SIX reported that it has now delivered solid growth across all four business units in 2024, underscoring the strength of its diversified business model.
The Group reportedly achieved total operating income of “CHF 1.6 billion in 2024, representing year-on-year growth of 4.6% at constant exchange rates and 4% at reported rates.”
Switzerland‘s SIX stock exchange further noted that earnings before interest, tax, depreciation, and “amortization (EBITDA) rose to CHF 443.7 million, up 4.8% at constant exchange rates and 3.6% at reported rates.”
Net profit stood at CHF 38.7 million, including “a non-cash value adjustment of CHF 167.7 million on the Group’s 10.5% stake in European payments provider Worldline, reflecting the development in its share price.”
Building on its foundation as an innovator in European capital markets, SIX is raising its commercial ambition and is “launching a three-year program to drive mid-single digit income growth and improve its margin profile from 28% in 2024 to beyond 40%.”
To this end, SIX will accelerate its “organic and inorganic growth strategy, better leverage its attractive business mix, and reduce its cost base by more than CHF 120 million by year-end 2027.”
Selected Financials for 2024:
- Operating income of CHF 1,586.8 million (up 4.6% at constant exchange rates, 4% at reported rates)
- EBITDA of CHF 443.7 million (up 4.8% at constant exchange rates, 3.6% at reported rates)
- Earnings before interest and tax (EBIT) of CHF 97.1 million, impacted by non-cash value adjustment of CHF 167.7 million on stake in Worldline
- Group net profit of CHF 38.7 million (Group net loss of CHF 1.005,3 million in 2023); adjusted Group net profit of CHF 204.4 million (2023: CHF 181.9 million)
Performance 2024
- Total operating income grew 4.6% at constant exchange rates (4% at reported rates) to CHF 1,586.8 million.
- Revenues rose in Swiss funds trading, debit card services, mobile payments, eBill, and in international securities custody, as well as in reference data, regulatory services, and indices. This demonstrates the Group’s success in unlocking growth across all its business units.
- With this performance, SIX more than offset the discontinuation of a trade-mark license agreement that generated CHF 8.2 million in revenues in 2023. Additionally, BME made another notable contribution to the Group’s financial performance, accounting for 17% of total revenue and more than 30% of EBITDA for the year 2024.
In the fourth quarter, the value of the Group’s 10.5% stake in the European payments provider Worldline was “adjusted by CHF 167.7 million to reflect the development in the Worldline share price.”
EBIT was CHF 97.1 million. SIX reported a “positive Group net profit of CHF 38.7 million for 2024 following the reported net loss in 2023.”
SIX says it has a “diversified portfolio spanning trading, post trade, financial information, and banking services.”
Despite the competitive landscape in which SIX operates, this approach has proven “resilient and effective.”
With BME as the cornerstone of the Spanish capital market infrastructure, SIX also “maintains a strong presence in the European Union.”
SIX intends to leverage this foundation and is “raising its commercial ambition by launching the Group-wide program Scale Up 2027 to strengthen top-line growth and improve its margin profile.”
SIX is targeting mid-single digit income growth and “an improved EBITDA-margin from 28% in 2024 to beyond 40% by year-end 2027.”
This will be pursued by accelerating the Group’s “organic and inorganic growth strategy, as well as by capitalizing on its attractive business mix.”
SIX also sees the potential to significantly “reduce its cost base by more than CHF 120 million over the next three years.”
This may include a reduction of “around 150 positions across the Group by year-end 2025, partly through natural attrition and early retirements.”
As part of Scale Up 2027, SIX will integrate its SIX Digital Exchange (SDX) business into the Securities Services business unit.
SDX has built the digital financial market infrastructure for the Swiss Financial Center, having “issued more than CHF 1.5 billion in digital assets and establishing itself as a global leader in digital fixed income.”
SIX intends to capitalize on “synergies and fully leverage the potential of SDX as part of the broader SIX ecosystem.”
The Group will deploy the technology at a larger scale, “continuing to drive innovation within SIX, as well as across key partnerships with the Swiss National Bank and the Helvetia Pilot.”
SIX will continue to offer services in 2025, which is expected “to remain a challenging economic environment. Bolt-on acquisitions and partnership opportunities will further strengthen the portfolio.”
The Group’s presence in Spain offers a gateway “to the European Union, while the global Financial Information business represents an additional growth driver in Europe and globally.”
The intended acquisition of Aquis, as announced on 11 November 2024, will be an “important milestone for SIX.”
Pending regulatory approval, the transaction is “expected to close in the second quarter of 2025.”
Aquis operates across several business segments, “including a pan-European multi-lateral trading facility (MFT) for cash equities that covers 16 European markets, licensing of proprietary market infrastructure technologies, a UK primary listing growth market, and market data.”
The proposed combined resources and capabilities of SIX and Aquis will create a pan-European exchange “spanning traditional primary exchange and MTF businesses, strengthening the Group’s ability to serve its clients in Switzerland, Spain, and across Europe.”