Menu

Summary

In CHF million, except where indicated   31.3.2016   31.3.2015   Change
Net revenue   2,885   2,893   –0.3%
Operating income before depreciation and amortisation (EBITDA)   1,081   1,051   2.9%
EBITDA as % of net revenue   37.5   36.3    
Operating income (EBIT)   535   544   –1.7%
Net income   364   351   3.7%
Earnings per share (in CHF)   7.05   6.78   4.0%
Capital expenditure   596   549   8.6%
Operating free cash flow   184   344   –46.5%
Net debt at end of period   8,108   7,895   2.7%
Full-time equivalent employees at end of period   21,645   21,599   0.2%

In the first quarter of 2016, Swisscom’s net revenue fell by CHF 8 million or 0.3% to CHF 2,885 million. Despite customer growth, revenue in the Swiss core business decreased by CHF 7 million or 0.4% mainly as a result of increasing competitive pressure. The number of revenue-generating units (RGUs) in the Swiss core business increased year-on-year by 120,000 or 1.0% to 12.5 million. However, this figure fell by 11,000 in the first quarter of 2016 as a result of market saturation. As a result of customer growth and its strong position in the market for business customers, Italian subsidiary Fastweb’s revenue was EUR 11 million or 2.6% higher at EUR 440 million. The number of subscribers to Fastweb’s broadband business grew year-on-year by 117,000 or 5.5% to 2.24 million.

Swisscom’s operating income before depreciation and amortisation (EBITDA) increased by CHF 30 million or 2.9% to CHF 1,081 million. The increase in Swiss core business by CHF 11 million or 1.2% is mainly due to lower costs for subscriber acquisition and maintenance. At Fastweb, EBITDA rose by EUR 11 million or 9.2%, which is the result of higher revenue. Operating income (EBIT) fell by CHF 9 million or 1.7% to CHF 535 million due to higher depreciation and amortisation as a result of the high investment volume. Net income increased year-on-year by CHF 13 million or 3.7% to CHF 364 million because foreign exchange losses had a bigger impact on the result in the prior year.

Swisscom’s capital expenditure rose by CHF 47 million or 8.6% to CHF 596 million. In Switzerland, capital expenditure rose by CHF 37 million or 9.5% to CHF 425 million due to broadband network expansion. At the end of March 2016, more than 2.1 million lines in Switzerland were equipped with the latest fibre-optic technology. Swisscom had connected some 3.0 million households and businesses with ultra-fast broadband (speeds of more than 50 Mbps). At Fastweb, capital expen­diture increased by EUR 7 million or 4.8% to EUR 154 million due to customer growth.

Operating free cash flow decreased by CHF 160 million or 46.5% to CHF 184 million. This decline is mainly due to the payment of the penalty of CHF 186 million for the ongoing Competition Commission proceedings regarding broadband services. Net debt amounted to CHF 8,108 million, an increase of CHF 66 million or 0.8% compared to the end of 2015.

Headcount increased year-on-year by 46 FTEs or 0.2% to 21,645 FTEs. In the Swiss core business, the increase was 191 FTEs, which was the result of company acquisitions, new services such as cloud services and solutions for the healthcare sector. Headcount in the Swiss core business in the first quarter of 2016 fell on a like-for-like basis by 105 FTEs.

The financial outlook for 2016 remains unchanged. Swisscom expects net revenue of more than CHF 11.6 bil­lion, EBITDA of around CHF 4.2 bil­lion and capital expenditure of more than CHF 2.3 bil­lion. If the targets are met, Swisscom will propose to the Annual General Meeting payment of an unchanged dividend of CHF 22 per share for the 2016 financial year.