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Oslo Børs Holding ASA recorded post-tax profit of NOK 66.5 (39.7) million for the third quarter of 2007. Revenues totalled NOK 143.6 (110.4) million in the third quarter. As in previous quarters, the third quarter was characterised by high activity in most areas at Oslo Børs.
The value of shares and primary capital certificates traded in the third quarter was NOK 798 (548) billion, an increase of 46% from the third quarter of 2006. Relative to the second quarter of this year, this represents an increase of some 8%. The number of transactions in the equity market in the third quarter totalled 3,210,000 (1,967,000), an increase of 63% from the third quarter of 2006 and 29% higher than the second quarter of this year. The value of new share issues in the third quarter was NOK 3.6 (4.9) billion.
The total number of fixed-income issues listed on Oslo Børs and on the ABM (Alternative Bond Market) was 963 at the end of the periode, an increase of 42 compared to the same quarter of 2006 and 12 compared to the second quarter of this year. At the end of the third quarter, 651 (786) bond loans and other interest bearing securities were listed on the stock exchange. In addition, 312 (135) loans were listed on the ABM. The mandatory use of IFRS for issuers with securities listed on the stock exchange has created considerable interest in the ABM among issuers that use Norwegian accounting principles. The ABM was established in June 2005.
The overall level of activity in the derivatives market in the third quarter, as measured by the number of contracts traded, was somewhat lower than in the same quarter of 2006 but somewhat higher than in the second quarter of this year. Measured in terms of value, turnover in the third quarter was significantly higher than in the same quarter of 2006 and in the second quarter of this year. Turnover was lower in options and forwards, but index futures saw increased turnover.
The number of end-users with access to market data from Oslo Børs was around 4% higher at the end of the third quarter than at the end of the previous quarter, and 15% higher than at the close of the third quarter of 2006. Relative to the second quarter of this year, the number of professional end-users increased by 4%, while the number of users of the simplest product increased by 8%.
Third quarter operating costs amounted to NOK 55.1 (56.8) million. The decline reflects a non-recurring item of NOK 12.3 million in the costs reported for the third quarter of 2006. After adjusting for this, costs for the quarter were up by NOK 5.3 million, or 26%. This reflects an increase in the number of employees following the increase in market activity, the annual salary increase on 1 January and higher pension costs following changes made at the end of 2006 to the assumptions used to calculate pension liabilities.
Oslo Børs expects that its total operating costs for 2007 will be a little over NOK 240 million.
Merger with VPS
The extraordinary general meeting held on 11 June 2007 approved the Board's proposal for a merger of VPS Holding ASA and Oslo Børs Holding ASA. The boards of the two companies are of the opinion that a merger of the two companies will allow more efficient and co-ordinated use of the companies' overall resources and expertise and so strengthen work on developing the entire value chain in the Norwegian securities market. A merger will also facilitate more unified and efficient development of products and services as well as efficient delivery of services to the companies' customers.
The Norwegian Competition Authority announced on 14 September that it did not intend to intervene against the merger. The merger is expected to come into effect in early November 2007. The merged company will take the name Oslo Børs VPS Holding ASA.
Links:
Report 3rd quarter 2007
