Swisscom has, for many years now, continued to perform well in a challenging market environment. Our outlook explains how we expect the market and our business to develop over the current year.
Swisscom expects net revenue of around CHF 11.1 bn to decrease compared to the previous year. For Swisscom without Fastweb, lower sales are expected due to the high competitive and price pressure and the decline in fixed-line telephony. Slight sales growth is expected for Fastweb in 2020.
Swisscom expects EBITDA to remain stable at around CHF 4.3 bn in 2020. As in previous years, Swisscom is responding to the tough competition in Switzerland by further cutting its cost base by CHF 100 million. In contrast, the EBITDA of Fastweb is expected to increase on a like-for-like basis.
Swisscom anticipates capital expenditure of around CHF 2.3 bn in 2020. At around one fifth of sales, it will remain stable at a high level. Swisscom is investing around two-thirds of this amount in Switzerland in the expansion of the mobile network with 5G and fibre-optic coverage.
Impact of COVID-19
At present, it is not possible to quantify the potential financial impact of COVID-19 as it depends on various factors (such as the extent and duration of the pandemic, government measures to support the economy, customer behaviour in Switzerland and Italy, etc.), and there is a high degree of uncertainty regarding these factors.
The analyst consensus (published as of July 6th 2020) reflects averages based on analyst estimates for key financial data received from June 8th 2020 to July 3rd 2020.
This interim report contains forward-looking statements. The forward-looking statements in this interim report may include statements relating to our financial condition and our operational and business results in addition to specific strategic plans and objectives.
Since these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors that are beyond Swisscom’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behaviour of other market participants, the actions of governmental regulators and other risk factors detailed in Swisscom’s and Fastweb’s past and future filings and reports, including those filed with the U.S. Securities and Exchange Commission and in past and future filings, press releases, reports and other information posted on Swisscom Group companies’ websites
Readers are advised not to place undue reliance on forward-looking statements, which are valid only on the date of publication.
Swisscom disclaims any intention or obligation to update and revise any forward-looking statements, whether as a result of new information, future events or other factors.