OM revenues continue to slide

OM revenues continue to slide

OM is reporting a drop in first quarter revenues and sharp fall in net income for the first quarter of 2002. The Swedish stockmarket operator and technology group says the reporting period was characterised by a combination of weak markets and the recent reorganisation of the group.

Revenue for the period totaled Skr703m against Skr785 million in Q1 2001. Income before depreciation increased to Skr119 million, an improvement over the equivalent 2001 Skr95 million figure. Income after financial items was Skr26 million (2001: Skr25 million). Income after tax totalled Skr20 million (2001: 61 million). Earnings per share were Skr0.23, against Skr0.73 in the corresponding period.

OM's year-end 2001 was marked by collapsing revenues from Stockholmsbörsen and charge-offs incurred when it assumed sole control of ailing pan-European stockbroking operation Jiway. The group entered the new year with a new organisational structure, broken down into five business areas: Stockholmsbörsen, broker services, energy market solutions, financial market solutions and global services.

The last four business areas constitute OM's technology operations, which reported Skr469 million in first quarter revenues, down from Skr538 million in Q1 2001. OM attributes the fall-off to lower internal sales, in part due to the restructuring of Jiway. At the end of the reporting period the order value within OM's technology operations was Skr3,444 million (2011: Skr3,274m), of which orders corresponding to Skr1,223 million (Skr1,162m)are due for delivery during the coming twelve months.

Broker services, which provides systems solutions and back-office-for-hire services to banks and brokerage firms, was particularly hard hit, reporting first quarter revenue of Skr60 million against Skr105 million in the same period last year. A weaker market for systems to energy market participants also dragged down revenues within the energy market solution division, from Skr84 million in Q1 2001, to Skr77 million.

First quarter revenue in Stockholmsbörsen amounted to Skr285 million (2001: Skr357m). The continuing freefall in revenue generation is blamed on lower trading fees and sharply reduced trading volumes.

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