Robust 1998 results for SBF Group

The General Meeting of Shareholders of SBF-Paris Bourse, held May 27, approved financial statements for 998 setting parent-company net income at FF620 million, up from FF300 million in 1997, and consolidated earnings at FF414 m vs. FF224 million the previous year. With trade in equities buoyant, the number of transactions reached a new record of 44.8 million, 21% higher than in 1997, and trade volumes rose 42% to FF3,458 billion. There were a record 129 new listings, raising FF173 billion. Against this backdrop, SBF-Paris Bourse operating profit totaled FF1,206 million, up 36.5%. The average cost of a cleared trade eased 0.145 o/oo to a level 38% lower than in 1995. And while expenses reflected exceptional outlays linked to the euro switchover, the gross operating surplus was up from FF283 million in 1997 to FF486 million, while earnings from operations stood at FF540 million vs. FF427 million last year, despite a fall in financial income. Exceptional items included the sale of a one-third interest in subsidiary GL-Trade to Reuters, generating a capital gain of FF181 million, and the transfer of remaining GL-Trade shares owned by SBF to holding company Financiére Montmartre - giving SBF, along with founding shareholders, 51% of GL-Trade - in exchange for an agreement with Reuters that generated a FF232 million capital gain. This was offset by a FF205 million provision on Matif SA shares linked to expense incurred in the switch to electronic trading, setting net earnings after profit-sharing and corporate profits tax (FF86 million) at FF620.1 million. For Matif SA, 1998 was a year of transition. Highlights included the switch to all-electronic trading, but also vigorous competition, with volatility low and European interest rates converging in the run-up to the euro. Operating revenues totaled FF319 million, reflecting lower volumes and prices (down 41% on 1997), while costs had yet to reflect gains in productivity (+4% for the year) linked to IT investment. The result was an operating loss of FF120 million compared with a FF64 million profit in 1997, and a net loss of FF344 million reflecting exceptional items linked to the end of open outcry and switch to electronic trading. Monep SA had a record year, in step with developments on equity markets, with premiums up 68% operating income up FF78 million, and net income of FF42.6 million. Altogether consolidated accounts showed operating revenues of FF1,985 million (+12% on 1997), operating results of FF551 million (+15.5%) and net earnings of FF414 million, the capital gain on SBF SA's transfer of GL shares to Financiére Montmartre is eliminated on consolidation with Financiére Montmartre fully consolidated. Capital stock now consists of 7.92 million shares with a nominal value of FF100, up from 6.5 million at December 31, 1997. By December 31, 1998, 1,380,000 of the 2 million equity warrants issued in 1994 and usable from October 27, 1998 had been exercised. The General Meeting approved payment of a FF30 per share dividend, compared with FF20 in 1997 and FF10 in 1996 and 1995.