The SIX Swiss Exchange, , has broken a new record. For the first time in the company’s history, it has exceeded CHF 1 billion ($102.6 billion) in operating income. The results were announced today in its interim report for the first half of 2018.
Contributing to the operating income is the exchange’s Cards business unit which is the result of the strategic partnership of Worldline, a French provider of e-payment services. According to the statement, the operating income for the business unit increased by 8% year-on-year, reaching CHF 1,000.7 million.
is currently working towards its strategic and operating realignment (SIX2020). As part of that, towards the end of last year, the exchange announced it was removing its merchant acceptance, acquiring and international card processing from its core business.
Earlier this year in May, it announced that it would be transferring this service to Worldline. By the end of the fourth quarter of this year, the SIX Swiss Exchange is expected to own a 27% stake in the firm. This means the exchange will continue to benefit from the profits the unit creates.
Restructuring hurts net profit and EBIT for SIX Swiss Exchange
However, the restructuring process did hamper net profit for the group in the first half of this year, which was below last years figure as expected, coming in at CHF 100.7 million. The rise in operating income partially offset the rise in costs due to the alignment, however, it did not cover all of the losses.
As a result, earnings before interest and tax (EBIT) fell by 15% year-on-year in the first half of 2018 to reach CHF 139.0 million. However, this figure was not as disappointing as it may seem as the fall was in line with expectations.
In the wake of the restructuring, during H1 2018, grouped together its securities services. This means it will offer all services for trading, settlement and custody of securities from one source.
The exchange also combined its services for the Swiss payment system which is interbank payments, connecting to the SEPA region, processing card-based and mobile payments for banks, operating ATMs, and e-bills.
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