20 July 2018
Visit www.avoka.com

Depressed markets beat down OM

16 July 2003  |  3428 views  |  0 Depressed markets beat down OM

Swedish transaction technology vendor and Stockholmsbörsen operator OM is reporting a first half operating loss of Skr513 million as lower revenues and second quarter restructuring costs of Skr624 million eat into earnings.

OM, which is preparing for a merger with Finnish neighbour HEX, last month announced a restructuring of the Energy Markets business area and OM Technology's product portfolio as well as a concentration of operations to fewer offices in an effort to reduce annual costs by Skr578 million.

The initiative came against a backdrop of weak markets and difficult trading conditions. The company reports that levels of activity across all markets during the second quarter were low, with no major orders reported by the technology division.

The value of equity trading on Stockholmsbörsen fell by 20% year-on-year, while equity options trading fell by 56%. At the same time demand for technology services remained weak with Q2 order intake of Skr259 million compared to Skr221 million in the first quarter of the year.

The company is warning that third quarter technology revenues will remain depressed and are expected to be lower than the second quarter due to seasonal variations.

Commenting, Magnus Böcker, acting president and CEO states: "OM now needs to achieve sound profitability and reinforce market confidence in our operations. We expect no turnaround in our markets in the short term...The cost reduction measures that we are in the process of implementing will pave the way for a considerably stronger OM, with profitability in all business areas with effect from the first quarter 2004."

On the positive side, he pointed to the forthcoming merger with HEX, which is on course for completion in September, and the start of operations on EDX London, the new joint venture operation for trading OTC dervivatives with the London Stock Exchange.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

OM closes energy business, rationalises products

OM closes energy business, rationalises products

30 June 2003  |  3069 views  |  0 comments
EDX London ready for launch

EDX London ready for launch

27 June 2003  |  3330 views  |  0 comments
IBM smashes exchange performance record on OM platform

IBM smashes exchange performance record on OM platform

24 June 2003  |  6492 views  |  0 comments
OM develops .Net settlement system

OM develops .Net settlement system

16 June 2003  |  4308 views  |  0 comments
OM restructures business support

OM restructures business support

10 June 2003  |  3213 views  |  0 comments
Larsson steps down as OM and HEX agree merger

Larsson steps down as OM and HEX agree merger

20 May 2003  |  5604 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit info.nice.comVisit https://secure.vasco.comVisit http://go.jumio.com/finextraAd

Top topics

Most viewed Most shared
Calmejane quits Lloyds Bank to join SocGenCalmejane quits Lloyds Bank to join SocGen
12217 views comments | 5 tweets | 7 linkedin
Metro Bank opens developer portalMetro Bank opens developer portal
10103 views comments | 5 tweets | 14 linkedin
Anything Visa can do...Mastercard takes time outAnything Visa can do...Mastercard takes ti...
9811 views comments | 6 tweets | 15 linkedin
Hong Kong plans September go-live for blockchain-based trade financeHong Kong plans September go-live for bloc...
9557 views comments | 9 tweets | 17 linkedin
Mastercard enlists Worldpay to push Vocalink's Pay by Bank appMastercard enlists Worldpay to push Vocali...
9370 views 19 comments | 14 tweets | 30 linkedin

Featured job

to GBP £120K base, double ote, benefits
Frankfurt, Germany

Find your next job