This one might need to be filed in the Duh category, but according to analysis by Douglas Taylor, the managing director of consulting group, Burton-Taylor, Bloomberg and Reuters are facing steep revenue losses for 2009.
In a story based on his report, published by financial news rival Dow Jones (sub req.’d), it is estimated that “global spending by the securities industry on data, largely through leasing desktop terminals, is forecast to shrink by 3%, or $700m, this year.” As a result Bloomberg and Reuters will get hit with big losses, as they are the industry leaders in this realm. Taylor thinks they could lose $500 million in revenue this year.
Last December, we reported that Bloomberg LLP had a rough November, with net sales down about 1,100 for the month. We’ve heard that terminal sales were down in December too, and there is no reason to be optimistic that financial companies are going to shell out $1500 a month for data terminals. We don’t think that the TARP’d up banks are going to be spending loads of their government cash on terminals.
Earlier this year Bloomberg thinned the ranks of its unprofitable television and radio staff, laying off 100 employees.