Swissquote cuts annual outlook on weak crypto trading; shares drop 14%

Swissquote (SQN) cut its full-year net revenue and profit outlook after weak cryptocurrency trading results in the first half, and the stock fell about 14% after the earnings release. According to Swissquote’s earnings report, net revenue from its crypto segment fell 66.2% from a year earlier to 14.6 million Swiss francs ($18.0 million) in the first half, while crypto trading volume dropped 63.5% to 2.58 billion Swiss francs. The company lowered its full-year net revenue forecast by about 30 million francs to 730 million Swiss francs and said the revised outlook reflects a weaker-than-expected crypto market environment. Swissquote also booked an additional 5.3 million-franc loss from marking down crypto inventory held to support its in-house exchange, SQX. Overall revenue was flat from a year earlier on growth in other business segments, while client assets rose about 20% to 96.3 billion francs.