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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   2,859           5,690
Goods and services purchased   (544)   (558)   (580)   (641)   (2,323)   (522)   (503)           (1,025)
Personnel expense   (765)   (743)   (695)   (744)   (2,947)   (753)   (738)           (1,491)
Other operating expense   (597)   (600)   (613)   (738)   (2,548)   (574)   (621)           (1,195)
Capitalised self-constructed assets and other income   102   163   94   109   468   91   190           281
Operating income (EBITDA)   1,081   1,146   1,080   986   4,293   1,073   1,187           2,260
Depreciation and amortisation   (546)   (546)   (524)   (529)   (2,145)   (523)   (534)           (1,057)
Operating income (EBIT)   535   600   556   457   2,148   550   653           1,203
Net interest expense   (39)   (42)   (31)   (43)   (155)   (36)   (38)           (74)
Other financial result   (40)   (24)   (5)   69     (13)   (11)           (24)
Result of associates       1   (4)   (3)   (1)   (2)           (3)
Income before income taxes   456   534   521   479   1,990   500   602           1,102
Income tax expense   (92)   (110)   (112)   (72)   (386)   (127)   (136)           (263)
Net income   364   424   409   407   1,604   373   466           839
Attributable to equity holders of Swisscom Ltd   365   424   410   405   1,604   373   467           840
Attributable to non-controlling interests   (1)     (1)   2       (1)           (1)
                                         
Earnings per share (in CHF)   7.05   8.20   7.90   7.82   30.97   7.20   9.02           16.22
                                         
                                         
Net revenue
Swisscom Switzerland   2,305   2,292   2,293   2,367   9,257   2,246   2,241           4,487
Fastweb   482   483   476   516   1,957   484   511           995
Other Operating Segments   170   195   199   225   789   187   210           397
Group Headquarters     1     1   2     1           1
Intersegment elimination   (72)   (87)   (94)   (109)   (362)   (86)   (104)           (190)
Total net revenue   2,885   2,884   2,874   3,000   11,643   2,831   2,859           5,690
                   
                                         
Segment result before depreciation and amortisation (EBITDA)
Swisscom Switzerland   954   927   916   819   3,616   928   924           1,852
Fastweb   144   223   169   185   721   155   279           434
Other Operating Segments   34   46   47   37   164   40   40           80
Group Headquarters   (30)   (27)   (27)   (30)   (114)   (26)   (21)           (47)
Intersegment elimination   (3)   (6)   (5)   (8)   (22)   (4)   (8)           (12)
Reconciliation pension cost   (18)   (17)   (20)   (17)   (72)   (20)   (27)           (47)
Total segment result (EBITDA)   1,081   1,146   1,080   986   4,293   1,073   1,187           2,260
                   
                                         
Capital expenditure in property, plant and equipment and other intangible assets
Swisscom Switzerland   424   448   411   472   1,755   357   362           719
Fastweb   169   145   156   163   633   165   161           326
Other Operating Segments   7   10   13   19   49   11   13           24
Intersegment elimination   (4)   (6)   (5)   (6)   (21)   (4)   (8)           (12)
Total capital expenditure   596   597   575   648   2,416   529   528           1,057
                   
                                         
Full-time equivalent employees at end of period
Swisscom Switzerland   16,417   16,221   16,035   15,876   15,876   15,719   15,420           15,420
Fastweb   2,407   2,422   2,457   2,468   2,468   2,503   2,494           2,494
Other Operating Segments   2,507   2,491   2,503   2,493   2,493   2,575   2,585           2,585
Group Headquarters   314   309   297   290   290   282   276           276
Total full-time equivalent employees   21,645   21,443   21,292   21,127   21,127   21,079   20,775           20,775
                                         
Operating free cash flow   184   604   616   387   1,791   463   549           1,012
Net debt   8,108   8,856   8,310   7,846   7,846   7,689   8,441           8,441

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   500           1,001
Enterprise Customers   125   125   126   127   503   120   122           242
Revenue mobile single subscription   645   647   657   650   2,599   621   622           1,243
Retail Customers   260   245   225   197   927   178   155           333
Enterprise Customers   145   142   140   145   572   140   136           276
Revenue fixed-line single subscription   405   387   365   342   1,499   318   291           609
Retail Customers   602   608   631   654   2,495   674   689           1,363
Enterprise Customers   1   2   2   2   7   3   4       7
Revenue bundles   603   610   633   656   2,502   677   693           1,370
Other revenue Enterprise Customers   16   16   14   16   62   16   15           31
Total revenue telecoms services   1,669   1,660   1,669   1,664   6,662   1,632   1,621           3,253
Solution business   268   269   252   283   1,072   261   271           532
Trade goods   157   144   145   191   637   147   145           292
Wholesale   139   148   149   155   591   138   135           273
Revenue other   52   50   57   54   213   49   50           99
Revenue from external customers   2,285   2,271   2,272   2,347   9,175   2,227   2,222           4,449
                                         
Retail Customers   1,532   1,513   1,532   1,555   6,132   1,497   1,481           2,978
Enterprise Customers   609   603   579   630   2,421   586   599           1,185
Wholesale   139   148   149   155   591   138   135           273
IT, Network & Infrastructure   5   7   12   7   31   6   7           13
Revenue from external customers   2,285   2,271   2,272   2,347   9,175   2,227   2,222           4,449
                   
                                         
Segment result before depreciation and amortisation (EBITDA)
Retail Customers   951   926   907   867   3,651   931   910           1,841
Enterprise Customers   217   209   209   213   848   201   215           416
Wholesale   91   97   102   89   379   104   103           207
IT, Network & Infrastructure   (305)   (305)   (302)   (350)   (1,262)   (308)   (304)           (612)
Segment result (EBITDA)   954   927   916   819   3,616   928   924           1,852
Margin as % of net revenue   41.4   40.4   39.9   34.6   39.1   41.3   41.2           41.3
                   
                                 
Fastweb, in EUR million
Residential Customers   223   227   225   231   906   232   238           470
Corporate Business   171   177   169   189   706   168   173           341
Wholesale   44   35   40   56   175   51   57           108
Revenue from external customers   438   439   434   476   1,787   451   468           919
Segment result (EBITDA)   131   204   155   171   661   145   258           403
Margin as % of net revenue   29.8   46.3   35.5   35.8   36.8   32.0   54.9           43.7
                                         
Capital expenditure   154   132   144   151   581   155   147           302
Broadband access lines in thousand   2,241   2,257   2,295   2,355   2,355   2,400   2,411           2,411
Mobile access lines in thousand   582   606   630   676   676   763   880           880

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   1,982           1,982
Enterprise Customers   263   258   256   233   233   234   226           226
Fixed telephony access lines   2,582   2,518   2,458   2,367   2,367   2,297   2,208           2,208
                                         
Retail Customers   1,930   1,940   1,947   1,954   1,954   1,950   1,951           1,951
Enterprise Customers   38   38   38   38   38   38   38           38
Broadband access lines   1,968   1,978   1,985   1,992   1,992   1,988   1,989           1,989
                                         
Retail Customers   1,323   1,351   1,377   1,418   1,418   1,438   1,447           1,447
Swisscom TV access lines   1,323   1,351   1,377   1,418   1,418   1,438   1,447           1,447
                                         
Postpaid Retail Customers   3,264   3,269   3,286   3,305   3,305   3,306   3,311           3,311
Postpaid Enterprise Customers   1,228   1,242   1,242   1,247   1,247   1,256   1,260           1,260
Postpaid mobile acces lines   4,492   4,511   4,528   4,552   4,552   4,562   4,571           4,571
Prepaid Retail Customers   2,123   2,112   2,085   2,060   2,060   2,039   2,018           2,018
Mobile access lines   6,615   6,623   6,613   6,612   6,612   6,601   6,589           6,589
                                         
RGU Retail Customers   10,959   10,932   10,897   10,871   10,871   10,796   10,709           10,709
RGU Enterprise Customers   1,529   1,538   1,536   1,518   1,518   1,528   1,524           1,524
Revenue generating units (RGU)   12,488   12,470   12,433   12,389   12,389   12,324   12,233           12,233
Therof in bundles   4,362   4,497   4,709   4,952   4,952   5,146   5,290           5,290
                                         
Bundles   1,465   1,515   1,588   1,672   1,672   1,736   1,784           1,784
                                         
Broadband access lines wholesale   329   342   351   364   364   385   402           402
Unbundled fixed access lines   120   125   128   128   128   120   116           116
                                         
Swisscom Group Information by geographical regions
Net revenue in Switzerland   2,398   2,396   2,393   2,478   9,665   2,343   2,343           4,686
Net revenue in other countries   487   488   481   522   1,978   488   516           1,004
Total net revenue   2,885   2,884   2,874   3,000   11,643   2,831   2,859           5,690
                                         
EBITDA in Switzerland   936   923   908   805   3,572   917   905           1,822
EBITDA in other countries   145   223   172   181   721   156   282           438
Total EBITDA   1,081   1,146   1,080   986   4,293   1,073   1,187           2,260
                                         
Capital expenditure in Switzerland   425   451   416   482   1,774   362   366           728
Capital expenditure in other countries   171   146   159   166   642   167   162           329
Total capital expenditure   596   597   575   648   2,416   529   528           1,057
                                         
Full-time equivalent employees in Switzerland   18,960   18,754   18,551   18,372   18,372   18,280   17,974           17,974
Full-time equivalent employees in other countries   2,685   2,689   2,741   2,755   2,755   2,799   2,801           2,801
Total full-time equivalent employees   21,645   21,443   21,292   21,127   21,127   21,079   20,775           20,775
                                         
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.