UPDATE 2-Van der Moolen pares losses in 2008
* Losses pared from 2007 after deep restructuring
* Revenue up 45 pct
* Stock down 10 pct, remains near all-time lows
(Adds detail, share activity)
AMSTERDAM, March 26 (Reuters) - Dutch brokerage Van der Moolen Holding (VDMN.AS) pared its losses in 2008 after a deep restructuring, but deteriorating financial markets put the brakes on its recovery in the last months of the year.
Net loss was 19 million euros ($25.7 million), compared with a loss of 91.7 million euros in 2007.
Revenue rose 45 percent to 147.3 million euros. Analysts had expected 163.6 million euros in revenue.
"Developments in U.S. financial markets proved that VDM took the right decision by closing its U.S. specialist business at the end of 2007," Chief Executive Richard den Drijver said in a statement. "Our loss would have been much higher if we had not taken that decision."
For 2009, Den Drijver said it would be a challenging year: "The effect that market conditions will have on the revenues and results are difficult to predict."
Until 2007, Van der Moolen was a specialist market maker on the New York Stock Exchange, with its traders matching orders on the floor, a method of trading that has been eclipsed by electronic networks and exchanges.
Now its main source of revenue from trading commissions is in Europe, where low volumes and lack of liquidity drove revenue lower in the last three months of 2008.
Van der Moolen also recorded a provision of 43.2 million euros due to what it says is the "aggressive approach" by tax authorities over its tax claims.
Investor pessimism over declining investment activity and Van der Moolen's viability in a difficult environment has erased the stock's rally during 2008, which began after the company posted a profit in early 2008 after seven straight loss-making quarters.
Shares in the Amsterdam-basked broker were down 10.6 percent to 1.44 euros as of 1028 GMT on Thursday.
The drop in Van der Moolen's shares from August 2008's peak of 5.69 euros to near record lows forced it to abandon its plan to buy a stake in Dutch securities finance company GSFS BV for 43.3 million euros in cash and shares. Continued...
