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3rd Quarter Result 2016


3rd Quarter Result 2016

3 November 2016, 7:15 a.m. (9 a.m. conference call)



3rd Quarter Result: Interim Report January to September 2016

In the first nine months of 2016, Swisscom posted a slight decline in net revenue of CHF 8 million or 0.1% to CHF 8,643 million. Revenue in the Swiss core business decreased by CHF 46 million or 0.7% to CHF 6,973 million. While revenue from telecommunications services fell by CHF 99 million or 1.9% as a result of strong price pressure and increasing market saturation, revenue in the solutions business with corporate customers increased by CHF 38 million or 4.9%. As a result of customer growth, the revenue of the Italian subsidiary, Fastweb, was EUR 32 million or 2.5% higher at EUR 1,318 million.

Swisscom’s operating income before depreciation and amortisation (EBITDA) increased by CHF 208 million or 6.7% to CHF 3,307 million due to non-recurring items. In the previous year, a provision was recognised in the Competition Commission proceedings regarding broadband services, reducing EBITDA by CHF 186 million. In the second quarter of 2016, Fastweb received compensation in the amount of EUR 55 million as a result of an out-of-court settlement following a legal dispute.

Swisscom’s capital expenditure rose year-on-year by CHF 31 million or 1.8% to CHF 1,768 million; capital expenditure in Switzerland remained high at CHF 1,292 million (–0.8%). At the end of September 2016, around 2.4 million lines in Switzerland featured the latest fibre-optic technology. At Fastweb, capital expenditure increased by EUR 27 million or 6.7% to EUR 430 million due to the continuing expansion of the broadband network.


Video



Results

Key figures 1 January to 30 September 2016


 

1.1. – 30.9.2015

1.1. – 30.9.2016

Change

Net revenue (in CHF million)

8’651

8’643

-0.1%

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

3’099

3’307

6,7%

Operating income EBIT (in CHF million)

1’554

1’691

8,8%

Net income (in CHF million)

1’058

1’197

13,1%

Swisscom TV access lines in Switzerland (as at 30 September in thousands)

1’275

1’440

12,9%

Mobile lines in Switzerland (as at 30 September in thousands)

6’618

6’613

-0,1%

Revenue from bundled contracts (in CHF million)

1’646

1’846

12,2%

Broadband lines Fastweb (as at 30 September in thousands)

2’172

2’295

5,7%

Capital expenditure (in CHF million)

1’737

1’768

1,8%

Of which capital expenditure Switzerland (in CHF million)

1’302

1’292

-0,8%

Headcount Group (FTEs as at 30 September)

21’603

21’292

-1,4%

Of which Switzerland (FTEs as at 30 September)

18’936

18’551

-2,0%



Press release 3 November 2016, 7:15 a.m.

Swisscom delivers a solid performance

CEO Urs Schaeppi comments on the third quarter results for 2016 as follows: “We have again achieved solid results in the third quarter despite fierce competition. Strong pressure on pricing and decreasing roaming prices are good news for our customers but more challenging for our revenue and profitability. On a more positive note, there is increased growth in bundled products and TV access lines, our solutions business for corporate customers and Fastweb. Thanks to strong market performance and active cost management we are on target.”