Asset sale boosts Six Group profits

Mediocre growth in net profits at Six Group disguised by sale of assets.

Net profits at Six Group nudged up less than 1% in 2015, compared to the previous full year period, after gains bagged from the sale of assets were stripped out.

Group net profit for the 12 months ending December 2015 stood at CHF 713.7 million, compared to CHF 247.2 million in 2014.

However, the Swiss stock exchange operator benefitted from a net gain of CHF 464.3 million from the sale of interests in STOXX and Indexium. With this figure stripped out, net group profits were actually up by a negligible margin.

Urs Rüegsegger, group chief executive officer at Six, said: “In the past few years we have aligned our strategy consistently to a more diversified business model, broadening our revenue streams and making us less dependent on individual business areas and markets. Our hard work is paying off.”

In the statement to market, Six highlighted a “shaky start” to 2016, owing to political and economic challenges and market volatility, all of which SIX expect will remain for the foreseeable future.

It continued: “The financial sector as a whole will have to contend with a raft of complex and in some cases costly changes to the regulatory framework. These – combined with the rapid pace of technological development – harbour further potential for growth and differentiation. 

“However, they will also pose consistently significant challenges, exacerbated by the persistent pressure on margins. SIX has honed its strategy accordingly and will press firmly ahead with its systematic innovation management in 2016.”

When asked to clarify the impact of the sale of assets, a spokesperson for Six Group, told The Trade: “After we sold the shares of the joint ventures STOXX and Indexium we adjusted their contributions also to the earnings of Swiss Exchange (2014 and 2015).”

In a statement to the media, the company said group net profits including the contribution of STOXX and Indexium stood at CHF 713.7 million in the full year of 2015, up from CHF 247.2 million in 2014.