Menu

Downloads

Leave

Segment results

In CHF million, except where indicated   2017   2016   Change
Net revenue
Residential Customers   6,053   6,265   –3.4%
Enterprise Customers   2,508   2,540   –1.3%
Wholesale 1   944   979   –3.6%
IT, Network & Infrastructure   167   173   –3.5%
Intersegment elimination   (614)   (700)   –12.3%
Swisscom Switzerland   9,058   9,257   –2.1%
Fastweb   2,164   1,957   10.6%
Other Operating Segments   850   789   7.7%
Group Headquarters   1   2   –50.0%
Intersegment elimination   (411)   (362)   13.5%
Revenue from external customers   11,662   11,643   0.2%
             
Operating income before depreciation and amortisation (EBITDA)
Residential Customers   3,512   3,651   –3.8%
Enterprise Customers   832   848   –1.9%
Wholesale   446   379   17.7%
IT, Network & Infrastructure   (1,290)   (1,262)   2.2%
Swisscom Switzerland   3,500   3,616   –3.2%
Fastweb   845   721   17.2%
Other Operating Segments   180   164   9.8%
Group Headquarters   (111)   (114)   –2.6%
Reconciliation item pension cost 2   (92)   (72)   27.8%
Intersegment elimination   (27)   (22)   22.7%
Operating income before depreciation and amortisation (EBITDA)   4,295   4,293   0.0%
1 Including intersegment settlements of services performed by other network providers.
2 Operating income of segments includes ordinary employer contributions as pension fund expense. The difference to the pension cost according to IAS 19 is recognised as a reconciliation item.

Swisscom’s reporting focuses on the three operating divisions Swisscom Switzerland, Fastweb and Other Operating Segments. Group Headquarters, which includes non-allocated costs, is reported separately. Swisscom Switzerland comprises the customer segments Residential Customers, Enterprise Customers and Wholesale, as well as the IT, Network & Infrastructure division. Fastweb is a telecommunications provider for residential and business customers in Italy. Other Operating Segments primarily comprises the Digital Business division, Swisscom Broadcast Ltd (radio transmitters) and cablex Ltd (network construction and maintenance).

The IT, Network & Infrastructure segment does not charge any network costs to other segments, nor does Group Headquarters charge any management fees to other segments. Other services between the segments are recharged between the segments at market prices. Network costs in Switzerland are budgeted, monitored and controlled by the IT, Network & Infrastructure division, which is managed as a cost centre. For this reason, no revenue is credited to the IT, Network & Infrastructure segment within the segment reporting, with the exception of the rental and administration of buildings and vehicles. The results of the Residential Customers, Enterprise Customers and Wholesale segments correspond to a contribution margin before network costs.

Segment expenses comprise direct costs, personnel expenses and other operating costs less capitalised costs of self-constructed assets and other income. Segment expense includes ordinary employer contributions as pension fund expense. Under IAS 19, the difference between the ordinary employer contributions and the past service cost is reported as a reconciliation item between the operating incomes of the segments and Group operating income.