1st quarter results 2018
Interim Report January to March 2018
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.
2 May 2018, 7.15 a.m.
7 February 2017, 7.15 a.m.
2 November 2017, 7.15 a.m.
17 August 2017, 7.15 a.m.
16 August 2018, 7.15 a.m.
1 November 2018, 7.15 a.m.
The analyst consensus (published as of April 10th 2018) reflects averages based on analyst estimates for key financial data received from March 12th 2018 to April 9th 2018.
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.
|Net revenue (in CHF million)||2,831||2,885||1.90%|
|Operating income before depreciation and amortisation, EBITDA (in CHF million)||1,073||1,058||-1.40%|
|Operating income EBIT (in CHF million)||550||518||-5.80%|
|Net income (in CHF million)||373||379||1.60%|
|Swisscom TV access lines in Switzerland (in thousands as of 31.03)||1,438||1,492||3.80%|
|Swisscom mobile access lines in Switzerland (in thousands as of 31.03)||6,601||6,632||0.50%|
|Fastweb broadband connections (in thousands as of 31.03)||2,400||2,483||3.50%|
|Fastweb mobile lines (in thousands as of 31.03)||763||1,185||55.30%|
|Capital expenditure (in CHF million)||529||501||-5.30%|
|Of which capital expenditure Switzerland (in CHF million)||362||315||-13.00%|
|Group employees (FTEs as per 31 March)||21,079||20,326||-3.60%|
|Of which employees in Switzerland (FTEs as per 31 March)||18,280||17,611||-3.70%|
Swisscom anticipates net revenue of around CHF 11.6 billion in 2018 (2017: CHF 11.662 billion). Due to strong competition and price pressure, Swisscom’s revenue without Fastweb is expected to decline. This will be partially offset by a rise in Fastweb’s revenue and positive currency translation effects.
Net revenue in CHF millions
EBITDA in CHF millions
Swisscom anticipates EBITDA of around CHF 4.2 billion in 2018 (2017: CHF 4.295 billion). Swisscom’s EBITDA without Fastweb is expected to decline. The expected reduction in EBITDA is attributable to price pressure and continued declines in the number of fixed-line telephony connections. EBITDA will be positively affected by cost savings. Fastweb’s EBITDA is expected to be higher. The new accounting standard for recognising revenue IFRS 15 is likely to have a negative effect on EBITDA of around CHF 50 million. The foreign currency translation adjustments of Fastweb will have a positive effect on EBITDA.
Swisscom expects capital expenditure of less than CHF 2.4 billion in 2018 (2017: CHF 2.378 billion). Capital expenditure for Swisscom is expected to be slightly lower without Fastweb and slightly higher at Fastweb.
Capital expenditure in CHF millions
Swisscom wants to capitalise on growth opportunities and exploit the potential of digitisation by continually developing its core business and tapping into new business areas. Its key growth drivers include the expansion of ultra-fast broadband, as well as the new 5G mobile telephony standard, new entertainment applications (such as Swisscom TV), the Internet of Things and the area of Wholesale. Solutions business is focussing on digital security offerings and the Swisscom Cloud. Sectors such as banking and healthcare are also providing new opportunities for growth through vertical ICT services. Internet-based business models are giving rise to growth in marketplaces (such as siroop and Mila), digital services for SMEs (such as localsearch) and support technologies (such as blockchain). Italian subsidiary Fastweb also plays a key role in efforts to realise growth opportunities.
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.