Oslo Børs VPS Holding reports earnings of NOK 72.4 million for the second quarter of 2009 (NOK 130 million). Earnings for the first six months of 2009 totalled NOK 114.6 (NOK 245.8 million). Both revenue and earnings were lower than in the same quarter of 2008 due to the lower level of market activity and a decline in revenue from trading and settlement fees.
Key figures for the Oslo Børs VPS group:
2nd quarter 2009 | 2nd quarter 2008 | 30 june 2009 | 30 june 2008 | 2008 | |
Operating revenues | 236 086 | 300 195 | 467 214 | 594 024 | 1 147 170 |
Operating expenses before amortisations and write-downs | 113 179 | 118 096 | 264 598 | 254 468 | 548 912 |
Operating profit before amortisations and write-downs | 122 904 | 182 099 | 202 616 | 339 556 | 598 258 |
Operating expenses after amortisations | 139 780 | 132 401 | 317 800 | 276 930 | 988 549 |
Operating profit | 96 303 | 167 794 | 149 414 | 317 094 | 158 621 |
Earnings for the period | 72 444 | 129 972 | 114 620 | 245 840 | 44 948 |
Earnings per share (NOK) | 1,68 | 3,02 | 2,67 | 5,72 | 1,05 |
Earnings per share before amortisations and write-downs (NOK) | 2,13 | 3,26 | 3,56 | 6,09 | 10,78 |
A more detailed presentation by business areas is provided in the quarterly report.
Relative to the second quarter of 2008, revenues declined by NOK 64 million or 21%. The reduction related largely to trading and settlement of shares and to fixed annual fees paid by issuers and investors based on market values. The year-on-year decrease in revenues reflects reduced market activity, lower market values and the price reductions that came into effect in 2008 and in the second quarter of 2009.
Costs before amortisations and write-downs of excess value for the second quarter were NOK 5 million or 4% lower than in the same period in 2008. The reduction results from higher capitalisation of internal resources and less use of external resources. Costs for the second quarter were NOK 38 million lower than in the first quarter. This reflects a combination of the normal seasonal pattern of costs and less use of external resources.
As a result of changes made to the amortisation periods for the excess value that arose as a result of the merger of Oslo Børs Holding and VPS Holding in November 2007, amortisation of excess value in the second quarter was NOK 12 million higher than for the same period in 2008 and NOK 31 million higher for the first six months of 2009 than for the same period in 2008.
Net financial items for the second quarter totalled NOK 5 million, NOK 7.3 million lower than in the same period of last year.
Changes to the legislation on ownership restrictions and approval of ownership interests in infrastructure undertakings in the securities area came into force on 1 July 2009.The changes to the legislation have increased the threshold for the legal restriction on single ownership of shares in a stock exchange or central securities depository from 10% to 20%. However, an acquisition of an ownership interest that represents more than 10% of the undertaking's share capital will be subject to subjective evaluation of the purchaser's suitability The changes also make it possible for the authorities to grant exemptions from the general rules on ownership restrictions for owners whose main business is to operate or own a regulated market, a similar marketplace or a related infrastructure business. The changes that apply to stock exchanges also apply to central securities depositories.
In the case of clearing houses, any acquisition of an ownership interest that represents more than 10% of the undertaking's share capital will be subject to subjective evaluation of the purchaser's suitability, which is equivalent to the rules for regulated markets that are not authorised as a stock exchange.
The group’s revenues vary in line with activity levels. Reductions in fees, effective as of September 2008 and May 2009, will have an effect on operating revenues in 2009.
Operating expenses for 2009 are at present expected to be in the order of NOK 600 million (reduced from NOK 650 million as indicated at the start of the year), of which depreciation and amortisations of excess value are expected to account for around NOK 65 million and NOK 95 million respectively. Investment spending planned for 2009 is in the order of NOK 150 million.
Report 2nd quarter 2009 and presentation 2nd quarter 2009 are available from osloborsvps.no