SIX Group, the operator of the SIX Swiss Exchange, today announced its financial results for last year. The Group reported a substantial jump in operating income as the total operating income for 2020 reached CHF 1,375.9 million, a 21.8% jump compared to 2019.
According to the official announcement, earnings before interest, tax, depreciation and amortization (EBITDA) reached CHF 368.9 million, which is up 72.8% compared to 2019. The total net profit of the Group reached CHF 439.6 million.
SIX Group also highlighted the contribution from the newly acquired Bolsas y Mercados Espanoles (BME). The Group added that earnings before interest and tax (EBIT) and profit received an additional boost from strong financial numbers.
“Following the successful completion of the acquisition of BME, SIX benefited from the additional financial contribution from the Spanish financial market infrastructure once the transaction had closed in June (CHF 196.6 million). The high level of trading activity on the exchanges boosted the contribution from the Securities & Exchanges business unit, supported by the fact that SIX enjoyed a market share of almost 100% in the trading of Swiss equities, with EU equivalence remaining suspended,” the Group mentioned in the announcement.
Outlook
SIX outlined the exceptional performance of the Securities and Exchange Business in 2020. At CHF 565.5 million, the unit accounted for the largest share of operating income at SIX in 2020. Swiss Stock Exchange reported a surge in the number of transactions and trading turnover. Going forward, SIX mentioned that it is focusing on organic growth along with possible acquisitions in all areas of business.
“While organic growth is the focus for SIX, partnerships and acquisitions offer the opportunity to accelerate or complement the growth strategy. Financial market infrastructures entail high fixed costs. Additional volumes enable significant economies of scale to be achieved quickly, which increases profitability and thus enhances the capacity for innovation. This means that the competitiveness of the infrastructure is augmented,” the official press release states.
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