6.2 Other Operating Expense
The Group’s statement of profit or loss is prepared using the nature of expense method. Under this approach, marketing and IT expenses only include third-party costs, while personnel-related expenses are disclosed separately under personnel expenses. Further details regarding other operating expense are provided below.
for the year ended 31 December | in CHF | 2025 | 2024 | ||
|---|---|---|---|---|
Cost of service | (10,421) | (4,759) | ||
Bad debt allowance | (2,980) | (2,852) | ||
Advisory service expense | (9,397) | (8,720) | ||
Facility expense | (1,031) | (1,212) | ||
Office & admin expense | (3,941) | (2,821) | ||
Travel expense | (1,486) | (1,618) | ||
Vehicle expense | (108) | (185) | ||
Other expense | (370) | (236) | ||
Total other operating expense | (29,734) | (22,403) |
As of 2025, following revised contractual terms with its parcel provider, the Group is considered the principal for shipping label sales via the Ricardo platform as part of the business unit General Marketplaces. Accordingly, these revenues and the related cost of service are recognised on a gross basis, resulting in higher cost of service in 2025. In the prior year, the Group acted as an agent and recognised the revenues on a net basis.
The increase in advisory service expense is primarily attributable to higher audit and legal fees in connection with the IPO and the establishment of the Company during the current year.
The increase in office & admin expense is primarily related to higher Board of Directors fees, and higher PSP expense for the Board of Directors, mainly driven by the fair value adjustment in 2025 (refer to Note 3.8).