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.
Net revenue
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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.
EBITDA
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Capital expenditure
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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.
Mario Rossi
CFO Swisscom
Swisscom continues to extend its technology leadership. In future, it will offer customers even better performance thanks to the 5G mobile communication rollout with up to 700 Mbit/s and expansion of fibre-optic technologies in around 300 communities with speeds of up to 1 Gbit/s.
Swisscom continues to extend penetration of its convergent inOne bundle product. New innovative products boost customer loyalty further, including exclusive football rights, unique content diversity, user friendliness on Swisscom TV and the no-frills Wingo product.
Swisscom is pushing ahead with digitisation in Switzerland, with Enterprise Customers supporting companies in the connected world. Growth opportunities are generated by sectors such as healthcare and banking, in which Swisscom offers vertical ICT services, and the solution business focusing on digital security and the cloud.
Swisscom is taking various steps to further improve its efficiency and save around CHF 100 million in 2019.
The analyst consensus (published as of January 10th 2019) reflects averages based on analyst estimates for key financial data received from December 3rd 2018 to January 9th 2019.
Forward-looking statements
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.