Relative to the third quarter of 2008, revenues declined by NOK 58 million or 21%, from NOK 279.8 million to NOK 221.4 million. The reduction related largely to trading and settlement of shares and to fixed annual fees paid by issuers and investors based on market values. The year-on-year decrease in revenues reflects reduced market activity, lower market values and the price reductions that came into effect in 2008 and in the second quarter of 2009.

Costs before amortisations and write-downs of excess value for the third quarter were NOK 10 million or 8% lower than in the same period in 2008. After adjusting for restructuring costs of NOK 14 million in the third quarter, the reduction was NOK 24 million or 19%.

As a result of uncertainty over future market conditions, the competitive situation and the consequences of new legislation and regulations, as well as the impact on income of the introduction of central counterparty clearing, goodwill allocated to VPS has been written down, on a conservative basis, by NOK 989 million. A write-down of NOK 29 million was also made to an IT system as a result of weak earnings by the business activity that uses the system. A discount rate of 11.7% was used in evaluating these write-downs (increased from 11.2% in 2008).

Strategy

The main challenge facing the group over the next few years is the new competitive environment for the Norwegian securities chain, which must be expected to cause a reduction in the group's market share of trading and settlement of securities listed on Oslo Børs.

The group’s core strategy has been developed with a view to maintaining liquidity and increasing the level of activity in the group's core businesses. At the same time, the group aims to generate new revenue by developing products and services around its core business activities.

The group intends to prioritise the following targets over the next three years:

• We will operate an attractive financial infrastructure
• We will develop and market value-adding services that meet the market’s requirements
• The preferred marketplace for domestic companies, investors and investment firms
• Develop greater international interest in the group
  • The leading marketplace for selected sectors
  • International focus on selected value-adding services
  • Broadly based and a robust distribution network
• We will be an attractive workplace
• We aim to have satisfied shareholders

Important activities over the years ahead will be:

• Strengthen customer relationships with the most important customers
• Continuing development of the marketplace rules, pricing structure, technology, networks and products
• Improve the efficiency of the group's operations in general and core activities in particular
• Continuing development of additional services
• Increased focus on strong sectors of the Norwegian market
• Further development of the derivatives area

Cost outlook

Operating expenses before amortisations and write-downs for 2009 are at present expected to be in the order of NOK 515 million, of which depreciation is expected to account for around NOK 60 million. Operating expenses before amortisations and write-downs for 2010 are at present expected to be in the order of NOK 500 million, of which depreciation is expected to account for around NOK 75 million.

A more detailed presentation by business areas is provided in the quarterly report.

Report and presentation third quarter 2009 are available here

　

For further information, please contact:
CFO Geir Heggem, tel. +47 22 34 17 22 / +47 952 38 811
SVP Corporate Communications Per Eikrem, tel. +47 22 34 17 40 / +47 930 60000

Oslo, 29 October 2009