In a challenging market environment dominated by inflation and rising interest rates, SIX continues its positive operational trend and expects a revenue growth of approximately 3% at constant currencies for the full year 2023. Profitability at EBITDA level is expected to increase by 6%-7% at constant currencies, underlining the successful strategy and diversified business model of SIX.
However, due to the share price decline at Worldline, SIX will recognize a non-cash value adjustment of approximately CHF 860 million in the fourth quarter of 2023 on its 10.5% stake in the European payments provider.
The participation in Worldline is a strategic investment for SIX, with Worldline being a key partner in its payments offering for Swiss banks in particular. In 2018, the sale of SIX Payment Services to Worldline resulted in a positive one-off effect of CHF 2.7bn for SIX whilst significantly strengthening its equity capital.
Furthermore, as a result of increased discount rates as well as lower trading volumes in Spain and in Europe, SIX will recognize a non-cash charge in the fourth quarter 2023 of approximately CHF 340 million relating to an impairment of goodwill attributed to the BME group. BME contributes significantly to the operational and financial success of SIX and remains critical to the growth strategy and competitive position of the group.
As a result of the above factors, SIX expects to report a negative group net result in the range of CHF 1.0-1.1bn for 2023. The value adjustments will not affect the strong free cash flow generation in 2023, and the capital position of SIX remains strong. The company’s projected equity ratio at year-end after value adjustments will remain above 60%, with a net leverage ratio of approximately 1.5x EBITDA.
For the financial year 2023, the SIX Board of Directors expects to propose a slightly higher dividend than the CHF 5.10 per share paid out in 2023 for the year 2022.
SIX will announce its 2023 full-year results on 13 March 2024.
