FRANKFURT (dpa-AFX) - Der Online-Broker eQ Online Corporation EQO.HSE> schließt seinen deutschen Geschäftsbetrieb. eQ halte es für äußerst unwahrscheinlich, bei den gegenwärtigen Marktbedingen in Deutschland die Gewinnschwelle zu erreichen, teilte das finnische Unternehmen am Mittwoch in Frankfurt mit. Zudem sei Vorstandschef Petri Rutanen mit Wirkung zum 1. Juli 2001 zurückgetreten. /fn/jl/af
eQ ONLINE TO EXIT GERMANY
(Translation from Finnish language original)
The Board of eQ Online Corporation has in today’s meeting decided to
commence the winding down of the German Operations of eQ Securities
Ltd., the fully owned subsidiary of eQ Online Corporation. The cost of
the exit will be finalised in Q3 2001.
As stated in the interim report of Q1 2001, eQ has been focusing on
achieving profitability by adjusting costs. The decision to exit
Germany was made after it seemed highly unlikely that profitability
could be achieved in current market conditions. As stated in the Q1
interim report, what comes to eQ Germany, reducing costs to the level
of revenues without endangering the current service level was not a
path to profitability. On the other hand, the risk of not being able
to increase commission income many fold in current market conditions
within a foreseeable time horizon was seen to be too high.
eQ Online after the exit
After the exit the company is set to have a positive operating cash
flow and the exit will also free EUR 4 million of liquid assets now
deposited as collateral in Germany. Once the winding down has been
carried out, the number of employees of eQ Online Group is estimated
to be 90, down from 173 at the end of 2000. The full year result for
2001 is expected to remain in the red.
eQ Online is now in a good position to pursue its strategy in
supplying and further enhancing the best online brokerage service in
terms of reliability, speed of execution, transparency and security.
eQ Securities will continue to enhance its award-winning online
brokerage service in Finland. The announced co-operation with Sonera
Plaza, Finland’s largest portal, to offer financial services to a
wider customer range is proceeding according to plan. eQ Finland will
launch its direct access international share trading service by the
end of summer 2001 covering at this stage trading on Nasdaq, AMEX and
NYSE. The eQ Forum, where investors can exchange views by means of
online messaging, has in a short time become the medium of choice for
active investors.
Strong cash position
In Finland eQ Online has over 24 000 customers and a 9% market share
of all trades at HEX and 18% of the evening trading at HEX. After
German exit eQ Online will have a strong cash position in excess of
EUR 25 million in cash and cash equivalents. By concentrating
resources, the company is better positioned to maintain and strengthen
its position as the number one online brokerage service in Finland.
With a profitable business model and strong cash resources, it is also
better positioned to participate actively in the consolidation process
of the brokerage industry.
eQ Online continues to explore the business outlook and preconditions
of entering the e-banking business in Finland.
Changes in the management of eQ Online Group
Petri Rutanen has informed the Board that in connection with the
strategic refocusing of the company’s operations and resources, he has
decided to step down from the position of CEO of eQ Online Corporation
as of 1.7.2001. The Chairman of the Board Jerker Molander was
authorised by the Board to be responsible for the daily operations on
an interim basis. Timo Laitinen will continue as eQ Online
Corporation’s deputy CEO and President of eQ Securities Ltd.
Board of eQ Online Corporation
eQ ONLINE TO EXIT GERMANY
(Translation from Finnish language original)
The Board of eQ Online Corporation has in today’s meeting decided to
commence the winding down of the German Operations of eQ Securities
Ltd., the fully owned subsidiary of eQ Online Corporation. The cost of
the exit will be finalised in Q3 2001.
As stated in the interim report of Q1 2001, eQ has been focusing on
achieving profitability by adjusting costs. The decision to exit
Germany was made after it seemed highly unlikely that profitability
could be achieved in current market conditions. As stated in the Q1
interim report, what comes to eQ Germany, reducing costs to the level
of revenues without endangering the current service level was not a
path to profitability. On the other hand, the risk of not being able
to increase commission income many fold in current market conditions
within a foreseeable time horizon was seen to be too high.
eQ Online after the exit
After the exit the company is set to have a positive operating cash
flow and the exit will also free EUR 4 million of liquid assets now
deposited as collateral in Germany. Once the winding down has been
carried out, the number of employees of eQ Online Group is estimated
to be 90, down from 173 at the end of 2000. The full year result for
2001 is expected to remain in the red.
eQ Online is now in a good position to pursue its strategy in
supplying and further enhancing the best online brokerage service in
terms of reliability, speed of execution, transparency and security.
eQ Securities will continue to enhance its award-winning online
brokerage service in Finland. The announced co-operation with Sonera
Plaza, Finland’s largest portal, to offer financial services to a
wider customer range is proceeding according to plan. eQ Finland will
launch its direct access international share trading service by the
end of summer 2001 covering at this stage trading on Nasdaq, AMEX and
NYSE. The eQ Forum, where investors can exchange views by means of
online messaging, has in a short time become the medium of choice for
active investors.
Strong cash position
In Finland eQ Online has over 24 000 customers and a 9% market share
of all trades at HEX and 18% of the evening trading at HEX. After
German exit eQ Online will have a strong cash position in excess of
EUR 25 million in cash and cash equivalents. By concentrating
resources, the company is better positioned to maintain and strengthen
its position as the number one online brokerage service in Finland.
With a profitable business model and strong cash resources, it is also
better positioned to participate actively in the consolidation process
of the brokerage industry.
eQ Online continues to explore the business outlook and preconditions
of entering the e-banking business in Finland.
Changes in the management of eQ Online Group
Petri Rutanen has informed the Board that in connection with the
strategic refocusing of the company’s operations and resources, he has
decided to step down from the position of CEO of eQ Online Corporation
as of 1.7.2001. The Chairman of the Board Jerker Molander was
authorised by the Board to be responsible for the daily operations on
an interim basis. Timo Laitinen will continue as eQ Online
Corporation’s deputy CEO and President of eQ Securities Ltd.
Board of eQ Online Corporation
