Etrade records loss in line with expectations
Etrade recorded a loss of $53.8 million in the twelve months to June 2000 which was in line with market expectations. The loss was largely attributable to a write off relating to the issue of shares to ANZ under their strategic alliance. ANZ has an option to increase its stake in Etrade to 40% in 2002, while currently holding approximately 15 – 20%.
Etrade’s operating loss also worsened despite increasing the number of customer accounts to 62,000. This performance highlights the struggle ahead for online brokers and emphasises the importance providing additional financial services. Etrade, along with a number of other online brokers, now offer access to managed funds, margin loans and company floats to support their income from brokerage.