24 Apr 2002
Egg plc Q1 2002 Financial Results and New Business Figures
"We are pleased with our first quarter's performance, with our core UK business delivering its first full quarter of profits. With revenues growing strongly and costs remaining tightly controlled, we are sustainably profitable in the UK."
Paul Gratton, CEO, Egg plc
Financial Highlights:
- UK profit before tax of £4.1 million (Q1 2001: £37.2 million loss)
- Costs of international expansion £1.7 million (Q1 2001: £0.7 million)
- Operating income up 102% to £73.7 million (Q1 2001: £36.5 million)
- Earnings per share 0.2p (Q1 2001: loss per share of 3.4p)
- Total assets increased to £8.8 billion (Q1 2001: £7.8 billion) with credit card balances reaching £1.9 billion (Q1 2001: £1.3 billion)
Business Highlights:
- 157,000 net new customers in Q1 2002 taking the total to 2.1 million
- Credit card customers exceed 1.5 million
- On track to launch in France later this year
Chief Executive Paul Gratton said:
"We are pleased with our first quarter's performance. Customer acquisition remains strong, with 157,000 net new customers acquired during the period, the majority of whom have joined through Egg Card.
"Our core UK business has delivered its first full quarter of profits. Operating income has increased to £73.7m in the quarter, up 102% on the comparative period in 2001. With revenues growing strongly each quarter, and costs remaining flat we are sustainably profitable in the UK."
Outlook
Mr Gratton continued:
"We have had a good start to the second quarter. The repositioning of the online savings offer, including new guarantee and bond products, has had excellent uptake from consumers with £281 million of net inflows in Q2 up to 22 April. The success of our new savings proposition, combined with continuing growth in card customers, has resulted in 50,000 new customers acquired in the first three weeks of Q2.
"We remain happy with the credit performance of our card portfolio and our proposition continues to attract high quality customers. We continue to monitor this closely.
"The Egg brand identity and website have recently been updated and refreshed to reflect the development and aspiration of Egg as a global brand. This early move positions us well for our launch in France, plans for which remain on track for later this year."