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REUTERS HOLDINGS PLC 1992 PRELIMINARY RESULTS

 LONDON, Feb. 9 /PRNewswire/ -- Reuters Holdings PLC (NASDAQ: RTRSY) today announced 1992 preliminary results.
 -- Revenue rises 6.9 percent to 1,567.6 million pounds sterling (US$2,367.1 million)
 -- Operating profit before interest up 8.9 percent to 316.5 million pounds (US$477.9 million)
 -- Pre-tax profit rises by 12.6 percent to 383.2 million pounds (US$578.7 million)
 -- Profit attributable to ordinary shareholders up 13.6 percent to 260.8 million pounds (US$398.8 million), before extraordinary item relating to an Australian tax settlement of 24.6 million pounds (US$37.1 million) and up 2.9 percent to 236.2 million pounds (US$356.7 million) after this extraordinary item.
 -- Earnings per ordinary share up 12.9 percent to 61.8p (earnings per American Depositary Share US$2.80) before extraordinary item and up 2.3 percent to 56.0p (US$2.53) after extraordinary item.
 -- Total dividend up 24.7 percent to 21.2p
 -- Net cash up 41.4 percent at 709.8 million pounds (US$1,071.9 million)
 The following is a summary of the unaudited results of Reuters Holdings PLC.
 REUTERS HOLDINGS PLC.
 Summary of Results
 (In millions)
 Year ended Dec. 31 1992 Percent 1991
 Pounds US$ Change Pounds US$
 Revenue 1,567.6 2,367.1 6.9 1,466.6 2,214.6
 Oper. profit
 bef. interest 316.5 477.9 8.9 290.5 438.7
 Net interest
 receivable 66.3 100.2 33.8 49.6 74.9
 Profit before
 taxation 383.2 578.7 12.6 340.3 513.8
 Extraord. item (24.6) (37.1) -- -- --
 Profit attributable
 to ordinary
 shareholders 236.2 356.7 2.9 229.6 346.7
 Earnings per
 ordinary share
 before (and after)
 extraord. item 61.8p (56.0p) 12.9 (2.3) 54.7p --
 Earnings per
 ADS before
 extraord. item -- $2.80 -- -- $2.48
 Dividend Per
 Ordinary Share:
 Interim 5.3p -- -- 4.7p --
 Final 15.9p -- -- 12.3p --
 NOTE: This summary is taken from and should be read with the attached full statement and notes. The dividend is payable on May 4, 1993 to ordinary shareholders on the register at April 1, 1993 and on May 7 to ADS holders on the register at April 1. For convenience the US dollar equivalents for both years have been converted at US$1.51 equals one pound sterling, a rate prevailing on Dec. 31, 1992.
 Reuters pre-tax profit rose 12.6 percent to 383.2 million pounds (US$578.7 million) in 1992. Earnings per share grew by 12.9 percent to 61.8 pence (US$2.80 pre American Depositary Share, representing three ordinary shares) excluding the effects of a 24.6 million pounds (US$37.1 million) out-of-court settlement with the Australian Tax Office reached in June of last year and reported at the time of the interim results. This settlement related to a tax claim on a sale of Reuter shares in 1986 by an Australian company which was subsequently acquired by Reuters. Revenue rose by 6.9 percent to 1,567.6 million pounds (US$2,367.1 million).
 Chief executive Peter Job, said: "We are pleased to announce a good set of results for 1992 but even more pleased at improvements we have made to our level of customer service. Many product improvements are keeping Reuters at the forefront of a competitive marketplace. Efficiency gains are sufficient to enable us to maintain overall price stability for our financial customers in 1993, as we did in 1992. We were particularly happy to see strong advances in our US operation including an excellent performance by our Instinet subsidiary which specializes in transacting equities. We made slower but steady advances with new products which provide similar transaction facilities for foreign exchange and financial futures.
 "Market conditions are favorable enough to sustain growth across all our product line. Problems affecting the financial community in some of our major markets, such as Japan, will probably mean that the rate of increase in our underlying revenue is not as fast as we would like. But, if current exchange rates continue, revenue in sterling terms will receive a strong boost in 1993. The full benefits of this will gradually flow through to earnings as currency hedges unwind. Our cash position is strong enough to allow us to pursue new investment ideas and, at the same time, to recommend an increase in dividend well ahead of earnings growth."
 The final dividend of 15.9 pence, is 29.3 percent above last year's with the total 24.7 percent higher than for 1991. Interest income increased by 33.8 percent to 66.3 million pounds (US$100.2 million). Net cash balances at the end of 1992 stood at 709.8 million pounds (US$1,071.9 million), up 206.9 million pounds (US$312.4 million). Profit after tax rose by 13.5 percent to 260.6 million pounds (US$393.5 million). The tax rate at 32.0 percent showed a marginal decline from 32.5 percent.
 Operating profit before interest grew 8.9 percent to 316.5 million pounds (US$477.9 million). Product rationalization and reorganization costs in 1992 totalled 28.7 million pounds (US$43.4 million), compared with costs of 23.5 million pounds (US$35.5 million) in 1991. These costs relate to a gradual net reduction of staff numbers which now stand 5 percent lower than they did two years ago. There has been an improvement of 20 percent in pre-tax profit over the same period.
 Capital expenditure grew by 24.9 percent to 198.7 million pounds (US$300.0 million). Purchases of personal computers and equipment for subscriber locations rose as did the purchase of larger computers including those needed to support the new transaction products. Another factor was the opening of a new building in Singapore. Development spending rose by 16.8 percent to 78.5 million pounds (US$118.6 million) reflecting a heavy program of expenditure on enhancing our existing product line and developing new products.
 Reuters revenue grew by 4.5 percent at comparable exchange rates, that is to say if it is adjusted to exclude the effect of currency changes between 1991 and 1992. The Americas turned in a record performance for both revenue and contribution, assisted by the Instinet result. At actual rates of exchange, the contribution was 15 million pounds (US$22.7 million) against a deficit of 5.2 million pounds (US$7.9 million) in 1991. Revenue grew by 13.6 percent to 259.4 million pounds (US$391.7 million) and by 13.9 percent at comparable rates.
 Instinet, the subsidiary which runs an equities transaction business, produced a jump in worldwide revenue of 57 percent to 59.6 million pounds (US$90 million). Contribution before certain exceptional items, grew by 66 percent to 14.8 million pounds (US$22.4 million) at actual rates.
 The strong revenue growth in Eastern Europe and the China region was offset by the continuing weakness of the financial services sector in several major centers. At actual rates of exchange the revenue of Europe, Middle East and Africa grew by 5.9 percent to 952.8 million pounds (US$1,438.7 million) and contribution by 9.7 percent to 334.7 million pounds (US$505.4 million). Revenue growth at comparable rates was 3.1 percent. Asia/Pacific's revenue rose by 6.4 percent (3.1 percent at comparable rates) to 297 million pounds (US$448.5 million) and contribution by 6.1 percent to 131.8 million pounds (US$199.0 million).
 Last year was one of the major product launches including that of Dealing 2000-2, a system for matching buy and sell orders in foreign exchange. Launched in April, the product was extended to nine countries by the end of the year. GLOBEX(R), which provides a similar service for financial futures
and options, has expanded to include more instruments and more users. The open networked Reuter Terminal and the Powerplus product, launched in the second half of 1992, allow clients to integrate the Reuter Terminal into their own networks and to run their own applications on it, alongside those of Reuters. These were major steps in the direction of open systems which allow customers to choose and buy their own hardware.
 A number of acquisitions, made during the year, proceeded towards integration on schedule. We bought in the remaining 49 percent of shares in Visnews held by NBC (37.75 percent) and the BBC (11.25 percent), strengthening our position in television news. We participated in a consortium seeking to buy ITN. We acquired shares in financial information software companies and bought rights to software relating to financial transactions such as stock-lending.
 REUTERS HOLDINGS PLC
 (Unaudited)
 Year to 12/31/92 Year to 12/31/91
 (millions of pounds) (US$m) (millions of pounds) (US$m)
 Revenue(A) 1,567.6 $2,367.1 1,466.6 $2,214.6
 Oper. costs(B) (1,251.1) (1,889.2) (1,176.1) (1,775.9)
 Oper. profit bef.
 interest 316.5 477.9 290.5 438.7
 Net interest
 receivable 66.3 100.2 49.6 74.9
 Profit before associated
 undertakings 382.8 578.1 340.1 513.6
 Profit from associated
 undertakings 0.4 0.6 0.2 0.2
 Profit bef. taxation 383.2 578.7 340.3 513.8
 Taxation on profit (122.6) (185.2) (110.6) (167.0)
 Profit after tax 260.6 393.5 229.7 346.8
 Minority interest 0.2 0.3 (0.1) (0.1)
 Profit bef. extraord.
 item 260.8 393.8 229.6 346.7
 Extraord. item(D) (24.6) (37.1) -- --
 Profit attributable
 to ordinary
 shareholders 236.2 356.7 229.6 346.7
 Div. on ordinary
 shares paid or
 proposed:
 Interim (22.5) (34.1) (19.8) (29.9)
 Final (67.3) (101.6) (51.7) (78.1)
 Retained profit 146.4 221.0 158.1 238.7
 Earns. per ordinary
 share bef. extraord.
 item(C) 61.8p 54.7p
 Earns. per ADS bef.
 extraord. item US$2.80 US$2.48
 Div. per ordinary share:
 Interim 5.3p 4.7p
 Final 15.9p 12.3p
 Number of ordinary
 shares ranking for
 div. (millions) 423.0 420.6
 NOTES:
 (A) -- The figures below show revenue and contribution by geographical location. Visnews, now Reuters Television (from Jan. 1, 1993), is shown separately for 1991 and 1992. Reuters acquired the 40 percent of Visnews it did not own during 1992.
 REVENUE
 Millions of Pounds US$m
 1992 1991 1992 1991
 Europe, Middle East
 and Africa 952.8 899.6 $1,438.7 $1,358.4
 Asia/Pacific 297.0 279.2 448.5 421.6
 The Americas 259.4 228.4 391.7 344.9
 Visnews 58.4 59.4 88.2 89.7
 Total revenue 1,567.6 1,466.6 2,367.1 2,214.6
 The above figures have been converted into sterling at the actual exchange rates ruling in each year. The U.S. dollar equivalents for both years have been converted at US$1.51 equals 1 pound, a rate prevailing on Dec. 31, 1992.
 CONTRIBUTION
 Millions of Pounds US$m
 1992 1991 1992 1991
 Europe, Middle East
 and Africa 334.7 305.0 $505.4 $460.6
 Asia/Pacific 131.8 124.2 199.0 187.5
 The Americas 15.0 (5.2) 22.7 (7.9)
 Visnews (0.5) 1.3 (0.8) 2.0
 Total contribution 481.0 425.3 726.3 642.2
 Reorganization costs (28.7) (23.5) (43.4) (35.5)
 Central costs (130.0) (117.0) (196.3) (176.6)
 Net currency (loss)/gain (5.8) 5.7 (8.7) 8.6
 Operating profit bef. int. 316.5 290.5 477.9 438.7
 The contribution is stated after deducting local trading and production costs but does not represent true geographical profit. Because of the interactive nature of Reuters worldwide operations, costs incurred in one part of the world often relate to revenues earned elsewhere. Geographical contribution in all periods is stated before reorganization costs. Corporate administration and the centrally controlled activities of development, marketing and technical operations are also excluded from the geographical figures.
 Geographical Analysis of Staff
 December 1992 December 1991
 ASIA/PACIFIC
 Japan 462 461
 Other 1,110 1,083
 THE AMERICAS
 United States 2,243 2,283
 Other 545 587
 EUROPE, MIDDLE EAST
 AND AFRICA
 United Kingdom & Ireland 2,754 2,885
 Continental Europe 2,102 2,043
 Middle East & Africa 425 446
 VISNEWS 518 455
 Total 10,159 10,243
 (B) -- Costs by type are as follows:
 Millions of Pounds US$m Pct. Millions of Pounds US$m
 1992 1992 Change 1991 1991
 Staff 436.0 $658.4 5.5 413.4 $624.2
 Services(a) 293.4 443.1 10.3 266.1 401.9
 Depreciation 185.8 280.6 (3.6) 192.8 291.2
 Space 108.0 163.1 (1.5) 109.7 165.5
 Data(b) 55.4 83.7 14.0 48.6 73.4
 Communications 122.6 185.1 1.3 121.0 182.7
 Cost of sales
 & other 44.1 66.5 45.8 30.2 45.6
 Net currency
 loss/(gain) 5.8 8.7 201.4 (5.7) (8.6)
 Total costs 1,251.1 1,889.2 6.4 1,176.1 1,775.9
 (a) -- Represents equipment hire and bought-in-services, including
 field maintenance and support, advertising and publicity,
 professional fees and staff-related expenses.
 (b) -- Relates to royalties, exchange fees and third party data
 agreements.
 (c) -- Net currency loss/(gain) represents balance sheet revaluation
 losses of 9.8 million pounds (1991 - 3.5 million pounds), partly
 offset by profits of 4.0 million (1991 - 9.2 million pounds) arising
 on currency hedging activities.
 Costs by function:
 Millions of Pounds US$m Pct. Millions of Pounds US$m
 1992 1992 Change 1991 1991
 Production and
 communications 874.6 $1,320.6 6.0 825.0 $1,245.8
 Selling and
 marketing 171.3 258.7 8.8 157.5 237.8
 Administration 205.2 309.9 6.0 193.6 292.3
 Total costs include reorganization costs and net currency
 losses/(gains).
 (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 year, which was 422.1 million (1991 - 419.6 million). Earnings were US$2.53 per American Depositary Share (ADS) after extraordinary item and US$2.80 before extraordinary item, compared with US$2.48 per ADS in 1991. Each ADS represents three ordinary shares. Cash flow per ordinary share was 134.5 pence (1991 - 126.7 pence) and per ADS was US$6.09 (1991 - US$5.74).
 (D) -- 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) and related to a sale of Reuters Holdings PLC shares in 1986.
 (E) -- The above financial information has been prepared in accordance with U.K. Generally Accepted Accounting Principles (U.K. GAAP). For convenience the U.S. dollar equivalents for both years have been converted at US$1.51 equals 1 pound, a rate prevailing on Dec. 31, 1992.
 (F) -- U.K. GAAP differ in certain respects from U.S. GAAP. The following are the approximate adjustments required to reconcile profit before extraordinary item per U.K. GAAP with net income per U.S. GAAP:
 Millions of Pounds
 1992 1991
 Profit before extraordinary item
 in accordance with U.K. GAAP 260.8 229.6
 U.S. GAAP adjustments:
 Amortization of goodwill and other
 intangibles (21.9) (24.8)
 Capitalization and amortization of
 software development costs 4.1 11.6
 Employee costs (2.2) (1.5)
 Other 0.7 --
 Taxes (1.3) (2.9)
 Inc. bef. extraordinary item and
 cumulative effect of change in
 accounting principle in accordance
 with U.S. GAAP 240.2 212.0
 Extraordinary item (24.6) --
 Cumulative effect of change in
 accounting principle (3.6) --
 Net income in accordance with
 U.S. GAAP 212.0 212.0
 The cumulative effect of change in accounting principle on Jan. 1, 1992, arises from the adoption of U.S. Financial Accounting Standard No. 106 "Employers' Accounting for Postretirement Benefits Other Than Pensions."
 Approximate earnings in accordance with U.S. GAAP are:
 Pence
 1992 1991
 Earnings per ADS:
 Income before extraordinary item
 and cumulative effect of change
 in accounting principle 170.7p 151.6p
 Extraordinary item (17.5)p --
 Cumulative effect of change in
 accounting principle (2.6)p --
 Net income 150.6p 151.6p
 Dividend per ADS (including tax credit) 70.4p 61.2p
 (G) -- Net assets, in accordance with U.K. GAAP, at Dec. 31, 1992, totaled 866.4 million pounds (1991 - 720.5 million pounds).
 (H) -- The dividend is payable on May 4, 1993, to ordinary shareholders on the register at April 1, 1993, and on May 7 to ADS holders on the register at April 1.
 (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. Statutory accounts for the year ended Dec. 31, 1992, will be delivered to the Registrar of Companies following the annual general meeting on April 28, 1993.
 REUTERS KEY STATISTICS
 1. Distribution
 Countries Subscriber Video
 Locations Terminals(A)
 Dec. Dec. Dec. Dec. Dec. Dec.
 1992 1991 1992 1991 1992 1991
 Business services 141 132 28,962 28,376 207,600 201,800
 2. Infrastructure
 Countries Cities
 Dec. Dec. Dec. Dec.
 1992 1991 1992 1991
 Total offices worldwide 79 79 176 177
 Dec. Dec.
 1992 1991
 Staff(B)
 Management 178 165
 Editorial 1,642 1,640
 Technical 4,358 4,470
 Sales and marketing 1,603 1,550
 Administration 2,378 2,418
 Total number of staff 10,159 10,243
 NOTES:
 (A) -- Included in the video terminal total which has been rounded
 are:
 Dec. Dec.
 1992 1991
 Information products
 terminals 178,200 173,900
 Pocketwatch 10,900 10,300
 Transaction terminals 18,500 17,600
 Total 207,600 201,800
 (B) -- Administration includes 250 client support staff at end 1992. No comparable data is available for 1991.
 -0- 2/9/93
 /CONTACT: Robert A. Crooke, 212-603-3587, or (investors) Michael J. Reilly, 212-603-3580, both of Reuters America Inc./
 (RTRSY)


CO: Reuters Holdings PLC ST: IN: PUB SU: ERN

CR-SM -- NY013 -- 4614 02/09/93 11:25 EST
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