U.S. News

OMX Second-Quarter Profits Increase as All Divisions Improve

OMX posted a second quarter profit after financial items of 369 million Swedish krona ($55.47 million), up from 266 million last year, boosted by a 101 million Swedish krona ($15.18 million) capital gain, and with all divisions showing improved profitability.

Market expectations were for second quarter profit after financials of 396 million krona, according to a survey by SME Direkt.

Revenues rose 30% to 1.127 billion krona ($169.4 million) (including the 101 million krona capital gain relating to the sale of shares in Orc Software), versus market expectations of 1.112 billion krona.

Operating profits rose 35% to 384 million krona ($57.7 million), while expenses rose 27% to 758 million krona ($113.9 million). Chief executive Magnus Boecker said 20 million krona in extra costs was incurred in the quarter, a level that should be halved in the next quarter.

"The increase in expenses was due mainly to more extensive resource requirements resulting from the expanded activities in the technology operations, an increased focus on projects and services in information services, higher capacity requirements in the exchange operations, and the consolidation of the Iceland Stock Exchange," OMX said.

OMX said that revenues in the Market Technology business area during the third quarter are expected to be in line with the first quarter of 2007.

"The group's expenses during the third quarter are expected to be slightly lower than in the second quarter.

Given the current interest rate situation, OMX's net financial income is expected to be a negative amount of approximately 25 million Swedish krona for the third quarter," the company said.