Reuters profit rises

By Gavin Haycock

LONDON (Reuters) - News and financial information provider Reuters RTR.L said 2007 trading profit rose to 385 million pounds and 2008 had started well.

"Early indications for 2008 are encouraging despite the uncertain market environment, with strong sales momentum reflecting the robustness of the Reuters business mix," the company said in a statement on Thursday.

Underlying revenue growth in the first quarter is expected to be around 9 percent, it added.

Revenue for the year to end-December rose 7 percent on an underlying basis to 2.605 billion pounds. Reuters was forecast to have revenues of 2.608 billion pounds, according to a poll of 10 analysts by Reuters Estimates.

Reuters is being taken over by Canadian electronic publisher Thomson TOC.TO in a deal due to complete on April 17. This will make the 2007 results Reuters last as an independent company.

Reuters said in an update on February 29 that its 2007 earnings before interest and tax -- or trading profit -- would be no less than 380 million pounds. Reuters said the figure was up 43 percent on underlying basis and 25 percent higher compared with a trading profit in 2006 of 308 million pounds.

Reuters Chief Executive Tom Glocer, who will head the combined business, said Reuters performance benefited from its relatively limited exposure to areas in investment banks like asset-backed, leveraged loans, mortgage and fixed income trading desks where widespread job cuts had occurred.

Reuters business in foreign exchange, commodities, energy and emerging markets "have been really good areas for us," Glocer said in a conference call with reporters.