Key Points:
- Swiss Stock Exchange Operator SIX reported a 1.01 billion Swiss francs ($1.15 billion) loss in 2023, primarily due to non-cash impairments.
- Impairments were related to adjustments on its stake in Worldline and goodwill attributed to the BME Group.
- Excluding impairments, SIX would have reported a profit of 181 million francs. The company increased its dividend by 2% to 5.20 Swiss francs per share.
- SIX remains open to M&A opportunities, focusing on the Financial Information division. Earlier reports suggested SIX’s interest in bidding for Allfunds.
Swiss stock exchange operator SIX disclosed a loss of 1.01 billion Swiss francs ($1.15 billion) for the fiscal year 2023, primarily attributed to two previously announced non-cash impairments. These impairments affected the group’s financial performance, overshadowing what would have otherwise been a profitable year.
In December, SIX announced a value adjustment of approximately 860 million Swiss francs ($979 million) on its 10.5% stake in Worldline, reflecting a decline in the payments provider’s share price. Additionally, the company flagged a non-cash charge of about 340 million francs ($387 million) related to an impairment of goodwill associated with the BME Group, stemming from increased discount rates and lower trading volumes.
Excluding these impairments, SIX would have reported a profit of 181 million francs ($206 million), slightly lower than the 185 million francs ($210 million) recorded in the previous year. CEO Jos Dijsselhof expressed confidence in the company’s future growth prospects, consistent financial performance, and ability to generate strong shareholder returns despite the setbacks.
To maintain shareholder confidence, SIX announced a 2% increase in its dividend to 5.20 Swiss francs per share, resulting in a total payout of 101.5 million francs ($115.5 million) to its approximately 120 financial institution shareholders, including UBS (UBSG.S).
In addition to dividend adjustments, SIX signaled its openness to mergers and acquisitions (M&A), highlighting potential bolt-on acquisitions and partnering opportunities to strengthen its portfolio. CFO Daniel Schmucki emphasized that the company constantly evaluates M&A opportunities across all four business areas, focusing on the Financial Information division, where opportunities are more apparent than those in the stock exchange business.
Earlier reports in January suggested that SIX was considering a bid for fund distribution company Allfunds (ALLFG.AS), as indicated by sources familiar with the situation. This aligns with the company’s strategic outlook of exploring growth opportunities through potential acquisitions and partnerships.
