Reuters has announced that its Core Plus initiative has delivered £50 million in cost savings from the transformation of software development and communications at the financial information company.
Core Plus, launched in 2005, aims to cut costs, increase electronic transactions and improve Reuters content.
The 2007 Reuters full year results are the last from Reuters as a standalone organisation. Competition authorities have approved the acquisition of Reuters by Canadian information service provider Thomson. With the deal now approved Thomson Reuters will be the world’s largest business and financial information provider leapfrogging Bloomberg. Thomson paid £8.7bn for Reuters in May last year. Thomson is a dominant provider of business and scientific information and like Reuters focuses on electronic delivery of services and information.
Core Plus revenue growth and cost savings are ahead of plan, Reuters said in its results. New electronic products being developed as part of Core Plus such as direct data feeds are moving into profitability earlier than expected. Reuters said Core Plus contributed £63 million of revenue in 2007, around 2.6 per cent in underlying growth.
Sales and trading revenue grew by three per cent to £1,619 million, an underlying trading profit increase of 28 per cent, which Reuters said was “reflecting a net benefit from Core Plus and tight cost controls as well as revenue growth.”
“Reuters has delivered a signature final year as a standalone company,” chief executive Tom Glocer said. Revenues for Reuters in 2007 were up by seven per cent to £2,605 million, with operating profit of £292 million.