Reuters Reports Beat Quarter, Sells Factiva To Partner Dow Jones

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Reuters Q3 Revenue Up 4.6%, To Sell Factiva Stake [Reuters]

Summary: Reuters Group Plc. reported underlying revenue growth of 5.3% during the most recent quarter, adding full-year growth would be at the top of the previously stated range (5-6%). Third-quarter revenue was $1.18 billion, ahead of the average view projected by a group of 10 analysts polled by Reuters. In other Reuters-related news, the London-based provider of financial news and data announced it was selling its 50% stake in archival news service Factiva to Dow Jones & Co. Inc. for $153 million in cash and $7 million in Factiva preferred stock. The sale gives Dow Jones full ownership in Factiva. The two had formerly been partners in Factiva's ownership. According to Reuters CEO Tom Glocer, his company's "underlying revenue growth of 5.3 percent demonstrates that Reuters' core business is responding well to favorable market conditions."
Related links: • Reuters' Slow Comeback (RTRSY) • Reuters CEO: Old Media Must Incorporate Bloggers, Citizen Journalists (RTRSY) • Dow Jones & Company Inc Q2 2006 Earnings Conference Call Transcript (DJ) • Dow Jones to Take Full Control of Factiva, Buying Reuters Stake (WSJ)
Potentially impacted stocks and ETFs: New York Times (NYT), The McClatchy Company (MNI)

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