Financial services provider Swiss stock exchange SIX significantly increases profit thanks to financial result

The financial infrastructure operator SIX increased its revenue and profit in the first half of the year. However, the stock exchange business remains sluggish.

The Group's operating income rose by 2.6 percent year-on-year to CHF 790.9 million, as announced by SIX on Friday. However, income from equity trading declined.

The other three of the four business units (Securities Services, Financial Information and Banking Services) contributed to the growth. This was due in particular to higher revenues from debit card and mobile payment services as well as electronic billing (eBill), according to the statement. International securities custody, reference data, regulatory services and indices also increased.

Growth target confirmed

Meanwhile, expenses rose by 3.8 percent to CHF 566.3 million in the reporting period. According to SIX, the main drivers were higher personnel costs due to acquisitions and inflation as well as sales-related costs. The latter consisted mainly of fees from third-party providers in payment transactions and revenue sharing from partners for data products.

As a result, operating income before depreciation and amortization (EBITDA) fell by 0.4 percent to 224.7 million. However, EBIT rose by 15 percent to 153.2 million and net profit by 12 percent to 117.5 million due to a higher financial result.

The financial result was negative at -6.1 million in the same period of the previous year. In the reporting period, it was now positive at +12.0 million. The share of profit from investments also increased to 6.2 million after 3.4 million in the first half of 2023.

"With our half-year results, we are on track to achieve our medium-term goal of annual revenue growth of over 3 percent," said SIX CEO Jos Dijsselhof in the press release.

SDA