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Reuters eyes Instinet IPO
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October 20, 2000: 6:54 a.m. ET
UK data provider posts 16% rise in revenue; sale nears for trading platform
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LONDON (CNNfn) - Financial news and data provider Reuters Group PLC on Friday posted a 16 percent rise in third-quarter revenue and said it is preparing an initial public offering for its fast-growing Instinet electronic trading system - driving Reuters shares up as much as 8.2 percent in London.
Reuters, the world's leading provider of financial data, said its third-quarter revenue rose to £888 million ($1.28 billion) from £763 million a year ago, the pace of expansion quickening from 9 percent in the first half of the year. Instinet revenues ballooned 46 percent to £189 million.
Shares of Reuters (RTR) leapt 67 pence, or 5.4 percent, to 1,305, after climbing as high as 1,340 pence shortly after the announcement. 
The London-based company attributed its growth to high levels of equity market activity and generally positive business climate.
"Our core business in Reuters Financial is thriving in good market conditions," Chief Executive Peter Job said in a statement. "We expect revenue to continue to grow in buoyant markets. The vision of transforming the corporation for the Internet remains right in our minds and the spending programs to achieve this are moving ahead."
Reuters didn't set a date for what reportedly has been an already delayed IPO of technology investment incubator Greenhouse Fund.
"Discussions are under way with various organizations about a private round of financing as the next objective," the company said.
"I think there's some relief that the Instinet floatation plans have been confirmed," said Antony Stokes, a media analyst at Prudential Bache, who has an "accumulate" rating on Reuters shares. "Instinet continues to be the fastest-growing of their businesses, and spinning it out should provide a benefit to the group as a whole."
Stokes said many analysts were expecting further details about the IPO plans at a conference call for investors and reporters scheduled for 1 p.m. London time Friday. 
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Reuters
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