Online Competition Forces Second Profit Warning From Reed

Reed International, the London listed arm of Anglo-Dutch publisher Reed Elsevier, released its second profit warning of the year today, predicting that this year’s profits may be substantially lower than those achieved in 1998 (see Newsline).

Reed, which publishes New Scientist and Computer Weekly, revealed that it has been hit hard in the online business information market by higher than anticipated competition for its Lexis-Nexis information website. Weaker advertising trends in the electronic and US manufacturing sectors have also had a detrimental effect on the company’s growth.

A full trading update will be released with the group’s interim financial results for the six months to June 1999, due out in August. Reed International’s shares dropped by 39p at 3:30pm today to 443p.

Reed Elsevier: 0171 222 8420