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 April 1998
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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 Form 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. 1 TO REGISTRATION STATEMENT NO. 33-16927 ON FORM S-8,
REGISTRATION STATEMENT NO. 33-69694 ON FORM F-3, REGISTRATION STATEMENT NO.
33-90398 ON FORM S-8 AND REGISTRATION STATEMENT NO. 333-7374 ON FORM F-3 FILED
BY THE REGISTRANT'S PREDECESSOR UNDER THE SECURITIES ACT OF 1933.
Cautionary Statements
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The following press 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 Item 9,
Management's Discussion and Analysis of Financial Condition and Results of
Operations, of Reuters Annual Report on Form 20-F for the fiscal year ended
December 31, 1997, under the heading "Cautionary Statements", which also
incorporates by reference the factors described under the heading "Cautionary
Statements" in the Operating and Financial Review included in the 1997 Annual
Report to Shareholders of Reuters Holdings PLC. Copies of these Annual Reports
are available on request from Reuters Group PLC, 85 Fleet Street, London EC4P
4AJ.
21 April 1998 11/98
FOR IMMEDIATE RELEASE
CONTINUED REVENUE GROWTH DESPITE STRENGTH OF STERLING
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London, 21 April - Reuters first quarter revenue for 1998 rose by an underlying
7% over the same period last year, but the impact of the strong pound reduced
this to 2%. Revenue for the quarter, at (pound)715 million (US$1,195 million)
compared to (pound)699 million (US$1,167 million) generated in the first quarter
of 1997. All US dollar equivalents are converted at US$1.67, a rate prevailing
at 31 March 1998.
Information products revenue grew by 7% net of currency (2% at actual rates) in
the quarter assisted by the strong order book at the year end and continuing
installations of the 3000 series. Transaction products grew 7% at comparable
rates (5% at actual rates) with Instinet growth of 12% at comparable rates (11%
at actual rates). Media and professional products revenue grew 1% at comparable
rates (-2% at actual rates) held back by the disposal of the Media satellite
services business in 1997. Business information products continued to grow
strongly.
With 3000 installations now topping 30,000, Reuters is moving to the launch of
versions for certain domestic markets. Reuters Plus, aimed at the US equities
markets, is due out in the second quarter.
Instinet's overseas revenues advanced very strongly as its international
operations gathered pace. Volumes remained high in the US but competition
restrained US revenue growth and put pressure on margins.
Revenue in Asia grew by 4% at comparable rates (-5% at actual rates). Despite
difficult markets Asian revenue growth at comparable rates is projected to be
positive for the year as a whole.
- 2 -
The Millennium Challenge programme is on track and a programme update has been
circulated to clients. Reuters received the first CBI (Confederation of British
Industry) year 2000 recognition award for use of best practice and communication
of its programme.
Reuters has established a programme to ensure systems and products will be
capable of handling the Euro. Communication with customers has just begun. The
programme is expected to incur incremental costs of (pound)10 million in 1998.
These costs will start feeding into the first half along with forecast
Millennium expenditure. First half costs of the combined programmes are
estimated at around (pound)20 million.
The appreciation of sterling continued to impact results, with the
trade-weighted index reaching a high of 109 at the end of the quarter up from 98
at the same time last year. With the pound at current levels, the Company
expects modest reported revenue growth for the first half. Underlying revenue
growth, as in the first quarter, will be somewhat higher.
END
For further information please contact Geoff Wicks, Director, Corporate
Relations (Tel: 0171-542 8666 or 0171-542 3717) or by email
geoff.wicks@reuters.com.
or Peter V Thomas, Director, Media Relations, (Tel: 0171-542 4890 or 0171-542
7457) or by email peter.v.thomas@reuters.com.
REUTERS AND THE DOTTED AND SPHERE LOGOS ARE THE HOUSE TRADEMARKS OF REUTERS
LIMITED.
REUTERS REVENUE ANALYSIS - FIRST QUARTER 1998
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PERCENT CHANGE
PERCENT CHANGE (COMPARABLE 12 MONTHS
FIRST QUARTER (ACTUAL RATES OF RATES OF 1997
1998 1997 EXCHANGE) EXCHANGE) (POUND)M
(POUND)M (POUND)M
REVENUE ANALYSIS BY SEGMENT
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Europe, Middle East &
Africa 372 366 2 7 1,484
Asia/Pacific 115 121 (5) 4 496
The Americas 110 105 5 5 437
Instinet 101 92 11 12 383
TIBCO 17 15 10 9 82
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TOTAL 715 699 2 7 2,882
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BY PRODUCT
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Information products
Recurring 417 405 3 9 1,640
Outright 36 40 (9) (6) 212
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453 445 2 7 1,852
Transaction products 212 203 5 7 828
Media & professional
products 50 51 (2) 1 202
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TOTAL 715 699 2 7 2,882
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REUTERS REVENUE ANALYSIS - FIRST QUARTER 1998
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PERCENT CHANGE
PERCENT CHANGE (COMPARABLE 12 MONTHS
FIRST QUARTER (ACTUAL RATES OF RATES OF 1997
1998 1997 EXCHANGE) EXCHANGE) $M
$M $M
REVENUE ANALYSIS BY SEGMENT
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Europe, Middle East &
Africa 621 611 2 7 2,478
Asia/Pacific 192 203 (5) 4 828
The Americas 184 175 5 5 730
Instinet 170 153 11 12 640
TIBCO 28 25 10 9 137
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TOTAL 1,195 1,167 2 7 4,813
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BY PRODUCT
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Information products
Recurring 697 677 3 9 2,739
Outright 61 67 (9) (6) 354
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758 744 2 7 3,093
Transaction products 354 339 5 7 1,382
Media & professional
products 83 84 (2) 1 338
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TOTAL 1,195 1,167 2 7 4,813
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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: May 13, 1998 BY: /s/ J.B. Reid-Dodick
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John B. Reid-Dodick
Attorney-in-Fact
