Following the 34% profits plunge announced Tuesday by electronic information group Reuters [WAMN: 12-Feb-02], shares in the company dived by around seven per cent to £5.52 on the London stock market. By midday GMT today (Wednesday) they had fallen a further 2% to £5.41.
Investors and analysts disappointment at Reuters’ depleted profit for the year to December, down from £457 million to £304m, was exacerbated by a warning that subscription revenues could fall by a further three per cent over the next six months.
Observed Reuters; chief executive Tom Glocer: “I personally am optimistic about an upturn, but we have not baked those assumptions into the margins we will see in 2002.”
This panicked the entrail-rakers, some of whom downgraded their pre-tax profit forecasts for 2002 by around 10% to the £500m-£520m range.
Data sourced from: Financial Times; additional content by WARC staff