they never really had to look at their product and improve it so the company became quite lazy," he said.

"It's only now that they are having to take a much closer look at how they do things and what their customers want."

Further falls predicted

"We are pleased with the progress we made this quarter in what continues to be a tough market," said chief executive Tom Glocer.

"Revenues were in line with our expectations and we saw some good sales wins."

Reuters said core subscription revenues - which account for 93% of core revenues - fell by 9.1%

It predicted that subscription revenues would fall by 11% during the April to June quarter, and would decline by 10-12% over the year as a whole.

Some analysts have also expressed concern that the firm is losing market share to rivals such as Bloomberg.

But Reuters said that, according to its own research, its market share had risen last year by two percentage points to 39%.

Its assurances clealry impressed investors, with Reuters shares gaining nearly 2% to close at 120p.

The BBC's Theo Leggett
"Reuters has suffered badly from the global economic downturn"

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