July 27 (Bloomberg) -- Reuters Group Plc, which accepted a takeover bid by Thomson Corp. in May, said first-half profit rose 19 percent because of price increases for financial-data services and higher currency trading.

Net income for the six months to June 30 rose to 114 million pounds ($232.9 million), or 9.1 pence per share, from 96 million pounds, or 7.1 pence, a year earlier, London-based Reuters said today in a statement. Revenue slipped to 1.27 billion pounds from 1.28 billion pounds a year earlier, dragged lower by the dollar's decline against the pound.

Reuters agreed to be bought by Thomson for 8.7 billion pounds to become the biggest financial information provider and save $500 million a year in expenses. The new company, to be led by Reuters Chief Executive Officer Tom Glocer, would have 34 percent of the financial data market versus Bloomberg LP's 33 percent, according to Inside Market Data newsletter.

``There's no doubt that Glocer wants the final year of Reuters to be a good year,'' said Charles Peacock, an analyst at Seymour Pierce in London. ``I suspect the company will remain firmly focused on delivering results.''

Shares of Reuters rose 1 penny, or 0.2 percent, to 626 pence, in London, valuing the company at 7.9 billion pounds. The stock has risen 41 percent this year.

First-half profit matched the median estimate of seven analysts surveyed by Bloomberg News. Sales were forecast to be unchanged, the survey showed.

New Markets

The company's sales and trading division, which serves banks and brokers, reported operating profit of 104 million pounds, up from 92 million pounds a year earlier. Reuters said the unit benefited from a price rise at the start of the year and increased sales of its Reuters 3000 systems, the company's most expensive terminals. ``Buoyant foreign exchange markets'' also lifted revenue for its currency-trading systems, Reuters said.

``Reuters has had a very positive first half,'' Glocer said in a conference call today with reporters. ``We have seen record sales in the first half with strong growth in recurring subscriptions.''

Toronto-based Thomson yesterday said second-quarter profit more than doubled as it boosted sales of legal data.

Reuters, the world's biggest publicly traded provider of financial news and information, is two years into a three-year program designed to boost sales by investing in content, services and new markets such as India and China. The plan, called Core Plus, follows three years of cost cuts that included selling or closing more than 80 units.

Regional Growth

Sales excluding acquisitions and currency moves increased in all regions in the first half, the company said. Europe, the Middle East and Africa grew by 5 percent, helped by France, Germany, the Persian Gulf, Russia and the Nordic region. Growth in Asia was 7 percent, boosted by China and India. Sales rose 8 percent, excluding currency and acquisitions, in the Americas.

The company raised prices on Jan. 1. Reuters in March began a new service to trade currencies, and in April started a new version of its instant-messaging service for energy traders that will work with Yahoo! Inc.'s messenger service.

Reuters' shareholders will receive 352.5 pence in cash and 0.16 Thomson share for each share. The acquisition won approval from the Reuters Founders Share Co., a board with special voting rights to protect the 156-year-old news service's independence and integrity.

``Regulatory approval for the merger with Thomson is on track,'' Glocer said today. ``The deal will be completed late this year or early in 2008.''

Reuters will pay an interim dividend of 5 pence, up from 4.10 pence a year earlier, the company said in the statement.

Bloomberg, the parent of Bloomberg News, competes with Reuters and Thomson in selling information and trading systems to the financial-services industry.

To contact the reporter on this story: Mark Herlihy in London at Mherlihy1@bloomberg.net.

Last Updated: July 27, 2007 12:03 EDT