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1st quarter results 2017


3 May 2017, 7.15 a.m. (9 a.m. teleconference)



1st quarter result: interim report January to March 2017

In the first quarter of 2017, Swisscom’s net revenue fell by CHF 54 million or 1.9% to CHF 2,831 million. Revenue in the Swiss core business decreased by CHF 59 million or 2.6% mainly as a result of sustained competitive pressure. Revenue from telecommunications services fell by CHF 37 million or 2.2%, with half of this reduction due to the declining subscriber base in the fixed-line telephony business and the other half to price cuts, including roaming fees, and a drop-off in the Enterprise Customers segment.

As a result of customer growth, Italian subsidiary Fastweb’s revenue was EUR 13 million or 3.0% higher at EUR 453 million. The number of subscribers to Fastweb’s broadband business grew by 159,000 or 7.1% year-on-year to 2.4 million.

Swisscom’s operating income before depreciation and amortisation (EBITDA) decreased by CHF 8 million or 0.7% to CHF 1,073 million. EBITDA in the Swiss core business fell by CHF 26 million or 2.7%, with a large proportion of the drop in revenue offset by active cost management. At Fastweb, EBITDA rose by EUR 14 million or 10.7%, which is the result of higher revenue and improved regulatory conditions.

Swisscom’s capital expenditure fell by CHF 67 million or 11.2% to CHF 529 million. In Switzerland, it declined primarily as a result of delayed investments at Swisscom Switzerland by CHF 63 million or 14.8% to CHF 362 million. Nevertheless, progress continues to be made on expanding the broadband network. At the end of March 2017, over 2.6 million lines in Switzerland featured the latest fibre-optic technology. In total, Swisscom has connected over 3.6 million homes and offices with ultra-fast broadband (with speeds of more than 50 Mbps). Capital expenditure at Fastweb remained at a similarly high level to the previous year, totalling EUR 155 million.


Results


Key figures 1 January to 31 March 2017


 

1.1.-31.3.2016

1.1.-31.3.2017

Change

Net revenue (in CHF million)

2,885

2’831

-1.9%

Operating income before depreciation and amortisation (EBITDA) (in CHF million)

1,081

1’073

-0,7%

 

Operating income (EBIT) (in CHF million)

535

550

2,8%

Net income (in CHF million)

364

373

2,5%

Swisscom TV access lines in Switzerland (in thousands as at 31 March)

1’323

1’438

8,7%

Mobile access lines in Switzerland (in thousands as at 31 March)

6,615

6’601

-0,2%

Revenue from bundled contracts (in CHF million)

603

676

12,1%

Fastweb broadband access lines (in thousands as at 31 March)

2,241

2’400

7,1%

Capital expenditure (in CHF million)

596

529

-11,2%

Of which capital expenditure in Switzerland (in CHF million)

425

362

-14,8%

Group headcount (FTEs as at 31 March)

21,645

21’079

-2,6%

Of which in Switzerland (FTEs as at 31 March)

18,960

18’280

-3,6%



Press release 3 May 2017, 7:15 a.m


Stable results in the first quarter 

CEO Urs Schaeppi describes business performance in the first three months of 2017 in the following terms: “We earned a solid result in the first quarter, and we did this under continuing heavy pressure and in a difficult environment. The trends in 2016 are continuing in the first quarter of 2017, as expected. Core business, especially fixed-line telephony, fell significantly. The intensive competition, strongly driven by promotions, and high level of market saturation are challenging our revenue and profitability. Welcome factors are the continuing growth in TV and bundled products and the major advances in expanding our ultra-fast broadband network. I am also pleased by the market success of Fastweb in mobile telephony and the broadband area. For the rest of the year I am expecting continuing heavy pressure on prices. However, I am also expecting a boost in sales, thanks to inOne, our new bundled product range. Our financial forecast for 2017 is unchanged – we are on track.”