Thomson Reuters Corp said it expects net sales to financial institutions to continue to decline for the rest of this year as conditions in Europe have deteriorated more than anticipated and major banks are still slashing costs.

Shares of the global news and information provider fell about 3 per cent after it said net sales in its financial and risk division were still negative in the second quarter and likely to remain so through the fourth quarter.

Net sales, which are total sales minus cancellations, are an important indicator because of Thomson Reuters’ subscription-based business model. Its revenue typically lags sales by about 12 months. – (Reuters)