The UK’s Egg announced that Paul Gratton, its Chief Executive, will leave Egg following Egg’s delisting from the London Stock Exchange on February 20th. On January 23rd, Prudential announced that its share ownership of Egg had risen to 96% and that it had applied to delist Egg on February 20th. Mark Nancarrow has been appointed CEO and will assume executive responsibility effective immediately. Kieran Coleman has been appointed Chief Financial Officer.
Egg announced that Paul Gratton, its Chief Executive, will leave Egg
following
Egg’s delisting from the London Stock Exchange. Mark Nancarrow has been
appointed CEO and will assume executive responsibility effective
immediately. Kieran Coleman has been appointed Chief Financial Officer.
In December 2005, Prudential announced the terms of a recommended offer
for the whole of the issued and to be issued shares of Egg not already
owned by Prudential Group, representing approximately 21.7% of
the existing issued share capital of Egg. On January 23 2006, Prudential
announced that the Group’s share ownership of Egg had risen to 95.7% of
the entire issued ordinary share capital and that it had applied
to delist Egg on February 20th.
Egg reports that its UK credit card balances grew 5% during the first half and 22% year-on-year. However, operating profits for its UK business, mostly VISA cards, declined 35% in the second quarter to GBP13.1 million. During the second quarter, Egg opened 94,000 new credit card accounts in the UK, compared to 139,000 in the first quarter. Total outstandings for Egg credit cards increased 22% to GBP3.8 billion, compared to one-year ago. Net interest income in the second quarter was GBP75.3 million, compared to GBP70.8 million in 1Q/05. Operational and administrative costs declined slightly to GBP36.9 million for the quarter, versus GBP37.1 million on the first quarter. Egg is in the process of unloading its credit card business in France. For complete details on Egg’s second quarter performance, visit CardData (www.carddata.com).
Egg reports that operating profits for its UK business, including the “Egg VISA” card, rose 26.7% to $39 million. The issuer also noted that its new MasterCard product launched in June has racked up more than $267.5 million in card balances to date. During the fourth quarter, Egg opened 119,000 new credit card accounts in the UK. Total outstandings for Egg credit cards increased 18.7% to $6.9 billion. Egg says exit costs from France are within its projected provision. For complete details on Egg’s fourth quarter performance, visit CardData ([www.carddata.com][1]).
[1]: http://www.carddata.com
Egg reports that operating profits for its UK business, including the “Egg VISA” card, rose 26.7% to GBP20.4 million. The issuer also noted that its new MasterCard product launched in June has racked up more than GBP140 million in card balances to date. During the fourth quarter, Egg opened 119,000 new credit card accounts in the UK. Total outstandings for Egg credit cards increased 18.7% to GBP3.6 billion. Egg says exit costs from France are within its projected provision. For complete details on Egg’s fourth quarter performance, visit CardData (www.carddata.com).
UK-based Egg reports that its new MasterCard product, launched in June, has racked up more than GBP100 million in card balances. Egg also projects its interest income to rise significantly in the fourth quarter after recently bumping up its standard variable rate by 100 basis points. For the third quarter, Egg produced an operating profit for its British “Egg VISA” card of GBP18.6 million versus an operating loss of GBP2.7 million for its French “la Carte Egg VISA.” Overall, the Egg Group posted a year-to-date loss before tax of GBP103 million, which includes GBP113 million in exits costs for France and the operating losses of GBP35 million incurred in France up to the date of its announcement to withdraw from the market. Banque Accord is in the process of acquiring the French Egg credit card portfolio for GBP97.5 million, according to CardFlash International. The portfolio has 66,000 customers and net assets of approximately GBP143 million. During the quarter, Egg added 105,000 new credit cardholders in the U.K. to bring its total portfolio to 2,249,066 cardholders. Total Egg credit card outstandings were GBP3,306 million at the end of September. For complete details on Egg’s third quarter performance, visit CardData ([www.carddata.com][1]).
[1]: http://www.carddata.com
Egg reports that its new MasterCard product, launched in June, has racked up more than GBP100 million in card balances. Egg also projects its interest income to rise significantly in the fourth quarter after recently bumping up its standard variable rate by 100 basis points. For the third quarter, Egg produced an operating profit for its British “Egg VISA” card of GBP18.6 million versus an operating loss of GBP2.7 million for its French “la Carte Egg VISA.” Overall, the Egg Group posted a year-to-date loss before tax of GBP103 million, which includes GBP113 million in exits costs for France and the operating losses of GBP35 million incurred in France up to the date of its announcement to withdraw from the market. Banque Accord is in the process of acquiring the French Egg credit card portfolio for GBP97.5 million. The portfolio has 66,000 customers and net assets of approximately GBP143 million. During the quarter, Egg added 105,000 new credit cardholders in the U.K. to bring its total portfolio to 2,249,066 cardholders. Total Egg credit card outstandings were GBP3,306 million at the end of September. For complete details on Egg’s third quarter performance, visit CardData (www.carddata.com).
Prudential has decided to end discussions regarding a possible sale of
its majority interest in Egg. Egg says the latest results from its UK
operations show that the world’s largest pure online bank is on the
right track in building a profitable business. Egg confirmed last week
it is withdrawing from the French market, which has offset much of the
gains achieved in the UK. In October 2003, Egg announced that its French
management team had developed a revised business plan to reverse the
huge losses. However, the level of investment required to execute the
plan was greater than Egg was prepared to take on a stand alone-basis.
Egg then sought potential partners, but was then superseded by
Prudential announcing in January that it was considering proposals for
its approximately 79% shareholding in Egg. When it became clear that
there was no potential purchaser who valued the option in France, Egg
announced that it intended to take the necessary steps to withdraw from
the French market. For the second quarter, Egg produced an operating
profit for its British “Egg VISA” card of $35.3 million versus an
operating loss of $30.0 million for its French “la Carte Egg VISA.”
Overall, the Egg plc Group made a profit of $1.8 million in the second
quarter leading to an overall loss before tax for the first half of 2004
of $7.3 million, down from a loss of $41.9 million in the same period
last year. For complete details on Egg’s latest performance visit
CardData (www.carddata.com).
Prudential has decided to end discussions regarding a possible sale of its majority interest in Egg. Egg says the latest results from its UK operations show that the world’s largest pure online bank is on the right track in building a profitable business. Egg confirmed last week it is withdrawing from the French market, which has offset much of the gains achieved in the UK. In October 2003, Egg announced that its French management team had developed a revised business plan to reverse the huge losses. However, the level of investment required to execute the plan was greater than Egg was prepared to take on a stand alone-basis. Egg then sought potential partners, but was then superseded by Prudential announcing in January that it was considering proposals for its approximately 79% shareholding in Egg. When it became clear that there was no potential purchaser who valued the option in France, Egg announced that it intended to take the necessary steps to withdraw from the French market. For the second quarter, Egg produced an operating profit for its British “Egg VISA” card of $35.3 million versus an operating loss of $30.0 million for its French “la Carte Egg VISA.” Overall, the Egg plc Group made a profit of $1.8 million in the second quarter leading to an overall loss before tax for the first half of 2004 of $7.3 million, down from a loss of $41.9 million in the same period last year. For complete details on Egg’s latest performance visit CardData ([www.carddata.com][1]).
[1]: http://www.carddata.com
After losing more than $182 million on its French VISA card over the past five quarters, Prudential’s UK-based Egg is withdrawing from the French market. For the second quarter, Egg produced an operating profit for its British “Egg VISA” card of $35.3 million versus an operating loss of $30.0 million for its French “la Carte Egg VISA.” Overall, the Egg plc Group made a profit of $1.8 million in the second quarter leading to an overall loss before tax for the first half of 2004 of $7.3 million, down from a loss of $41.9 million in the same period last year. The Group has been trying to sell-off both credit card portfolios but no deal has been announced to-date. During the quarter, Egg added 171,000 new credit cardholders to bring its total portfolio to 2,944,969 cardholders. Total Egg credit card outstandings were $5,630 million at the end of June. For complete details on Egg’s second quarter performance visit CardData ([www.carddata.com][1]).
EGG SNAPSHOT
UK VISA FRENCH VISA
2Q/03: +$35.3 million -$45.0 million
3Q/03: +$36.4 million -$37.8 million
4Q/04: +$29.3 million -$35.6 million
1Q/04: +$27.6 million -$28.7 million
2Q/04: +$35.3 million -$30.0 million
Source: CardData (www.carddata.com)
[1]: http://www.carddata.com
After racking up nearly GBP100 million on losses for its “la Carte Egg VISA” in the last five quarters, Prudential’s Egg is
withdrawing from the French market. For the second quarter, Egg produced an operating profit for its British “Egg VISA” card of GBP19.4 million versus an operating loss of GBP16.5 million for its French “Egg VISA.” Overall, the Egg plc Group made a profit of GBP1 million in the second quarter leading to an overall loss before tax for the first half of 2004 of GBP4 million, down from a loss of GBP23 million in the same period last year. The Group has been trying to sell-off both credit card portfolios but no deal has been announced to-date. During the quarter, Egg added 171,000 new credit cardholders to bring its total portfolio to 2,944,969 cardholders. Total Egg credit card outstandings were GBP3,091 million at the end of June.
Prudential’s Egg credit card and personal loan business in Europe cut its losses substantially in the first quarter from $27.8 million one-year ago to $8.7 million. The issuer says it managed discretionary expenditures tightly and is still in the process of unloading its credit card business. CardFlash International this morning reported that MBNA and Egg and close to signing a deal. In the UK, Egg posted first quarter profits of $26.6 million, and in France the loss for the quarter reduced to $28.3 million. Egg says it added 148,000 net new customers in the UK during the first quarter. Unsecured lending balances in the UK grew by $421 million to quarter end balances of $8.9 billion. In France, card balances increased $222 million, up 9% on the prior quarter. At the end of the quarter, Egg France had 71,000 cards in issue with 85% of card balances revolving. For complete details on Egg’s first quarter performance visit CardData ([www.carddata.com][1]).
[1]: http://www.carddata.com