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Software boost for Reuters
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July 25, 2000: 8:14 a.m. ET
UK data supplier books big half-year gain as TIBCO stake appreciates
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LONDON (CNNfn) - U.K. financial news and data company Reuters Group PLC announced Monday its first-half profit jumped 75 percent, as the rise in value of its majority stake in a U.S. software company generated a big book profit, while operating earnings were little changed from a year earlier.
The company said profit for the six months to June 30 rose to £353 million ($535 million), or 25.2 pence a share, from £202 million, or 14.3 pence a share, a year earlier. Most of the increase in profit came as Reuters booked a £160 million gain by revaluing its 61 percent stake in TIBCO Software Inc. (TIBX: Research, Estimates), a provider of software for e-commerce, in line with the price at which the Palo Alto, Calif.-based company sold shares in March.
 First-half revenue rose 10 percent to £1.7 billion, driven by a 50 percent leap in Instinet sales to £381 million. Analysts had been expecting sales of around £1.64 billion to £1.65 billion.
Operating profit fell to £244 million from £278 million, depressed by a charge of £41 million to shift its Reuters Financial business on to the Internet.
"Our strategy to make Reuters fully Internet-ready, both technically and organizationally, is gaining great momentum," Chief Executive Peter Job said in a statement. "Reuters product offerings in the financial markets are strong across the price range and demand has held up well."
Reuters (RTR) has said it plans to invest 500 million pounds in developing its Internet presence over the next four years, to "open new markets and migrate its core business to an Internet-based model."
The London-based company still plans to float its Internet start-up incubator, the Greenhouse Fund, and is considering the initial public offering of Instinet. The company gave no time frame for any possible share offerings.
Sales at Reuterspace, which provides news and information to over 900 websites, rose 30 percent to £97 million, while revenue at Reuters Financial, used mainly by professionals, rose 3 percent £1.2 billion.
Reuters shares rose 52 pence, or 4.3 percent to 1,310 in midday trading on Tuesday. 
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Reuters
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