Reuters Group beat market forecasts today with sharper underlying pretax profit gains in the first half thanks to cost cutting efforts and better performance at its affiliate companies.
The news and information provider said pre tax profit before exceptional items was £136 million sterling compared with market expectations of £122 million and last year's £87 million.
Core subscription revenues totaled £1.09 billion, down 6.2 per cent and slightly lower than market forecasts. The core operating margin before restructuring costs was in line with forecasts at 15 per cent.
Reuters chief executive Mr Tom Glocer said the market had been tougher in the second quarter, but that overall revenue declines would continue to become less severe.
"While the external environment in the second quarter was somewhat less benign than in the first, our increased competitiveness and better sales discipline mean that we expect to see the recurring revenue trend continue to improve gradually," Mr Glocer said.
Reuters said it expects core revenues, which account for more than 90 per cent of the total, to decline by about 5 per cent in the third quarter, with "further gradual improvement in the fourth quarter".