Swissquote cuts full-year outlook as crypto income plunges
Swissquote Group cut its full-year revenue and profit forecasts after a significant plunge in crypto income in the first half of the year, citing a material decline in activity tied to its cryptocurrency business that reduced expected revenue for the period, reflecting a pronounced contraction in trading volumes and fee generation tied to digital-asset services across the bank’s platform.
Net crypto income fell 66.2% to 14.6 million Swiss francs, and crypto trading volume dropped 63.5% to 2.58 billion Swiss francs in the same six-month period within that same timeframe overall.
Swissquote booked a 5.3 million-franc loss on the crypto inventory it holds to support trading on its SQX exchange. The company revised its net revenue outlook for the full year, cutting it by around 30 million francs to 730 million francs. Shares plunged 14% after the announcement. The disclosures accompanied Swissquote Group’s downgrade of its full-year revenue and profit guidance.
Market movements in the six months ended June 30 included Bitcoin falling 33%, Ethereum dropping 47%, and the CoinDesk 20 Index losing 40%. Swissquote wrote, “The revised guidance now reflects a weaker-than-expected crypto environment.” The company presented these market metrics alongside the reported inventory loss and the reduced revenue outlook. Investors reacted to the combined financial metrics and market movements with the share price decline. These market figures were disclosed alongside Swissquote’s financial results.
Client assets rose nearly 20% to 96.3 billion Swiss francs. The company reported this increase alongside disclosures that included sharp declines in its crypto income and trading volumes. The rise in client assets was reported as part of Swissquote Group’s first-half results.
Swissquote wrote, “The revised guidance now reflects a weaker-than-expected crypto environment.” The comment was included in the company’s public disclosures on its first-half results. The statement accompanied revisions announced to the firm’s full-year revenue and profit guidance.
These figures and the company’s statement were presented in Swissquote’s reported financial results. The information above is based on the metrics and wording provided in the company’s disclosures.
Swissquote cut its full-year revenue and profit forecasts amid a significantly weakened crypto environment, with the firm’s first-half disclosures recording steep declines in crypto income, reduced trading volumes and sharp falls in major cryptocurrency prices that were reflected in the company’s reported results. The firm presented its updated guidance in a cautious tone and the announcement produced a pronounced market reaction to the company’s financial update, reinforcing the context for the revised outlook amid the weakened crypto market.
