Thomson Reuters has revealed that 55 percent of its desktops had upgraded to the Eikon trading data terminal by the end of 2013.
The Eikon platform - part of the company’s Financial & Risk business - was launched in 2010 following a two-year, billion-dollar development. It offered news, trading, search and analytics for traders of financial stocks and shares.
However, its launch was described as “overly ambitious” as the company aimed for Eikon to be a single system replacing the entire desktop product line from day one. In reality, adoption has been much more gradual, only picking up speed last year.
In its latest results, SAP-based Thomson Reuters reported 123,000 customers on Eikon by the end of January 2014, up 28 percent from 96,000 on 30 September 2013. The January figure had risen from 122,000 in Q4 2014, which was a 58 percent increase from the same period in 2013.
New customers last year included the European Central Bank.
Customer satisfaction in the Eikon platform had also improved year-on-year from 80 percent to 86 percent.
Furthermore, the company shut down more than 100 legacy platforms and products, leading to $40 million in savings.
Despite these savings and increased Eikon adoption, revenues in the Financial & Risk business fell last year.
In the fourth quarter, revenues decreased five percent “with growth in Elektron Managed Services more than offset by legacy desktop cancellations in Equities and Fixed Income”, the company said.
Elektron is a high speed data distribution network aimed at providing real time market information to hedge funds, asset managers, banks and anyone else requiring low latency trades. It sits alongside Eikon as the company’s flagship platforms.
The legacy desktop cancellations also led to a full-year decline in revenues for the business, of six percent.
To improve its profit margins, Thomson Reuters said it is looking to simplify the Financial & Risk business by cutting jobs, decommission platforms and products and carrying out “back office efficiencies”.
Nevertheless, it admitted that this strategy will be challenging, with the platform and product rationalisation “expected to result in loss of some revenues”.
Earlier this month, Thomson Reuters released the latest version of its Eikon trading terminal, adding new features including a social media sentiment analysis tool.