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HIGHLIGHTS 1ST QUARTER 2008

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Acta seeks increased market share in challenging market   Acta has as expected delivered decreased revenues compared to same period in 2007. In spite of this Acta has an offensive view on the market. Acta has full focus on product development, client growth and to follow up existing clients.  

- Those who don't have a long term perspective now, will loose both market shares and clients. In the present challenging market it is important that our clients find their financial advisors as present and active partners, says CEO Simen Mørdre.  

2007 ended with record revenues for the 4th quarter. First quarter 2008 has been challenging for Acta among other things because of anxiety in the global financial markets and changed Norwegian regulations. In addition Easter came in the first quarter, something which gave more than one week less sales. Compared to the same period in 2007 this gave less revenue for Acta.  

- I think that in the present challenging market, with global financial anxiety and changed regulatory external conditions, smaller companies and those choosing not to adapt to the new regulations will target the toughest challenges. This will benefit Acta in a longer perspective. At the same time Acta has a long term perspective to develop our organisation and client base, independent from fluctuations in the market, says Mørdre.  

Highlights in 1st quarter 2008

  • Gross subscriptions of NOK 4,059 million, compared to NOK 7,027 million for the same period in 2007
  • Revenues of NOK 367 million, compared to NOK 588 million for the same period in 2007
  • Recurring revenues of NOK 78 million, with a coverage factor to fixed costs of 73%
  • Operating earnings of NOK 126 million, compared to NOK 310 million for the corresponding quarter in 2007
  • Assets under management of NOK 90 billion, up 20% from NOK 75 billion at end of March 2007
  • Successful launch of two new product concepts in the high-risk mandate
  • Operations in Sweden are developing positively considering development in macro economic factors 
  • Proposed dividend of NOK 2.55 per share for the 2007 financial year

  - Acta is well prepared to manage challenging market conditions with a solid balance, strong client base and very skilled and motivated staff. A dynamic organisation such as Acta has showed an ability to adapt to changing market conditions and changing regulations. We see great possibilities in the market, says Mørdre.   Company outlook

  • Quality initiatives (MiFID)
  • Continued high operational focus and commitment to existing clients
  • Cost control and planned cost of approximately NOK 100 million to be cut without affecting current activity level
  • Product innovation - more than 2 new product initiatives to be launched in each of the following quarters
  • Proposed distributions from Acta's client-owned companies in Q2 are at approximately 1 billion kroner, of which Acta anticipates a high reinvestment rate
  • Based on the current market environment, Acta expects a good financial result in 2008

    A complete English version of the interim report and the presentation of the 1st quarter of 2008 are attached on www.newsweb.no and on Acta`s Investor Relation web pages www.acta.no.  

Contact details: Simen Mørdre, Chief Executive Officer,  +47 908 68 562 Christian Tunge, Chief Financial Officer, +47 450 65 850 Rune Wangsmo, Public Relations Director, +47 995 41 507

 

 

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