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Interim 2008 HELLENIC EXCHANGES S.A. HOLDING Earnings Conference Call - Final.

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Original Source: FD (FAIR DISCLOSURE) WIRE

OPERATOR: Thank you for standing by, ladies and gentlemen, and welcome to the Hellenic Exchanges Holdings S.A. conference call on the second quarter 2008 financial results. We have with us Mr. Spiros Kapralos, Chief Executive Officer, and Mr. Simos Spyrou, Strategy and Investor Relations Director. (OPERATOR INSTRUCTIONS).

We now pass the floor to one of your speakers today, Mr. Spiros Kapralos. Please go ahead, Mr. Kapralos.

SPIROS KAPRALOS, CEO, HELLENIC EXCHANGES HOLDINGS S.A.: Good afternoon, ladies and gentlemen, and good morning for you who are on the other side of the Atlantic. We are here to make a brief presentation of the financial statements of Hellenic Exchanges for the second quarter of 2008.

The net after-tax profits of the Group in the first half of 2008 amounted to EUR35.7 million versus EUR40.2 million in the first half of 2007, an 11% reduction.

The turnover of the Group in the first half of 2008 totaled EUR63.2 million versus EUR72.1 million in the corresponding period last year, a reduction of 12%.

Clearing and settlement of transactions in the cash market continues to be the most important revenue driver of the Group, contributing 38% of the total turnover. Revenues from this category amounted to EUR24.3 million versus EUR26.5 million in the first half of 2007, down by 9%.

Revenues from stock trading is the second largest revenue driver, contributing 22% of the total turnover. Revenues from this category amounted to EUR14 million versus EUR16.2 million in the corresponding period last year. That's 13% reduction.

In total, revenues from the cash market, trading, clearing and settlement, account for 60% of total revenue.

Revenues from listed companies and new listings account for 9% of total turnover. Revenues from this category amounted to EUR5.4 million versus EUR10.7 million in the first half of 2007, a 50% reduction. This reduction is mainly due to the lack of revenues from new listings and [rights issues].

The derivatives market is 9% of the Group's top line. In the first half of 2008, revenues from the derivatives market totaled EUR5.7 million versus EUR4.7 million in the corresponding period last year, a 20% increase.

Revenues from off-exchange transaction fees amounted to EUR2.5 million, up by 48% compared to the first half of 2007, when they totaled EUR4.8 million. In the first quarter of 2007, this particular line (inaudible) revenues of EUR4.4 million from the off-exchange transaction of Egnatia Bank in Marfin to Marfin Popular Bank. This year, we booked revenues of approximately EUR1 million from the off-exchange transaction of Cosmote to Hellenic Telecommunications.

For the first time, we reported revenues of EUR900,000 from OTC transactions. This service, which began on February 2008, gives operators with access to our security system the ability to answer and settle trades that take place off exchange.

Finally, revenues from the central registry management account for 5% of the turnover for the group and total EUR2.8 million, a reduction of 6% compared to the same period last year.

Let us now look at the expenses. The breakdown of operating expenses has not changed significantly compared to the corresponding period last year. The operating expenses of the group in the first half of 2008 totaled EUR13.6 million compared to EUR13.1 million in the corresponding period in 2007, a 4% increase. Operating expenses includeEUR619,000 for compensation paid out for voluntary retirement schemes. Excluding the above mentioned amount and comparing expenses on a like-for-like basis, the operating expenses in the first half of 2008 would have posted a 1% reduction.

The largest expense category is personnel remuneration and expenses, which account for 59% of total expenses. In total, EUR8.1 million versus EUR7.1...

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