In a challenging market environment dominated by inflation and rising interest rates, SIX continues its positive operating trend and expects revenue growth of approximately 3% in constant currencies for the full year 2023. EBITDA profitability is expected to increase by 6%- 7% in constant currencies, underscoring SIX’s successful strategy and diversified business model.
However, due to the decline in the share price in Worldline, SIX will recognize a non-cash value adjustment of approximately CHF 860 million in the fourth quarter of 2023 on its 10.5% stake in the European payment provider.
The participation in Worldline is a strategic investment for SIX, with Worldline being a key partner in its payments offering specifically for Swiss banks. In 2018, the sale of SIX Payment Services to Worldline resulted in a positive one-off effect of CHF 2.7 billion for SIX, while significantly strengthening its equity capital.
In addition, as a result of increased discount rates as well as lower trading volumes in Spain and Europe, SIX will recognize a non-cash charge in the fourth quarter of 2023 of approximately CHF 340 million related to goodwill impairment attributable to the BME group. BME contributes significantly to SIX’s operational and financial success and remains critical to the group’s growth strategy and competitive position.
As a result of the above factors, SIX expects to report a negative group net result in the range of CHF 1.0-1.1 billion for 2023. The value adjustments will not affect the strong free cash flow generation in 2023 and the capital position of SIX remains strong. The company’s projected year-end equity ratio after value adjustments will remain above 60%, with a net leverage ratio of approximately 1.5x EBITDA.
For the financial year 2023, the SIX Board of Directors expects to propose a slightly higher dividend than the CHF 5.10 per share paid in 2023 for the year 2022.
SIX will announce full year 2023 results on March 13, 2024.