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)
- Dividend proposal of an ordinary dividend of CHF 5.30 per share (2023: CHF 5.20)
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.
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).
Business Unit Performance 2024
Highlights for the year include the IPOs of Puig and Galderma, the migration of international securities business to the US T+1 settlement cycle, the rollout of a new IT platform helping clients comply with EMIR REFIT, the launch of new global equity and crypto indices, and the introduction of instant payments in Switzerland.
In the Exchanges business unit, SIX generated operating income of CHF 338.1 million. This is 2.6% more than in the previous year at constant exchange rates, or 1.7% more at reported rates (2023: CHF 332.6 million). Since June 2024, the Exchanges business unit has assumed a new organizational structure, adopting an asset-class-based approach. The new setup features specialized teams, irrespective of location and supported by shared functions.
Securities Services benefited from significant growth in international custody. The business unit recorded operating income of CHF 541.1 million, up 1.8% at constant exchange rates, or 1.3% at reported rates, compared to 2023 (CHF 533.9 million).
For Financial Information, the growth trajectory that started in 2021 continued to show positive results. The unit closed the year with CHF 425.7 million in operating income, a gain of 5.6% at constant exchange rates, or 4.6% at reported rates (2023: CHF 406.9 million).
Banking Services achieved strong customer and revenue growth in debit card services, mobile payments, and eBill. Swiss Euro Clearing Bank GmbH (SECB) improved its net interest result compared to 2023, largely due to lower euro benchmark rates. Operating income for the business unit was CHF 251.1 million, outperforming the previous year’s figure by 20.6% at constant exchange rates, or 20.9% at reported rates (2023: CHF 207.8 million).
Raising Commercial Ambition
SIX boasts an attractive business mix with a diversified portfolio spanning trading, post trade, financial information, and banking services. Despite the increasingly competitive landscape in which SIX operates, this approach has proven resilient and effective, as highlighted by the Group’s 2024 financial performance. With BME as the cornerstone of the Spanish capital market infrastructure, SIX also maintains a strong presence in the European Union.
SIX intends to better leverage this strong 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 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.
2025 Outlook
SIX will continue to offer innovative, reliable, and cost-efficient 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 strategic 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 both traditional primary exchange and MTF businesses, further strengthening the Group’s ability to serve its clients in Switzerland, Spain, and across Europe.
The Annual Report 2024, the Sustainability Report 2024, and the Presentation of the Financial Results can be downloaded at six-group.com/annual-report.