16 August 2018, 07.15 a.m. (9 a.m. teleconference)

Half-year results: interim report January to June 2018

Swisscom’s financial performance for the first half of 2018 is in line with expectations. Net revenue increased by 2.0% or CHF 115 million to CHF 5,805 million. Due to non-recurring items from the previous year, Swisscom operating income before depreciation and amortisation (EBITDA) declined by 5.2% or CHF 117 million to CHF 2,143 million and net profit by 6.2% or CHF 52 million to CHF 787 million. On a like-for-like basis EBITDA decreased by CHF 13 million or 0.6%. The financial outlook for the 2018 financial year remains unchanged.

The growth in revenue of CHF 115 million is mainly accounted for by a decline in the Swiss core business of CHF 87 million and growth in the Italian subsidiary Fastweb by CHF 185 million. The lower revenue in the Swiss core business is a result of the continued decline in fixed-line telephony and price pressure. The increase in Fastweb revenue was due to foreign currency translation adjustments (CHF 90 million) as a result of the high EUR exchange rate as well as the growth in local currency (CHF 95 million or EUR 88 million) in all segments, mainly driven by customer growth. In the broadband business, the number of Fastweb subscribers increased by 3.7% to 2.5 million over the course of the year, and the number of mobile subscribers increased by 45% to 1.3 million. The EBITDA of Fastweb in the first half of 2017 includes one-time revenues from litigation amounting to EUR 95 million (CHF 102 million). In addition, 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 Swiss core business declined by 2.8%. For Fastweb, local currency EBITDA increased on a like-for-like basis due to the 4.9% growth in revenue.

On a constant currency basis, Swisscom's investments increased by 1.1% to CHF 1,069 million, resulting in a decline of 1.4%. In Switzerland investment remained virtually stable at CHF 721 million (-1.0%). Fastweb investments of EUR 297 (-1.7%) million remain at a high level.

Key figures 1 January to 30 June 2018

  1.1.-30.6.2017 1.1.-30.6.2018 Change
Net revenue (in CHF million) 5,690 5,805 2.0%
Operating income before depreciation and amortisation, EBITDA (in CHF million) 2,260 2,143 -5.2%
Operating income EBIT (in CHF million) 1,203 1,063 -11.6%
Net income (in CHF million) 839 787 -6.2%
Swisscom TV access lines in Switzerland (in thousands as of 30.06) 1,447 1,501 3.7%
Swisscom mobile access lines in Switzerland (in thousands as of 30.06) 6,593 6,615 0.3%
Fastweb broadband connections (in thousands as of 30.06) 2,411 2,500 3.7%
Fastweb mobile lines (in thousands as of 30.06) 880 1,280 45.5%
Capital expenditure (in CHF million) 1,057 1,069 1.1%
Of which capital expenditure Switzerland (in CHF million) 728 721 -1.0%
Group employees (FTEs as per 30 June) 20,775 19,895 -4.2%
Of which employees in Switzerland (FTEs as per 30 June) 17,974 17,203 -4.3%


* On a comparable basis and at constant exchange rates


Press release 16 August 2018, 7:15 a.m.

Swisscom successful in the market in first half of year – TV now reaches 1.5 million customers

CEO Urs Schaeppi is satisfied with Swisscom’s business performance in the first half of 2018: “We reported a solid performance in the second quarter as well. Despite persistently strong competition driven by promotions and saturated markets, we once again made gains with our bundled offerings. I am particularly pleased that 1.5 million customers are using Swisscom TV, more than ever before. Fastweb in Italy also continues to enjoy growth. The situation with conventional fixed-line telephony remains a challenge, as structural factors are leading to a continued decline in the number of connections. Our initiatives to reduce costs are taking hold. We are on track for full-year 2018. This gives us the opportunity to continue investing in our networks in preparation for the upcoming 5G mobile communication standard. Our first field tests have already demonstrated how we can bring ultra-fast broadband to remote regions of Switzerland, while a 5G-enabled infrastructure makes further innovation and new applications in peripheral regions possible.”