Van der Moolen Holding N.V. (Pink Sheets:VDMEF) (AEX:MOO), financial
trading company listed at Euronext Amsterdam, is providing a business
update today for the third quarter and first nine months of 2008.
Richard den Drijver, CEO of Van der Moolen Holding, commented:
‘We delivered a strong performance
under turbulent market conditions during the first nine months of 2008,
with European trading activities in particular showing very good
results. We are positive regarding the future."
Operational developments:
-
Steady revenue growth under turbulent market conditions during the
third quarter of 2008;
-
Performance of trading activities (proprietary trading) positive on
balance: very good performance, revenue growth and profitability in
Europe; adverse impact in the US as a result of market trends and
changes in US regulatory environment;
-
Steady growth in brokerage activities in Europe and the US;
-
Development of new trading activities in Hong Kong and VDM Global
Markets’ retail brokerage activities is
progressing according to schedule;
-
Termination of Online Trader (semi-professional segment) is on
schedule.
Strong growth in trading activities
-
The company’s trading activities showed a
continued increase in revenue and profitability under challenging
market conditions during the third quarter of 2008. Third quarter
revenue totalled € 31.0 million, a strong
increase of 35% compared to the third quarter of 2007 (€
23.0 million).
Stable development of wholesale brokerage activities
-
Third quarter wholesale brokerage activities showed a stable
development compared to the first six months of 2008. Third quarter
revenues amounted to € 2.6 million compared
to the third quarter of 2007 (€ 3.5
million). The change is attributable to lower fee income and more
challenging market conditions in the wholesale brokerage segment.
Online Trader activities accounted for as discontinued operations
-
Effective at the beginning of the third quarter, the discontinued
operations of Online Trader (semi-professional brokerage segment) are
no longer included under ‘Profit from
continuing operations'. The comparative figures have been adjusted
accordingly.
Financial developments
-
Total 2008 third quarter revenues (from continuing operations)
totalled € 33.6 million and strongly
increased with 27% compared to € 26.5
million in the third quarter 2007.
-
Profit before tax (from continuing operations) totalled €
2.4 million for the third quarter of 2008, compared to €
1.4 million for the same period last year. Profit before tax (from
continuing operations) adjusted for non-recurring items in Q3 2008
amounted to € 3.7 million compared to €
3.0 million for the same quarter in 2007.
-
Net profit after tax (from continuing operations and adjusted for
non-recurring items) attributable to ordinary shareholders in the
third quarter of 2008 amounted to € 0.5
million, compared to € 1.0 million for the
same period in 2007.
-
Result from discontinued operations totalled €
6.1 million negative for the third quarter of 2008 (compared to €
6.0 million in 2007). Of this amount, € 5.7
million was accounted for by the termination of Online Trader,
breaking down into € 1.2 million in
operational loss and € 4.5 million in
termination costs (in line with the second quarter 2008 press
release). The residual € 0.4 million
relates to other costs from discontinued operations.
-
Result after tax attributable to ordinary shareholders for the third
quarter of 2008 amounted to € 7.5 million
negative, mainly arising as a result of discontinued operations and
non-recurring items (in total € 8.0 million
negative).
-
Profit after tax attributable to ordinary shareholders for the first
nine months of 2008 amounted to € 5.3
million (for the same period in 2007, this was a loss of €
19.7 million).
Financial position
-
Third quarter cash flow for 2008: € 34.9
million (compared to € 20.8 million for the
same period in 2007), consisting of:
-
Increased liquidity due to operational activities: €
60.4 million;
-
Lower liquidity due to the issuance of a €
2.3 million subordinated convertible loan to a third party and
other investments of € 1.5 million;
-
Lower liquidity due to repayment of a €
10.0 million credit facility to a bank and the financing of the
purchase of € 10.6 million in own
shares, as well as increased liquidity as a result of €
0.4 million received from financing income.
-
Between 1 July 2008 and 21 July 2008, 2,776,530 shares in Van der
Moolen were purchased for a total amount of €
10.6 million. Since 21 July 2008, the total number of ordinary shares
outstanding (excluding shares repurchased) has been 37,692,775. The
weighted average number of shares outstanding during the third quarter
was 41,935,593; for the first nine months, this number was 43,264,158.
-
The shareholders' equity as at 30 September 2008 totalled €
98.9 million versus € 102.5 million as at
30 June 2008. In addition to the net loss for the third quarter, this
decrease of only € 3.6 million is largely
attributed to the repurchase of own shares on the one hand and
increase of the currency translation reserve on the other.
Outlook for Q4 2008
-
Proprietary trading environment (trading activities) remains
challenging;
-
Steady growth in brokerage activities in Europe and the US;
-
Closing period for Online Trader activities expected to continue until
year-end 2008.
Outlook for 2009
-
Cost savings approximately € 4.5 million
due to termination of Online Trader;
-
Further growth of trading and brokerage activities;
-
Further increase of profitability;
-
Positive contribution from VDM Global Markets.
www.vandermoolen.com
Disclaimer:
This press release contains forward-looking statements within the
meaning of, and which have been made pursuant to, the Private Securities
Litigation Reform Act of 1995. All statements regarding our future
financial condition, results of operations and business strategy, plans
and objectives are forward-looking. Statements containing the words "anticipate,”
"believe,”
"intend,”
"estimate,”
"expect,”
"hope,” and words
of similar meaning are forward-looking. In particular, the following are
forward-looking in nature: statements with regard to strategy and
management objectives; pending or potential acquisitions; pending or
potential litigation and government investigations, including litigation
and investigations concerning specialist trading in the U.S.; future
revenue sources; the effects of changes or prospective changes in the
regulation or structure of the securities exchanges on which our
subsidiaries operate; and trends in results, performance, achievements
or conditions in the markets in which we operate. These forward-looking
statements involve risks, uncertainties and other factors, some of which
are beyond our control, which may cause our results, performance,
achievements or conditions in the markets in which we operate to differ,
possibly materially, from those expressed or implied in these
forward-looking statements. We describe certain important factors to
consider in connection with these forward-looking statements under "Key
Information – Risk Factors”
and elsewhere in our annual filing with the U.S. Securities and Exchange
Commission on Form 20-F. We caution you not to place undue reliance on
these forward-looking statements, which reflect our management’s
view only as of the date of this Report. We have no obligation to update
these forward-looking statements.
