OMX posts fourth quarter loss

OMX posts fourth quarter loss

Scandinavian trading technology vendor and exchange operator OMX is reporting a fourth quarter loss of Skr45 million, compared to a profit of Skr10 million a year ago, and is warning that sales at its technology division will remain flat in the first quarter of 2005.

OMX fourth quarter revenues were Skr796m, up from 750 million a year ago, and was boosted by a Skr101 million gain from the divestment of its Finnish central securities depository APK.

But for the year, OMX revenue rose to Skr3.1 billion from Skr2.7 billion in 2003, while net profit was Skr276 million, compared to a loss of Skr431 million in 2003.

The company's technology division posted a drop in fourth quarter revenue to SKr376 million, compared to Skr453 million a year ago. The unit's full year 2004 revenue fell eight per cent. OMX says the decline in is due to divestments of operations and office closures, product phase-out and weak market demand. The exchange operator expects sales at the unit in the first quarter 2005 to be in line with Q4 2004.

Commenting on the results, OMX president and CEO Magnus Böcker says going forward the company's central issue is to regain growth, particularly in the technology operations.

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