17 August 2017, 07.15 a.m. (9 a.m. teleconference) 

Half-year results: interim report January to June 2017

In the first half of 2017 Swisscom's net revenue decreased by CHF 79 million or 1.4% to CHF 5,690 million. In the Swiss core business revenue fell by CHF 110 million or 2.4%, attributable to persistent pressure from competitors. Telecom services revenue dropped by CHF 76 million or 2.3%, with half of this figure due to a decrease in the fixed network telephony subscriber base; the other half is accounted for by price cuts including roaming, and a decline in Enterprise Customers.

Italian subsidiary Fastweb revenue rose by EUR 42 million or 4.8% to EUR 923 million as a result of customer growth and higher wholesale revenues.

Swisscom's operating income before depreciation and amortization (EBITDA) increased by CHF 33 million or 1.5% to CHF 2,260 million. This increase is mainly attributable to the increased EBITDA from Fastweb, which rose by EUR 68 million or 20.3% to EUR 403 million. This includes one-time revenues from litigation amounting to EUR 95 million (previous year EUR 55 million). Once adjusted for these revenues Fastweb’s EBITDA increased by EUR 28 million or 10.0%. Swiss core business saw a decrease in EBITDA of CHF 29 million or 1.5%, most of which could be compensated for by active cost management. Swisscom’s operating income (EBIT) rose by CHF 68 million or 6.0% to CHF 1,203 million, attributable to higher EBITDA and lower depreciation and amortisation. As a result of the higher operating income, net income rose by CHF 51 million or 6.5% to CHF 839 million.

Swisscom's investments decreased by CHF 136 million or 11.4% to CHF 1,057 million. In Switzerland the decrease was largely due to delayed investments in network expansion of CHF 148 million or 16.9% to CHF 728 million. The company is nevertheless pushing ahead with broadband network expansion. More than 2.7 million connections were equipped with the latest fibre-optic technology by the end of June 2017. Overall, Swisscom has provided around 3.7 million homes and offices with ultra-fast broadband (more than 50 Mbit/s). Investments at Fastweb rose by EUR 16 million or 5.6% to EUR 302 million, mainly due to higher customer-driven investment.


Key figures 1 January to 30 June 2017 

  1.1. – 30.06.2016 1.1. – 30.06.2017 Change
Net revenue (in CHF million) 5’769 5’690 -1.4%
Operating income before depreciation and amortisation (EBITDA) (in CHF million) 2’227 2’260 1,5%
Operating income (EBIT) (in CHF million) 1’135 1’203 6,0%
Net income (in CHF million) 788 839 6,5%
Swisscom TV access lines in Switzerland (in thousands as at 30 June) 1’351 1’447 7,1%
Mobile access lines in Switzerland (in thousands as at 30 June) 6’623 6’589 -0,5%
Revenue from bundled contracts (in CHF million) 1'213
Fastweb broadband access lines (in thousands as at 30 June) 2’257 2’411 6,8%
Capital expenditure (in CHF million) 1’193 1’057 -11,4%
Of which capital expenditure in Switzerland (in CHF million) 876
Group headcount (FTEs as at 30 June) 21’443 20’775 -3,1%
Of which in Switzerland (FTEs as at 30 June) 18’754 17’974 -4,2%

Press release 17th August 2017, 7:15 a.m. 

On course: Swisscom holding its own successfully on the market  

CEO Urs Schaeppi on the half-year results: “Swisscom recorded an extremely solid market performance in the second quarter. We successfully rolled out inOne while achieving growth in bundled offerings and in the TV business. Fastweb is also well on track and has increased its contribution to the Swisscom EBITDA. The decline in the use of fixed-line telephony has not slowed down, which in combination with intensive and heavily promotion-driven competition has resulted in a slight drop in revenue for telecommunication services. Thanks to the initiatives we have set up to lower costs, we have been able to offset a large part of the decrease in revenue and are on course to meet our objectives for full-year 2017 despite price competition and a saturated market. This means that we can continue to focus all of our energies on the expansion of our networks and thus into investing in the future of Switzerland. I am particularly pleased that the University of St. Gallen has recently named us as the one of the most innovative companies in Switzerland.”