Shares in Reuters have hit a three-and-a-half-year low after the firm reported weaker-than-expected revenues and warned of tough times ahead.
Total revenues at Reuters, the world's biggest financial information provider, fell 6 per cent to £912 million for the first quarter, reflecting a heavy fall in revenue from its electronic broking unit, Instinet, which is cutting prices to meet competition.
Reuters also worried investors with a warning that core recurring revenues, which come from supplying news and data to financial institutions worldwide, would fall 5 to 6 per cent on an underlying basis in the second half of this year.
They fell 1 per cent in the quarter, and the company has predicted them to drop 2 to 3 per cent in the first half.
Reuters stock was down 4 per cent at 488 pence in morning trade, having touched 484p, its lowest point since October 1998. The shares have halved over the past year, underperforming their European media peers by about 30 percent.