Meta navigation

3rd quarter results 2018


1 November 2018, 07.15 a.m. (9 a.m. teleconference)


Interim report January to September 2018

Thanks to a solid performance, Swisscom’s company results are broadly in line with expectations in the first nine months of 2018. Compared to the previous year, net revenue increased by 1.0% or CHF 85 million to CHF 8,689 million. Based on constant exchange rates, this resulted in net revenue at the previous year’s level (–0.1%). Earnings before interest, taxes, depreciation, and amortization (EBITDA) fell as a result of non-recurring items by 3.7% or CHF 123 million to CHF 3,231 million. On a like-for-like basis and with constant exchange rates, the EBITDA remained stable (–0.2%). Net income in the first nine months of 2018 fell mainly as a result of non-recurring items by CHF 56 million or 4.4% to CHF 1,213 million. The financial outlook for 2018 fiscal year remains unchanged.

In Swiss core business, revenue fell as result of market saturation and fierce competition by CHF 144 million or 2.2%. Revenue from telecom services fell by CHF 179 million or 3.7%, which can be explained by the decline in fixed network telephony and price pressure. Compared to the previous year, the number of revenue generating units (RGU) fell by 1.5% to 12 million. At Fastweb, the revenue in local currency increased as a result of customer growth by EUR 102 million or 7.2%. In the broadband business, the number of Fastweb subscribers increased by 4.0% to 2.5 million over the course of the year, and the number of mobile subscribers increased by 34% to 1.3 million.

The previous year’s EBITDA includes one-time revenues from litigation at Fastweb amounting to EUR 95 million (CHF 102 million). EBITDA development compared with the previous year is also 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 in EBITDA of 2.8%. For Fastweb, local currency EBITDA increased on a like-for-like basis due to the 5.0% growth in revenue.

Swisscom's investments increased by 2.1% to CHF 1,621; at constant exchange rates capital expenditure remained virtually stable (+0.4%).



Results


Key figures 1 January to 30 September 2018


 

1.1.-30.9.2017

1.1.-30.9.2018

Change

(adjusted*)

Net revenue (in CHF million)

8,604

8,689

1.0%

(-0.1%)

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

3,354

3,231

-3.7%

(-0.2%)

Operating income EBIT (in CHF million)

1,766

1,621

-8.2%

Net income (in CHF million)

1,269

1,213

-4.4%

Swisscom TV access lines in Switzerland (in thousands as of 30.09)

1,453

1,510

3.9%

Swisscom mobile access lines in Switzerland (in thousands as of 30.09)

6,582

6,590

0.1%

Fastweb broadband connections (in thousands as of 30.09)

2,421

2,518

4.0%

Fastweb mobile lines (in thousands as of 30.09)

989

1,324

33.9%

Capital expenditure (in CHF million)

1,587

1,621

2.1%

Of which capital expenditure Switzerland (in CHF million)

1,097

1,119

2.0%

Group employees (FTEs as per 30 September)

20,704

19,850

-4.1%

Of which employees in Switzerland (FTEs as per 30 September)

17,877

17,165

-4.0%

* On a comparable basis and at constant exchange rates



Press release 1 November 2018, 7:15 a.m.


On course thanks to solid performance: more than 2 million inOne customers


The trend in the first half of the year continued through the third quarter. In spite of market saturation, intense competition and continually high price pressure in all business segments, Swisscom generated solid results, performed well on the market and scored points with innovations: “In recent months, we have once again been able to defend our technology leadership. Together with Ericsson, we set up the 5G network in Burgdorf; the first complete network that meets the latest 5G standard,” says CEO Urs Schaeppi. “Our investment in the network is paying off. We will continue driving 5G development forward. In so doing, we are making an important contribution to the competitiveness of the Swiss business community. The digitisation of our fixed telephone network is likewise on schedule. About 98% of all our residential customers already communicate over IP. What’s more, our bundled offerings have become even faster. Since October, the majority of our customers have been surfing with higher upload and download speeds. More than 2 million customers already use inOne,” Schaeppi adds.