REUTERS GROUP PLC ANNUAL REPORT AND ACCOUNTS 1999

Notes on the consolidated profit and loss account continued1. Segmental analysis continuedRevenue is normally invoiced in the same geographical area in which the customer is located. Revenue earned, therefore, generally represents revenue both byorigin and by destination.The geographical analysis of performance reflects the revenues earned and costs incurred in each area excluding centrally managed costs which includedevelopment, editorial and divisional and corporate support costs. It does not purport to show geographical profitability.1999 % 1998 % 1997By geography £M CHANGE £M CHANGE £MRevenueEurope, Middle East and Africa 1,643 (1%) 1,663 7% 1,557Asia/Pacific 503 3% 489 (6%) 520The Americas 979 11% 880 9% 8053,125 3% 3,032 5% 2,882Operating costs where incurredEurope, Middle East and Africa (948) (3%) (973) 7% (912)Asia/Pacific (255) 1% (259) (9%) (286)The Americas (737) 19% (618) 8% (571)(1,940) 5% (1,850) 5% (1,769)ContributionEurope, Middle East and Africa 695 1% 690 7% 645Asia/Pacific 248 8% 230 (2%) 234The Americas 242 (8%) 262 12% 2341,185 0% 1,182 6% 1,113Central costs (642) (4%) (671) 7% (628)Net currency gain 6 (85%) 39 (30%) 56Operating profit 549 0% 550 2% 541United Kingdom and Ireland revenue was £541 million (1998 – £581 million, 1997 – £533 million).With the exception of Instinet, most of Reuters products are delivered and sold through a common network and geographical infrastructure managed by the GlobalSales and Operations organisation.1999 % 1998 % 1997Revenue by type £M CHANGE £M CHANGE £MRecurring 2,338 5% 2,219 4% 2,140Usage 609 6% 572 10% 518Outright 178 (26%) 241 8% 2243,125 3% 3,032 5% 2,882Recurring revenue is derived from the sale of subscription services, including maintenance contracts. Usage revenue is principally derived from Instinet andDealing 2000–2. Outright revenue comprises once-off sales of information management systems and risk management software.46 Reuters Group PLC Annual Report 1999