Oslo Børs VPS Holding reports a profit of NOK 70 million for the first quarter of 2015 (NOK 66 million).
A more detailed presentation of the group accounts and business areas is provided in the quarterly report (enclosed).
The first quarter has been characterised by significant market volatility. This has led to high levels of activity in the secondary market relative to last year. Oslo Børs VPS is seeing continued interest in listing and registration of both shares and fixed income issues. Revenue from continuing operations for the first quarter of 2015 was NOK 226 million, which is NOK 5 million lower than in the same period in 2014. Non-recurring revenue from Burgundy for the first quarter of 2014 was NOK 7 million. After adjusting for this, revenue from continuing operations was up by NOK 2 million. After adjusting for Burgundy, revenue related to trading and settlement and revenue related to market data both increased by NOK 3 million, while revenue from the primary market decreased by NOK 5 million.
Operating expenses before capitalisation of internal costs, depreciation and amortisation of excess value amounted to NOK 121 million in the first quarter of 2015, an increase of NOK 5 million from the same period in 2014. The increase was partially due to salary and price increases, and partially due to one-off expenses incurred in connection with upgrades to the Millennium Exchange trading system, including the implementation of the North Sea dark pool.
In order to make it possible to distribute dividend payments more than once in the year, the Board of Directors of Oslo Børs VPS Holding has proposed to the Annual General Meeting that the Board should, pursuant to section 8-2 (2) of the Public Limited Liability Companies Act, be given authorisation to decide the dividend payments to be made on the basis of the company’s annual accounts for 2014. The Board intends to consider making dividend payments twice a year, specifically in June and December. This does not represent any other change to dividend policy or practice.
Oslo Børs is planning to launch an Oslo Børs Mid Cap Index on 1 June 2015. The index will include the shares and equity certificates of issuers with market capitalisation of between NOK 1 billion and NOK 15 billion. To be included in the new index, securities must have been traded on at least 90% of all trading days in the assessment period.
Operating expenses for 2015 before capitalisation of internal costs, depreciation and amortisation are expected to be in the order of NOK 450 million to NOK 460 million. Comparable expenses in 2014 were NOK 440 million. The increase is due to one-off costs associated with the modernisation program at VPS, upgrades to trading systems and normal increases in salaries and prices.
The group’s operating revenue varies in line with the level of activity in the securities market. Oslo Børs VPS is committed to offering a range of products and a pricing structure that are competitive and that encourage active use of the group's services. Oslo Børs VPS anticipates that its marketplace activities will continue to face intense competition, and it also expects increasing competition for the group’s post-trade activities. Oslo Børs VPS will also in the future consider adjusting certain of its fees and prices, as well as further measures to improve the efficiency of its organisation and services for the benefit of its customers.
