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.
For 2019, Swisscom expects net revenue of around CHF 11.4 billion, EBITDA of over CHF 4.3 billion and capital expenditure of around CHF 2.3 billion. Due to strong competition and price pressure and the ongoing decline in the number of fixed-line telephone connections, Swisscom expects revenue to be slightly lower without Fastweb. Fastweb’s revenue is expected to increase slightly from its 2018 level.
The outlook for EBITDA in 2019 reflects the effect of a new accounting standard for leasing (IFRS 16) applicable from 2019 onwards. This effect increases the reported EBITDA by around CHF 200 million. On a like-for-like basis and excluding the effects of IFRS 16, Group EBITDA would be lower in 2019 than in 2018. For Swisscom, excluding Fastweb, the decline in revenue cannot be fully compensated by cost savings. In contrast, an increase in EBITDA is anticipated for Fastweb on a like-for-like basis.
Capital expenditure in Switzerland, excluding costs for acquiring additional mobile radio frequencies at auction, will be slightly less than in the previous year. Capital expenditure at Fastweb is expected to be lower.
The analyst consensus (published as of January 13th 2020) reflects averages based on analyst estimates for key financial data received from December 2nd 2019 to January 10th 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.