Reuters Profits Fall 7 Percent
LONDON (AP) _ Reuters Group PLC announced Tuesday its pretax profits fell 7 percent last year and the company forecast lower sales growth in 1999 because of a downturn in emerging markets.
The news and financial information provider’s pretax profit fell to 580 million pounds ($928 million) in 1998 from 626 million pounds in 1997. The 1998 results were reduced by 51 million pounds to cover acquisition costs.
Revenue rose 5 percent to 3.03 billion pounds ($4.85 billion) from 2.88 billion pounds, due to gains in Europe, Africa and the Middle East and strong volume on its Instinet electronic trading system.
But revenue from the Asia-Pacific region dropped 6 percent for the year, and chief executive Peter Job predicted Reuters’ overall revenue growth would slow in 1999 amid weakness in Asian and Latin American markets.
``The blowout in the emerging markets has not gone away, but hopefully it won’t repeat itself in the same way,″ Job said.