SIX marks steep growth in operating income in 2020
SIX today posted its financial report for 2020, with income bolstered by high level of trading activity and the recently acquired Bolsas y Mercados Españoles (BME).
The substantial increase in operating income compared to the previous year (+21.8%) to CHF 1,375.9 million is attributable to two main drivers.
First, 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 closed in June (CHF 196.6 million). Also, the high level of trading activity on the exchanges boosted the contribution from the Securities & Exchanges business unit (+11.7%), supported by the fact that SIX enjoyed a market share of almost 100% in the trading of Swiss equities, with EU equivalence remaining suspended.
In addition to the strong operating performance, the non-operating net financial result of SIX was also significantly up on the previous year at CHF 273,8 million. This was attributed to two main factors. Firstly through realized valuation gains from the sale of 10.1 million Worldline shares (5.5% of Worldline’s share capital), which SIX disposed of in April during an accelerated book building procedure. Secondly, Worldline acquired payment services provider Ingenico in October, which was partly settled with newly issued shares and likewise had a positive effect on the SIX net financial result because of the higher valuation of the Worldline shares remaining in the possession of SIX.
Worldline remains the largest equity interest held by SIX. However, due to the transactions effected on both sides, the equity share of SIX in Worldline was reduced to 10.7%, from 21.8% in 2019. With an equity interest of around 10.7% and a proportion of the voting rights of 21.1%, SIX nevertheless remains Worldline’s largest shareholder and, through this interest, also shares in the growth of digital payments. Worldline shares rose from EUR 63.15 to EUR 79.10 (+25.3%) in the year under review.
In terms of overall profitability, the high net financial result increased Earnings before interest and tax (EBIT) and the Group net profit of SIX in the year under review. The result was a significant increase in net income compared to the previous year: EBIT amounted to CHF 516.6 million, while Group net profit totaled CHF 439.6 million.
For 2020, a proposal will be made at the Annual General Meeting to distribute an ordinary dividend of CHF 4.30 per share (prior year: CHF 3.90).