Feeds

Reuters profit hit by Net transformation

It made a paltry £411 million in 2000

  • alert
  • submit to reddit

Boost IT visibility and business value

Reuters Group saw operating profit drop 25 per cent last year due to costs related to transforming itself into an online news machine.

Profit fell to £411 million for the year ended December 31 2000, from £549 million the previous year, with operating profit as a percentage of sales down to 11.4 per cent from 17.6 per cent.

The company has so far spent £139 million of the £500 million it last year announced it would use for the Internet switch, a plan which has so far "made good progress," according to Reuters. Cash saved from switching to the Web will start adding to profit next year.

Net income rose 25 per cent to £532 million, or 37.9 pence a share, from £425 million, or 30.2 pence, a year earlier. Sales for the year rose 15 per cent to £3.6 million.

Reuters CEO Peter Job said: "The Internet and its technologies remain a powerful driver for us, permitting us to improve the way we work and help our customers to enhance their performance.

"The collapse of the valuation bubble around Internet stocks has not affected our strategy, which goes forward as we stated last year. We are confident this technology revolution will continue to open up many new opportunities for the group."

The company also said today it would use the Inktomi Search/Enterprise Internet infrastructure software to run its global intranet, which supplies information to more than 17,000 staff. ®

Related Stories

Inktomi buys into live broadcasting

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.