The Swiss stock exchange operator had a challenging first half with profit down due to its investment program. But the EU may have come to its rescue with the end of the equivalence status.
The profit of SIX declined to 32.4 million Swiss francs ($33 million) in the first six months of 2019 from 74.8 million a year ago, the company said in a statement on Wednesday. The reason for the decline was the deal it reached with Worldline, without which the drop would have amounted to only 1 percent.
Still, operating profit was also down by 30 percent and reached 99.9 million francs, as a price cut and numerous investment projects took its toll.
Investment Program
SIX is currently developing a digital exchange named SDX. It will enable the trading of digital assets, including tokenized equities. The company, which is one of the major infrastructure providers of the Swiss financial market, also invested in banking services, such as the processing of electronic bills.
The investments are key for future growth, the company said: «SIX continues to put its focus even more on delivering services for the banks and to drive forward innovative business ideas that strengthens the competitiveness of the Swiss financial center,» it said in the statement. «Various investments in innovation and new products are now in a late stage of development and will be made available to the clients in the second half of the year.»
EU Decision a Bonus?
Another factor for future growth may be the decision by the EU to cancel the equivalence status for the Swiss stock exchange. SIX seems not to have been harmed by this decision so far and may instead have seen its turnover grow as a consequence, which would also boost profit.
