Weak dollar hits Reuters

Revenues at media group Reuters slipped 11% during 2004, mainly due to the weakness of the dollar, the group said.

The company said it was optimistic about growth even as revenues slipped 11% from £3.24bn ($6.13bn) in 2003 to £2.89bn in 2004. Reuters beat profit forecasts, posting a 52% rise in profits for the year to £198m from the £130m seen a year earlier. Reuters also beat its savings target for 2004, delivering £234m of cuts. Under its three-year Fast Forward turnaround plan it had aimed to save £220m during the 12 months to 31 December.

Reuters also managed to slow a decline in underlying revenues to 5.4% from 10.2% in 2003 and cut its debt back to £160m from £610m a year earlier. The news and financial data seller said the year had begun well, adding it expected "further gradual improvement" in the second quarter of the year after good January sales. It added it was planning to deliver a further £105m of savings over the coming year - but said it expects to be hit with an £80m restructuring charge to pay for the cost of moving from Fleet Street to new headquarters in London at Canary Wharf. "Improving customer relationships, more competitive products and continued strong cost discipline position us well for 2005," chief executive Tom Glocer said, adding the company was beginning "to look beyond recovery to growth".