Ad hoc announcement pursuant to Art. 53 LR / annual financial statement 2025

Strong result: Stable performance in Switzerland, transition year in Italy

+++ Boost in revenue due to acquisition of Vodafone Italia, financial result in line with expectations, targets met +++ Switzerland: Stable financial and operational development +++ Italy: Integration of Vodafone Italia progressing as planned +++ Change in the Board of Directors +++ Proposal: Dividend increase of 18% to CHF 26 per share for the 2025 financial year +++ Guidance for 2026: Growing Operating Free Cash Flow and dividend of CHF 27 per share for the financial year 2026 +++

By Sepp Huber
Portrait of Christoph Aeschlimann, CEO Swisscom

Key figures at a glance

"One year after the successful acquisition of Vodafone Italia, Swisscom presents a strong result with a significant increase in revenue due to the takeover. We have met the 2025 financial targets," commented CEO Christoph Aeschlimann on the 2025 year-end financial results. "The high level of customer satisfaction and the repeated top rankings in all relevant network and service tests confirm that we are on the right track. Innovation remains the key to our success. For example, we have ushered in a new era in cybersecurity, shifting protection for Swiss business customers from the device into the network. With our AI platforms and a broad range of AI services, we are also shaping the digital future in Switzerland and Italy. The integration of Vodafone Italia continues according to plan. We look ahead to 2026 with confidence – supported by a clear strategy, a strong team, and the innovative power for sustainable growth."

Swisscom Group: Revenue up by around 37% – Focus on trustworthy innovation 

Following the acquisition of Vodafone Italia, the figures for 2025 are as expected: the Swisscom Group increased its revenue by 36.6% to CHF 15,048 million. EBITDA after lease expense (EBITDAaL) rose by 22.6% to CHF 4,984 million, while operating free cash flow rose by 9.6% to CHF 1,920 million.

In addition, Swisscom reports pro forma figures for 2024 for revenue, EBITDAaL, capital expenditure and operating free cash flow as if Vodafone Italia had been consolidated since 1 January 2024. In this comparison, group revenue for 2025 fell by 2.0% year-on-year to CHF 15,048 million. EBITDAaL fell by 1.2% to CHF 4,984 million. On an adjusted basis and at constant exchange rates, the decline in revenue was 1.3% and in EBITDAaL 1.9%. Operating free cash flow of CHF 1,920 million remained stable with +0.1% on an adjusted basis. Net income fell by 17.6% year-on-year to CHF 1,270 million. Expenses associated with the acquisition of Vodafone Italia were the main contributors to this decline.

As a result of meeting its financial targets, Swisscom will propose an increase in the dividend of 18% from the current CHF 22 to CHF 26 per share for the 2025 financial year at the Annual General Meeting on 25 March 2026.

Artificial intelligence unlocks enormous opportunities. Swisscom is consistently expanding its investments in innovative AI solutions in order to support residential and business customers with intelligent, secure and sustainable services. Equally important for Swisscom is the responsible use of the new technologies. Since the launch of the 'Swiss AI Platform', companies in Switzerland have benefited from a high-performance infrastructure for trustworthy AI applications. In Italy, Fastweb + Vodafone reinforces its leading role in the country’s digital transformation, providing businesses and public authorities with a sovereign European AI platform in the form of the 'FastwebAI Suite'.

Swisscom is also making further progress in the area of sustainability. The first Group-wide sustainability strategy strengthens Swisscom’s pioneering role in this field and pursues the goal of achieving net zero by 2035. Swisscom is focusing on decarbonizing its supply chains, promoting the circular economy and investing in renewable energies.

Switzerland: Stable development – New standards in cybersecurity, AI and brand management 

The Switzerland segment performed as expected. Revenue for 2025 fell by CHF 108 million year-on-year to CHF 7,868 million (-1.4%). Revenue from telecom services fell by 2.3% to CHF 5,148 million. Thanks to improved efficiency and consistent cost savings, the consequences of this decline in revenue was offset by almost half. At the same time, revenue from IT services for business customers increased by 2.0% to CHF 1,215 million. EBITDAaL increased by 1.0% to CHF 3,362 million, on an adjusted basis it declined by 0.8%. Operating free cash flow increased by 4.1% to CHF 1,670 million. On an adjusted basis, it remained almost stable (+0.4%).

Swisscom set a new standard in corporate cybersecurity with 'beem': protection against cyber threats is now provided directly in the network. By the end of 2025, 'beem' had 38,000 users across 770 locations. A new security solution for residential customers is also under development. Another innovation is 'myAI'. The AI assistant was developed in Switzerland and for Switzerland and guarantees that user data will not be used to train language models, for profiling purposes or for further processing by third parties. By the end of 2025, 67,000 users had registered for 'myAI'. A strong brand that people can identify with is crucial to remain competitive. This is why Swisscom has sharpened its brand positioning in Switzerland. The claim 'Discover your possibilities' encourages people to experience for themselves what new technology makes possible.

Swisscom is continuing to systematically modernise its fixed-network and mobile communications infrastructure in all Swiss municipalities. As at the end of 2025, Swisscom covered 89% of the population with 5G+ and roughly 56% of Swiss households and businesses with optical fibre. The aim is to increase the coverage with optical fibre to 60% by the end of 2026. In addition, Swisscom will gradually decommission the copper network in the coming years.

Italy: Business performance as expected in a year of transition – First joint product portfolio and over 1.1 million ultra-broadband fixed wholesale lines 

Compared with the pro forma figures* for the year 2024, revenue in the Italy segment fell slightly by 1.1% to EUR 7,291 million. Revenue from residential customers decreased by 2.9% to EUR 3,328 million. By contrast, revenue from business customers remained stable at EUR 3,237 million (-0.5%); with revenues from IT services continuing to grow while revenues from telecom services are declining. EBITDAaL fell by 3.1% to EUR 1,805 million on an adjusted basis. Operating free cash flow increased by 2.8% to EUR 474 million on an adjusted basis.

The integration of Vodafone Italia progressed rapidly in 2025 and continues to progress as planned. The new organisation has been established, and the first synergy effects of EUR 95 million have been realized. For example, the migration of Fastweb's mobile SIMs to the Vodafone Italia network has been almost completed. Among the most relevant achievements of the year, the first joint Fastweb + Vodafone product portfolio for residential customers was launched, while the consumer energy offering was successfully expanded, with Fastweb Energia reaching 114,000 customers by the end of 2025. In parallel, the Wholesale business reached 1.1 million ultra-broadband fixed lines provided to other national operators, confirming its relevance as a fundamental strategic pillar of the company.

As of the end of 2025, Fastweb + Vodafone covered 56% of households and businesses in Italy with optical fibre. The mobile network reaches 89% of the population with 5G. At the beginning of 2026, Fastweb + Vodafone and TIM reached a preliminary agreement to launch a cooperation for the development of mobile access networks through a Radio Access Network (RAN). This is intended to accelerate the expansion of 5G in Italy avoiding duplications in rural and less dense areas. The project is still subject to approval by the Ministry of Enterprises and Made in Italy (MIMIT), the Italian Competition Authority (AGCM), and the Authority for Communications Guarantees (AGCom). 

Change in the Board of Directors 

The one-year office term of all members of the Board of Directors will expire at the Annual General Meeting on 25 March, 2026. Frank Esser (1958) has reached the maximum term of office of twelve years stipulated in the Articles of Association and will therefore not be standing for re-election. The Board of Directors proposes Philippe Deecke as his successor. Philippe Deecke (1972), a Swiss-German-French citizen, is an experienced financial manager with over 20 years' experience in the pharmaceutical and healthcare industry. After working at McKinsey (1998-2005) and completing an MBA at the Cornell Johnson Graduate School of Management, he spent over 16 years at Novartis in senior finance roles, most recently as Global CFO Oncology. He has been CFO of the Lonza Group since 2021 and a member of the Board of Directors of Assura since 2023. It is also planned that Philippe Deecke will take over as Chairman of the Audit Committee at the 2027 Annual General Meeting from Roland Abt, who will reach the statutory age limit in 2027 and will therefore not be standing for re-election.

The Chairman of the Board of Directors and the other Board of Directors members shall stand for re-election.

Guidance for 2026: Growing operating free cash flow and further dividend increase 

For the financial year 2026, Swisscom expects revenue of CHF 14.7-14.9 billion, EBITDAaL of CHF 5.0-5.1 billion and capital expenditure of CHF 3.0-3.1 billion, an operating free cash flow of around CHF 2.0 billion and leverage (net debt including lease liabilities/EBITDA) of around 2.3x1 as of the end of 2026. If targets are achieved, Swisscom plans to increase the dividend to CHF 27 per share, payable in 2027 for the 2026 financial year, subject to the approval of the Annual General Meeting in 2027.

1Without prolongation of existing or conclusion of new tower agreement(s) in Italy.

The key figures at a glance

Financial key figures (in CHF million), reported 1.1.-
31.12.2025		 1.1.-
31.12.2024		 Change
Revenue 15,048 11,017 36.6%
EBITDAaL 4,984 4,064 22.6%
Capital expenditure 3,064 2,312 32.5%
Operating free cash flow 1,920 1,752 9.6%
Net income 1,270 1,541 -17.6%
Financial key figures (in CHF million), reported Revenue
1.1.-
31.12.2025		 15,048
1.1.-
31.12.2024		 11,017
Change 36.6%
Financial key figures (in CHF million), reported EBITDAaL
1.1.-
31.12.2025		 4,984
1.1.-
31.12.2024		 4,064
Change 22.6%
Financial key figures (in CHF million), reported Capital expenditure
1.1.-
31.12.2025		 3,064
1.1.-
31.12.2024		 2,312
Change 32.5%
Financial key figures (in CHF million), reported Operating free cash flow
1.1.-
31.12.2025		 1,920
1.1.-
31.12.2024		 1,752
Change 9.6%
Financial key figures (in CHF million), reported Net income
1.1.-
31.12.2025		 1,270
1.1.-
31.12.2024		 1,541
Change -17.6%
Financial key figures (in CHF million), pro forma* 1.1.-
31.12.2025		 1.1.-
31.12.2024		 Change
Revenue 15,048 15,358* -2.0%
-1.3%**
EBITDAaL 4,984 5,044* -1.2%
-1.9%**
Capital expenditure 3,064 3,115* -1,6%
-3.3%**
Operating free cash flow 1,920 1,929* -0.5%
0.1%**
Financial key figures (in CHF million), pro forma* Revenue
1.1.-
31.12.2025		 15,048
1.1.-
31.12.2024		 15,358*
Change -2.0%
-1.3%**
Financial key figures (in CHF million), pro forma* EBITDAaL
1.1.-
31.12.2025		 4,984
1.1.-
31.12.2024		 5,044*
Change -1.2%
-1.9%**
Financial key figures (in CHF million), pro forma* Capital expenditure
1.1.-
31.12.2025		 3,064
1.1.-
31.12.2024		 3,115*
Change -1,6%
-3.3%**
Financial key figures (in CHF million), pro forma* Operating free cash flow
1.1.-
31.12.2025		 1,920
1.1.-
31.12.2024		 1,929*
Change -0.5%
0.1%**
Operational performance (thousands), pro forma* 31.12.2025 31.12.2024 Change
Mobile access lines in Switzerland 6,438 6,331 1.7%
Broadband access lines in Switzerland 1,938 1,967 -1.5%
blue TV access lines in Switzerland 1,462 1,493 -2.1%
Wholesale access lines in Switzerland 768 731 5.1%
Mobile access lines in Italy 20,054 20,216* -0.8%
Broadband access lines in Italy 5,732 5,916* -3.1%
Wholesale access lines in Italy (broadband) 1,126 905 24.4%
Operational performance (thousands), pro forma* Mobile access lines in Switzerland
31.12.2025 6,438
31.12.2024 6,331
Change 1.7%
Operational performance (thousands), pro forma* Broadband access lines in Switzerland
31.12.2025 1,938
31.12.2024 1,967
Change -1.5%
Operational performance (thousands), pro forma* blue TV access lines in Switzerland
31.12.2025 1,462
31.12.2024 1,493
Change -2.1%
Operational performance (thousands), pro forma* Wholesale access lines in Switzerland
31.12.2025 768
31.12.2024 731
Change 5.1%
Operational performance (thousands), pro forma* Mobile access lines in Italy
31.12.2025 20,054
31.12.2024 20,216*
Change -0.8%
Operational performance (thousands), pro forma* Broadband access lines in Italy
31.12.2025 5,732
31.12.2024 5,916*
Change -3.1%
Operational performance (thousands), pro forma* Wholesale access lines in Italy (broadband)
31.12.2025 1,126
31.12.2024 905
Change 24.4%

* Swisscom acquired Vodafone Italia on 31 December 2024. The figures for revenue, EBITDAaL, capital expenditure and operating free cash flow are presented as if Vodafone Italia were consolidated as of 1 January 2024 using uniform accounting principles.
** On a like-for-like basis and at constant exchange rates.

Swisscom uses various alternative performance measures. The definition and reconciliation to the values in accordance with IFRS accounting standards are set out in the Annual Report as at 31 December 2025.

The Swisscom Annual Report 2025 was published today.

Swisscom AG
SCMN / Valor 874251 / ISIN CH0008742519
Group Media Relations
CH-3050 Bern
Phone +41 58 221 98 04
E-Mail media@swisscom.com
www.swisscom.ch

Disclaimer

This notification contains forward-looking statements. In this notification, 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 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 the past and future filings and reports of Swisscom, Fastweb and Vodafone Italia (Fastweb + Vodafone Italia), 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.

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