Egg has cracked online finance
More customers, buying more, costing less
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. ®