SIX today reported its financial results for the year to end-December 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.
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.
Total operating expenses grew 4.6% at constant exchange rates (4.1% at reported rates). The main drivers were higher sales-related costs in the Financial Information and Banking Services business units and higher personnel expenses. EBITDA increased 4.8% at constant exchange rates to CHF 443.7 million (3.6% at reported rates).
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. The adjusted net profit rose 12.3% to CHF 204.4 million, from CHF 181.9 million in 2023.
SIX generated strong free cash flow of CHF 315.9 million versus CHF 331.3 million in 2023. The capital position of SIX remains solid, with a net debt to adjusted EBITDA ratio of 1.0 (versus 1.5 in 2023) and an adjusted equity ratio of 63.9% (2023: 64%).
In accordance with the Group’s dividend policy, the Board of Directors proposes an ordinary dividend of CHF 5.30 per share for annual general meeting approval. This corresponds to a 1.9% increase on the previous year (2023: CHF 5.20).
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 successfully 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 now 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.
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.
