SIX Sees 83% Decline in 2021 Profits, Revenue Rises

Net profits of the exchange took a hit due to Worldline effects.

Profits, without the Worldline impact, jumped by 37.3 percent.

However, the European exchange strengthened its operating income by 8.9 percent to almost CHF 1.9 billion. EBITDA for the year came in at CHF 421.7 million, which is 14.8 percent higher. But, EBIT came down by 71.4 percent to CHF 147.2 million.

“Despite the improved operating result, EBIT and group net profit substantially decreased compared to the previous year. This was due to two opposing effects from the stake of SIX in Worldline in 2020 and 2021,” the Swiss exchange explained.

Indeed, without the Worldline-related effects, SIXs net profits in 2021 jumped by 37.3 percent.

Meanwhile, 2021 remained a key year for the Swiss exchange. It launched the SIX Digital Exchange and expanded in the areas of ESG indices and data offerings. Moreover, it started offering a new equity segment for SMEs under the brand Sparks.

“While equity trading on the stock exchanges did not reach the unprecedented volumes of the previous year, the economic environment was still favorable for the Exchanges and Securities Services business,” SIX stated.

The Zurich-headquartered exchange even closed three acquisitions last year: two were financial information businesses, while one operates in the post-trading sector.

Bullish Future

SIX is now focusing on its business strategies that include the expansion of its stable infrastructure, the setting up of new digital infrastructures, and investment in the security of its systems. In addition, it is aiming for a 4 percent annual revenue increase between 2022 and 2024, which it is anticipating to generate from new services with the BME acquisition and from its financial information business.

“The resulting increase in profitability will further improve the financial flexibility of SIX, ensuring sufficient financing for continuous investments to grow the business and further strengthen the competitiveness of the Swiss and Spanish financial centers,” the exchange added.