Q1 decline 9% or a bit better

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
[e-mail]

Susan Allsopp                 Tel: + 44 (0) 207 542 8404
[e-mail]

Press - USA                   Tel: [phone]
Stephen Naru
[e-mail]

Investors                     Tel: [phone]
Miriam McKay
[e-mail]


About Reuters

Reuters (www.about.reuters.com), the global information company, provides
indispensable information tailored for professionals in the financial services,
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independence. We have 16,000 staff in 94 countries, including some 2,400
editorial staff in 197 bureaux serving approximately 130 countries, making
Reuters the world's largest international multimedia news agency. In 2002, the
Reuters Group had revenues of #3.6 billion.

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companies.

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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."




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