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E*Trade revenue up 63%
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January 11, 1999: 10:00 a.m. ET
Membership push leads to 1Q loss of 23 cents a share, less than expected
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NEW YORK (CNNfn) - E*Trade Group says its effort to increase online trading membership and revamp technology paid off on the fiscal first-quarter revenue line, and its net loss for the period was less than analysts had predicted.
The Palo Alto, Calif.-based company says revenue for the three months ended Dec. 31 rose 63 percent from a year ago to $88.1 million. The figure also is 28 percent above the $68.7 million revenue for the fourth quarter of fiscal 1998.
E*Trade says it added 132,000 active accounts, raising the total to 676,000. That's more than double the number of active accounts from a year earlier.
The company's net loss of $13.2 million, or 23 cents a share, was less than the 30 cents a share loss estimated by analysts surveyed by First Call. E*trade says it anticipated the loss as part of its "aggressive account and membership acquisition strategy."
"This exceptionally strong start reaffirms our goal to become the leader in the arena of all-electronic personal financial services," says Christos Cotsakos, E*Trade's CEO.
E*Trade says it attracted 390,000 new members -- who can access the service's information without formally opening an account -- during the quarter. It says transactions rose 75 percent, to 2.8 million, from the year-earlier quarter, and customer assets under management grew 94 percent, to $15.2 billion.
E*Trade Group stock closed Friday at 67-5/8, up 3-9/16. 
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