17 Oct 2001
Egg plc Q3 2001 Financial Results and New Business Figures
"Our core UK business remains on-track to break-even at some point during the fourth quarter. With revenues growing strongly quarter on quarter and costs remaining flat we are moving confidently towards profitability."
Paul Gratton, CEO Egg plc
- Operating income up 108% to £127.0m (30 Sep 2000: £61.2m)
- Reduction of 29% in pre-tax losses in Q3 (£18.4m) compared to Q2 (£25.5m)
- Cumulative pre-tax loss for Q3 2001 of £81.8m (30 Sep 2000: £115.1m loss)
- Loss per share of 8.1p (30 Sep 2000: 11.0p)
- Remain on-track for our target of breakeven during Q4 2001
- 83,000 new customers acquired in Q3 (Q3 2000: 107,000) taking the total to over 1.8 million
- Cross sales ratio now 1.4, with 112,000 products sold in the quarter
- Relationship with Microsoft strengthened further
- Increase in marketing activity for the rest of the year
Chief Executive Paul Gratton said:
"2001 is proving to be a record year for growth at Egg with 453,000 customers acquired year to date (30 September 2000: 419,000). In addition, our margins continue to improve with operating income in Q3 growing by 28% compared to Q2. With costs remaining flat we are seeing losses reduce each quarter as we move confidently towards profitability.
"The credit card portfolio is performing well, with margins continuing to grow. Our expected September uplift in volumes was impacted by the tragic events in the US. We have seen no deterioration in the credit quality of our book and no requirement for increased levels of specific provisioning. However, we have taken prudent action by increasing our general bad debt provision on cards to reflect resulting macroeconomic concerns. Encouragingly, we have witnessed a recovery in our sales volumes in October."
To download the full press release in PDF format click here.
For further information:
|Egg Press Office
|020 7526 2600
||020 7526 2565 / mobile: 07775 657 241
||020 7526 2648 / mobile: 07711 717 358
Notes to Editors:
- These figures are taken from the most recent issue of the Egg / MORI survey, Embracing Technology, dated September 2001. A copy of this report is available from the Egg Press Office (020 7526 2600). The next survey is due out in December 2001.
- Egg plc is the UK's leading e-commerce financial services company, providing banking, insurance, investments, mortgages and a shopping portal through its Internet site and other distribution channels.
- Egg plc floated on 12 June 2000 raising proceeds of approximately £150 million and is listed on the London Stock Exchange. Prudential plc continues to hold 79% of the share capital.