Berne, 11 November 2009
|Net revenue (in CHF millions)||9085||8925||-1,8%|
|EBITDA (in CHF millions)||3615||3580||-1,0%|
|EBIT (in CHF millions)||2066||2155||4,3%|
|Net income* (in CHF millions)||1316||1534||16,6%|
|Operating free cash flow** (in CHF millions)||2124||2143||0,9%|
DSL broadband access lines in Switzerland (in thousands as at 30.9)
|Bluewin TV customers in Switzerland (in thousands as at 30.9)||95||186||95,8%|
Mobile subscribers in Switzerland (in thousands as at 30.9)
|Customers in Italy (in thousands as at 30.9)||1441||1605||11,4%|
|Capital expenditure (in CHF millions)||1365||1315||-3,7%|
Employees (FTEs as at 30.9)
* Net income stable excluding one-off items
** EBITDA - Capital expenditure +/- changes in net working capital - dividend payment to minority shareholders
In the first nine months of 2009, the Swisscom Group reported a year-on-year drop in net revenue of CHF 160 million, or 1.8%, to CHF 8925 million. Operating income (EBITDA) fell by CHF 35 million (-1.0%) to CHF 3580 million. On the basis of constant exchange rates, net revenue dipped slightly by CHF 26 million, or 0.3%, while operating income, which grew by CHF 4 million, remained stable compared to the previous year.
Growth in customer numbers and new offerings were unable to offset the effects of the ongoing price erosion brought on by stiffer competition and regulatory changes (e.g. unbundling), prompting a drop of around CHF 240 million in domestic business. A decline in the operation of software platforms for banks coupled with the difficult economic climate in the IT project business led to a fall in net revenue at Swisscom IT Services. Excluding Fastweb, this resulted in an overall decline in net revenue in the region of CHF 220 million.
Swisscom IT Services posted an exceptionally high level of incoming orders of around CHF 458 million (previous year CHF 180 million), which will have a delayed impact on revenue in subsequent periods.
Net income increased by CHF 218 million, or 16.6%, to CHF 1534 million, due primarily to lower depreciation and one-off items relating to the termination of long-term leasing agreements in the previous year. Operating free cash flow rose slightly by 0.9% to CHF 2143 million. At CHF 1315 million, investments in property, plant and equipment and other intangible assets were 3.7% lower, mainly because of timing differences in investment activities. The number of employees fell by 1.5% year-on-year to 19,704 FTEs, principally on account of the spin-off of Swisscom Real Estate's facility management business.
The combination of innovative services, good customer service and high network quality helped Swisscom attract a large proportion of new subscribers to Bluewin TV, DSL broadband access and mobile telephony in the third quarter of 2009. The digital television market, which Swisscom entered three years ago in competition with established cable network operators, accounted for the biggest share of customer growth (81%). The number of Bluewin TV customers almost doubled year-on-year to 186,000 at the end of the third quarter.
Compared to the previous year, the number of domestic DSL broadband connections is up by 77,000, and now stands at 1.8 million. The number of unbundled fixed lines increased year-on-year from 12,000 to 115,000.
The number of mobile subscribers in Switzerland increased year-on-year by a net 259,000 (+4.9%) to 5.54 million. The new iPhone 3GS was successfully launched on the market on 19 June 2009 and by the end of September sales of the new-generation handsets totalled 79,000. Since the rollout of the iPhone on 11 July 2008, Swisscom has sold a total of 330,000 units. Revenue on new mobile data services (excluding SMS) increased by 19.3% to CHF 302 million. Average monthly revenue per mobile user (ARPU) declined by 5.7% from CHF 53 to CHF 50 as a result of lower prices and the introduction of new tariff models. Average monthly minutes per mobile user (AMPU) fell slightly by 1.8% to 112 minutes.
Fastweb continued to post strong growth in revenue, EBITDA and customer numbers in the first nine months of 2009. Net revenue increased by EUR 124 million, or 10.0%, to EUR 1365 million. The number of customers grew 11.4% year-on-year to 1.61 million. The segment's EBITDA rose slightly by EUR 2 million, or 0.5%, to EUR 404 million. Last year's figures included a positive one-off item amounting to EUR 30 million. Adjusted for this one-off item, the segment's EBITDA increased by EUR 32 million, or 8.6%. Investments in property, plant, equipment and other intangible assets decreased year-on-year by 4.6% from EUR 327 million to EUR 312 million, mainly as a result of timing differences in investment activities.
Swisscom expects the decline in its Swiss business to continue for the rest of the year as a consequence of ongoing stiff competition, unbundling and a levelling-off of growth in the mobile and broadband market. Excluding Fastweb, Swisscom expects to close the 2009 financial year with revenue down by as much as CHF 300 million to between CHF 9.2 billion and CHF 9.3 billion, EBITDA of between CHF 3.8 billion and CHF 3.9 billion and capital expenditure of around CHF 1.35 billion. Fastweb is expected to close with revenue of around EUR 1.8 billion, EBITDA of around EUR 560 million and capital expenditure in the region of EUR 415 million. Group operating free cash flow, including Fastweb, will lie between CHF 2.6 billion and CHF 2.7 billion.
This communication contains statements that constitute "forward-looking statements". In this communication, such forward-looking statements include, without limitation, statements relating to our financial condition, results of operations and business and certain of our strategic plans and objectives.
Because 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 which 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 cautioned not to put undue reliance on forward-looking statements, which speak only of the date of this communication.
Swisscom disclaims any intention or obligation to update and revise any forward-looking statements, whether as a result of new information, future events or otherwise.