Chairman's Share Purchase Boosts Confidence in Reuters

29 July 2005

In a move to quell fears over the future growth of Reuters, chairman Niall Fitzgerald has put his money where his mouth is and bought 10,000 shares in the global financial services and media company.

His purchase comes one day after stock plummeted by more than 7% as the company announced profits would be hit by £170 million ($297.8m; €246.2m) in restructuring charges and substantial investment in new products.

The London-headquartered firm plans to expand its current services by selling trading services as well as stock market data to the financial community. It also aims to target new markets such as China and India. But this all comes at a cost - £85m to be exact - to cover the closure of data centers and computer-programming departments.

Despite suffering a 56% fall in first-half net income from £303m to £133m, ceo Tom Glocer is confident that the company will eventually reap the benefits of investment. "I have every reason to believe we have the long-term support of investors who are looking for the same thing we are, which is sustainable growth in operating profit."

Data sourced from Wall Street Journal Online; additional content by WARC staff