Can Reuters Be Too Rich, Too Thin?

VENDOR STRATEGIES

Reuters, already flush with cash, reported dramatically pumped- up earnings for the first half. But the robust results were due largely to advantageous currency movements, not growth in its core information services business.

In the first half of the year, growth in that segment, excluding the favorable currency adjustment, was flat. Reuters' terminal count, meanwhile, inched up just four percent from the same period last year.

The lackluster performance of Reuters' core business reflects the

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