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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   2,914       8,604
Goods and services purchased   (544)   (558)   (580)   (641)   (2,323)   (522)   (503)   (585)       (1,610)
Personnel expense   (765)   (743)   (695)   (744)   (2,947)   (753)   (738)   (695)       (2,186)
Other operating expense   (597)   (600)   (613)   (738)   (2,548)   (574)   (621)   (626)       (1,821)
Capitalised self-constructed assets and other income   102   163   94   109   468   91   190   86       367
Operating income (EBITDA)   1,081   1,146   1,080   986   4,293   1,073   1,187   1,094       3,354
Depreciation and amortisation   (546)   (546)   (524)   (529)   (2,145)   (523)   (534)   (531)       (1,588)
Operating income (EBIT)   535   600   556   457   2,148   550   653   563       1,766
Net interest expense   (39)   (42)   (31)   (43)   (155)   (36)   (38)   (35)       (109)
Other financial result   (40)   (24)   (5)   69     (13)   (11)   15       (9)
Result of associates       1   (4)   (3)   (1)   (2)   (3)       (6)
Income before income taxes   456   534   521   479   1,990   500   602   540       1,642
Income tax expense   (92)   (110)   (112)   (72)   (386)   (127)   (136)   (110)       (373)
Net income   364   424   409   407   1,604   373   466   430       1,269
Attributable to equity holders of Swisscom Ltd   365   424   410   405   1,604   373   467   430       1,270
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   8.30       24.52
                                         
                                         
Net revenue
Swisscom Switzerland   2,305   2,292   2,293   2,367   9,257   2,246   2,241   2,250       6,737
Fastweb   482   483   476   516   1,957   484   511   556       1,551
Other Operating Segments   170   195   199   225   789   187   210   215       612
Group Headquarters     1     1   2     1   1       2
Intersegment elimination   (72)   (87)   (94)   (109)   (362)   (86)   (104)   (108)       (298)
Total net revenue   2,885   2,884   2,874   3,000   11,643   2,831   2,859   2,914       8,604
                   
                                         
Segment result before depreciation and amortisation (EBITDA)
Swisscom Switzerland   954   927   916   819   3,616   928   924   909       2,761
Fastweb   144   223   169   185   721   155   279   194       628
Other Operating Segments   34   46   47   37   164   40   40   49       129
Group Headquarters   (30)   (27)   (27)   (30)   (114)   (26)   (21)   (24)       (71)
Intersegment elimination   (3)   (6)   (5)   (8)   (22)   (4)   (8)   (6)       (18)
Reconciliation pension cost   (18)   (17)   (20)   (17)   (72)   (20)   (27)   (28)       (75)
Total segment result (EBITDA)   1,081   1,146   1,080   986   4,293   1,073   1,187   1,094       3,354
                   
                                         
Capital expenditure in property, plant and equipment and other intangible assets
Swisscom Switzerland   424   448   411   472   1,755   357   362   364       1,083
Fastweb   169   145   156   163   633   165   161   158       484
Other Operating Segments   7   10   13   19   49   11   13   15       39
Intersegment elimination   (4)   (6)   (5)   (6)   (21)   (4)   (8)   (7)       (19)
Total capital expenditure   596   597   575   648   2,416   529   528   530       1,587
                   
                                         
Full-time equivalent employees at end of period
Swisscom Switzerland   16,417   16,221   16,035   15,876   15,876   15,719   15,420   15,307       15,307
Fastweb   2,407   2,422   2,457   2,468   2,468   2,503   2,494   2,509       2,509
Other Operating Segments   2,507   2,491   2,503   2,493   2,493   2,575   2,585   2,617       2,617
Group Headquarters   314   309   297   290   290   282   276   271       271
Total full-time equivalent employees   21,645   21,443   21,292   21,127   21,127   21,079   20,775   20,704       20,704
                                         
Operating free cash flow   184   604   616   387   1,791   463   549   660       1,672
Net debt   8,108   8,856   8,310   7,846   7,846   7,689   8,441   7,868       7,868

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
Residential Customers   520   522   531   523   2,096   501   500   499       1,500
Enterprise Customers   125   125   126   127   503   120   122   121       363
Revenue mobile single subscription   645   647   657   650   2,599   621   622   620       1,863
Residential Customers   260   245   225   197   927   178   155   132       465
Enterprise Customers   145   142   140   145   572   140   136   132       408
Revenue fixed-line single subscription   405   387   365   342   1,499   318   291   264       873
Residential Customers   602   608   631   654   2,495   674   689   711       2,074
Enterprise Customers   1   2   2   2   7   3   4   5       12
Revenue bundles   603   610   633   656   2,502   677   693   716       2,086
Other revenue Enterprise Customers   16   16   14   16   62   16   15   15       46
Total revenue telecoms services   1,669   1,660   1,669   1,664   6,662   1,632   1,621   1,615       4,868
Solution business   268   269   252   283   1,072   261   271   264       796
Trade goods   157   144   145   191   637   147   145   142       434
Wholesale   139   148   149   155   591   138   135   157       430
Revenue other   52   50   57   54   213   49   50   49       148
Revenue from external customers   2,285   2,271   2,272   2,347   9,175   2,227   2,222   2,227       6,676
                                         
Residential Customers   1,532   1,513   1,532   1,555   6,132   1,497   1,481   1,478       4,456
Enterprise Customers   609   603   579   630   2,421   586   599   586       1,771
Wholesale   139   148   149   155   591   138   135   157       430
IT, Netowork & Infrastructure   5   7   12   7   31   6   7   6       19
Revenue from external customers   2,285   2,271   2,272   2,347   9,175   2,227   2,222   2,227       6,676
                   
                                         
Segment result before depreciation and amortisation (EBITDA)
Residential Customers   951   926   907   867   3,651   931   910   871       2,712
Enterprise Customers   217   209   209   213   848   201   215   214       630
Wholesale   91   97   102   89   379   104   103   123       330
IT, Netowork & Infrastructure   (305)   (305)   (302)   (350)   (1,262)   (308)   (304)   (298)       (910)
Intersegment elimination                 (1)       (1)
Segment result (EBITDA)   954   927   916   819   3,616   928   924   909       2,761
Margin as % of net revenue   41.4   40.4   39.9   34.6   39.1   41.3   41.2   40.4       41.0
                   
                                 
Fastweb, in EUR million
Residential Customers   223   227   225   231   906   232   238   253       723
Corporate Business   171   177   169   189   706   168   173   177       518
Wholesale   44   35   40   56   175   51   57   58       166
Revenue from external customers   438   439   434   476   1,787   451   468   488       1,407
Segment result (EBITDA)   131   204   155   171   661   145   258   170       573
Margin as % of net revenue   29.8   46.3   35.5   35.8   36.8   32.0   54.9   34.6       40.5
                                         
Capital expenditure   154   132   144   151   581   155   147   139       441
Broadband access lines in thousand   2,241   2,257   2,295   2,355   2,355   2,400   2,411   2,421       2,421
Mobile access lines in thousand   582   606   630   676   676   763   880   989       989

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
Residential Customers   2,319   2,260   2,202   2,134   2,134   2,063   1,982   1,911       1,911
Enterprise Customers   263   258   256   233   233   234   226   217       217
Fixed telephony access lines   2,582   2,518   2,458   2,367   2,367   2,297   2,208   2,128       2,128
                                         
Residential Customers   1,930   1,940   1,947   1,954   1,954   1,950   1,951   1,962       1,962
Enterprise Customers   38   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   2,000       2,000
                                         
Residential Customers   1,323   1,351   1,377   1,418   1,418   1,438   1,447   1,453       1,453
Swisscom TV access lines   1,323   1,351   1,377   1,418   1,418   1,438   1,447   1,453       1,453
                                         
Postpaid Retail Customers   3,264   3,269   3,286   3,305   3,305   3,306   3,311   3,333       3,333
Postpaid Enterprise Customers   1,228   1,242   1,242   1,247   1,247   1,256   1,260   1,268       1,268
Postpaid mobile acces lines   4,492   4,511   4,528   4,552   4,552   4,562   4,571   4,601       4,601
Prepaid Retail Customers   2,123   2,112   2,085   2,060   2,060   2,039   2,018   1,980       1,980
Mobile access lines   6,615   6,623   6,613   6,612   6,612   6,601   6,589   6,581       6,581
                                         
RGU Retail Customers   10,959   10,932   10,897   10,871   10,871   10,796   10,709   10,639       10,639
RGU Enterprise Customers   1,529   1,538   1,536   1,518   1,518   1,528   1,524   1,523       1,523
Revenue generating units (RGU)   12,488   12,470   12,433   12,389   12,389   12,324   12,233   12,162       12,162
Therof in bundles   4,362   4,497   4,709   4,952   4,952   5,146   5,290   5,520       5,520
                                         
Bundles   1,465   1,515   1,588   1,672   1,672   1,736   1,784   1,850       1,850
                                         
Broadband access lines wholesale   329   342   351   364   364   385   402   419       419
Unbundled fixed access lines   120   125   128   128   128   120   116   114       114
                                         
Swisscom Group Information by geographical regions
Net revenue in Switzerland   2,398   2,396   2,393   2,478   9,665   2,343   2,343   2,352       7,038
Net revenue in other countries   487   488   481   522   1,978   488   516   562       1,566
Total net revenue   2,885   2,884   2,874   3,000   11,643   2,831   2,859   2,914       8,604
                                         
EBITDA in Switzerland   936   923   908   805   3,572   917   905   898       2,720
EBITDA in other countries   145   223   172   181   721   156   282   196       634
Total EBITDA   1,081   1,146   1,080   986   4,293   1,073   1,187   1,094       3,354
                                         
Capital expenditure in Switzerland   425   451   416   482   1,774   362   366   369       1,097
Capital expenditure in other countries   171   146   159   166   642   167   162   161       490
Total capital expenditure   596   597   575   648   2,416   529   528   530       1,587
                                         
Full-time equivalent employees in Switzerland   18,960   18,754   18,551   18,372   18,372   18,280   17,974   17,877       17,877
Full-time equivalent employees in other countries   2,685   2,689   2,741   2,755   2,755   2,799   2,801   2,827       2,827
Total full-time equivalent employees   21,645   21,443   21,292   21,127   21,127   21,079   20,775   20,704       20,704
                                         
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.