Half-yearly results 2016
Interim report January to June 2016
What we have achieved and where we want to go: our results and financial targets in figures. All reports, results, comparisons, key data, news and downloads.
3. November 2016 07:15h
8. February 2017 07:15h
The analyst consensus (published as of October 7th 2016) reflects averages based on analyst estimates for key financial data received from September 19th 2016 to October 7th 2016.
The opinions, estimates and forecasts of analysts, and the consensus information presented derived from it, regarding Swisscom’s performance are the analysts’ alone and do not represent opinions, estimates or forecasts of Swisscom or its management. Swisscom has not verified any of the information it has received and makes no representation as to the accuracy or completeness of the consensus information. Nor does Swisscom endorse or concur with, or assume responsibility for, such analyst information or recommendations or assume any responsibility to update or supplement such information. This material is being provided for information purposes only and is not intended to, nor does it, constitute investment advice or any solicitation to buy, hold or sell securities or other financial instruments.
Consensus on Swisscom’s financial results also available from other sources and they could differ from what is reported above due to the different analysts involved, timing at which the data is collected and/or other reasons. Swisscom does not assume any liability for any potential discrepancy.
For 2016 Swisscom expects on a CHF/EUR exchange rate of CHF 1.10 a net revenue of more than CHF 11.6 billion (2015: CHF 11.678 billion). For Swisscom without Fastweb, a slight decline in revenue is expected due to heightened competition and price pressure. A slight increase in revenue is expected for Fastweb, based on growth in the customer base.
Net revenue in CHF millions
EBITDA in CHF millions
Swisscom has increased its EBITDA forecast from around CHF 4.2 billion to approximately CHF 4.25 billion due to compensation amounting to CHF 60 million awarded to Fastweb following a legal dispute (2015: CHF 4.098 billion). EBITDA in 2015 was around CHF 4.1 billion and was significantly affected by provisions of CHF 186 million for legal proceedings related to broadband services and CHF 70 million for headcount reductions. EBITDA in 2016 for Swisscom without Fastweb is expected to be CHF 200 million lower than EBITDA in 2015 adjusted for these two non-recurring items. In addition to the price-related decline in revenue (primarily due to roaming fees), customer acquisition costs are also expected to rise. EBITDA is expected to be positively affected by cost savings of around CHF 50 million and compensation of CHF 60 million from a legal dispute, in addition to growth at Fastweb.
In view of increased investment in the broadband networks in Switzerland, capital expenditure is expected to increase from over CHF 2.3 billion to around CHF 2.4 billion (2015: CHF 2.409 billion). Capital expenditure in Switzerland will remain unchanged year-on-year at around CHF 1.8 billion. Capital expenditure at Fastweb will remain stable.
Capital expenditure in CHF millions
The launch of Swisscom's convergent digital TV offering Swisscom TV 2.0, packages and mobile flat rates are the key drivers of success in the Residential Customers segment. The cloud is becoming increasingly important for both residential and enterprise customers, which is why we have opened the most advanced data centre in Switzerland. In the Enterprise Customers division we are boosting growth with new integrated solutions for banks. Other growth areas include the healthcare sector, Smart Living and advertising marketing activities, in which we are tapping new opportunities partnered by Ringier and SRG.
Mega trends change our habits, the way we work and live. None more so than the digitisation mega trend: we are always networked everywhere – for business or in private. We live in smart cities and work flexibly. We shop more discerningly and save resources. Besides all the benefits for society, mega trends also drive the economy – they open up growth markets for the ICT industry. And we build on that, by developing smart solutions today for the Switzerland of tomorrow. For there is no doubt about it, the future is digital.
Digitisation is changing a lot. New business models are emerging, industries are converging and processes becoming simpler. By 2020 there will be 66 million networked devices in Switzerland. Everything will be networked and data volumes will rise. We need a reliable efficient network infrastructure so we can communicate with each other unlimitedly in the future. At the same time we need to develop solutions to evaluate and transfer data securely.
A growing number of people are drawn to cities in search of educational facilities, jobs and social contact. This increasing densification intensifies the need for smart cities. We need urban concepts that provide smart infrastructures and a sustainable approach to resources. We continuously extend the network for the cities of the future, providing computing capacity and developing solutions to evaluate hitherto untapped data.
Mobility is more than just going from A to B. It takes community life to the next level. We are always available, communicate more and work anywhere. The need for personal mobility forms is growing abreast of the strong emphasis on networking and green thinking. At Swisscom we play a key role in this area, by developing smart user-friendly mobility solutions.
Increasing networking brings new security risks for private individuals and enterprises. At the same time, demand grows for privacy and data security. At Swisscom we develop intuitive user-friendly solutions for complex systems. Solutions for confidential data management, so that our customers can continue to use the network securely.
The world of work is in a state of flux. Working flexibly, whenever, wherever is becoming the norm. Humans and machines are moving ever closer together thanks to artificial intelligence and cyber-physical systems. Agile forms of cooperation are becoming standard practice. We assist both our employees and business customers in these new working worlds and support them with our Work Smart expertise.
Changing age structures in the working population unlock opportunities for enterprises. Older employees stay on the job longer and the number of part-time jobs and working women is growing, so new lifestyles and family structures evolve in the process. That is why we focus on lifelong learning at Swisscom and create flexible work models for older employees and working fathers. We also develop products that make it easier to achieve a work-life balance.
Most of us want to lead to independent eventful lives. This includes increased use of location-independent digital services like fitness training, monitoring and tracking. Personalisation plays an important role in this respect. Appeal must be of an individual nature. We can provide this service through artificial intelligence.
Sustainability remains one of the key values of Swisscom and Swiss society. The population is more health-conscious and appreciates a high quality of life. Increasing awareness also has an impact on consumer behaviour. Products that promote a sustainable and healthy lifestyle are in demand. The digitisation of the health market is opening up a new growth market for Swisscom.