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Quarterly review 2016 and 2017


In CHF million, except where indicated
  1.
quarter
  2.
quarter
  3.
quarter
  4.
quarter
 
2016
  1.
quarter
  2.
quarter
  3.
quarter
  4.
quarter
 
2017
                                         
Income statement
Net revenue   2,885   2,884   2,874   3,000   11,643   2,831               2,831
Goods and services purchased   (544)   (558)   (580)   (641)   (2,323)   (522)               (522)
Personnel expense   (765)   (743)   (695)   (744)   (2,947)   (753)               (753)
Other operating expense   (597)   (600)   (613)   (738)   (2,548)   (574)               (574)
Capitalised self-constructed assets and other income   102   163   94   109   468   91               91
Operating income (EBITDA)   1,081   1,146   1,080   986   4,293   1,073               1,073
Depreciation and amortisation   (546)   (546)   (524)   (529)   (2,145)   (523)               (523)
Operating income (EBIT)   535   600   556   457   2,148   550               550
Net interest expense   (39)   (42)   (31)   (43)   (155)   (36)               (36)
Other financial result   (40)   (24)   (5)   69     (13)               (13)
Result of associates       1   (4)   (3)   (1)               (1)
Income before income taxes   456   534   521   479   1,990   500               500
Income tax expense   (92)   (110)   (112)   (72)   (386)   (127)               (127)
Net income   364   424   409   407   1,604   373               373
Attributable to equity holders of Swisscom Ltd   365   424   410   405   1,604   373               373
Attributable to non-controlling interests   (1)     (1)   2                  
                                         
Earnings per share (in CHF)   7.05   8.20   7.90   7.82   30.97   7.20               7.20
                                       
                                         
Net revenue
Swisscom Switzerland   2,305   2,292   2,293   2,367   9,257   2,246               2,246
Fastweb   482   483   476   516   1,957   484               484
Other Operating segments   170   195   199   225   789   187               187
Group Headquarters     1     1   2                
Intersegment elimination   (72)   (87)   (94)   (109)   (362)   (86)               (86)
Total net revenue   2,885   2,884   2,874   3,000   11,643   2,831               2,831
                                         
Segment result before depreciation and amortisation (EBITDA)
Swisscom Switzerland   954   927   916   819   3,616   928               928
Fastweb   144   223   169   185   721   155               155
Other Operating segments   34   46   47   37   164   40               40
Group Headquarters   (30)   (27)   (27)   (30)   (114)   (26)               (26)
Intersegment elimination   (3)   (6)   (5)   (8)   (22)   (4)               (4)
Reconciliation to pension cost   (18)   (17)   (20)   (17)   (72)   (20)               (20)
Total segment result (EBITDA)   1,081   1,146   1,080   986   4,293   1,073               1,073
                                         
Capital expenditure in property, plant and equipment and other intangible assets
Swisscom Switzerland   424   448   411   472   1,755   357               357
Fastweb   169   145   156   163   633   165               165
Other Operating segments   7   10   13   19   49   11               11
Intersegment elimination   (4)   (6)   (5)   (6)   (21)   (4)               (4)
Total capital expenditure   596   597   575   648   2,416   529               529
                                         
Full-time equivalent employees at end of period
Swisscom Switzerland   16,417   16,221   16,035   15,876   15,876   15,719               15,719
Fastweb   2,407   2,422   2,457   2,468   2,468   2,503               2,503
Other Operating segments   2,507   2,491   2,503   2,493   2,493   2,575               2,575
Group Headquarters   314   309   297   290   290   282               282
Total full-time equivalent employees   21,645   21,443   21,292   21,127   21,127   21,079               21,079
                                         
Operating free cash flow   184   604   616   387   1,791   463               463
Net debt   8,108   8,856   8,310   7,846   7,846   7,689               7,689

In CHF million, except where indicated
  1.
quarter
  2.
quarter
  3.
quarter
  4.
quarter
 
2016
  1.
quarter
  2.
quarter
  3.
quarter
  4.
quarter
 
2017
                                         
Swisscom Switzerland Revenue and results
Retail Customers   520   522   531   523   2,096   501               501
Enterprise Customers   125   125   126   127   503   120               120
Revenue mobile single subscription   645   647   657   650   2,599   621               621
Retail Customers   260   245   225   197   927   178               178
Enterprise Customers   145   142   140   145   572   140               140
Revenue fixed-line single subscription   405   387   365   342   1,499   318               318
Retail Customers   602   608   631   654   2,495   674               674
Enterprise Customers   1   2   2   2   7   2               2
Revenue bundles   603   610   633   656   2,502   676               676
Other revenue Enterprise Customers   16   16   14   16   62   17               17
Total revenue telecoms services   1,669   1,660   1,669   1,664   6,662   1,632               1,632
Solution business   274   275   260   291   1,100   269               269
Trade goods   157   144   145   191   637   147               147
Wholesale   139   148   149   155   591   138               138
Revenue other   46   44   49   46   185   41               41
Revenue from external customers   2,285   2,271   2,272   2,347   9,175   2,227               2,227
                                         
Retail Customers   1,532   1,513   1,532   1,555   6,132   1,497               1,497
Enterprise Customers   609   603   579   630   2,421   586               586
Wholesale   139   148   149   155   591   138               138
IT, Network & Infrastructure   5   7   12   7   31   6               6
Revenue from external customers   2,285   2,271   2,272   2,347   9,175   2,227               2,227
                                         
Segment result before depreciation and amortisation (EBITDA)                                        
Retail Customers   951   926   907   867   3,651   931               931
Enterprise Customers   217   209   209   213   848   201               201
Wholesale   91   97   102   89   379   104               104
IT, Network & Infrastructure   (305)   (305)   (302)   (350)   (1,262)   (308)               (308)
Segment result (EBITDA)   954   927   916   819   3,616   928               928
Margin as % of net revenue   41.4   40.4   39.9   34.6   39.1   41.3               41.3
                                         
Fastweb, in EUR million
Residential Customers   223   227   225   231   906   232               232
Corporate Business   171   177   169   189   706   168               168
Wholesale   44   35   40   56   175   51               51
Revenue from external customers   438   439   434   476   1,787   451               451
Segment result (EBITDA)   131   204   155   171   661   145               145
Margin as % of net revenue   29.8   46.3   35.5   35.8   36.8   32.0               32.0
                                         
Capital expenditure   154   132   144   151   581   155               155
Broadband access lines in thousand   2,241   2,257   2,295   2,355   2,355   2,400               2,400
Mobile access lines in thousand   582   606   630   676   676   763               763

In thousand, except where indicated
  1.
quarter
  2.
quarter
  3.
quarter
  4.
quarter
 
2016
  1.
quarter
  2.
quarter
  3.
quarter
  4.
quarter
 
2017
                                         
Swisscom Switzerland Operational data
Access lines
Retail Customers   2,319   2,260   2,202   2,134   2,134   2,063               2,063
Enterprise Customers   263   258   256   233   233   234               234
Fixed telephony access lines   2,582   2,518   2,458   2,367   2,367   2,297               2,297
                                         
Retail Customers   1,930   1,940   1,947   1,954   1,954   1,950               1,950
Enterprise Customers   38   38   38   38   38   38               38
Broadband access lines   1,968   1,978   1,985   1,992   1,992   1,988               1,988
                                         
Retail Customers   1,323   1,351   1,377   1,418   1,418   1,438               1,438
Swisscom TV access lines   1,323   1,351   1,377   1,418   1,418   1,438               1,438
                                         
Postpaid Retail Customers   3,264   3,269   3,286   3,305   3,305   3,306               3,306
Postpaid Enterprise Customers   1,228   1,242   1,242   1,247   1,247   1,256               1,256
Postpaid mobile acces lines   4,492   4,511   4,528   4,552   4,552   4,562               4,562
Prepaid Retail Customers   2,123   2,112   2,085   2,060   2,060   2,039               2,039
Mobile access lines   6,615   6,623   6,613   6,612   6,612   6,601               6,601
                                         
RGU Retail Customers   10,959   10,932   10,897   10,871   10,871   10,796               10,796
RGU Enterprise Customers   1,529   1,538   1,536   1,518   1,518   1,528               1,528
Revenue generating units (RGU)   12,488   12,470   12,433   12,389   12,389   12,324               12,324
Thereof in bundles   4,362   4,479   4,709   4,952   4,952   5,146               5,146
                                         
Bundles   1,465   1,515   1,588   1,672   1,672   1,737               1,737
                                         
Broadband access lines wholesale   329   342   351   364   364   385               385
Unbundled fixed access lines   120   125   128   128   128   120               120
                                         
Swisscom Group Information by geographical regions
Net revenue in Switzerland   2,398   2,396   2,393   2,478   9,665   2,343               2,343
Net revenue in other countries   487   488   481   522   1,978   488               488
Total net revenue   2,885   2,884   2,874   3,000   11,643   2,831               2,831
                                         
EBITDA in Switzerland   936   923   908   805   3,572   917               917
EBITDA in other countries   145   223   172   181   721   156               156
Total EBITDA   1,081   1,146   1,080   986   4,293   1,073               1,073
                                         
Capital expenditure in Switzerland   425   451   416   482   1,774   362               362
Capital expenditure in other countries   171   146   159   166   642   167               167
Total capital expenditure   596   597   575   648   2,416   529               529
                                         
Full-time equivalent employees in Switzerland   18,960   18,754   18,551   18,372   18,372   18,280               18,280
Full-time equivalent employees in other countries   2,685   2,689   2,741   2,755   2,755   2,799               2,799
Total full-time equivalent employees   21,645   21,443   21,292   21,127   21,127   21,079               21,079
                                       
1 In 2016, adjustment of not activated TV access lines: 1 quarter –44 k., 2 quarter –49 k., 3 quarter –63 k., 4 quarter –58 k.

Forward-looking statements

This interim report is published in German and English. The German version is binding.

This communication contains statements that constitute “forward-looking statements”. In this communication, 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 which 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 Swisscom’s and Fastweb’s past and future filings and reports, 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.