23 Oct 2002

Egg plc Results for the Nine Months to 30 September 2002

“This has been another successful quarter for Egg. The UK business has delivered £9.4 million in profits in Q3 whilst acquiring a further 107,000 net new customers and keeping tight control of costs. We are excited about the development of our International business, and we are finalising preparations for our product launch in France next month”

Paul Gratton, CEO, Egg plc

Highlights:
Group
  • Group operating income up 86% to £235.6 million (Sept 2001: £127.0 million)
  • Group loss before tax of £3.9 million (Sept 2001: £81.8 million loss)
  • Group loss per share 1.1p (Sept 2001: 7.8p)
  • Total group assets increased to £10.4 billion (Sept 2001: £7.8 billion)
UK
  • UK profit before tax of £9.4 million for Q3 giving £18.1 million profit for the nine month period (Sept 2001: £78.2 million loss)
  • 107,000 net new customers acquired in the quarter (Q3 2001: 83,000) resulting in total customer base of over 2.4 million
  • Credit card balances grew by £126 million (Q3 2001: £27 million) and credit quality remains strong
  • Personal loans delivered record sales in Q3 with drawdowns of £269 million; up 79% on the previous quarter and 154% on the same period last year
  • Savings balances grew by £671 million in the quarter (Q3 2001: outflow of £291 million)
  • Egg’s aggregation service, Money Manager, has 100,000 registered users
International
  • Egg to launch first product in France in November
  • Total spend on international development is £22.0 million (Sept 2001: £3.6 million) of which £19.4 million relates to the new Egg France business
Chief Executive Paul Gratton said:

“This has been another successful quarter for Egg. Our core UK business continues to grow strongly and deliver profits. We acquired 107,000 net new customers at reduced unit marketing cost and overall the UK business delivered a profit of £9.4 million for the third quarter.

“Egg Card continues to be our lead acquisition product and we are delighted to have reached 5% market share of new balances in just 3 years. We continue to monitor credit performance closely and the credit quality of our card portfolio remains strong. Our proposition continues to attract upmarket customers.

“We are pleased with the uptake of our aggregation service, Egg Money Manager, which we launched earlier this year. Today, over 100,000 of our customers are registered users of this service. We will continue to introduce enhanced functionality to this service, in line with our stated objective to help people understand and manage their money more effectively and efficiently.

“I am delighted to announce that Egg will launch in France in November as planned. We will be holding a press conference in France on 29 October to outline the launch proposition and will follow that up with an analysts’ meeting in London on 30 October.”

To download the full results in PDF format click here.

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