Key facts
- Swissquote Group cut its full-year revenue and profit forecasts.
- First-half net crypto income fell 66.2% to 14.6 million Swiss francs.
- Crypto trading volume dropped 63.5% to 2.58 billion Swiss francs.
- The company recorded a 5.3 million-franc loss on its crypto inventory.
- Client assets increased by nearly 20% to 96.3 billion francs.
Swissquote Group has lowered its full-year revenue and profit expectations due to a significant decline in its cryptocurrency income during the first half of the year. The company reported a 66.2% drop in net crypto income, which fell to 14.6 million Swiss francs ($18 million).
Crypto trading volumes at the Gland, Switzerland-based fintech decreased by 63.5% to 2.58 billion Swiss francs ($3.2 billion). Swissquote attributed this downturn to price declines across major cryptocurrencies, including Bitcoin, which fell 33%, and Ether, which dropped 47% in the six months ending June 30. The CoinDesk 20 Index also lost 40% during the period.
The company revised its net revenue outlook downward by approximately 30 million francs to 730 million francs, stating that the current guidance reflects a weaker-than-expected crypto environment. Additionally, Swissquote recorded a 5.3 million-franc loss on its crypto inventory held to support trading on its SQX exchange.
Despite the challenges in its crypto division, overall revenue remained broadly flat, and profit decline was limited due to growth in other areas. Client assets saw a nearly 20% increase, reaching 96.3 billion francs. Following the announcement, Swissquote's shares experienced a 14% decline.