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Business

CitisecOnline expects RP revenues to drop by 40%

- Zinnia B. Dela Peña -

Amid a slowing US economy and the ongoing volatility in financial markets worldwide, leading online brokerage house CitisecOnline.com expects revenues from its Philippine operations to drop by 40 percent this year.

With the US economy being plagued by mortgage woes on top of high oil prices, concerns on a US slowdown and the possible meltdown of the global economy affecting corporate earnings and consumer demand have become stronger.

The subprime default crisis, which has led to huge losses on investments linked to the home loans, has resulted in weak investor sentiment.

“We’re affected by the slowdown in the global markets. It would be very difficult to replicate our performance last year,” said Conrado F. Bate, president of CitisecOnline.

The year 2007 was a banner year for CitisecOnline with its net profit and revenues, growing by double and triple-digit, respectively. Net earnings jumped to P137.6 million from a meager P34.3 million while revenues jumped by 203.4 percent to P285.91 million on the back of higher customer accounts and commissions from clients’ trading activities.

“We expect 2008 to be a turbulent time for global financial markets as the US credit crunch is likely to keep investor sentiment subdued until there is better clarity over the course of the US economy,” Bate said.

Bate, however, remains optimistic about the local stock market prospects given the country’s strong fundamentals.

“We do not see it as a setback but rather as an opportunity for us to focus more on customer-oriented services,” Bate said.

Given the challenging market environment, CitisecOnline is planning to continue conducting investor education seminars to broaden awareness about the company and stock market investing.

By expanding its reach and awareness to the investing public and introducing value-added products and services, CitisecOnline is confident that it will attract more clients.

Bate said the company is eyeing a 15 to 20 percent rise in its customer base.

As of end-December 2007, CitisecOnline had a total of 5,125 customer accounts as against 1,343 the previous year.

CitisecOnline has been actively trading in the Philippine Stock (PSE) Exchange since 2001, providing stockbrokerage services through Internet technology. It owns CitisecOnline.com Hong Kong Ltd., a member of the Hong Kong Stock Exchange.

The company has gained status for its proficiency in equity analysis and brokerage services with the management team comprising professionals in the financial and information technology companies as well as entrepreneurs with decades of experience in the stockbrokerage industry.

The company’s vision is to be the leading online financial services provider in Asia, giving customers access to global markets and products to keep them well-informed about their decision-making.

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