Reuters Group today posted a 3 percent rise in third quarter revenue, fueled by growth in online advertising revenue, growth in electronic trading and demand for machine-readable data. Revenue rose to $1.18 billion (631 million pounds) from $1.14 billion (611 million pounds), the London-based company said in a statement, adding that “advertising revenues are continuing to build in online consumer media.” The company didn’t provide more details on its online business.
Analyst Alex De Groote of Panmure Gordon told the Marketwatch that the sales were “very good but the market knew this already.” Shares of Reuters fell in London. In New York, they were down $1.02, or 2 percent, to $48.20 in early trading.
— CEO Tom Glocer on Factiva sale: “The Factiva joint venture was a classic win-win, which transformed two sub-scale news archive businesses into a profitable global business. So why, you might ask, are we exiting? The simple answer is that the price is right and the timing is right. The price works out to over 13 times current year EBITDA, and more than a four times return on the $40 million we originally put into this business, so we are quite happy with that, and the timing is right, given my own view that the competitive landscape for Factiva is changing. Content previously only available on a subscription basis is becoming available on the free web, such as the new Google news archive service. My belief is that Factiva will be able to react more nimbly and creatively to these new challenges under the ownership of a single parent.”
— Nandan Nilekani, the CEO of Infosys, is joining the Reuters board as a non-executive director, reflecting the growing importance of Asia to the company.