Reuters Q1 underlying revenue rises 6.5 pct

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LONDON, April 25 (Reuters) - Financial information and news provider Reuters Group RTR.L posted a higher-than-forecast rise in first-quarter underlying revenue, but said actual revenue fell by 1.1 percent due largely to a weaker dollar.

Reuters said on Wednesday its first-quarter revenue was 626 million pounds ($1.25 billion), compared with 633 million pounds a year ago and 558 million in 2005.

Underlying revenue growth was 6.5 percent, compared with 4 percent a year ago. The company's Core Plus growth strategy contributed two percentage points to the revenue growth figure.

Analysts had forecast first-quarter revenue of 625 million pounds on a constant currency basis, inside a 621 to 628 million range, according to an average of nine brokers polled by Reuters. Underlying revenue growth was seen at 6.1 percent.

Chief Executive Tom Glocer said Reuters was "well positioned" to deliver on its full-year expectations. The company has previously said its 2007 organic revenue growth will be 6 percent or better.

Reuters said it booked 47 percent of its revenue in dollars during the first quarter, a period during which the dollar weakened by 12 percent against sterling. Reuters said its share of the global financial information and services revenue market was 27 percent in 2006, a small improvement over 2005.

Its 50-50 FXMarketSpace joint venture with the Chicago Mercantile Exchange, launched on March 26, had seen good early progress, Glocer said.

FXM is the world's first centrally-cleared, global foreign exchange platform for the over-the-counter market.

The platform, which is expected to break even in 2008, will start publishing monthly volume data from early May.

Shares in Reuters closed on Tuesday at 488-3/4 pence, valuing the company at around 6.1 billion pounds.

Its shares were the best performers across the pan-European media sector in March, climbing 12 percent and outpacing an 8 percent rise in the European media sector.

The gains came after the full-year results on March 1 when the company forecast a rise in its margins, raised its dividend and said revenues had been rising faster than anticipated.

((Reporting by Gavin Haycock; editing by Alexander Smith; gavin.haycock@reuters.com; Reuters Messaging: gavin.haycock.reuters.com@reuters.net; +44 0207 5427954))

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