Semi-annual Report 01/2000

Transcription

1 Semi-annual

2 Content Page 1. At a Glance 1 2. The Company 2 3. Business Trends 2 4. Group Profit and Loss 4 5. Group Balance Sheet 5 6. Group Cash Flow Statement 6 7. Development of Shareholders' Equity 6 8. Segment ing 6 9. Prospects Notes 8

3 1. At a Glance Characteristic figures H Q 1 Q 02/ Group sales according to US-GAAP (in ) 2,548, ,346 1,649,291 Profit/loss according to US-GAAP (in ) -158, ,598 22,839 Cash Flow (in ) 33,902,073 38,547,097-4,625,024 6/30/ /31/1999 change Page Impressions (monthly, in mil.) % Visits (monthly, in mil.) % Registered users 161,000 36, % Market capitalization (in mil. ) n/d n/d Number of employees % 1 Quarterly figures AG; half-year figures H01/1999 are not available 2 Quarterly figures; half-year figures H01/1999 are not available 3 Permanent employees unaudited half year report Development of website usage figures in mil. 36,0 32,3 37,4 37,6 22,4 11,9 13,2 3,3 3,9 3,8 5,8 5,8 6,5 6,3 12/ / / / / /2000 Source: IVW Visits Page Impressions News Page Impressions tripled in 6 months time Further advances in internationalisation Positive result for the first time in Fiscal Year 2000 (according to US-GAAP) 1.

4 2. The Company OnVista AG is the leading independent provider of high-quality financial information and analysis tools on the Internet in Germany. The Cologne based company offers under sophisticated information on shares, new issues, funds and warrants. Significant sources of income are online advertising and the issue of licenses for its product program, primarily to banks and financial news media companies. OnVista AG holds direct and indirect (through OnVista Beteiligungs- Holding GmbH (100%)) interests in several financial and Internet companies, including Trademiles AG (39.0 per cent), Prozentor GmbH (33.3 per cent), Financial.com AG (10.0 per cent) and Lang & Schwarz Wertpapierhandel AG (3.6 per cent). 3. Business Trends Positive Result in 2nd Quarter OnVista AG is looking back on a successful first half of the year Total group sales of 2.5 mil. according to US-GAAP were achieved. OnVista AG has thus exceeded its own budget by 30 per cent. Group half-year result according to US- GAAP was -158,759 with an EBITDA of -252,002. With sales of 1.6 mil., the 2nd quarter showed a positive result of 22,839 according to US-GAAP - a quarter earlier than initially planned. The first quarter was dominated by the IPO. On February 28th the company was launched on the New Market in Frankfurt. The OnVista share was oversubscribed eighty times and the issue price was set at 22 and thus at the upper end of the bookbuilding spread. Revenue from the IPO was more than 40 mil. Following the exercise of the greenshoe, more than 29 per cent of the registered share capital of 6.7 mil. non-par value shares is widely held. The pre-ipo shareholders of OnVista, which now hold about 67% of the shares, committed themselves for one year not to sell shares. For an additional 6 month period, the management committed itself to sell a maximum of 10% of its stake. With these commitments, management exceeds the lock-up period of 6 months required by Deutsche Börse regulations. Over the entire first half of the current year, OnVista AG continued on its course of improving and developing its own website to the benefit of OnVista users, advertising and license business. At the same time, new income sources have been tapped, and initial steps for the internationalisation of the business have been taken. Introduction of numerous new products In the first half of 2000, OnVista AG extended its program with new tools and applications. Special mention is to be given to the IPO Tool, the Fund Tool and the WAP program. In January, OnVista AG had already expanded its product program to include the WAP transmission standard. This means that a significant portion of the company s products can also be obtained via WAP compatible mobile telephones. OnVista AG was also the first company to provide share price charts via mobile phone. The high level of acceptance of the OnVista WAP program is also evident from the fact that Mannesmann D2, E-Plus and Viag Interkom, three leading mobile telephone network operators, have integrated OnVista into the first page of their pre-configured WAP portals. The IPO Tool, which was launched in March, offers an overview of all new share issues in the German market since In addition to a comprehensive overview, it offers detailed information on individual companies and allows for performance comparisons within a particular industry or stock exchange segment over various time periods. Since May 2000, OnVista AG has also provided more transparency in the fund market. Its Fund Tool compiles current prices, core data and ratios. It also contains background information on investment strategy and objectives of the funds and allows for individual comparison and analysis. The OnVista Fund Tool is the most comprehensive information product in Germany with respect to Mutual Funds: With 3,800 funds it covers virtually the entire scope of funds available in Germany and offers a unique number of details and functionalities. 2.

5 Online User tripled Because of its new, attractive content and increased popularity, OnVista AG has been able to significantly increase the access figures of its website: The number of Page Impressions rose from 11.9 mil. in December 1999 to 37.6 mil. in June. This is equivalent to a three-fold increase within six months. The number of visits in June was 6.3 mil. OnVista is thus among the top ten of all IVW-registered websites in Germany. The number of registered users subscribing to at least one of OnVista s Newsletters rose to 161,000 in June, 2000 representing an increase of more than 430 per cent compared to December Expansion of Customer Base Advertising sales have also profited from the increased use of the website. OnVista AG now achieves a penetration that hardly any other online program is able to claim. In addition, OnVista AG reaches a clearly defined target group with above-average income and an enthusiasm for investing: the target group sought by advertisers. Aside from this, the newly introduced content, like the Fund Tool, opens up access to additional user groups, and thus to relevant target groups for advertising. Innovative products such as the WAP program or more customized Newsletters dealing with specific topics allow for new forms of advertising. In total, advertising revenue of 1.0 mil. was earned in the first half of New licensing customers have also been acquired. These include Advance Bank, ProSieben Digital Media, with the website of its news station N24 and Verlagsgruppe Handelsblatt with Internet services from Handelsblatt and Wirtschaftswoche. In the first half of 2000, license income of 1.2 mil. was earned. Innovative sources of income tapped In the first half of 2000, OnVista AG has tapped additional sources of income in the ecommerce sector, including the marketing of certificates. The company uses its extensive database to identify the most promising companies in a segment and advises the issuer when putting together a securities basket. OnVista AG markets the certificates developed under this process on its own website and participates in the proceeds of sale. Up to now, two certificates with different banking institutions have been introduced: the "OnVista-SocGen-Internet-Infrastructure-Certificate" with Société Générale and the "I-Love-You- Certificate" for Internet Security Software with ABN Amro. Additional sales were generated i.e. from the OnVista Bookshop. A total of around 0.3 mil. turnover was achieved through these new sources of income. Further advances in internationalisation As announced in the second quarter, the internationalisation of the company has been initiated. In addition, the technical and content requirements for setting up a presence in other international countries have been created. Contracts have been executed with various international stock exchanges and other suppliers of data. Work has also begun to revise the database structure on which the website is based to allow for the presentation of prices in other international financial centers in addition to the German stock exchanges. Expansion of Investment Portfolio OnVista AG has made direct or indirect investments in several innovative Internet companies in the financial sector over the last six months. The company acquired 10 per cent of Financial.com AG in January. Financial.com develops high-quality analysis tools for financial application based on Java technology used in the Internet. In April 2000, OnVista AG acquired a 33.3 per cent interest in Prozentor GmbH. This Berlin company develops a comprehensive online service with complex stock price prognosis based on time sequence analysis. OnVista AG will be integrating these stock price prognoses into its own website, and will also be able to offer an expanded product range to its licensees in the future. OnVista founded Trademiles AG in May 2000 together with Compliance GmbH. The two partners each hold a 39 per cent interest in this company located in Cologne, the remaining shares being held by management. Trademiles establishes a bonus system for securities trading rewarding investors with bonus points which can be traded in for high-quality rewards. The participations are of a strategic nature, supplement the value-added chain and actively support OnVista AG's actual business. 3.

6 4. Group Profit and Loss under US-GAAP from 1/1/2000 to 6/30/2000 H Q 1 Q 02/ Sales [9] 2,548, ,346 1,649,291 Cost of sales -1,168, , ,388 Gross margin 1,379, , ,903 Marketing and selling expenses -768, , ,360 General administrative expenses -771, , ,685 Research and development expenses -729, , ,275 Operating loss -890, , ,417 Interest and similar expenses Interest and similar income 512, , ,420 Other operating income 37,408 29,009 8,399 Profit/loss before taxes -340, ,018 48,398 Income taxes 181, ,420-25,559 Net loss -158, ,598 22,839 EBITDA -252, , ,636 EBIT -852, , ,018 EBT -340, ,018 48,398 1 Quarterly figures AG; half-year figures H01/1999 are not available 2 Quarterly figures; half-year figures to the comparison are not available unaudited half year report 4.

7 5. Group Balance Sheet under US-GAAP as per June 30, 2000 Group AG Group AG Assets 06/30/ /31/1999 Current assets Cash and cash equivalents [1] 13,776,269 2,927,686 Securities 23,076,615 0 Trade accounts receivables [2] 1,036, ,097 Other assets [3] 1,014, ,309 Prepaid expenses and deferred charges 288,818 12,119 Total current assets 39,192,265 3,315,211 Receivables due from shareholders 0 10,226 Deferred taxes 2,256, ,743 Investments [4] 4,087,008 1,546,609 Tangible fixed assets [5] 2,303, ,660 Intangible fixed assets [6] 1,197, ,246 Total assets 49,036,856 5,839,695 Liabilities and Shareholders' Equity 06/30/ /31/1999 Short term liabilities [7] Trade accounts payables 279,795 21,663 Other liabilities 774,011 5,810 Customer advances Other accured liabilities 1,049, ,099 Total short term liabilities 2,103, ,572 Long term liabilities 0 25,565 Consolidation adjustments 2,556 0 Shareholders' equity Capital stock 6,700,000 56,200 Additional paid-in capital 40,504,557 5,351,249 Accumulated deficit -274, ,891 Total shareholders' equity [8] 46,930,362 5,294,558 Total liabilities and Shareholders' equity 49,036,856 5,839,695 unaudited half year report 5.

8 6. Group Cash Flow Statement under US-GAAP from 1/1/2000 to 6/30/2000 Cash and cash equivalents at the beginning of period 2,927,686 Consolidation 23,124 Cash Flow from operating activities -1,936,556 Cash Flow from investing activities -5,958,478 Cash Flow from financing activities 41,797,108 Total Cash Flow 33,902,074 Cash and cash equivalents at end of period 36,852,884 unaudited half year report 7. Development of Shareholders' Equity from 1/1/2000 to 6/30/2000 in AG Capital Consolidation Group Profit/Loss Group increase/ipo H 12/31/99 02/28/00 06/30/00 Capital stock 56,200 6,643,800 6,700,000 Additional paid-in capital 5,351,249 35,153,308 40,504,557 Profit/loss -112,891-2, , ,195 Shareholders' equity 5,294,558 41,797,108-2, ,759 46,930,362 unaudited half year report 8. Segment ing from 1/1/2000 to 6/30/2000 Sales distribution on segments in 06/30/00 Share Advertising 1,013, % Licenses 1,230, % ecommerce 253, % Other 51, % 2,548, % unaudited half year report 6.

9 9. Prospects Innovation leadership to be expanded In the second half of 2000, OnVista AG will continue on its steady course of optimising its own website in order to expand its position as the innovation leader in the European market. Since July, real-time prices can be accessed free of charge and without registration. Additional analysis tools have been integrated into the existing range of products. OnVista will expand its product program in the WAP market, a market with high potential in the future. Dynamic growth in all sectors Due to the rising popularity of its website, OnVista AG forecasts a continued dynamic development of its user figures in the second half of In July, 2000 the financial portal was able to increase Page Impressions to 49.7 million, a 30 per cent increase compared to the previous month. The number of visits grew to 7.7 million. As proven in the past, the forecasted ongoing increase of website utilisation will have a positive impact on online advertising revenue. The site onvista.de is one of the leading financial WAP portals with Page Impressions monthly. In addition to advertising revenue, OnVista AG's license customer business will also profit from the expansion of its website as product innovations described here can be marketed under license to existing customers and unlocks a market for new site visitors. OnVista AG is currently in negotiations with several renowned companies in the financial services and media sector which are expected to be closed in the second half of the year. The business area ecommerce will continue to be expanded in the second half of the 2000 fiscal year, particularly through the development and marketing of additional certificates. At the present time OnVista AG is in negotiations with other additional issuers. Presence in Europe Over the continued course of the fiscal year, OnVista AG will be pushing forward at full speed to internationalise its business. The third quarter will see a continuance in the preparations for a market entry into other European countries: Plans are made to market OnVista s website through subsidiary companies and to win new license partners abroad. In the fourth quarter, the share prices on the most important stock exchanges world-wide will be integrated into the website. Currently, only displays the prices from German stock exchanges. The launch of the websites in two further other European countries is planned for the turn of the year. First net profit planned OnVista AG will carry on with its dynamic growth and rapid innovation in the second half of the fiscal year. The budget for the year 2000 as a whole provides for sales of 6.6 mil. This would be a six-fold increase in comparison to the figures for the preceding year. In the first half of 2000, sales targets have been exceeded significantly. The company sees upward potential for sales developments over the rest of the year. Accelerated expansion is expected to also entail more capital expenditures in hardware and software and increased personnel costs. Nevertheless, the Management Board forecasts for the overall year 2000 a mere two and half years after the formation of the company that group results according to US-GAAP will be positive. 7.

10 10. Notes on the financial statements H according to US-GAAP Group assets (information in brackets concerns the AG) Current assets [1] Cash and cash equivalents The balance of 36.9 mil. (AG: 33.8 mil.) contains both time deposits and investments in fixed-interest securities with short maturity. The increase in these funds in comparison to December 31, 1999 can be explained in particular by the Initial Public Offering of OnVista AG and the related capital increase. [2] Trade accounts receivables Through the rapidly growing number of Page Impressions from 11.9 mil. in December, 1999 to 37.6 mil. in June, 2000, as well as the successful acquisition of new licensees, sales from advertising and license fees and thus trade accounts receivables rose from 0.2 mil. (AG: 0.2 mil.) at the end of last year to 1.0 mil. (AG: 1.0 mil.). [3] Other assets This increase is primarily related to interest claims from securities. Fixed assets [4] Investments The company holds direct and indirect minority interests through OnVista Beteiligungs-Holding GmbH in Lang & Schwarz Wertpapierhandel AG (3.6%), PROZENTOR GmbH (33.3%), Trademiles AG (39%) and financial.com AG (10%); financial assets increased to 4.1 mil. (AG: 7.1 mil.). [5] Tangible fixed assets Due to the increased number of page impressions and licensees, OnVista AG invested in particular in additional computer hardware to expand its data processing centre and its infrastructure. Tangible fixed assets thus rose by 1.8 mil. to 2.3 mil. (AG: 2.3 mil.). [6] Intangible fixed assets The increase by 1.0 mil. to 1.2 mil. (AG: 1.2 mil.) is mostly due to the acquisition of software. Shareholders' Equity and Liabilities (information in brackets concerns the AG) [7] Short term liabilities The main factors for the increase by 1.6 mil. to 2.1 mil. (AG: 2.1 mil.) are the appropriation to reserves for unsettled IPO costs and bonuses, and for other liabilities by 0.8 mil. to 0.8 mil. (AG: 0.8 mil.) [8] Shareholders' equity Under a resolution of the general meeting of shareholders on February 16, 2000, the capital stock was increased to 6.7 mil., authorised capital of 3.35 mil. and conditional capital of 0.5 mil. (for stock options to employees) was created. Group income (information in brackets concerns the AG) [9] Sales Sales in the first half of 2000 rose to 2.6 mil. (AG: 2.6 mil.) as compared to sales of 1.2 mil. for all of % 48% 2% 40% [10] Group expenses The cost of sales rose at 1.2 mil. to 45.9 per cent of sales as opposed to 42.4 per cent in The relative increase is based in particular on increased depreciation related to capital expenditures for computer hardware and software. To promote additional public awareness of OnVista, but also to improve the quality of OnVista s products, the company increased both the relative marketing expenses from 28.8 per cent to 30.2 per cent and the relative Research & Development costs from 27.7 per cent to 28.6 per cent of sales. The rise in general administrative costs to 30.3 per cent of sales was caused by increased personnel expenditures. Advertising Licenses ecommerce Other 8.

11 Company Calendar 2000 Quarterly 03/2000 November 14 Company Calendar 2001 Prelminary Results 2000 Annual 2000 Accounts Press Conference DVFA Analysts Conference Shareholder s Meeting Quarterly 01/2001 Quarterly 02/2001 Quarterly 03/2001 early February April / May April / May April / May April / May early / mid May early / mid August early / mid November

12 OnVista Aktiengesellschaft Stollwerckstraße 3-5, D Köln Tel.: +49 (0) 2203/ Fax: +49 (0) 2203/ Web: WAP: Supervisory Board Dr. Paul-Bernhard Kallen (chairman) Dr. Johannes Meier Prof. Dr. Bernhard Schwetzler Management Board Michael W. Schwetje Stephan Schubert Fritz Oidtmann 1.