Oslo Børs VPS Holding ASA – 2nd Quarter 2015 Results

A more detailed presentation by business areas is provided in the quarterly report (enclosed).

The second 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 the listing and registration of both shares and fixed income issues. Revenue from continuing operations (Oslo Clearing was sold in May 2014) for the second quarter of 2015 was NOK 234 million, which is NOK 13 million higher than in the same period in 2014. Revenue related to listing and registration increased by NOK 9 million. Revenue related to market data and revenue from the mutual funds area both increased by NOK 2 million.

Reported revenue for the first six months of 2015 increased by NOK 8 million relative to the same period in 2014. After adjusting for non-recurring revenue from Burgundy for the first quarter of 2014, reported revenue increased by NOK 15 million. Revenue related to listing and registration increased by NOK 4 million. Revenue related to market data increased by NOK 5 million, while revenue from the mutual funds area increased by NOK 4 million. Revenue related to trading and settlement increased by NOK 3 million.

Operating expenses before capitalisation of internal costs, depreciation and amortisation of excess value amounted to NOK 110 million in the second quarter, an increase of NOK 8 million from the same period in 2014. Operating expenses for the first six months were NOK 13 million higher than in the same period in 2014. Reasons for the increase in the second quarter include increases in salaries and prices, higher levels of activity at individual companies and non-recurring items.

Net financial income for the second quarter was down NOK 2 million due to lower holdings of cash and cash equivalents and lower interest rates.

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.