4. GROUP COSTS
	Cost by function Year to 31 December £m 1999 1998 1997 Production and communications 1,556 1,571 1,486 Selling and marketing 513 479 448 Support services and administration 466 425 412 Goodwill amortisation 47 46 51 Net currency gain (6 ) (39 ) (56 ) Total 2,576 2,482 2,341 % change Actual 4% 6% Comparable 1% 8%
	The presentation of costs by function has been revised to reflect more closely the activities under which costs are managed in the new divisional organisational structure. Where costs relate to two or more divisions they are allocated across divisions using the most appropriate metrics available. These allocation methods may change over time as measurement techniques are refined.

	Production and communications
	This comprises costs involved in the development and delivery of Reuters products and content to its clients. These costs fell by 1% at actual rates (increased 6% in 1998) due principally to the streamlining of development activity and the one-off reversal of an accrual in respect of third party data fees.

	Selling and marketing
	These costs relate to sales, marketing and client support activities. Selling and marketing have increased by 7% in line with the growth in 1998, principally reflecting growth in salary costs.

	Support services and administration costs
	This represents the cost of maintaining the company's internal infrastructure, including internal systems, property and office costs, finance, legal and general management costs. These costs have increased by 10% (compared to growth of 3% in 1998) due to a significant increase in support and general management costs at Instinet.
	Cost by type Year to 31 December £m 1999 1998 1997 Staff 987 928 835 Services 641 586 585 Depreciation 310 331 312 Data 227 242 207 Comms 205 207 201 Space 145 129 142 Other 80 59 59 Factiva cost reimbursement (19 ) - - Total 2,576 2,482 2,341 % change Actual 4% 6% Comparable 1% 8%
	Staff costs rose by 5% at comparable rates on average headcount in the year of 16,662 compared to 16,690 in 1998. Staff costs in 1998 at comparable rates were 14% higher than in 1997.
	Services costs increased 8% at comparable rates in 1999 (2% in 1998) due to expenditure associated with the Millennium Programme and higher advertising spend.
	Depreciation decreased by 6% at comparable rates in 1999 (increased 7% in 1998) due to lower subscriber capital expenditure as clients increasingly opt to use their own hardware.
	Data costs fell 8% at comparable rates in 1999 (grew 20% in 1998) reflecting the one-off reversal of an accrual in respect of third party data fees no longer required.
	Communication costs fell 3% at comparable rates in 1999 (increased 7% in 1998) with increased capacity requirements offset by tariff reductions.