Boursorama: Third Quarter 2009 Results

http://www.businesswire.com/news/home/20091101005060/en

* Net banking income: €51.4m (+8% at constant scope and exchange rate)
* Record Gross Operating income: €18.8m (+32%)
* 9,000 new bank accounts (France and Spain)

BOULOGNE-BILLANCOURT, France--(Business Wire)--
Regulatory News:

Boursorama (Paris:BRS):

Highlights

Results

* Net banking income: €51.4m (+8% at constant scope and exchange rates).
* Gross Operating Profit €18.8m (+46% at constant scope and exchange rates).
* Net income: €13.6m (vs. €16.5m in Q3 2008, including a €7.8m of non-recurrent
disposal).

Business performance

* Brokerage: number of executed orders was 25% higher in the third quarter of
2009 than in the year-earlier period, driven by the more buoyant market
environment.
* Banking: the number of new bank accounts opened in the third quarter rose 67%
year-on-year, with 9,000 new accounts in France and Spain.
* Savings: customer assets grew by 6% to €3.6bn, with rising markets lifting the
value of mutual funds and good performance in life insurance and deposit
accounts.
* Media: revenue fell by 25% to €4m, as a result of the ongoing decline in
advertising expenditure.

News

* Faster growth for Boursorama Banque in France.
* Spain and Germany: positive initial signs following the commercial
introduction of new products.
* Hugues Le Bret has been co-opted to Boursorama's Board of Directors.

Vincent Taupin, Chairman and Chief Executive Officer of Boursorama, made the
following comments: « Boursorama's record third-quarter results illustrate once
again the strength of the business model and the Group's growth potential. In
France, Boursorama's attractive, high-quality banking service is continuing to
boost growth. The Group has 270,000 customers in France, of whom almost 100,000
now do their day-to-day banking with Boursorama. Overall, ten years after
floating, Boursorama has a customer base comprising 600,000 accounts and is a
major European player in online finance ».

* Record quarterly performance

With the European economic situation remaining tough, individuals are still
seeking to minimise expenditure and are increasingly using the internet to
compare prices. In the third quarter of 2009, stockmarkets continued to recover
after the sharp falls seen in late 2008 and early 2009.

In France, Boursorama's banking model is becoming more popular as both domestic
and foreign rivals launch online services. The Group's Spanish and German units
have launched competitive and innovative products.

In this context, Boursorama has a strong brand and product range in France, and
its units in other European countries are now well structured. This enabled the
Group to achieve excellent financial performance in the third quarter of 2009.
At constant scope and exchange rates, operating revenue and net banking income
rose respectively by 9% and 8%. With operating expenses remaining under control,
gross operating profit hit a record €18.8m, an increase of 46% at constant scope
and exchange rates. Net income totalled €13.6m (vs. €16.5m in Q3 2008, including
a non-recurrent profit of €7.8m generated by the disposal of Veritas).

* Brokerage: 25% increase in order volume in Q3 2009 compared with Q3 2008

The strong rally in financial markets seen in the second quarter of 2009 (+16%)
continued in the third. The EuroStoxx50 index rose by 20% between 1 July and 30
September 2009.

This caused brokerage order volume to rise by 25% year-on-year to 1.6m in Q3
2009. Commission per order also increased from €18.8 in Q3 2008 to €20.1 in Q3
2009.

Sales momentum remained very strong, with 9,760 new brokerage accounts opened in
Q3, an increase of 14%, taking the total number of brokerage accounts to
396,638. In Germany, the Group's brokerage business showed greater resilience
than its rivals, and OnVista Bank put in a remarkable performance, with almost
1,000 new accounts opened.

Operating revenue from brokerage activities was €32.0m, or 52% of the group
total.

* Banking: further acceleration in account openings

In France, momentum in the banking business continued in the third quarter of
2009, with a record 7,729 new accounts opened, an increase of 47% relative to Q3
2008. The Spanish banking business was launched, resulting in 1,085 new
accounts. At end-September 2009, the Group had 96,104 bank accounts in total.

At the Group level, loans outstanding totalled €1.4bn and customer deposits
€2.8bn at end-September 2009, up from €2.62bn at end-September 2008. Funds in
"Livret" deposit accounts continued to grow strongly, totalling €534m at
end-September 2009 as opposed to €376m a year earlier.

In the third quarter of 2009, banking revenue was €19.2m, which compares with
€22.8m seen in the year-earlier period, mainly because of adverse movements in
interest rates. Banking accounted for 31% of total group revenue in Q3 2009.
Interest income totalled €18.0m, including interest income in the brokerage
business (cash balances in securities accounts). Banking fees and commissions
generated €1.3m.

* Savings: customer assets more or less stable despite economic conditions

Although economic conditions were generally less favourable for the savings
business, Boursorama demonstrated excellent resilience in the third quarter, due
in particular to higher inflows of money into non-unit-linked life insurance
policies. In the third quarter of 2009, Boursorama opened 3,620 savings
accounts, taking the total to 104,870 in Europe versus 96,120 at end-September
2008.

- Life insurance: Assets under management rose by 13% to €1.79bn at
end-September 2009, as opposed to €1.58bn a year earlier. This contrasts with
the 5% growth in the broad market according to the FFSA's monthly figures in
August 2009.

- Mutual funds: assets under management totalled €1.26bn at end-September 2009,
as opposed to €1.42bn a year earlier, excluding the Caixa Plus fund, which was
closed in October 2008.

As a result, despite a 5% decline in the European markets - as measured by the
EuroStoxx50's performance in the year to 30 September 2009 - the Group's total
saving assets (mutual funds, life insurance and deposit accounts) rose by 6% to
€3.6bn at end-September 2009.

Operating revenue from the savings business was €3.4m in Q3 2009, accounting for
5% of the Group total.

* Media: ongoing impact of weak economic conditions

Continuing depressed economic conditions prompted a number of advertisers,
particularly issuers of financial products, to cut their advertising budgets.

- The media business in France generated revenue of €2.2m in Q3 2009, a fall of
16%.

- In Germany, revenue at OnVista was €1.7m, down 43% or 34% at constant scope.

In the third quarter of 2009, operating revenue in the media business was €4.0m,
equal to 6% of the Group total.

* News and outlook
* France: Boursorama Banque is developing an unavoidable market presence

France's banking environment is becoming increasingly competitive with the
arrival of new online banking providers in 2009. Boursorama Banque is benefiting
from its strategy, unchanged since its launch, of being France's "cheapest
bank". With its high profile, strong brand and targeted market position,
Boursorama Banque is consistently developing a structuring presence in the
online banking market.

* Hugues Le Bret has been appointed to Boursorama's board.

Boursorama's Board of Directors has decided to co-opt Hugues Le Bret. Hugues Le
Bret, currently head of communication at Société Générale, will replace Vincent
Taupin as Chairman and CEO from 1 January 2010.

* Third-quarter business levels in Spain and Germany show positive signs

In Spain, after installing a high-performance banking technology infrastructure,
SelfBank has launched a full banking service. In addition to its established
brokerage and savings operations, SelfBank has since 9 June been offering a
comprehensive range of banking services: current accounts, savings accounts,
credit cards and mortgages. The introduction of these new services caused
performance indicators to surge in the third quarter. Brokerage order volume
grew by 20% year-on-year, customer deposits rose by 16% and account openings
increased fivefold.

In Germany, the reorganisation is complete and all brokerage and banking
activities are now housed within a single corporate structure. In the third
quarter, OnVista Bank launched a competitive and innovative brokerage service,
including free buy trades for customers who keep a certain amount of money on
deposit in their account. With more than 900 accounts opened in the third
quarter, OnVista Bank saw the first fruits of this new offer in Q3. Performance
in October 2009 confirms the positive trend.

About Boursorama

Founded in 1995, Boursorama is a major player in online deposit in Europe and is
part of the Société Générale Group. It executed 4.7 million orders in the nine
months to 30 September 2009, and had 597,600 direct accounts and total assets
under management of €11.6 billion at end-September 2009. Boursorama Group
operates in four countries. In France, it is market leader in online financial
information with the www.boursorama.com portal and a key player in online
banking under the Boursorama Banque brand. It is one of the top three online
brokers in the UK (SelfTrade) and Spain (SelfBank). In Germany, Boursorama owns
a 92.9% stake in OnVista AG, and operates under the OnVista Bank brand.
Boursorama is listed on Eurolist by Euronext Paris -compartment B - ISIN:
FR0000075228 (BRS) - Reuters: FMTX.LN - Bloomberg BRS FP. For all the latest
financial news on Boursorama, go to: http://groupe.boursorama.fr

Sequential comparison of consolidated quarterly figures

(€ m) Q3 2009 Q3 2008
Group France Germany UK Spain Group France Germany UK Spain
Operating revenue 61.9 49.5 3.7 6.7 1.9 59.2 42.4 7.1 8.0 1.6
Order processing costs -9.4 -6.8 -0.6 -1.7 -0.4 -8.7 -6.4 -0.6 -1.4 -0.3
Other banking operating costs -1.1 -1.1 0.0 0.0 0.1 -1.4 -0.8 -0.7 0.0 0.1
Net banking income 51.4 41.6 3.1 5.1 1.6 49.1 35.3 5.8 6.7 1.4
General costs (excl. mktg.) -27.2 -18.0 -4.1 -3.3 -1.7 -29.1 -17.7 -6.8 -3.5 -1.2
Marketing costs -3.7 -2.6 -0.2 -0.4 -0.5 -3.8 -2.4 -0.4 -0.8 -0.2
Depreciation and amortisation -1.8 -0.6 -0.7 0.0 -0.3 -2.0 -1.6 -0.3 0.0 0.0
Total operating costs -32.6 -21.3 -5.0 -3.8 -2.5 -34.9 -21.7 -7.5 -4.4 -1.4
Gross operating profit 18.8 20.3 -2.0 1.3 -0.9 14.2 13.6 -1.7 2.2 0.0
Cost of risk -0.6 -0.6 0.0 0.0 0.0 -0.1 0.1 -0.2 0.0 0.0
Gains and losses on non-current assets 0.4 0.4 0.0 0.0 0.0 7.3 -0.5 7.8 0.0 0.0
Underlying pre-tax profit 18.6 20.2 -1.9 1.3 -0.9 21.3 13.2 5.9 2.3 0.0
Tax -5.6 -5.7 0.5 -0.4 0.0 -4.8 -4.6 -0.2 0.0 0.0
Net income 13.0 14.5 -1.5 0.9 -0.9 16.5 8.6 5.7 2.3 0.0
Net income attributable to equity holders of the parent 13.6 14.5 -1.4 0.9 -0.5 16.5 8.6 5.7 2.3 0.0

Comparison of 9-month consolidated financial statements

(€ m) 9M 2009 9M 2008
Group France Germany UK Spain Group France Germany UK Spain
Operating revenue 176.6 140.6 11.3 19.8 5.0 191.9 130.2 31.2 23.2 7.3
Order processing costs -26.7 -19.2 -1.9 -4.5 -1.0 -26.5 -19.6 -1.8 -4.3 -0.8
Other banking operating costs -2.9 -3.0 -0.1 0.0 0.2 -8.7 -2.6 -6.2 0.0 0.1
Net banking income 147.0 118.3 9.3 15.2 4.2 156.7 108.0 23.2 18.9 6.6
General costs (excl. mktg.) -80.2 -54.1 -11.8 -9.4 -4.9 -91.1 -56.5 -20.7 -10.2 -3.7
Marketing costs -10.5 -7.1 -0.6 -1.5 -1.3 -14.5 -9.4 -1.4 -2.6 -1.1
Depreciation and amortisation -4.3 -2.5 -1.2 -0.1 -0.5 -4.8 -3.4 -1.2 -0.1 -0.1
Total operating costs -95.0 -63.7 -13.5 -11.0 -6.8 -110.4 -69.3 -23.3 -12.9 -4.9
Gross operating profit 52.0 54.7 -4.3 4.2 -2.6 46.3 38.7 -0.1 5.9 1.8
Cost of risk -1.6 -1.8 0.2 0.0 0.0 -0.2 0.1 -0.2 0.0 0.0
Gains and losses on non-current assets 3.7 0.7 -11.0 0.0 14.0 7.7 -0.1 7.7 0.0 0.0
Underlying pre-tax profit 54.1 53.6 -15.1 4.2 11.4 53.8 38.7 7.4 5.9 1.8
Tax -18.1 -17.2 0.4 -1.3 0.0 -14.2 -12.5 -1.1 0.0 -0.6
Net income 36.0 36.4 -14.7 2.9 11.4 39.6 26.2 6.3 5.9 1.2
Net income attributable to equity holders of the parent 37.3 36.4 -14.6 2.9 12.6 39.4 26.2 6.1 5.9 1.2

Key performance indicators

2008 2009
Q1 Q2 Q3 Q4 Total Q1 Q2 Q3

Number of orders executed
France 1,104,554 930,354 954,523 1,234,305 4,223,736 988,132 1,133,721 1,154,018
Germany 118,101 91,038 114,629 126,110 449,878 96,297 100,976 102,056
Spain 58,036 42,995 44,145 51,099 196,275 45,338 52,037 52,982
UK 199,725 187,469 195,726 234,260 817,180 279,723 328,576 329,017
Group 1,480,416 1,251,856 1,309,023 1,645,774 5,687,069 1,409,490 1,615,310 1,638,073

New accounts opened
France 14,575 11,562 11,071 14,772 51,980 12,246 14,341 14,812
o/w deposit 3,850 4,094 3,097 2,103 13,144 2,375 3,235 3,359
o/w banking 5,747 4,558 5,275 5,667 21,247 5,956 6,725 7,729
Germany 322 350 487 828 1,987 631 631 904
Spain 660 471 442 634 2,207 763 1,013 1,917
UK 7,278 5,386 5,165 5,688 23,517 9,122 7,111 4,563
Group 22,835 17,769 17,165 21,922 79,691 22,762 23,096 22,196
"Livret" deposit accounts 3,973 3,395 3,977 3,614 14,959 2,994 2,659 4,340

Number of direct accounts
France 274,842 282,291 289,439 299,357 299,357 308,275 318,499 329,459
o/w deposit 83,412 87,120 89,770 90,550 90,550 92,826 96,053 98,603
o/w banking 67,921 70,621 74,691 78,904 78,904 83,543 88,657 94,798
Germany 21,925 21,878 21,959 22,359 22,359 22,469 22,772 23,264
Spain 23,123 23,440 23,737 24,247 24,247 24,779 25,702 27,513
UK 206,302 201,916 205,985 212,345 212,345 220,785 223,292 217,380
Group 526,192 529,525 541,120 558,308 558,308 576,308 590,265 597,616
"Livret" deposit accounts 15,011 18,203 21,892 25,402 25,402 27,941 30,154 34,130

Assets under management
(€ '000)
Equity accounts and tax-efficient equity deposit plans 5,351,322 5,065,414 4,444,291 4,071,027 4,071,027 3,695,662 4,774,964 5,773,417
Mutual funds 1,467,758 1,498,077 1,415,889 1,176,793 1,176,793 1,146,948 1,203,041 1,256,382
Life insurance 1,529,228 1,591,855 1,584,626 1,516,139 1,516,139 1,557,988 1,668,783 1,786,355
Cash deposits 2,656,662 2,602,446 2,620,269 2,460,291 2,460,291 2,412,691 2,572,836 2,801,224
o/w "Livret" deposit accounts 298,250 323,198 376,239 400,467 400,467 425,836 453,582 534,155
Group total 11,004,969 10,757,792 10,065,075 9,224,249 9,224,249 8,813,288 10,219,624 11,617,377

Boursorama
Sandra Bos
Head of Communications
Tel: +33 (0)1 46 09 49 40
sandra.bos@boursorama.fr
or
Publicis Consultants
Stéphanie Tabouis
Press relations
Tel: +33 (0)1 57 32 86 88
stephanie.tabouis@consultants.publicis.fr

Copyright Business Wire 2009