Share value decline at Worldline to have an effect on SIX earnings in 2023

In a difficult market atmosphere dominated by inflation and rising rates of interest, SIX continues its constructive operational development and expects a income progress of roughly 3% at fixed currencies for the complete 12 months 2023. Profitability at EBITDA stage is anticipated to extend by 6%-7% at fixed currencies, underlining the profitable technique and diversified enterprise mannequin of SIX.

Nevertheless, because of the share value decline at Worldline, SIX will acknowledge a non-cash worth adjustment of roughly CHF 860 million within the fourth quarter of 2023 on its 10.5% stake within the European funds supplier.

The participation in Worldline is a strategic funding for SIX, with Worldline being a key associate in its funds providing for Swiss banks particularly. In 2018, the sale of SIX Cost Companies to Worldline resulted in a constructive one-off impact of CHF 2.7bn for SIX while considerably strengthening its fairness capital.

Moreover, because of elevated low cost charges in addition to decrease buying and selling volumes in Spain and in Europe, SIX will acknowledge a non-cash cost within the fourth quarter 2023 of roughly CHF 340 million referring to an impairment of goodwill attributed to the BME group. BME contributes considerably to the operational and monetary success of SIX and stays crucial to the expansion technique and aggressive place of the group.

On account of the above components, SIX expects to report a destructive group internet outcome within the vary of CHF 1.0-1.1bn for 2023. The worth changes won’t have an effect on the robust free money movement technology in 2023, and the capital place of SIX stays robust. The corporate’s projected fairness ratio at year-end after worth changes will stay above 60%, with a internet leverage ratio of roughly 1.5x EBITDA.

For the monetary 12 months 2023, the SIX Board of Administrators expects to suggest a barely increased dividend than the CHF 5.10 per share paid out in 2023 for the 12 months 2022.

SIX will announce its 2023 full-year outcomes on 13 March 2024.