SIX Ends 2022 with Massive Profit despite Harsh Markets

SIX Swiss Exchange published its results for 2022, reporting an annual net profit of CHF 185 million, which is about 152 percent higher than the <a href=”https://www.financemagnates.com/forex/six-sees-83-decline-in-2021-profits-revenue-rises/” target=”_blank” rel=”follow”>previous fiscal year</a>. On the other hand, the total operating income came in at about CHF 1.5 billion, rising 2.1 percent at constant currencies but almost flat at reporting currency.

SIX’s Business Diversification Paid Off

The Swiss-headquartered <a href=”https://www.financemagnates.com/terms/s/stock-exchange/” class=”terms__main-term” id=”76d5dc1c-865d-49be-9e84-126258dff377″ target=”_blank”>stock exchange</a> operator highlighted the contribution of its diversified business model in the results. Indeed, the operating income from its banking services increased by 6 percent in reporting currency, and the financial information unit witnessed a revenue jump of 1.1 percent. Businesses from these two units compensated for declining demand in SIX’s Exchanges and Securities Services business divisions.

The EBITDA of the Swiss financial markets giant came in at CHF 397.7 million, with a margin of 26 percent. The figure dropped by 5.7 percent in reporting currency and 0.9 percent in constant currencies.

On the positive side, the group’s EBIT increased to CHF 243.9 million, which is 65.7 percent in reporting currency and 82.7 percent in constant currencies. This increase was due to a ‘one-off effect’ in 2021 related to selling the group’s stake in Worldline.

The <a href=”https://www.financemagnates.com/tag/six-swiss-exchange/” target=”_blank” rel=”follow”>performance of SIX </a>remained excellent in both halves of the closed fiscal year. For the first six months, the group reported an operating income of CHF 751.7 million, while the <a href=”https://www.financemagnates.com/institutional-forex/six-sees-12-yoy-growth-in-net-profit-for-h1-2022/” target=”_blank” rel=”follow”>net profits jumped 12.1 percent</a> to touch CHF 121.3 million.

“Despite challenging market conditions, we have delivered a solid result,” said the CEO of SIX, Jos Dijsselhof.

“It is paramount for an international infrastructure operator like ourselves that our customers and all market participants can always rely on us. We continuously invest in new and improved services, as well as in our infrastructure and security. We shape the Swiss and Spanish capital markets for the future and make them the go-to markets for customers and clients around the globe.”

Bullish Outlook

The Swiss group is now bullish about its future expectations. It expects a medium-term revenue increase of more than 4 percent, primarily due to the business effects from SDX and digital assets, integration of <a href=”https://www.financemagnates.com/institutional-forex/six-to-consolidate-its-spanish-and-swiss-exchanges/” target=”_blank” rel=”follow”>revenue from the BME acquisition,</a> and growth from the Financial Information business unit.

Further, the group is eying to optimize its cost base by leveraging the primarily fixed cost nature of the business and synergies from the BME acquisition, among other targeted measures. Moreover, it is expecting higher profitability with a revenue jump.