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
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REUTERS GROUP PLC
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(Translation of registrant's name into English)
85 FLEET STREET, LONDON EC4P 4AJ, ENGLAND
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(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
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[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
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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
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(Registrant)
Dated: October 26, 1999 By: /s/ Nancy C. Gardner
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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$M
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REVENUE ANALYSIS
BY DIVISION
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Reuters Information 405 381 6% 3% 668 628
Reuters Trading Systems 189 204 (7%) (10%) 312 337
Instinet 129 119 9% 6% 213 196
Reuters Ventures 41 38 7% 4% 68 63
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Divisional revenue 764 742 3% 0% 1,261 1,224
TIBCO Software - 10 - 17
Reuters Business Briefing - 14 - 23
Share of DJRBI revenue 17 - 28 -
Intra group revenue (1) (5) (2) (8)
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Gross revenue 780 761 3% (1%) 1,287 1,256
Less: Share of DJRBI revenue (17) - (28) -
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Total 763 761 0% (3%) 1,259 1,256
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REVENUE ANALYSIS
BY GEOGRAPHY
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Europe, Middle
East & Africa 367 371 (1%) (2%) 605 613
Asia/Pacific 117 109 7% (4%) 193 180
The Americas 130 120 8% 4% 215 198
Instinet 129 119 9% 6% 213 196
Other 20 42 (51%) (54%) 33 69
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Total 763 761 0% (3%) 1,259 1,256
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REVENUE ANALYSIS
BY TYPE
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Recurring 590 558 5% 3% 974 921
Usage 140 145 (2%) (6%) 231 239
Outright 33 58 (42%) (46%) 54 96
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Total 763 761 0% (3%) 1,259 1,256
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Note: Reuters share of DJRBI revenue is included within gross revenue and then
deducted to show total revenue of the Group, in compliance with UK Financial
Reporting Standards No.9 "Associates and Joint Ventures".
5
REVENUE ANALYSIS - NINE MONTHS TO 30 SEPTEMBER 1999
NINE MONTHS TO % CHANGE NINE MONTHS TO
30 SEPTEMBER ACTUAL COMPARABLE 30 SEPTEMBER
1999 1998 RATES OF RATES OF 1999 1998
(POUND)M (POUND)M EXCHANGE EXCHANGE US$M US$M
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REVENUE ANALYSIS
BY DIVISION
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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
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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)
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Gross revenue 2,342 2,214 6% 3% 3,864 3,653
Less: Share of DJRBI revenue (17) - (28) -
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Total 2,325 2,214 5% 2% 3,836 3,653
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REVENUE ANALYSIS
BY GEOGRAPHY
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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
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Total 2,325 2,214 5% 2% 3,836 3,653
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REVENUE ANALYSIS
BY TYPE
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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
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Total 2,325 2,214 5% 2% 3,836 3,653
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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".
