By Christophe Guillemin, 15 October 2003 16:08
NEWS Online bank Egg is considering ditching its French arm, as predicted by silicon.com earlier this month A "source close to the situation" told Reuters: "It's [closing the business] an option that is being considered", adding that its London parent could equally decide to sell off the continental operation or share the risks with a new commercial partner. When contacted by silicon.com's sister site, ZDNet France, an Egg spokeswoman refused to comment on "market rumour". She did, however, indicate that information on the company's future business strategy would be published on 22 October, when Egg's quarterly results are published. The online bank, a subsidiary of the Prudential, opened its doors in France in November 2002, after it bought Zebank. According to figures from the company, the total number of customers in France had risen to around 115,000 at the end of June 2003. Positive financial results were initially planned for Egg France in 2004, but following revenues that failed to meet expectations, the bank had to postpone its profitability projections until 2005. For the first half of 2003 ending 30 June, Egg posted a loss before tax of £22.8m – a bad result largely down to its French division, which registered a £48.7m loss for the period. Things have been changing on the staff side as will with Stacey Cartwright, financial director of Egg since November 1999, resigning. She was replaced by David Doyle, who had previously worked in the upper echelons of Prudential's financial services and seems to have been charged with making cost reductions by any means possible. Christophe Guillemin writes for ZDNet France
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