Glocer's crystal ball

27 July 2004 By Fiona Maharg-Bravo

The timing of the rebound may be uncertain but there are reasons to believe it is coming. The risk is that global news and information providers is tempted to speed up its recovery with acquisitions.

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Reuters said sales fell 13% to £1.1bn in the first half of the year, and was 7% down excluding the effects of currency fluctuations, acquisitions and disposals. But the global news and information provider increased its operating margin slightly to 15% thanks to increased cost cutting. Reuters said its costcutting programme has halfway done and ahead of plan. As a result, it raised its costsaving estimate for 2004 by £10m to £230m.

But Reuter's chief executive refused to be drawn on exactly when Reuters would return to revenue growth. Although he said it was entirely possible this might happen 2005, it could also slip to the first months of 2006. He said: It is a question of when, not if.

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