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]).
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)