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REUTERS HOLDINGS ANNOUNCES 1992 INTERIM RESULTS

 REUTERS HOLDINGS ANNOUNCES 1992 INTERIM RESULTS
 LONDON, July 21 /PRNewswire/ -- The following is a summary of the


unaudited results of Reuters Holdings PLC (NASDAQ: RTRSY) for the six months to June 30, 1992:
 -- Revenue rises 6.1 percent to 748.4 million pounds sterling (US$1,429.4 million)
 -- Operating profit before interest up 4.5 percent to 154.7 million pounds (US$295.4 million)
 -- Pre-tax profit rises by 10.2 percent to 187.4 million pounds (US$357.9 million)
 -- Profit attributable to ordinary shareholders down 9.6 percent to 103.0 million pounds (US$196.8 million), after extraordinary item relating to the Australian tax settlement of 24.6 million pounds (US$46.9 million)
 -- Earnings per ordinary share up 11.4 percent to 30.3p (Earnings per American Depositary Share US$1.73), before extraordinary item and down 10.1 percent to 24.4p (US$1.40) after extraordinary item
 -- Interim dividend up 12.8 percent to 5.3p
 -- Net cash up 21.1 percent at 608.8 million pounds (US$1,162.8 million) from 1991 year end
 REUTERS HOLDINGS PLC
 (Unaudited, in millions)
 Six months ended June 30: 1992 Percent 1991
 Pounds US$ change Pounds US$
 Revenue 748.4 1,429.4 6.1 705.3 1,347.2
 Operating profit
 before interest 154.7 295.4 4.5 148.0 282.6
 Net interest receivable 32.5 62.2 48.5 21.9 41.9
 Profit before taxation 187.4 357.9 10.2 170.1 324.8
 Extraordinary item (24.6) (46.9) -- -- --
 Profit attrib. to ordinary
 shareholders after
 extraordinary item 103.0 196.8 (9.6) 113.9 217.6
 Earnings per ordinary share
 before (and after)
 extraordinary item 30.3p(24.4p) 11.4(-10.1) 27.2p
 Earnings per ADS before
 extraordinary item $1.73 11.4 $1.56
 Dividend per ordinary share:
 Interim 5.3p 12.8 4.7p
 NOTE: This summary is taken from and should be read with the attached full statement and notes. The dividend is payable on Sept. 14, 1992 to ordinary shareholders on the register at Aug. 20 and on Sept. 18 to ADS holders on the register at Aug. 20. For convenience the U.S. dollar equivalents for both years have converted at US$1.91 equals one pound, a rate prevailing on June 30, 1992.
 Reuters pre-tax profit rose 10.2 percent to 187.4 million (US$357.9 million) in the first half of 1992 compared with the first six months of 1991. Revenue rose by 6.1 percent to 748.4 million (US$1,429.4 million) at actual exchange rates. At comparable rates it rose by 4.3 percent.
 Chief Executive Peter Job said: "As we forecast earlier, there has been a slowdown in revenue growth which largely reflects the lower level of new orders taken last year. We are unable to predict any improvement in the revenue growth rate at this time. While there has been a modest improvement in the order level, this is being offset by measures we are taking to fortify our long-term market position. These include packaging of new facilities into existing services free of charge where previously we might have sold them for an extra fee. We are maintaining price stability and in a few cases decreasing prices, and we are waiving certain charges to improve the quality and breadth of contributed data in Reuter services. We aim to continue to grow earnings faster than revenue although we shall be committing ourselves to the funding of new projects over and above the major launches we achieved in the first half of this year. The two most important ones, the foreign exchange matching system, Dealing 2000 Phase 2, and the GLOBEX financial futures matching system, are proving themselves technically but we cannot yet gauge the extent and timing of their contribution to our revenue."
 Interest income increased by 48.5 percent to 32.5 million pounds (US$62.2 million). Net cash balances at the end of June 1992 stood at 608.8 million (US$1,162.8 million), a rise of 160.5 million pounds (US$306.6 million) from the end June 1991 total. Profit after tax rose by 11.0 percent to 127.4 million pounds (US$243.4 million). The effective tax rate declined marginally to 32.0 percent above last year's. Earnings per share increased by 11.4 percent to 30.3 pence (US$1.73 per American Depositary Share representing three ordinary shares) excluding the effects of the 24.6 million pounds (US$46.9 million) out-of-court settlement with the Australian Tax Office. The settlement, reached in June, related to a tax claim on a sale of Reuter shares in 1986 by an Australian company which was subsequently acquired by Reuters. The issue of new shares to support maturing employee share schemes, including conversion of options, increased the weighted average number of shares in issue since June 1991 by 2.4 million to 421.5 million.
 The 4.5 percent growth in operating profit before interest to 154.7 million pounds (US$295.4 million) was achieved after setting aside provisions of 150.0 million pounds (US$28.7 million) for future rationalization of the product line and further reorganization.
 Business progress was most notable in the Americas where revenues and contribution grew strongly. Contribution was 7.7 million pounds (US$14.7 million) against a deficit of 2.5 million pounds (US$4.8 million) a year ago, while revenue rose 16.9 percent at actual exchange rates and 13.3 percent at comparable rates. Revenue from the Asia/Pacific area rose 6.9 percent at actual exchange rates but was virtually unchanged at comparable rates. Its contribution was 63.9 million pounds (US$122.1 million), up 7.8 percent from 59.3 million (US$113.3 million). The growth of revenue for Europe, Middle East and Africa was 4.6 percent at actual exchange rates and 4.4 percent at comparable rates. Its contribution rose 5.1 percent to 159.6 million pounds (US$304.8 million). This compared with a contribution of 151.8 million pounds (US$289.9 million) a year ago.
 Activity in the foreign exchange market remained dull although conversations across the Reuter foreign exchange dealing systems held up well. As anticipated, the initial trading volumes on both Dealing 2000 Phase 2 and GLOBEX are low. The more mature Instinet equities trading product increased volume by 70 percent over the same period a year ago with 1.7 billion U.S. shares changing hands. Subscriber interest in Dealing 2000 Phase 2 continues high. We expect to see increased liquidity as the system expands to more sites. The service is now available in Frankfurt and Zurich as well as New York and London and will be extended to other centers, including Asia, shortly. The GLOBEX product should improve its trading volume when the big Chicago Mercantile Exchange and Chicago Board of Trade contracts are on the system. The exchanges decided to start with the lower volume contracts initially.
 Development spending rose by 11.3 percent to 35.1 million pounds (US$67.0 million) representing 4.7 percent of revenue against 4.5 percent a year ago. Capital spending was 66.7 million pounds (US$127.5 million), the same as a year ago.
 REUTERS HOLDINGS PLC
 (Unaudited, in millions)
 Six months ended Year to
 6/30/92 6/30/91 12/31/91
 Pounds US$ Pounds US$ Pounds US$
 Revenue(A) 748.4 1,429.4 705.3 1,347.2 1,466.6 2,801.3
 Production and
 communications
 costs (410.3) (783.6) (386.1) (737.4) (825.0) (1,575.8)
 Selling and
 marketing
 expenses (82.8) (158.2) (79.4) (151.7) (157.5) (300.9)
 Administrative
 expense (100.6) (192.2) (91.8) (175.5) (193.6) (369.7)
 Operating
 profit
 before
 interest 154.7 295.4 148.0 282.6 290.5 554.9
 Net interest
 receivable 32.5 62.2 21.9 41.9 49.6 94.7
 Profit before
 associated
 undertakings 187.2 357.6 169.9 324.5 340.1 649.6
 Profit from
 associated
 undertakings 0.2 0.3 0.2 0.3 0.2 0.3
 Profit before
 taxation 187.4 357.9 107.1 324.8 340.3 649.9
 Taxation on
 profit(B) (60.0) (114.5) (55.3) (105.5) (110.6) (211.2)
 Profit after
 taxation 127.4 243.4 114.8 219.3 229.7 438.7
 Minority
 interest 0.2 0.3 (0.9) (1.7) (0.1) (0.1)
 Profit before
 extraordinary
 item 127.6 243.7 113.9 217.6 229.6 438.6
 Extraordinary
 item(E) (24.6) (46.9) -- -- -- --
 Profit attrib.
 to ordinary
 shareholders 103.0 196.8 113.9 217.6 229.6 438.6
 Dividend on
 ordinary
 shares paid
 or proposed:
 Interim (22.5) (43.1) (19.8) (37.87) -- --
 Interim
 and final -- -- -- -- (71.5) (136.6)
 Retained
 profit 80.5 153.7 94.1 179.8 158.1 302.0
 Earnings per
 ordinary share
 before
 extraordinary
 item(C) 30.3p 27.2p 54.7p
 Earnings per ADS
 before extraordinary
 item $1.73 $1.56 $3.14
 Dividend per
 ordinary share:
 Interim 5.3p 4.7p --
 Interim
 and final -- -- 17.0p
 Number of
 ordinary
 shares
 ranking
 for dividend
 (in millions)422.5 419.8 420.6
 NOTES:
 (A) -- The figures below show revenue and contribution by geographical location. Visnews, the international television news agency, is shown separately.
 Revenue (in millions)
 Six months to Year to Six months to Year to
 6/30/92 6/30/91 12/31/91 6/30/92 6/30/91 12/31/91
 Pounds U.S. Dollars
 Europe,
 Middle East
 and Africa 455.0 435.0 899.6 869.1 830.9 1,718.3
 Asia/Pacific 143.2 133.9 279.2 273.4 255.8 533.3
 The Americas 123.7 105.8 226.3 236.3 202.1 436.2
 Visnews 26.5 30.6 59.4 50.6 58.4 113.5
 Total 748.4 705.3 1,466.6 1,429.4 1,347.2 2,801.3
 The above figures have been converted into sterling at the actual exchange rates ruling in each year.
 Contribution (In millions)
 Six months to Year to Six months to Year to
 6/30/92 6/30/91 12/31/91 6/30/92 6/30/91 12/31/91
 Pounds U.S. Dollars
 Europe,
 Middle East
 and Africa 159.6 151.8 305.0 304.8 289.9 582.5
 Asia/Pacific 63.9 59.3 124.2 122.1 113.3 237.2
 The Americas 7.7 (2.5) (5.2) 14.7 (4.8) (9.9)
 Visnews (0.4) 1.9 1.3 (0.8) 3.6 2.5
 Total
 contribution 230.8 210.5 425.3 440.8 402.0 812.3
 Reorganization
 costs (15.0) (10.0) (23.5) (28.7) (19.1) (44.8)
 Central costs (66.9) (58.0) (113.8) (127.8) (110.8) (217.4)
 Net currency
 gains 5.8 5.5 2.5 11.1 10.5 4.8
 Operating
 profit
 before
 interest 154.7 148.0 290.5 295.4 282.6 554.9
 The contribution is stated after deducting local trading and productions costs but does not represents true geographical profit. Because of the interactive nature of Reuters world-wide operations, costs incurred in one part of the world often relate to revenues earned elsewhere. Geographical contribution in all periods is stated before reorganization costs. Corporate administration and the centrally- controlled activities of development, marketing and technical operations are also excluded from the geographical figures.
 Geographical Analysis of Staff
 June 1992 Dec. 1991
 Asia/Pacific
 Japan 468 461
 Other 1,100 1,083
 The Americas
 U.S. 2,243 2,283
 Other 578 587
 Europe, Middle East and Africa
 U.K. and Ireland 2,833 2,885
 Continental Europe 2,086 2,043
 Middle East and Africa 440 446
 Visnews 453 455
 Total 10,201 10,243
 (B) -- The taxation has been calculated based on the estimated effective tax rate of the full year of 32.0 percent.
 (C) -- Earnings per ordinary share are based on the profit before extraordinary item and on the weighted average number of those shares in issue during the half year which was 421.5 million (1991 - 419.1 million). Earnings were US$1.73 per American Depositary Share (ADS) compared with US$1.56 per ADS for the 1991 period. Each ADS represents three ordinary shares. Cash flow per ordinary share was 66.6 pence (1991 - 60.8 pence) and per ADS was US$3.82 (1991 -- US$3.48).
 (D) -- The above financial information has been prepared in accordance with U.K. Generally Accepted Accounting Principles (UK GAAP). For convenience, the U.S. dollar equivalents for both years have been converted at US$1.91 equals one pound, a rate prevailing on June 30, 1992.
 (E) -- In June 1992 Reuters and the Australian Tax Office reached an out-of-court settlement relating to a tax claim on a sale of Reuter shares by an Australian company which was subsequently acquired by Reuters. The settlement was for A$59.0 million (24.6 million pounds).
 (F) -- UK GAAP differ in certain respects from U.S. GAAP. The following are the approximately adjustments required to reconcile profit before extraordinary item per UK GAAP with income before extraordinary item per US GAAP:
 In millions of pounds
 Six months to June 30: 1992 1991
 Profit before extraordinary
 item in accordance with UK GAAP 127.6 113.9
 Accounting treatment of:
 Goodwill and other intangibles (12.4) (12.9)
 Capitalization and amortization
 of software costs 4.8 5.5
 Employee costs (0.9) (0.8)
 Other 0.7 --
 Taxes (1.9) (1.2)
 Income before extraordinary item
 in accordance with US GAAP 117.9 104.5
 Extraordinary item (24.6) --
 Net income in accordance with US GAAP 93.3 104.5
 Six months to June 30: 1992 1991
 Earnings per ADS:
 Income before extraordinary item 83.9p 74.8p
 Net income 66.4p 74.8p
 Dividend per ADS (including tax credit) 49.2p 42.4p
 (G) -- Net assets, in accordance with UK GAAP, at June 30, 1992 totaled 808.1 million pounds (June 30, 1991 - 657.5 million pounds)
 (H) -- The dividend is payable on Sept. 14, 1992 to ordinary shareholders on the register at Aug. 20, 1992 and on Sept. 18, to ADS holders on the register at Aug. 20.
 (I) -- The financial information for the year ended Dec. 31, 1991 has been extracted from the statutory accounts for that year which have been delivered to the Registrar of Companies. The auditors' report on these accounts was unqualified and did not contain a statement under section 237 of the Companies Act 1985.
 Reuter Key Statistics
 1. Distribution
 Counties Subscriber Terminals
 Locations
 6/92 12/91 6/92 12/91 6/92 12/91
 Business Services
 (Video)(A) 136 132 28,820 28,376 202,100 201,800
 2. Infrastructure
 Counties Cities
 6/92 12/91 6/92 12/91
 Total offices worldwide 79 79 174 177
 Staff(B) 6/92 12/91
 Management 168 165
 Editorial 1,630 1,640
 Technical 4,442 4,470
 Sales and marketing 1,527 1,550
 Administration 2,434 2,418
 Total number of staff 10,201 10,243
 (A) Included in the video terminal total which are been rounded are:
 6/92 12/91
 Information products
 Terminals 173,700 173,900
 Pocketwatch 10,400 10,300
 Transaction terminals 18,000 17,600
 Total 202,100 201,800
 (B) The staff numbers have been adjusted from those prevously reported to reflect reclassification of staff, primarily resulting in a move from sales and marketing to administration of client supprt staff. The figures also exclude temporary staff.
 -0- 7/21/92
 /CONTACT: Robert A. Crook, 212-603-3587, or investors, Michael J. Reilly, 212-603-3580, both of Reuters/
 (RTRSY) CO: Reuters Holdings plc ST: IN: PUB SU: ERN


SM-TS -- NY010 -- 1248 07/21/92 10:57 EDT
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Date:Jul 21, 1992
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