E-Trade Group Inc. said it added 332,000 active accounts in the quarter ended June 30, but the online financial firm added that, as expected, it still lost money.
Continued heavy spending on its technology infrastructure was partly to blame for the red ink, along with expenses related to improving customer service and a major marketing campaign.
E-Trade had 1.241 million active accounts as of June 30 and executed an average of 80,600 transactions per day during the quarter. That was up 15% from the quarter ending in March of this year. Market leader The Charles Schwab Corp., whose customers now conduct two-thirds of their trades online, last week said it had 2.8 million active online accounts as of June 30th.
E-Trade, based in Menlo Park, Calif., said quarterly revenue rose 128%, to $151.7 million, compared to the same quarter a year ago. However, its net loss from ongoing operations hit $21.2 million (9 cents per share), vs, a quarterly profit of $5.1 million (3 cents per share) last year.
Losses will continue, E-Trade said, as the company conducts an "aggressive" campaign in the fiercely competitive online financial services arena.