GL TRADE reported turnover of €135.3m for the first nine months of the year. This figure includes business generated by Emos (€0.3m) which was consolidated into the Q3 results.
Asia and North America continue to significantly contribute to growth with an increase in turnover of 15% for the Asian Pacific area and 14% for North America (excluding the impact of the GL SETTLE US –ex Oasis- buy out in 2005) compared to the same period last year. In the more mature European market, where GL TRADE realises 72% of its turnover, Central Europe and Russia are showing strong prospects for growth.
A profitable diversification strategy
In the Front Office business, good performances by the order management and client connectivity systems enabled the group to maintain a 2% growth for this business line. Solutions dedicated to Post Trade for Derivatives have grown (+6%) since the beginning of the year thanks to the steady results produced by GL CLEARVISION. The acquisition of EMOS, in July 2006, strengthened this product’s positioning. Sales successes for Ubix, especially in the USA, are showing solid results in terms of revenues from this quarter.
TRADIX risk management solutions continued its regular growth (+5%) and the Back office for Securities business line (enriched by the GL SETTLE American offer in July 2005) posted a 10% increase thanks to GL RIMS. The first contract bundling both the European and the American products was signed recently. The anticipated decrease of FERMAT revenues was confirmed with a very large contract signed in late 2004 entering its final phase.
Excluding FERMAT, GL TRADE’s turnover as of 30 September 2006 has grown 4%.
In € M | Turnover - 30 09 2006 | Change at constant scope |
Front Office | 100.8 | 2% |
Back Office Securities | 7.4 | 42% |
Post Trade Derivatives | 14.9 | 6% |
TRADIX | 3.3 | 5% |
TOTAL excl. FERMAT | 126.4 | 4% |
FERMAT | 8.9 | -22% |
TOTAL | 135.3 | 2% |
Acquisition of Nyfix Overseas (renamed GL TRADE Overseas)
Effective September 1st 2006, the acquisition of Nyfix Overseas has both strengthened the Front Office offering on the derivatives segment and consolidated the group‘s position in the UK. Due to the accounting time required to integrate the acquisition, GL TRADE Overseas has not been consolidated into the group’s Q3 figures.
Prospects
Forecasts for Q4 confirm the group’s turnover growth target of 3% to 5% for the year. Constant efforts to control costs along with the renegotiation of the subcontracting carried out by SIA in Italy, have yielded a better operating profit for the 2nd half. Operating profit before amortisation of intangibles for the whole year is expected to represent around 18% of the Group’s turnover.