Oslo Børs VPS Holding ASA – 4th Quarter 2018

Oslo Børs VPS Holding reports a profit of NOK 77 million for the fourth quarter of 2018 (NOK 76 million). The Board of Directors will not propose the payment of a further dividend for the 2018 accounting year.

Reported revenue for the fourth quarter of 2018 was NOK 268 million, which is NOK 16 million higher than in the fourth quarter of 2017. Reported revenue for 2018 as a whole was NOK 52 million higher than in 2017. Revenue from Oslo Børs and VPS increased by approximately NOK 8 million and NOK 7 million respectively compared with the fourth quarter of 2017, while for 2018 as a whole revenue from Oslo Børs and VPS increased by NOK 34 million and NOK 14 million respectively.

Operating expenses before capitalisation of internal costs, depreciation and amortisation of excess value amounted to NOK 160 million in the fourth quarter of 2018, an increase of NOK 15 million from the fourth quarter of 2017. For 2018 as a whole, operating expenses before capitalisation of internal costs, depreciation and amortisation of excess value were NOK 46 million higher than in 2017. The increase in the quarter was principally due to costs in connection with projects at Oslo Børs and VPS. The Group’s operating expenses were also affected by the notification that Tax East (one of the regional offices of the Norwegian Tax Administration) will require the group to change its practice of deducting input value-added tax in a joint registration for the years 2015 and 2016. Oslo Børs VPS Holding has disputed this but has made a proportionate provision in its accounts for the change for the sake of prudence. 

Net financial income for the fourth quarter of 2018 was NOK 2 million lower than in the same period in 2017. The change was due to interest expense on the bond loan that the group issued in May. 

In the fourth quarter, three new international companies became customers and direct members of VPS, namely Clearstream Banking S.A., SIX SIS AG and Citibank Europe Plc. VPS’s customer base is becoming increasingly international.

The offers put forward by Euronext NV and Nasdaq AB state that the distribution of any dividend will result in their offer price being adjusted. The interest payments that form part of the offers will also be affected by any dividend payments. The Board of Directors is therefore of the opinion that it is currently not appropriate for it to propose the payment of a further dividend for 2018 for approval by the Annual General Meeting.

Implementing IFRS 16 in 2019 is expected to lead to assets and liabilities of NOK 63 million being recognised on the balance sheet. Leasing costs of approximately NOK 13 million will be replaced by depreciation of approximately NOK 13 million and interest expense of NOK 2 million.

Oslo Børs VPS expects its 2019 revenues to total NOK 1,081 million. The group’s operating expenses before depreciation and amortisation are expected to be around NOK 557 million in 2019 (salary and personnel costs of NOK 332 million and other operating expenses of NOK 225 million). This includes costs associated with the current offer process.

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