Swissquote cuts full-year guidance as 1H crypto income plunges, shares slide
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Swissquote Group, a Swiss banking and fintech firm, lowered its full-year revenue and profit forecasts after its net crypto income fell 66.2% in the first half of the year. Crypto trading volumes dropped 63.5% to 2.58 billion Swiss francs ($3.2 billion). Following the announcement, Swissquote's shares fell 14%.
Why it matters
The decline in Swissquote's crypto income and trading volume signals a weaker crypto market environment than previously expected, affecting the firm's financial outlook. The share price drop reflects investor reaction to this diminished crypto performance, highlighting the impact of cryptocurrency market fluctuations on fintech firms.
Key context
Swissquote attributed the revenue shortfall to widespread price declines across most cryptocurrencies in the first half of the year. Bitcoin fell 33%, Ether declined 47%, and the CoinDesk 20 Index lost 40% over the six months ending June 30. The company also recorded a 5.3 million-franc loss on its crypto inventory that supports trading on its SQX exchange. Despite the crypto downturn, client assets increased nearly 20% to 96.3 billion francs, helping keep overall revenue nearly flat.
Key numbers and entities
Swissquote Group (SQN) First-half net crypto income: 14.6 million Swiss francs ($18 million), down 66.2% Crypto trading volume: 2.58 billion Swiss francs, down 63.5% Revised full-year net revenue outlook: 730 million Swiss francs, reduced by approximately 30 million francs Bitcoin price drop in H1: 33% Ether price drop in H1: 47% CoinDesk 20 Index drop in H1: 40% Crypto inventory loss: 5.3 million Swiss francs Client assets rise: nearly 20% to 96.3 billion Swiss francs Swissquote share price fell by 14% after the announcement
What remains unclear
The source does not flag open questions or provide details on how Swissquote plans to respond to the crypto downturn beyond revising its guidance.