Reuters First Quarter Trading Statement

Apr 24, 2001, 01:00 ET from The Reuters Group PLC

    LONDON, April 24 /PRNewswire Interactive News Release/ -- Reuters revenue
 for the first quarter of 2001 rose 17% to 970 million pounds sterling
 (US$1,387 million) from 832 million pounds (US$1,190 million) for the same
 period last year.  Underlying revenue, which excludes the impact of
 acquisitions, disposals and currency movements, rose 10%.  Strong performances
 at Reuters Financial and Instinet contributed to the underlying growth.
     Peter Job, Chief Executive, said:  "Revenue growth from Reuters core
 financial business in the first quarter continued the strong trend of the
 second half of last year.  We anticipate that growth will continue in the
 current quarter at a slightly lower rate.  Our business model remains robust
 based on repeat revenues, which show no sign of eroding.  The financial
 customer base is well diversified across many different types of institutions
 in over 50,000 locations worldwide.
     "On the cost side, we are dedicating the necessary resources to ensure
 that we can achieve the large savings to which we have committed as part of
 our internet strategy announced last year.
     "The strength of Instinet's franchise in the US has enabled us to increase
 market share still further.  We have now clocked up our first full calendar
 quarter in which Instinet's share of US equities markets exceeded 10 percent."
 
     Reuters Financial
     Revenue rose 11% to 658 million pounds (US$941 million) compared with the
 same quarter last year. Underlying revenue was up 7%.
     Reuters subscription-based information products grew to 458 million pounds
 (US$655 million), up 7% on an underlying basis, in line with growth levels
 achieved through 2000.  Revenue growth was strong in the main economies of
 continental Europe and in the US.  Sales of the flagship product, 3000 Xtra,
 remain on track and now stand at almost 33,000.
     Reuters trading solutions business maintained the strong growth pattern
 set in the second half of last year.  Application and Enterprise Solutions,
 which provides data management systems and applications for financial markets,
 increased to 86 million pounds (US$123 million), up 21%.  The Retail Solutions
 business, directed at financial intermediaries who use internet technologies
 and content to benefit their own client base, grew to 19 million pounds
 (US$28 million), up 62% over the same period last year.  This was offset by a
 9% decline in transaction products, reflecting continued downward pressure in
 foreign exchange markets.
 
     Reuterspace
     Revenues for Reuterspace grew 51% to 65 million pounds (US$93 million)
 compared with the first quarter of 2000.  Underlying revenues were up 9%.
 Revenue performance was boosted by the recent acquisitions in the company
 research area.  Two of these, the TowerGroup and the Yankee Group, each
 achieved good double-digit revenue growth in the first quarter.  Important new
 sales of internet services were made in Europe including a sale to Vizzavi,
 the European multi-access portal from Vodafone and Vivendi.  This was offset
 by slower market conditions in the US.
     There were no Greenhouse Fund disposals during the first quarter.  The
 market value of the quoted companies was 54 million pounds at the end of the
 quarter.  Net gains realized from the fund up to 31 December 2000 totalled
 127 million pounds.
 
     Instinet
     Revenue for Instinet grew 27% to 250 million pounds (US$357 million),
 compared to the first quarter last year.  Underlying revenue increased 20%.
 Growth was driven by the US market where Instinet's Nasdaq volumes increased
 56%.  Increased volumes were accompanied by lower average pricing.  Instinet's
 share of the Nasdaq market improved to a new high of 15.1%.
     During the quarter Instinet filed for an Initial Public Offering of up to
 14.1% of its outstanding capital stock.
 
     Bridge
     Reuters has also entered into discussions to acquire certain assets of
 Bridge Information Systems, Inc.  These assets would improve the range of
 Reuters products in the US especially on the buy-side.
 
     Note:
     Reuters ( about.reuters.com ) premier position as a global information,
 news and technology group is founded on its reputation for speed, accuracy,
 integrity and impartiality combined with continuous technological innovation.
 Reuters strength is based on its unique ability to offer customers around the
 world a combination of content, technology and connectivity.  Reuters makes
 extensive use of internet technologies for the widest distribution of
 information and news.  Around 73 million unique visitors per month access
 Reuters content on some 1,400 Internet websites.  Reuters is the world's
 largest international text and television news agency with 2,157 journalists,
 photographers and camera operators in 190 bureaux, serving 151 countries.  In
 2000 the Group had revenues of 3.59 billion pounds and on 31 December 2000,
 the Group employed 18,082 staff in 204 cities in 100 countries.
 
     This news release may be deemed to include forward-looking statements
 relating to Reuters 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 disclosed in such forward-looking statements are described in Reuters
 Annual Report and Form 20-F for the year ended 31 December 2000 under the
 heading 'Risk Factors.'  Copies of the Annual Report and Form 20-F are
 available on request from Reuters Group PLC, 85 Fleet Street, London EC4P 4AJ.
     Reuters and the sphere logo are the trademarks of the Reuters group of
 companies.
 
 
     REUTERS REVENUE ANALYSIS -FIRST QUARTER 2001
 
                          Three months to      % Change        Three months to
                             31 March                             31 March
                          2001      2000    Actual  Underlying  2001    2000
                        m pounds  m pounds                      US$m    US$m
 
     Revenue analysis
      by division
 
     Reuters Information  458        417     10%       7%       655      596
     Reuters Trading
      Solutions           200        176     13%       7%       286      252
     Reuters Financial    658        593     11%       7%       941      848
     Reuterspace           65         43     51%       9%        93       61
     Instinet             250        197     27%      20%       357      282
     Divisional revenue   973        833     17%      10%      1391     1191
 
     Share of joint
      ventures revenue     25         18     39%      22%        36       26
     Intra group revenue   (3)        (1)   165%     158%        (4)      (1)
     Gross revenue        995        850     17%      10%      1423     1216
 
     Less share of joint
      ventures revenue    (25)       (18)    39%      22%       (36)     (26)
     Group revenue        970        832     17%      10%      1387     1190
 
     Revenue analysis
      by type
 
     Recurring            668        602     11%       5%       956      861
     Usage                266        211     26%      19%       380      302
     Outright              36         19     91%      82%        51       27
     Group revenue        970        832     17%      10%      1387     1190
 
     Revenue analysis
      by geography
 
     Europe, Middle East
      and Africa          454        408     11%       7%       649      584
     The Americas         383        298     29%      17%       548      426
     Asia/Pacific         133        126      5%       4%       190      180
     Group revenue        970        832     17%      10%      1387     1190
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X54208846
 
 

SOURCE The Reuters Group PLC
    LONDON, April 24 /PRNewswire Interactive News Release/ -- Reuters revenue
 for the first quarter of 2001 rose 17% to 970 million pounds sterling
 (US$1,387 million) from 832 million pounds (US$1,190 million) for the same
 period last year.  Underlying revenue, which excludes the impact of
 acquisitions, disposals and currency movements, rose 10%.  Strong performances
 at Reuters Financial and Instinet contributed to the underlying growth.
     Peter Job, Chief Executive, said:  "Revenue growth from Reuters core
 financial business in the first quarter continued the strong trend of the
 second half of last year.  We anticipate that growth will continue in the
 current quarter at a slightly lower rate.  Our business model remains robust
 based on repeat revenues, which show no sign of eroding.  The financial
 customer base is well diversified across many different types of institutions
 in over 50,000 locations worldwide.
     "On the cost side, we are dedicating the necessary resources to ensure
 that we can achieve the large savings to which we have committed as part of
 our internet strategy announced last year.
     "The strength of Instinet's franchise in the US has enabled us to increase
 market share still further.  We have now clocked up our first full calendar
 quarter in which Instinet's share of US equities markets exceeded 10 percent."
 
     Reuters Financial
     Revenue rose 11% to 658 million pounds (US$941 million) compared with the
 same quarter last year. Underlying revenue was up 7%.
     Reuters subscription-based information products grew to 458 million pounds
 (US$655 million), up 7% on an underlying basis, in line with growth levels
 achieved through 2000.  Revenue growth was strong in the main economies of
 continental Europe and in the US.  Sales of the flagship product, 3000 Xtra,
 remain on track and now stand at almost 33,000.
     Reuters trading solutions business maintained the strong growth pattern
 set in the second half of last year.  Application and Enterprise Solutions,
 which provides data management systems and applications for financial markets,
 increased to 86 million pounds (US$123 million), up 21%.  The Retail Solutions
 business, directed at financial intermediaries who use internet technologies
 and content to benefit their own client base, grew to 19 million pounds
 (US$28 million), up 62% over the same period last year.  This was offset by a
 9% decline in transaction products, reflecting continued downward pressure in
 foreign exchange markets.
 
     Reuterspace
     Revenues for Reuterspace grew 51% to 65 million pounds (US$93 million)
 compared with the first quarter of 2000.  Underlying revenues were up 9%.
 Revenue performance was boosted by the recent acquisitions in the company
 research area.  Two of these, the TowerGroup and the Yankee Group, each
 achieved good double-digit revenue growth in the first quarter.  Important new
 sales of internet services were made in Europe including a sale to Vizzavi,
 the European multi-access portal from Vodafone and Vivendi.  This was offset
 by slower market conditions in the US.
     There were no Greenhouse Fund disposals during the first quarter.  The
 market value of the quoted companies was 54 million pounds at the end of the
 quarter.  Net gains realized from the fund up to 31 December 2000 totalled
 127 million pounds.
 
     Instinet
     Revenue for Instinet grew 27% to 250 million pounds (US$357 million),
 compared to the first quarter last year.  Underlying revenue increased 20%.
 Growth was driven by the US market where Instinet's Nasdaq volumes increased
 56%.  Increased volumes were accompanied by lower average pricing.  Instinet's
 share of the Nasdaq market improved to a new high of 15.1%.
     During the quarter Instinet filed for an Initial Public Offering of up to
 14.1% of its outstanding capital stock.
 
     Bridge
     Reuters has also entered into discussions to acquire certain assets of
 Bridge Information Systems, Inc.  These assets would improve the range of
 Reuters products in the US especially on the buy-side.
 
     Note:
     Reuters ( about.reuters.com ) premier position as a global information,
 news and technology group is founded on its reputation for speed, accuracy,
 integrity and impartiality combined with continuous technological innovation.
 Reuters strength is based on its unique ability to offer customers around the
 world a combination of content, technology and connectivity.  Reuters makes
 extensive use of internet technologies for the widest distribution of
 information and news.  Around 73 million unique visitors per month access
 Reuters content on some 1,400 Internet websites.  Reuters is the world's
 largest international text and television news agency with 2,157 journalists,
 photographers and camera operators in 190 bureaux, serving 151 countries.  In
 2000 the Group had revenues of 3.59 billion pounds and on 31 December 2000,
 the Group employed 18,082 staff in 204 cities in 100 countries.
 
     This news release may be deemed to include forward-looking statements
 relating to Reuters 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 disclosed in such forward-looking statements are described in Reuters
 Annual Report and Form 20-F for the year ended 31 December 2000 under the
 heading 'Risk Factors.'  Copies of the Annual Report and Form 20-F are
 available on request from Reuters Group PLC, 85 Fleet Street, London EC4P 4AJ.
     Reuters and the sphere logo are the trademarks of the Reuters group of
 companies.
 
 
     REUTERS REVENUE ANALYSIS -FIRST QUARTER 2001
 
                          Three months to      % Change        Three months to
                             31 March                             31 March
                          2001      2000    Actual  Underlying  2001    2000
                        m pounds  m pounds                      US$m    US$m
 
     Revenue analysis
      by division
 
     Reuters Information  458        417     10%       7%       655      596
     Reuters Trading
      Solutions           200        176     13%       7%       286      252
     Reuters Financial    658        593     11%       7%       941      848
     Reuterspace           65         43     51%       9%        93       61
     Instinet             250        197     27%      20%       357      282
     Divisional revenue   973        833     17%      10%      1391     1191
 
     Share of joint
      ventures revenue     25         18     39%      22%        36       26
     Intra group revenue   (3)        (1)   165%     158%        (4)      (1)
     Gross revenue        995        850     17%      10%      1423     1216
 
     Less share of joint
      ventures revenue    (25)       (18)    39%      22%       (36)     (26)
     Group revenue        970        832     17%      10%      1387     1190
 
     Revenue analysis
      by type
 
     Recurring            668        602     11%       5%       956      861
     Usage                266        211     26%      19%       380      302
     Outright              36         19     91%      82%        51       27
     Group revenue        970        832     17%      10%      1387     1190
 
     Revenue analysis
      by geography
 
     Europe, Middle East
      and Africa          454        408     11%       7%       649      584
     The Americas         383        298     29%      17%       548      426
     Asia/Pacific         133        126      5%       4%       190      180
     Group revenue        970        832     17%      10%      1387     1190
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X54208846
 
 SOURCE  The Reuters Group PLC