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Financial outlook

   
2015
reported
CHF/EUR 1.075
in CHF mio.
 



Adjustment 1
 
2015
pro-forma
CHF/EUR 1.075
in CHF mio.
  2016
Change
Swisscom
without Fastweb
in CHF bn.
 
2016
Change
Fastweb
in CHF bn.
 
2016
outlook
(CHF/EUR 1.10)
in CHF bn.
Net revenue   11,678     11,678   < 0   > 0   > 11,6
Operating income before depreciation and amortisation (EBITDA)   4,098   256   4,354   (0.2)   > 0   ~ 4.2
Capital expenditure   2,409     2,409   < 0   0   > 2.3
1 Provisions for the ComCo process regarding the broadband services (CHF 186 million) and headcount reduction (CHF 70 million).

The following financial outlook for 2016 is predicated on a CHF/EUR exchange rate of 1.10. For 2016, Swisscom expects revenue in excess of CHF 11.6 bil­lion, EBITDA of around CHF 4.2 bil­lion and capital expenditure of more than CHF 2.3 bil­lion.

Excluding Fastweb, a slight decline in Swisscom revenue is expected. Growing competition and price pressure in both the residential and corporate customer segments for conventional communication services will provoke the expected decline in revenue. Growth in the number of subscribers to broadband connections, TV and mobile services will not be able to offset this decline due to growing market saturation. A slight increase in revenue is expected for Fastweb, based on growth in the customer base.

EBITDA in 2015 was around CHF 4.1 bil­lion and was negatively affected by a number of non-recurring items, in particular provisions of CHF 186 million for legal proceedings on broadband services and CHF 70 million for headcount reduction. 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-based decline in revenue, the costs for roaming are also expected to increase. Organisational changes, efficiency gains and lower headcount will result in cost savings of around CHF 50 million in 2016. Fastweb’s EBITDA, on the other hand, is expected to be higher.

Swisscom expects capital expenditure for 2016 to exceed CHF 2.3 bil­lion. In Switzerland capital expenditure will be slightly reduced at over CHF 1.7 bil­lion. Capital expenditure at Fastweb will remain stable.

If the targets are met, Swisscom will again propose to the Annual General Meeting of Shareholders an unchanged ordinary dividend of CHF 22 per share for the 2016 financial year.