STOCKHOLM, Sweden, April 24, 2002 (PRIMEZONE) -- NeoNet's transaction revenues increased 10 percent and the operating earnings were the highest since first quarter last year.
"We have made a strong achievement in a very weak market. I am especially satisfied with the continued growth on the U.S. market, and the improved operating earnings," says Torvald Bohlin, CEO of NeoNet.
See attached report for further information.
Interim Report, January 1 - March 31, 2002 The Period in Summary
The Quarter
- Transaction revenues increased 10% to SEK 60.3 m, against SEK 54.7 m
in the previous year; There were 5% fewer trading days in the quarter
compared to the previous year. 34% (10%) of revenues were sourced
from US-based clients.
- NeoNet's market shares continued to increase on all exchanges where
it is connected.
- Revenues from electronic trading grew by 56%, amounting to 87%
(61%) of total transaction revenues in the period.
- Operating earnings before depreciation and net financial items were
SEK 10.3 m (15.8 m); operating earnings in the previous quarter were
SEK 3.3 m.
- NeoNet posted an operating margin of 17% (29%).
- Earnings before tax stood at SEK 0.3 m (12.1 m). The quarterly
earnings were affected negatively by realized and un-realized
exchange rate losses, of SEK 3.8 m, on funds tied up in foreign
currencies. Corresponding effect the first quarter last year was a
gain of SEK1.6 m.
- 58% (47%) of transaction revenues in the period were derived from
trading on exchanges other than the Stockholm Stock Exchange.
- The closing balance of consolidated shareholders' equity was SEK
254.1 m (246.2 m); the consolidated cash in hand was SEK 192.1 m
(opening balance: SEK 193.1 m).
- Investments were unchanged at SEK 11.9 m (11.9 m), amounting to 20%
(22%) of transaction revenues.
CEO's Statement
" Activity on the world's stock markets remained slow in the first quarter, particularly compared to the corresponding quarter of the previous year, with its brisk trading volumes. The market for equity trading, and its players, are on the verge of major transformation. We anticipate the combination of new technology, intensifying global competition and client demands for more efficient and cheaper management to unleash an extensive structural transformation of the sector. NeoNet has already secured strong positioning ahead of this process.
Despite unfavorable market conditions, NeoNet is continuing to increase trading volumes per day and market shares on all exchanges where it is connected. Average daily trading volumes were up 21% compared to first quarter 2001. A comparison with progress on those exchanges most important to NeoNet-Stockholm and Helsinki, which saw 27% and 15% trading reductions respectively on one year previously-offers unequivocal evidence of the strength of NeoNet's performance. The development of NeoNet's trading volumes on these markets during the same period was minus three and plus nine percent respectively.
Quarterly transaction revenues grew by 10%, despite 5% fewer trading days on exchanges, with our US clients generating as much as 36% of revenues, a robust increase, even quarter on quarter.
Trading on the London and Paris Stock Exchanges, connected in 2001, comprised 11% of NeoNet's trading volume. Our dependency on the Stockholm Stock Exchange has continued to alleviate-42% of revenues, against 53% one year ago.
Our operating earnings and operating margin were distinctly better than during the three previous quarters, although, earnings deteriorated on the corresponding quarter of the previous year as a result of the gradual increase in expenses related to the accumulation of organizational resources, and connections to three new exchanges in London, Paris and Amsterdam.
We maintained our ambitious efforts to offer electronic equity trading on the world's major stock markets. During the second quarter, we connected Brussels to NeoNet's exchange network, and also anticipate Nasdaq and Oslo. The connection to Nasdaq is a milestone in NeoNet's evolution, and offers our clients direct access to stocks on the world's second biggest exchange. To realize our objective of 80% of global stock market capitalization, the Milan Stock Exchange, and Virt-x (where the highest-turnover Swiss stocks are traded) and the NYSE (the world's biggest stock exchange) remain.
We anticipate burgeoning growth in cross-border equity trading through the coming years, particularly as a consequence of events such as the inception of the euro, a growing proportion of equity-related savings and an increasingly globalised market, driven by factors like continued deregulation and new technology.
NeoNet offers fast, secure and value-for-money electronic trading access to the world's key stock exchanges for institutional investors and broker-dealers."
Audit Review
The corporation's auditors have not reviewed this Interim Report.
Stockholm, Sweden, April 24, 2002
Torvald Bohlin Chief Executive Officer NeoNet AB (publ)
Further information available from: Torvald Bohlin, Chief Executive Officer Tel: +46 8 454 15 39 torvald.bohlin@neonet.se
Internet www.neonet.se
Forthcoming Reports
Interim Report, Second Quarter 2002, August 22, 2002 Interim Report, Third Quarter 2002, October 24, 2002 Year-end report 2002, January 30, 2003
This information was brought to you by Waymaker http://www.waymaker.net
The following files are available for download:
http://www.waymaker.net/bitonline/2002/04/24/20020424BIT00610/wkr0001.doc The full report http://www.waymaker.net/bitonline/2002/04/24/20020424BIT00610/wkr0002.pdf The full report