The financial outlook for 2016 remains unchanged. Swisscom expects net revenue of more than CHF 11.6 billion, EBITDA of around CHF 4.25 billion and capital expenditure of around CHF 2.4 billion. A CHF/EUR exchange rate of 1.10 is assumed for the 2016 financial outlook.
Excluding Fastweb, a slight decline in Swisscom revenue is anticipated. 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 reductions. 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-related decline in revenue, the costs for roaming are expected to increase. Organisational changes, efficiency gains and a lower headcount will result in cost savings of around CHF 50 million in 2016. In addition to the compensation of EUR 55 million as a result of an out-of-court settlement following a legal dispute, a higher EBITDA is expected for Fastweb.
Swisscom expects capital expenditure for 2016 of around CHF 2.4 billion. In Switzerland, it anticipates capital expenditure of around CHF 1.8 billion or about the same amount as the prior year. Capital expenditure at Fastweb will remain stable.
If the targets are met, Swisscom will propose to the Annual General Meeting of Shareholders payment of an unchanged dividend of CHF 22 per share for the 2016 financial year.