Slowdown expected to hit Reuters results

LONDON - Reuters, the financial news and information service, is expected to announce a slowdown in third-quarter revenues when it announces its results later today.

Analysts expect the company to post sales growth of just 2%-3%, as a result of difficult trading conditions after the terrorist attacks on the US and the economic downturn.



Reuters CEO Tom Glocer will use the occasion to spell out his plans for the company. Glocer, who took over early this year, is likely to give details of the company's internet strategy.



Reuters said last month that the attacks on the World Trade Centre would cost its Instinet online trading business $18m (£12.4m) because of revenues lost when the US markets were closed for four days following the terrorist attacks.



ABN Amro forecasts group revenue growth of 3.2%-6% for Instinet, while Morgan Stanley expects resilient third-quarter revenues with negative growth unlikley to show until next year.



Reuters completed the acquisition of some of rival system Bridge Information Systems at a cost of £254m on October 1. The new unit is currently losing £2.4m a month but is expected to contribute £69m in turnover in the fourth quarter.



Reuters is currently 18 months into a four-year programme aimed at gearing the company into providing information using internet standards. The overhaul is expected to cost $500m (£345.4m).




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Claire Billings, recommends

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