ETrade records 700 per cent net profit increase for 2003/04
Source: SYDNEY, Aug 18 AAP
Published: Wednesday August 18 2004, 5:45 PM
Online broker ETrade Australia Ltd today announced a preliminary unaudited net profit increase of 700 per cent for 2003/04 backed by improved market confidence.
The company said net profit for the year was $9.6 million, up from $1.2 million the previous year, and that the positive market conditions were continuing into the new year.
"The steady stream of new listings and applications to list, added to the excellent trading volumes we are experiencing, all suggest the momentum built up in the last 18 months is robust and sustainable," ETrade said.
In 2003/04 the company executed 86 per cent more trades than the previous year, an approximate 48 per cent rise in market share of ETrade's ASX equity trade. advertisement
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ETrade conceded ASX volumes declined marginally in the second half of 2004, but said its market share growth resulted in higher second half trading volumes.
The company's gross revenue for 2003/04 was $34.33 million, up from $19.17 million, it said.
Chairman Kerry Roxburgh said ETrade had also maintained its margins during the year.
"It recorded a positive cash flow from operating activities this year of $12.66 million," Mr Roxburgh said.
Chief executive Brett Spork said ETrade's net profit growth and its increased market share reflected an active market environment and the company's successful online investing services and customer focus.
The company said a highlight of the year was the release of its Conditional Orders service in February.
The service allows online traders to program their own stock buy and sell conditions, enabling ETrade to monitor the market on their behalf.
"The quality and breadth of the Conditional Orders service remains unrivalled amongst online brokers in the Australian market," the company said.
The company also announced the appointment of John Harries as an additional non-executive director.
He is the acting managing director, banking products, at ANZ Bank.
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