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1st quarter results 2018


2 May 2018, 7.15 a.m. (9 a.m. teleconference)



1st quarter result: interim report January to March 2018

Swisscom’s financial performance for the first quarter is in line with expectations. Revenue increased by 1.9% or CHF 54 million to CHF 2,885 million however operating results before depreciation and amortization (EBITDA) fell by 1.4% or CHF 15 million to CHF 1,058 million. Net income increased by 1.6% to CHF 379 million. The financial outlook for the 2018 fiscal year remains unchanged.

The growth in revenue of CHF 54 million derives from a decrease of CHF 40 million in the Swiss core business and a growth of CHF 90 million in the Italian subsidiary Fastweb. Revenue in the Swiss core business dropped due to the continued decline in fixed network telephony, lower roaming income and higher discounts. The increase in Fastweb revenue was due to foreign currency translation adjustments (CHF 47 million) as a result of the high EUR exchange rate as well as the growth in local currency (CHF 43 million or EUR 39 million) in all segments, mainly driven by customer growth. In the broadband business, the number of Fastweb subscribers increased by 3.5% to 2.5 million over the course of the year, and the number of mobile subscribers increased by 55% to 1.2 million.

EBITDA development compared with the previous year is influenced by new standards for reporting revenue from customer contracts (IFRS 15). On a like-for-like basis, the Swiss core business saw a decrease of 2.9%. For Fastweb, local currency EBITDA increased on a like-for-like basis due to the 4.8% growth in revenue.

Swisscom's investments decreased by 5.3% to CHF 501 million. In Switzerland the decrease was largely due to delayed investments of 13.0% to CHF 315 million. For Fastweb, investments remain at a high level of EUR 159 million (+2.6%).


Results


Key figures 1 January to 31 March 2018


  1.1.-31.3.2017 1.1.-31.3.2018 Change
Net revenue (in CHF million) 2,831 2,885 1.90%
Operating income before depreciation and amortisation, EBITDA (in CHF million) 1,073 1,058 -1.40%
Operating income EBIT (in CHF million) 550 518 -5.80%
Net income (in CHF million) 373 379 1.60%
Swisscom TV access lines in Switzerland (in thousands as of 31.03) 1,438 1,492 3.80%
Swisscom mobile access lines in Switzerland (in thousands as of 31.03) 6,601 6,632 0.50%
Fastweb broadband connections (in thousands as of 31.03) 2,400 2,483 3.50%
Fastweb mobile lines (in thousands as of 31.03) 763 1,185 55.30%
Capital expenditure (in CHF million) 529 501 -5.30%
Of which capital expenditure Switzerland (in CHF million) 362 315 -13.00%
Group employees (FTEs as per 31 March) 21,079 20,326 -3.60%
Of which employees in Switzerland (FTEs as per 31 March) 18,280 17,611 -3.70%



Press release 2 may 2018, 7:15 a.m.  


On track in the first quarter of 2018 – growth in broadband, inOne and TV 


CEO Urs Schaeppi is upbeat about business performance in the first three months of 2018: “We reported a solid result in the first quarter of 2018. Our industry is challenged in a persistently difficult environment: the demands of our customers are growing, as is the volume of data on the networks. Consequently, the need for investment remains high. At the same time, prices are falling and promotions are intensifying the competition." Both price pressure and saturated markets require Swisscom to further reduce its cost base. In the market, it is important to consistently develop offers and services and thus to create added value for customers. Urs Schaeppi adds: “Our customers have been benefiting from up to 50% lower roaming prices since March. And they can look forward to an exciting football summer. We are continuing to develop our TV offer into an integrated entertainment platform. The figures for inOne are also pleasing, as we again increased in the first quarter. Our subsidiary Fastweb also grew."