eTrade 1999 Annual Report Download - page 32

Download and view the complete annual report

Please find page 32 of the 1999 eTrade annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 74

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74

Years Ended
September 30,
---------------------
1999 1998 1997
----- ----- -----
Revenues:
Transaction revenues.................................. 57.2 % 48.3 % 46.8
%
Global and institutional.............................. 17.9 28.5 34.2
Interest--net of interest expense..................... 19.7 16.9 11.0
Other................................................. 5.2 6.3 8.0
----- ----- -----
Net revenues........................................ 100.0 100.0 100.0
----- ----- -----
Cost of services........................................ 45.7 41.4 41.0
----- ----- -----
Operating expenses:
Selling and marketing................................. 48.5 34.9 28.7
Technology development................................ 12.4 10.1 5.8
General and administrative............................ 13.7 12.4 11.6
Merger related expenses............................... 1.0 0.4 --
----- ----- -----
Total operating expenses............................ 75.6 57.8 46.1
----- ----- -----
Total cost of services and operating expenses....... 121.3 99.2 87.1
----- ----- -----
Operating income (loss)................................. (21.3) 0.8 12.9
----- ----- -----
Non-operating income (expense):
Gain on sale of investments........................... 8.0 -- --
Equity in losses of investments....................... (1.5) -- --
Gain (loss) on foreign exchange....................... -- (0.2) (0.4)
----- ----- -----
Total non-operating income (expense)................ 6.5 (0.2) (0.4)
----- ----- -----
Pre-tax income (loss)................................... (14.8) 0.6 12.5
Income tax expense (benefit)............................ (6.0) -- 4.3
----- ----- -----
Net income (loss)....................................... (8.8) 0.6 8.2
Preferred stock dividends............................... -- -- 0.1
----- ----- -----
Income (loss) applicable to common stock................ (8.8)% 0.6 % 8.1
%
===== ===== =====
Fiscal Years Ended September 30, 1999, 1998 and 1997
Revenues
The Company's revenues increased to $621.4 million in fiscal 1999, up 85% from $335.8 million in fiscal 1998, which was up 43%
from $234.1 million in fiscal 1997.
Transaction revenues increased to $355.8 million in fiscal 1999, up 120% from $162.1 million in fiscal 1998, which was up 48% from
$109.7 million in fiscal 1997. Transaction revenues consist of commission revenues and payments for order flow.
Commission revenues increased to $316.7 million, up 132% from $136.3 million in fiscal 1998, which was up 64% from $82.9 million
in fiscal 1997. Transactions for fiscal 1999 totaled 17.3 million or an average of 68,500 transactions per day. This is an increase of
148% over the average daily transaction volume of 27,600 in fiscal 1998, which was up 68% from 16,400 in fiscal 1997. Average
commissions per transaction declined to $18.35 in fiscal 1999 from $19.58 in fiscal 1998 and $20.00 in fiscal 1997. The decline in
commissions per trade was a result of promotional activities, changes in the mix of revenue generating transactions and the August
2002. EDGAR Online, Inc.