First-quarter revenue and profit fell sharply in the three-month period ending June 30, 2008, for Vancouver investment dealer Canaccord Capital Inc. (TSX, AIM:CCI), which took a serious hit from the global credit crisis.
The company's revenue dropped 29.8% to $172.7 million from $245.9 million earned in 2007's first quarter. Lower activity in capital markets in Canada and the U.K. and the company's private client services in Canada contributed to the year-over-year decline. Investment banking revenue fell 40.8% to $76.1 million from $128.6 million during the same period in 2007.
Despite a 20% decrease in expenses, first-quarter profit fell 57.8% to $16.5 million from $39 million.
In mid-June, the company began looking for ways to find new revenue sources and cut operating costs throughout the organization. As part of the 120-day plan, Canaccord implemented new policies to cut and contain salaries and such discretionary expenses as travel and entertainment.
Canaccord's share price range during the past week: between $7.72 and $8.05; 52-week high: $22.05; 52-week low: $6.68.