LONDON (AFP) - Reuters, the news and financial information provider, reported a 4.4-percent drop in core subscription revenue to 528 million pounds (759 million euros, 947 million dollars) during the third quarter compared to the same period last year.
Reuters had itself forecast subscription income, or underlying core recurring revenue, to fall by 5.0 percent during the third quarter.
In its trading update, the group gave a better-than-expected forecast for the fourth quarter, saying that the decline in subscription revenue was expected to be around 3.0 percent, against analysts' consensus for a drop of 4.0 percent.
"Reuters made good progress towards recovery this quarter," group chief executive Tom Glocer said in a statement Tuesday.
"Despite uncertain market conditions, gross sales outpaced cancellations during the quarter for the first time since the first quarter in 2001."
Full-year core recurring revenue was expected to decline by close to 5.5 percent on an underlying basis, Reuters said.
Glocer said the group was operating in a "less favourable" market environment than at the beginning of the year.
"The US is uncertain ahead of the (presidential) election -- there's a lot less volume in the equity market, for example," Glocer told a conference call with reporters.
Reuters' core revenue, making up about 93 percent of total group revenue, comes from sales of screens to banks, brokerages and fund managers.
Reuters is recovering from a difficult past few years as banks, brokers and other financial firms have sought to cut costs and orders for the group's services.