Swissquote cuts full-year guidance as 1H crypto income plunges, shares slide
The online bank cut full-year revenue and profit forecasts after first-half crypto trading levels slumped.
Swiss banking firm Swissquote Group (SQN) has lowered its full-year revenue and profit forecasts, following a sharp decline in first-half net crypto income. The fintech, based in Gland, Switzerland, reported a 66.2% drop in crypto trading income to 14.6 million Swiss francs ($18 million) in the half-year. The company's crypto trading volume fell by 63.5% to 2.58 billion Swiss francs, according to its results presentation.
Swissquote revised its net revenue outlook for the year down by approximately 30 million francs to 730 million francs. The company attributed the decline to price drops in most cryptocurrencies, with Bitcoin falling 33% and Ether dropping 47% during the six months to June 30. Swissquote also recorded a 5.3 million-franc loss on its crypto inventory supporting trading on its SQX exchange.
While growth elsewhere helped maintain overall revenue flat, limiting the profit decline. Client assets increased nearly 20% to 96.3 billion francs. The company's shares dropped by 14% following the announcement.
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