OLD Media Moves

Reuters posts first revenue growth since 2001

February 23, 2006

Reuters Business wire and information company Reuters reported its 2005 earnings this morning, which showed that the company had its first increase in revenue since 2001. The company also said it was expecting revenue growth of about 5 percent in 2006. Net income was also up 28 percent.

Still, Reuters stock has dropped about 10 percent this morning amid concerns about the revenue outlook.

Here are specifics from the press release about the media division: “Revenue from the Media division, 7% of Reuters revenue, totalled £153 million, up 7% year-on-year.

“Agency revenues grew 6% to £133 million, driven by a good performance from TV, including the successful launch of a Middle East service, continued strength in Pictures and new contractual arrangements with Factiva.

“Consumer services revenues grew 12% to £20 million, reflecting a successful move away from syndication of news to other websites and towards promotion of direct to consumer platforms, such as reuters.com. Advertising revenues from online and signage platforms continued to grow rapidly attracting high quality brands as diverse as Diet Coke, GE and Fidelity.

“In January 2006 TIMES NOW, Reuters 24 hour TV news channel for India in collaboration with The Times of India, went live. It represents an attractive investment in its own right and a strong branding opportunity from which to launch services to India’s growing urban, affluent audience.”

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