Swiss exchange operator SIX posts $1.15 bln loss on impairments

Allfunds

13/03/2024 07:26

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      Booked two previously flagged non-cash impairments
    

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      Said it would increase its dividend by 2% 
    

  
       ZURICH, March 13 (Reuters) - Swiss stock exchange
operator SIX reported a loss of 1.01 billion Swiss francs ($1.15
billion) in 2023, after it booked two previously flagged
non-cash impairments.
    The group had said in December it would book a value
adjustment of around 860 million Swiss francs on its 10.5% stake
in Worldline reflecting a decline in the payments provider's
share price.
    It had also flagged a non-cash charge of about 340 million
francs in relation to an impairment of goodwill attributed to
the BME Group stemming from increased discount rates and lower
trading volumes.
    Without these, SIX would have reported a profit of 181
million francs, it said, versus 185 million a year earlier.
    "Unfortunately, the strong operating result was affected by
two major non-cash value adjustments," CEO Jos Dijsselhof said
in a statement.
    "We are confident about our future growth, consistent
financial performance, and ability to generate strong returns
for our shareholders."
    SIX said it would increase its dividend by 2% to 5.20 Swiss
francs per share for the around 120 financial institutions,
including UBS  UBSG.S  which are its shareholders, for a payout
of 101.5 million francs. 
    It also suggested an openness to doing M&A and said bolt-on
acquisitions as well as partnering opportunities would further
strengthen its portfolio.
    "We are constantly reviewing M&A opportunities in all four
of our business areas," CFO Daniel Schmucki told Reuters. 
    "Globally, opportunities are more obvious in the Financial
Information division than in the stock exchange business."
    In January Reuters reported that SIX was mulling a bid for
fund distribution company Allfunds  ALLFG.AS  citing two sources
with knowledge of the situation. 
    ($1 = 0.8781 Swiss francs)

 (Reporting by Noele Illien; editing by Jason Neely)
 ((Noele.Illien@thomsonreuters.com; +41 41 528 39 73;))