Focus and vision for 150 years..... - Thomson Reuters

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NOTES ON THE CONSOLIDATED PROFIT AND LOSS ACCOUNT 1. SEGMENTAL ANALYSIS The tables below are a segmental analysis of revenue, costs and profit which reflects the way in which Reuters is managed. Following the Group’s reorganisation which became effective on 1 January 1999 the Group is managed on a divisional basis, comprising Reuters Information, Reuters Trading Solutions (together referred to as Reuters Financial), Reuterspace and Instinet. For comparability the divisional results exclude Reuters Business Briefing (RBB) and TIBCO Software Inc. (TSI). RBB is now part of the Factiva joint venture which became effective in July 1999. TSI was floated on the Nasdaq stock market in July 1999 and is now accounted for as an associate. 2000 % 1999 % 1998 By division £M CHANGE £M CHANGE £M Revenue Reuters Information 1,737 7% 1,619 6% 1,531 Reuters Trading Solutions 822 5% 780 (6%) 827 Reuters Financial 2,559 7% 2,399 2% 2,358 Reuterspace 235 50% 157 2% 154 Instinet 804 53% 525 18% 446 Divisional revenue 3,598 17% 3,081 4% 2,958 TSI/RBB – – 52 42% 89 Share of joint ventures revenue 86 146% 35 – – Intra-group revenue (6) (16%) (8) (47%) (15) Gross revenue 3,678 16% 3,160 4% 3,032 Less share of joint ventures revenue (86) 146% (35) – – Group revenue 3,592 15% 3,125 3% 3,032 Costs Reuters Information (1,454) 7% (1,366) (1%) (1,373) Reuters Trading Solutions (588) 7% (550) 3% (541) Reuters Financial (2,042) 7% (1,916) – (1,914) Reuterspace (302) 76% (172) (5%) (181) Instinet (647) 63% (396) 36% (291) Divisional costs (2,991) 20% (2,484) 4% (2,386) TSI/RBB – – (59) – (104) Business transformation (139) – – – – Intra-group costs 6 (16%) 8 (47%) 15 Group costs (3,124) 23% (2,535) 3% (2,475) Profit Reuters Information 283 12% 253 60% 158 Reuters Trading Solutions 234 2% 230 (20%) 286 Reuters Financial 517 7% 483 (9%) 444 Reuterspace (67) 346% (15) (44%) (27) Instinet 157 22% 129 (17%) 155 Net currency gain 2 (67%) 6 (85%) 39 Divisional profit 609 1% 603 (1%) 611 Business transformation (139) – – – – TSI/RBB – – (7) 53% (15) Total 470 (21%) 596 – 596 Goodwill Reuters Information (14) 4% (13) (11%) (15) Reuters Trading Solutions (20) (23%) (26) 35% (20) Reuters Financial (34) (14%) (39) 11% (35) Reuterspace (14) 367% (3) (59%) (7) Instinet (11) 147% (5) 27% (4) Total goodwill (59) 26% (47) 2% (46) Operating profit 411 (25%) 549 – 550 40 Reuters Group PLC Annual Report and Form 20-F 2000
1. SEGMENTAL ANALYSIS continued Revenue is normally invoiced in the same geographical area in which the customer is located. Revenue earned, therefore, generally represents revenue both by origin and by destination. The geographical analysis of performance reflects the revenues earned and costs incurred in each area excluding centrally managed costs which include development, editorial, divisional and corporate support costs and goodwill amortisation. It does not purport to show geographical profitability. 2000 % 1999 % 1998 By geography £M CHANGE £M CHANGE £M Revenue Europe, Middle East and Africa 1,689 3% 1,643 (1%) 1,663 The Americas 1,344 37% 979 11% 880 Asia/Pacific 559 11% 503 3% 489 3,592 15% 3,125 3% 3,032 Operating costs where incurred Europe, Middle East and Africa (1,023) 8% (948) (3%) (973) The Americas (899) 22% (737) 19% (618) Asia/Pacific (264) 4% (255) 1% (259) (2,186) 13% (1,940) 5% (1,850) Profit Europe, Middle East and Africa 666 (4%) 695 1% 690 The Americas 445 84% 242 (8%) 262 Asia/Pacific 295 19% 248 8% 230 1,406 19% 1,185 – 1,182 Central costs Other (858) 34% (642) (4%) (671) Business transformation (139) – – – – Net currency gain 2 (67%) 6 (85%) 39 Operating profit 411 (25%) 549 – 550 United Kingdom and Ireland revenue was £522 million (1999: £541 million, 1998: £581 million). With the exception of Instinet, Reuters products are delivered and sold through a common network and geographical infrastructure. 2000 % 1999 % 1998 Revenue by type £M CHANGE £M CHANGE £M Recurring 2,537 9% 2,338 5% 2,219 Usage 863 42% 609 6% 572 Outright 192 8% 178 (26%) 241 3,592 15% 3,125 3% 3,032 Recurring revenue is derived from the sale of subscription services, including maintenance contracts. Usage revenue is principally derived from Instinet, Dealing 2000-2 and Dealing 3000 Spot Matching. Outright revenue comprises once-off sales including information and risk management solutions. Reuters Group PLC Annual Report and Form 20-F 2000 41
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Page 3 and 4: FINANCIAL HIGHLIGHTS 2000 1999 % £
Page 5 and 6: SELECTED FINANCIAL DATA The selecte
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Page 9 and 10: will enable investors and issuers t
Page 11 and 12: Micropal unit of Standard & Poor’
Page 13 and 14: director in February 2000 to concen
Page 15 and 16: Africa, at DHL International, based
Page 17 and 18: REPORT ON REMUNERATION AND RELATED
Page 19 and 20: Directors’ pension arrangements T
Page 21 and 22: LONG-TERM PLANS BENEFITING EXECUTIV
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Page 25 and 26: DIRECTORS’ AND EXECUTIVE OFFICERS
Page 27 and 28: STATEMENT OF DIRECTORS’ RESPONSIB
Page 29 and 30: OPERATING AND FINANCIAL REVIEW The
Page 31 and 32: transformation costs, converted int
Page 33 and 34: The primary purpose of the Greenhou
Page 35 and 36: Selling and marketing These costs r
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Page 41: CONSOLIDATED PROFIT AND LOSS ACCOUN
Page 45 and 46: 2. OPERATING COSTS continued The Un
Page 47 and 48: 5. DIVIDENDS 2000 1999 1998 £M £M
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Page 57 and 58: RECONCILIATION OF MOVEMENTS IN SHAR
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Page 61 and 62: 17. STOCKS 2000 1999 1998 £M £M
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Page 67 and 68: 28. EMPLOYEE SHARE OPTION PLANS Reu
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Page 73 and 74: NOTES ON THE BALANCE SHEET OF REUTE
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Page 77 and 78: k. Fixed asset investments Under UK
Page 79 and 80: 36. ADJUSTMENTS TO NET INCOME conti
Page 81 and 82: INFORMATION FOR SHAREHOLDERS MAJOR
Page 83 and 84: ANALYSIS OF SHAREHOLDERS As of 16 F
Page 85 and 86: Second, Reuters share capital inclu
Page 87 and 88: Restrictions on ownership Ordinary
Page 89 and 90: MATERIAL CONTRACTS Radianz Limited
Page 91 and 92: UK stamp duty and stamp duty reserv
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FINANCIAL DIARY FOR 2001 Tuesday 13
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£M 2000 1999 COSTS H1 H2 FY H1 H2
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£M NET ASSETS 2000 1999 Reuters In
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NOTES: 1997 and 1998 have been rest
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ITEM PAGE 9 The offer and listing O
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WHERE TO FIND US Corporate headquar
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