The Card-based Payment Systems business area – comprising Telekurs Multipay, Telekurs Card Solutions, Telekurs Multi Solutions and Telekurs Card Solutions (Deutschland) – generated operating revenues of CHF 386.5 million, a 6.4% increase on the figure for 2005. While this growth is partly the result of the healthy economic environment prevailing in Switzerland, notably in the retail and tourism sectors, this business area’s success in 2006 is also due to the high level of acceptance enjoyed by Telekurs products. This is particularly true of the new davinci payment terminals, which utilize the most recent chip-based technology. Dynamic Currency Conversion (DCC), the application providing automatic currency conversion at the point of sale, also met with resounding retail approval.

The Electronic Payment Systems business area was able to make significant cuts in the prices charged to customers. Prices for the new LSV⁺ service, which provides direct debit services with right of objection”, were nearly halved compared to those for the old direct debit system. Furthermore, in July 2006, prices in the SIC system were reduced by some 15% on average. Because of these significant price cuts and the fact that the previous DTA service was replaced with e-banking solutions the previous year, 2006 operating revenues reached CHF 31.7 million, 15.2% less than in 2005. In volume terms, this business area achieved record results. During 2006, the SIC interbank payments system processed some 317 million transactions, representing a volume increase of 23.7% versus 2005. The euroSIC system processed 3.1 million transactions, a 10.7% increase on the year. Telekurs PayNet succeeded in signing up additional banks and invoice issuers for its electronic payments services, as well as further strengthening its position in the B2B and B2C markets.

International Financial Information Services, the Telekurs Group’s third business area, generated operating revenues of CHF 243.1 million, an increase of 5.8% on the year. Most of these additional revenues were earned outside Switzerland. Telekurs Financial sees the UK, Ireland, France, the US, Japan and Singapore as the markets offering the greatest growth potential for market and financial information services. In Switzerland, Telekurs Financial was once again able to demonstrate its competence in compliance matters – this time by preparing the data which financial institutions will need in order to comply with the regulatory requirements of the EU directive on markets in financial instruments (MiFID).

The Telekurs Group strengthens its economic efficiency

During 2006, Telekurs Services, which is primarily an internal service provider, took over the operations of the SIS computer centers, integrating them and their workforce of some 70 employees into Telekurs. 2006 also saw the successful implementation of the agreement with a major financial services company for reciprocal use of computer center floor space, the contract for which had already been negotiated in 2005. Innovative measures of this kind to make optimal use of high-cost computer center facilities and IT resources, as well as other decisively implemented measures to boost efficiency, have substantially increased the Telekurs Group’s economic efficiency while maintaining its high levels of data systems security.

Telekurs Group key figures 2006

Consolidated in CHF millions	2006
Operating revenue	697.8
Cash flow form business activities	77.6
Operating income before interest and taxes	64.2
Annual net income	77.7
Balance sheet total on 31 December	982.3
Shareholders' equity on 31 December	381
Number of employees as of 31 December	1,722