Swiss stock exchange SIX Group reported a net loss after booking impairments of 1.2 billion Swiss francs (S$1.82 billion) related to its Spanish unit and its stake in Worldline.

The group reported a loss of one billion Swiss francs (S$1.52 billion) for 2023, swinging from a profit the previous year, according to a statement on March 13.

It said both Worldline and Bolsas y Mercados Espanoles (BME), the operator of the Spanish stock exchanges, “continue to hold significant strategic importance for SIX”. 

The Swiss bourse is Worldine’s largest shareholder, with a 10.5 per cent stake, according to data by Bloomberg.

In February, Worldline posted a loss of €817 million (S$1.19 billion) for 2023 after recording a €1.15 billion impairment charge to reflect the change in the valuation of its merchant business.

Back in October, shares in the French payments company plunged after it lowered its outlook and scrapped its revenue growth target.

In an interview with Bloomberg earlier in 2024, SIX chief executive Jos Dijsselhof said he would be willing to sell the stake in Worldline if needed to finance a potential acquisition. Still, the bourse refers to its stake in Worldline as a “strategic investment”.

Low trading volumes

SIX recorded a decade-low in both trading volumes and volatilities in 2023, as was the trend throughout Europe.

The Spanish bourse’s sluggish volumes have been an issue for SIX ever since the acquisition of BME in 2020.

BME gives SIX a foothold inside the European Union, as Switzerland still has to resolve long-running tensions with the bloc.

Still, Mr Dijsselhof added that the group is well positioned to achieve 2024 targets.

He told a press conference on March 13 that the burgeoning initial public offering (IPO) pipeline, which “is one of the better ones we’ve seen in the last couple of years”, should also help to improve trading volumes and volatility.

He welcomed the recently announced Galderma listing: “I am bullish on the IPO pipeline and also confident this will have a positive impact on the trading volumes we’ve seen slipping away.”

SIX proposed a dividend of 5.20 swiss francs per share for 2023, an increase of 2 per cent compared with the previous year.

Beyond the large impairments, Mr Dijsselhof said the company delivered a “strong operating result”. BLOOMBERG