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2 Segment information

General information

WSGE_DP_GR_Swisscom_Segmente

Reporting is divided into the segments “Residential Customers”, “Enterprise Customers”, “Wholesale”, and “IT, Network & Infrastructure”, which are grouped under Swisscom Switzerland, as well as “Fastweb” and “Other Operating Segments”. “Group Headquarters”, which includes non-allocated costs, is reported separately.

Group Headquarters does not charge any management fees to other segments for its financial management services, nor does the IT, Network & Infrastructure segment charge any network costs to other segments. The remaining services between the segments are recharged at market prices. Segment expense encompasses the direct and indirect costs which include personnel expense, other operating costs less capitalised costs of self-­constructed assets and other income. Retirement-benefit expense includes ordinary employer contributions. The difference between the ordinary employer contributions and the pension cost as provided for under IAS 19 is reported in the column “Eliminations”. In the first three months of 2018, an expense of CHF 15 million is disclosed under “Eliminations” as a pension cost reconciliation item in accordance with IAS 19 (prior year: CHF 20 million). The results of the Residential Customers, Enterprise Customers and Wholesale segments correspond to a contribution margin before network costs. The segment result of IT, Network & Infrastructure consists of operating expenses and depreciation and amortisation less revenues from the rental and administration of buildings and vehicles as well as capitalised costs of property, plant and equipment and other income. The segment results of Swisscom Switzerland and of the Other Operating Segments do not reflect the retirement-benefit reconciliation item in accordance with IAS 19. The segment results of Fastweb correspond to the operating results.

Various areas have been transferred between the segments of Swisscom Switzerland. The prior-year figures have been restated accordingly.

Segment information 2018


2018, in CHF million
 
Swisscom
Switzerland
 

Fastweb
  Other
operating
segments
  Group
Head-
quarters
 

Elimination
 

Total
Residential Customers   1,456   300         1,756
Corporate Business   589   210   127       926
Wholesale customers   141   62         203
Net revenue from external customers   2,186   572   127       2,885
Net revenue with other segments   20   2   70     (92)  
Net revenue   2,206   574   197     (92)   2,885
Direct costs   (459)   (237)   (14)     6   (704)
Indirect costs 1   (855)   (170)   (144)   (22)   68   (1,123)
Segment result before depreciation and amortisation   892   167   39   (22)   (18)   1,058
Depreciation, amortisation and impairment losses   (378)   (149)   (15)     2   (540)
Segment result   514   18   24   (22)   (16)   518
Financial income and financial expense, net                       (41)
Result of equity-accounted investees                       (2)
Income before income taxes                       475
Income tax expense                       (96)
Net income                       379
                         
Segment result before depreciation and amortisation   892   167   39   (22)   (18)   1,058
Capital expenditure in property, plant and equipment and intangible assets   (311)   (185)   (8)     3   (501)
Change in provisions   (11)   (1)     (8)     (20)
Change in defined benefit obligations   2   (1)       14   15
Change in operating net working capital   (285)   31   33   40   (12)   (193)
Operating free cash flow   287   11   64   10   (13)   359
1 Including capitalised costs of self-constructed assets and other income.

Segment information Swisscom Switzerland 2018


2018, in CHF million
 
Residential
Customers
 
Enterprise
Customers
 

Wholesale
  IT,
Network &
Infrastructure
 

Elimination
  Total
Swisscom
Switzerland
Telecom services   1,298   260         1,558
Solution business     268         268
Merchandise   120   50         170
Wholesale       141       141
Other revenue   38   6     5     49
Net revenue from external customers   1,456   584   141   5     2,186
Intersegment revenue   20   27   62   36   (125)   20
Net revenue   1,476   611   203   41   (125)   2,206
Direct costs   (322)   (185)   (89)   (3)   140   (459)
Indirect costs 1   (274)   (232)   (5)   (328)   (16)   (855)
Segment result before depreciation and amortisation   880   194   109   (290)   (1)   892
Depreciation, amortisation and impairment losses   (38)   (18)     (322)     (378)
Segment result   842   176   109   (612)   (1)   514
                         
Capital expenditure in property, plant and equipment and intangible assets   (36)   (12)     (263)     (311)
1 Including capitalised costs of self-constructed assets and other income.

Segment information 2017


2017, in CHF million, adjusted
 
Swisscom
Switzerland
 

Fastweb
  Other
operating
segments
  Group
Head-
quarters
 

Elimination
 

Total
Residential Customers   1,497   248         1,745
Corporate Business   592   180   122       894
Wholesale customers   138   54         192
Net revenue from external customers   2,227   482   122       2,831
Net revenue with other segments   19   2   65     (86)  
Net revenue   2,246   484   187     (86)   2,831
Direct costs   (440)   (165)   (7)     6   (606)
Indirect costs 1   (878)   (164)   (140)   (26)   56   (1,152)
Segment result before depreciation and amortisation   928   155   40   (26)   (24)   1,073
Depreciation, amortisation and impairment losses   (367)   (140)   (17)     1   (523)
Segment result   561   15   23   (26)   (23)   550
Financial income and financial expense, net                       (49)
Result of equity-accounted investees                       (1)
Income before income taxes                       500
Income tax expense                       (127)
Net income                       373
                         
Segment result before depreciation and amortisation   928   155   40   (26)   (24)   1,073
Capital expenditure in property, plant and equipment and intangible assets   (357)   (165)   (11)     4   (529)
Change in provisions   (12)   (3)   (1)   (3)     (19)
Change in defined benefit obligations   (1)   (1)     (1)   20   17
Change in operating net working capital   (141)   29   4   30   (1)   (79)
Operating free cash flow   417   15   32     (1)   463
1 Including capitalised costs of self-constructed assets and other income.

Segment information Swisscom Switzerland 2017


2017, in CHF million, adjusted
 
Residential
Customers
 
Enterprise
Customers
 

Wholesale
  IT,
Network &
Infrastructure
 

Elimination
  Total
Swisscom
Switzerland
Telecom services   1,353   279         1,632
Solution business     261         261
Merchandise   104   43         147
Wholesale       138       138
Other revenue   40   3     6     49
Net revenue from external customers   1,497   586   138   6     2,227
Intersegment revenue   20   27   68   36   (132)   19
Net revenue   1,517   613   206   42   (132)   2,246
Direct costs   (308)   (184)   (97)   (3)   152   (440)
Indirect costs 1   (286)   (230)   (5)   (337)   (20)   (878)
Segment result before depreciation and amortisation   923   199   104   (298)     928
Depreciation, amortisation and impairment losses   (32)   (19)     (316)     (367)
Segment result   891   180   104   (614)     561
                         
Capital expenditure in property, plant and equipment and intangible assets   (45)   (20)     (292)     (357)
1 Including capitalised costs of self-constructed assets and other income.