Q1 decline 9% or a bit better
January 15 2004 - 2:01AM
UK Regulatory
RNS Number:2598U
Reuters Group PLC
15 January 2004
REUTERS GROUP PLC - FIRST QUARTER RECURRING REVENUE GUIDANCE
15 January 2004 02/04
REUTERS Q1 RECURRING REVENUE DECLINE OF 9% OR SLIGHTLY BETTER
London - Reuters reports today that subscriber cancellations in the fourth
quarter of 2003 showed an improvement over the previous quarter, extending the
trend seen in the first three quarters of 2003. As a result, Reuters expects
that the decline in recurring revenue in the first quarter of 2004 will be 9% or
slightly better on an underlying basis compared to the equivalent quarter last
year.
Tom Glocer, Reuters Group Chief Executive, said: "I am confident that we have
now passed the inflection point in our recurring revenue decline. While we still
expect the recovery in recurring revenue to be gradual, we are looking forward
to working with our customers to build on this improving trend."
Ends
Notes to Editors
Reuters today initiated a new practice of giving guidance on its first quarter
recurring revenue expectations once sales figures for the fourth quarter became
available, in advance of its Preliminary Results on 17 February. Throughout the
rest of the year, Reuters will continue to give recurring revenue guidance one
quarter ahead, on an underlying basis (excluding the effect of currency,
acquisitions and disposals). Recurring revenues account for around 90% of
Reuters core revenues (excluding Instinet).
At Reuters, there is an important timing difference between subscription sales /
cancellations and subscription (recurring) revenue. Reuters recognises a sale on
signature of a contract with a customer and registers a cancellation when
notified by a customer. Revenue is recorded when a sold product is installed or
a cancelled product removed, a process which takes at least a month.
More detail on Reuters recurring revenue model can be found in the Financial
Data section of www.about.reuters.com
Contacts
Press - UK
Simon Walker Tel: + 44 (0) 207 542 7800
simon.walker@reuters.com
Susan Allsopp Tel: + 44 (0) 207 542 8404
susan.allsopp@reuters.com
Press - USA Tel: +1 646 223 7728
Stephen Naru
stephen.naru@reuters.com
Investors Tel: +44 (0) 207 542 7057
Miriam McKay
miriam.mckay@reuters.com
About Reuters
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Reuters Group had revenues of #3.6 billion.
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Forward-looking statements
This statement includes certain 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
2002 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."
This information is provided by RNS
The company news service from the London Stock Exchange
END
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