Feeds

Egg has cracked online finance

More customers, buying more, costing less

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Net bank Egg says its on target to break even in Q4 this year.

So it look like the online finance firm may have cracked it. The company is cutting losses, gaining customers, and it's also no longer offering the cheapest deals around (according to the Motley Fool personal finance site) which should save it a few bob.

On top of this each new customer costs it less to recruit than it used to, and each customer is using Egg for more stuff.

Egg has reported a 21 per cent fall in pre-tax losses for the first half to £63.4 million ($90 million). Last year it reported losses of £80.7 million in the same period last year. So this year a Q1 loss of £38 million has been cut down to £25.5 million in Q2.

It's taken on 370,000 new customers in the first half, so now has 1.72 million of them - including Zoe Ball and Linford Christie. Each of these is taking, on average, 1.36 products (as they say in the world of personal finance), up from 1.09. And presumably there's scope for these customers to take loads of products each. The cost of a new credit card customer is down to £22 from £37. ®

Related Link

The Motley Fool view

Related Stories

Microsoft signs up with Egg for MSN online investment funds

Website security in corporate America

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.