-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FdPTo/bAk3sEGu9imzg0ZwIUEPe3GLi9C3WrD5hQwu1RjTOY3AGTniRSMqEbpN1d IWdPavDmwUcXs43+n1FbIQ== 0000891836-99-000793.txt : 19991027 0000891836-99-000793.hdr.sgml : 19991027 ACCESSION NUMBER: 0000891836-99-000793 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19991026 FILED AS OF DATE: 19991026 FILER: COMPANY DATA: COMPANY CONFORMED NAME: REUTERS GROUP PLC CENTRAL INDEX KEY: 0001056084 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] FILING VALUES: FORM TYPE: 6-K SEC ACT: SEC FILE NUMBER: 333-08354 FILM NUMBER: 99733975 BUSINESS ADDRESS: STREET 1: 85 FLEET STREET STREET 2: LONDON EC44AJ ENGAND BUSINESS PHONE: 01715428187 MAIL ADDRESS: STREET 1: 85 FLEET STREET STREET 2: LONDON EC44AJ ENGLAND 6-K 1 FORM 6-K, REUTERS GROUP PLC FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month October 1999 - -------------------------------------------------------------------------------- REUTERS GROUP PLC - -------------------------------------------------------------------------------- (Translation of registrant's name into English) 85 FLEET STREET, LONDON EC4P 4AJ, ENGLAND - -------------------------------------------------------------------------------- (Address of principal executive offices) [Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.] Form 20-F X Form 40-F --- --- [Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.] Yes No X --- --- THIS REPORT IS INCORPORATED BY REFERENCE IN THE PROSPECTUSES CONTAINED IN POST EFFECTIVE AMENDMENT NO. 2 TO REGISTRATION STATEMENT NO. 33-16927 ON FORM S-8, POST-EFFECTIVE AMENDMENT NO. 1 TO REGISTRATION STATEMENT NO. 33-69694 ON FORM F-3, POST-EFFECTIVE AMENDMENT NO. 1 TO REGISTRATION STATEMENT NO. 33-90398 ON FORM S-8, POST-EFFECTIVE AMENDMENT NO. 1 TO REGISTRATION STATEMENT NO. 333-7374 ON FORM F-3 AND REGISTRATION STATEMENT NO. 333-5998 ON FORM S-8 FILED BY THE REGISTRANT UNDER THE SECURITIES ACT OF 1933. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. REUTERS GROUP PLC -------------------------------- (Registrant) Dated: October 26, 1999 By: /s/ Nancy C. Gardner ---------------------------- EX-99 2 REUTERS 3RD QTR TRADING STATEMENT - 10/21/99 EMBARGOED UNTIL 11:00 BST 21 October 1999 22/99 REUTERS THIRD QUARTER TRADING STATEMENT London - Total revenue for the third quarter 1999, adjusted for comparability, rose by 3% at actual rates to (pound)764 million (US$1,261 million) compared to (pound)742 million (US$1,224 million) in the third quarter 1998. At comparable rates, revenue was flat. On this like for like basis, revenue for the nine months increased by 6% at actual rates to (pound)2,280 million (US$3,762 million) and by 3% at comparable rates On a reported basis, Group revenue of (pound)763 million was unchanged at actual rates and down 3% at comparable rates. The adjustment to total revenue for comparability reflects the inclusion in 1998 of Reuters Business Briefing (RBB) and TIBCO Software. RBB is now part of the joint venture with Dow Jones which became effective on 1 July. TIBCO Software was floated on the Nasdaq stock market in July and is now accounted for as an associate. The third quarter saw revenue start to show the effects of a slow-down as clients focused on upgrading their systems and installations to be millennium-ready. This was most noticeable in Reuters Trading Systems (RTS) where outright system sales are being deferred. This trend is likely to be even more marked in the fourth quarter. Reuters preparations for the Millennium transition are proceeding according to plan. Revenue for Reuters Information (RI) rose by 6% at actual rates to (pound)405 million (US$668 million) and by 3% at comparable rates. Weaker foreign exchange markets and a fast pace of client consolidation during 1999 restricted revenue growth in the period. Reuters Trading Systems (RTS) revenue declined by 7% at actual rates to (pound)189 million (US$312 million) and by 10% at comparable rates. Risk Management and Financial Enterprise Systems (FES) slowed as clients deferred systems purchases ahead of Millennium changes. Dealing 2000 revenues continued to decline following further reductions in the number of foreign exchange traders. Dealing 3000, shortly to be launched, should offer customers an exciting new value proposition. Reuters Ventures revenue grew by 7% at actual rates to (pound)41 million (US$68 million) and by 4% at comparable rates. Excluding the medical businesses disposed of in December last year, revenue growth would have been 17% at comparable rates. The New Media business, which is now expanding internationally, showed strong growth. Further strategic investments were made through the Greenhouse Fund but no disposals. Four companies in which Reuters has made Greenhouse Fund investments have floated so far in 1999 whilst a further two have filed for an IPO. 2 Instinet grew by 9% at actual rates to (pound)129 million (US$213 million) and by 6% at comparable rates. US revenue was flat in the third quarter, reflecting some slowing in 1999 of Nasdaq volume growth and some attrition of price and market share due to competition. Instinet International grew 30% showing continued good growth, particularly in Europe. A major new US$10 million brand campaign was launched in the second half. Instinet increased the investment in its new fixed income product in the third quarter by a further (pound)6 million. It also acquired Montag Popper and Partners, a German fixed income broker. PETER JOB, Chief Executive said, "As reported at the half-year, market conditions remain challenging in our financial services business, particularly in foreign exchange where there is lower trading activity and consolidation in the market. We are now also facing a definite slow-down ahead of the Millennium as customers freeze their on-site software. We are seeing the expected level of margin improvement at Reuters Information as well as good new orders in the US although Asia-Pacific has yet to turn around. We are therefore seeing declining revenue growth. "We are putting more money behind innovation, including expansion of our flourishing Internet information business. We continue to invest in Instinet's future both to expand its activities and position it for the significant changes taking place in the market. The stock market debut of TIBCO Software, with a market capitalisation in excess of US$2 billion, exceeded our expectations. A significant profit booked from this IPO will more than cover the profit impact of these costs in 1999. Whilst the combination of lower revenue growth with the costs of these investments will impact operating profit, I continue to look for improvement in profit growth during the second half of the year." END CONTACTS Geoff Wicks Tel: 0171 542 8666 Director, Corporate Relations geoff.wicks@reuters.com Adrian Duffield Tel: 0171 542 4728 Manager, Group Corporate Relations adrian.duffield@reuters.com This news release may be deemed to include forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934. Certain important factors that could cause actual results to differ materially from those discussed in such forward-looking statements are described in Reuters Interim Report for the six months ended 30 June 1999 under the heading "Cautionary Statements". Copies of this are available on request from Reuters Group PLC, 85 Fleet Street, London EC4P 4AJ. 3 NOTE TO EDITORS Reuters supplies the global financial markets and the news media with the widest range of information and news products including real-time financial data, collective investment data, numerical, textual, historical and graphical databases plus news, graphics, news video, and news pictures. It reaches over 519,000 users in 57,720 locations and extensively uses internet technologies for wider distribution of information and news. Reuters designs and installs enterprise-wide information management and risk management systems for the financial markets as well as providing equity and foreign exchange transaction systems. Reuters provides news and information to over 225 Internet sites reaching an estimated 12 million viewers monthly. Reuters is the world's largest news and television agency with 1,946 journalists, photographers and camera operators in 183 bureaux serving 157 countries. News is published in 23 languages. Instinet, an international electronic agency stockbroker, is an independently managed subsidiary of Reuters. The Group employed 16,898 staff in 212 cities in 95 countries at 30 June 1999. For more details see www.reuters.com/ Reuters and the dotted and sphere logos are the trademarks of the Reuters Group of Companies. 4 REUTERS REVENUE ANALYSIS - THIRD QUARTER 1999
THREE MONTHS TO % CHANGE THREE MONTHS TO 30 SEPTEMBER ACTUAL COMPARABLE 30 SEPTEMBER 1999 1998 RATES OF RATES OF 1999 1998 (POUND)M (POUND)M EXCHANGE EXCHANGE US$M US$M =============================================================================================================================== REVENUE ANALYSIS BY DIVISION - ------------------------------------------------------------------------------------------------------------------------------- Reuters Information 405 381 6% 3% 668 628 Reuters Trading Systems 189 204 (7%) (10%) 312 337 Instinet 129 119 9% 6% 213 196 Reuters Ventures 41 38 7% 4% 68 63 - ------------------------------------------------------------------------------------------------------------------------------- Divisional revenue 764 742 3% 0% 1,261 1,224 TIBCO Software - 10 - 17 Reuters Business Briefing - 14 - 23 Share of DJRBI revenue 17 - 28 - Intra group revenue (1) (5) (2) (8) - ------------------------------------------------------------------------------------------------------------------------------- Gross revenue 780 761 3% (1%) 1,287 1,256 Less: Share of DJRBI revenue (17) - (28) - - ------------------------------------------------------------------------------------------------------------------------------- Total 763 761 0% (3%) 1,259 1,256 - ------------------------------------------------------------------------------------------------------------------------------- REVENUE ANALYSIS BY GEOGRAPHY - ------------------------------------------------------------------------------------------------------------------------------- Europe, Middle East & Africa 367 371 (1%) (2%) 605 613 Asia/Pacific 117 109 7% (4%) 193 180 The Americas 130 120 8% 4% 215 198 Instinet 129 119 9% 6% 213 196 Other 20 42 (51%) (54%) 33 69 - ------------------------------------------------------------------------------------------------------------------------------- Total 763 761 0% (3%) 1,259 1,256 - ------------------------------------------------------------------------------------------------------------------------------- REVENUE ANALYSIS BY TYPE - ------------------------------------------------------------------------------------------------------------------------------- Recurring 590 558 5% 3% 974 921 Usage 140 145 (2%) (6%) 231 239 Outright 33 58 (42%) (46%) 54 96 - ------------------------------------------------------------------------------------------------------------------------------- Total 763 761 0% (3%) 1,259 1,256 - ------------------------------------------------------------------------------------------------------------------------------- Note: Reuters share of DJRBI revenue is included within gross revenue and then deducted to show total revenue of the Group, in compliance with UK Financial Reporting Standards No.9 "Associates and Joint Ventures".
5 REVENUE ANALYSIS - NINE MONTHS TO 30 SEPTEMBER 1999
NINE MONTHS TO % CHANGE NINE MONTHS TO 30 SEPTEMBER ACTUAL COMPARABLE 30 SEPTEMBER 1999 1998 RATES OF RATES OF 1999 1998 (POUND)M (POUND)M EXCHANGE EXCHANGE US$M US$M - ------------------------------------------------------------------------------------------------------------------------------- REVENUE ANALYSIS BY DIVISION - ------------------------------------------------------------------------------------------------------------------------------- Reuters Information 1,213 1,135 7% 4% 2,001 1,873 Reuters Trading Systems 568 585 (3%) (5%) 937 965 Instinet 384 327 18% 15% 634 540 Reuters Ventures 115 114 1% (2%) 190 188 - ------------------------------------------------------------------------------------------------------------------------------- Divisional revenue 2,280 2,161 6% 3% 3,762 3,566 TIBCO Software 21 24 35 40 Reuters Business Briefing 31 39 51 64 Share of DJRBI revenue 17 - 28 - Intra group revenue (7) (10) (12) (17) - ------------------------------------------------------------------------------------------------------------------------------- Gross revenue 2,342 2,214 6% 3% 3,864 3,653 Less: Share of DJRBI revenue (17) - (28) - - ------------------------------------------------------------------------------------------------------------------------------- Total 2,325 2,214 5% 2% 3,836 3,653 - ------------------------------------------------------------------------------------------------------------------------------- REVENUE ANALYSIS BY GEOGRAPHY - ------------------------------------------------------------------------------------------------------------------------------- Europe, Middle East & Africa 1,126 1,109 1% 0% 1,857 1,830 Asia/Pacific 348 336 4% (3%) 574 554 The Americas 375 342 9% 7% 619 564 Instinet 384 327 18% 15% 634 540 Other 92 100 (8%) (10%) 152 165 - ------------------------------------------------------------------------------------------------------------------------------- Total 2,325 2,214 5% 2% 3,836 3,653 - ------------------------------------------------------------------------------------------------------------------------------- REVENUE ANALYSIS BY TYPE - ------------------------------------------------------------------------------------------------------------------------------- Recurring 1,757 1,649 6% 4% 2,899 2,720 Usage 445 418 7% 4% 734 690 Outright 123 147 (16%) (18%) 203 243 - ------------------------------------------------------------------------------------------------------------------------------- Total 2,325 2,214 5% 2% 3,836 3,653 - ------------------------------------------------------------------------------------------------------------------------------- Note: Reuters share of DJRBI revenue is included within gross revenue and then deducted to show total revenue of the Group, in compliance with UK Financial Reporting Standards No.9 "Associates and Joint Ventures".
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