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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 half of 2018, an expense of CHF 29 million is disclosed under “Eliminations” as a pension cost reconciliation item in accordance with IAS 19 (prior year: CHF 47 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


1st half-year 2018, in CHF million
 
Swisscom
Switzerland
 

Fastweb
  Other
operating
segments
  Group
Head-
quarters
 

Elimination
 

Total
Residential Customers   2,904   608         3,512
Corporate Business   1,170   430   269       1,869
Wholesale customers   286   138         424
Net revenue from external customers   4,360   1,176   269       5,805
Net revenue with other segments   40   4   156   1   (201)  
Net revenue   4,400   1,180   425   1   (201)   5,805
Direct costs   (914)   (467)   (28)     13   (1,396)
Indirect costs 1   (1,700)   (351)   (311)   (54)   150   (2,266)
Segment result before depreciation and amortisation   1,786   362   86   (53)   (38)   2,143
Depreciation, amortisation and impairment losses   (762)   (292)   (30)     4   (1,080)
Segment result   1,024   70   56   (53)   (34)   1,063
Financial income and financial expense, net                       (70)
Result of equity-accounted investees                      
Income before income taxes                       993
Income tax expense                       (206)
Net income                       787
                         
Segment result before depreciation and amortisation   1,786   362   86   (53)   (38)   2,143
Capital expenditure in property, plant and equipment and intangible assets   (711)   (347)   (19)     8   (1,069)
Change in provisions   (45)   2     15     (28)
Change in defined benefit obligations   3     (1)   (1)   29   30
Change in operating net working capital   (363)   11   6   29   (7)   (324)
Other 2   (1)           (1)
Operating free cash flow   669   28   72   (10)   (8)   751
1 Including capitalised costs of self-constructed assets and other income.
2 Proceeds from the sale of property, plant and equipment, non-cash change in net working capital from operating activities, change in deferred gain from the sale and leaseback of real estate, and dividend payments to owners of non-controlling interests.

Segment information Swisscom Switzerland 2018


1st half-year 2018, in CHF million
 
Residential
Customers
 
Enterprise
Customers
 

Wholesale
  IT,
Network &
Infrastructure
 

Elimination
  Total
Swisscom
Switzerland
Telecom services   2,602   527         3,129
Solution business     520         520
Merchandise   232   101         333
Wholesale       286       286
Other revenue   70   12     10     92
Net revenue from external customers   2,904   1,160   286   10     4,360
Intersegment revenue   41   53   140   70   (264)   40
Net revenue   2,945   1,213   426   80   (264)   4,400
Direct costs   (651)   (366)   (194)   (6)   303   (914)
Indirect costs 1   (554)   (461)   (9)   (637)   (39)   (1,700)
Segment result before depreciation and amortisation   1,740   386   223   (563)     1,786
Depreciation, amortisation and impairment losses   (76)   (36)     (650)     (762)
Segment result   1,664   350   223   (1,213)     1,024
                         
Capital expenditure in property, plant and equipment and intangible assets   (79)   (25)     (607)     (711)
1 Including capitalised costs of self-constructed assets and other income.

Segment information 2017


1st half-year 2017, in CHF million, adjusted
 
Swisscom
Switzerland
 

Fastweb
  Other
operating
segments
  Group
Head-
quarters
 

Elimination
 

Total
Residential Customers   2,978   507         3,485
Corporate Business   1,198   368   251       1,817
Wholesale customers   273   115         388
Net revenue from external customers   4,449   990   251       5,690
Net revenue with other segments   38   5   146   1   (190)  
Net revenue   4,487   995   397   1   (190)   5,690
Direct costs   (876)   (334)   (15)     12   (1,213)
Indirect costs 1   (1,759)   (227)   (302)   (48)   119   (2,217)
Segment result before depreciation and amortisation   1,852   434   80   (47)   (59)   2,260
Depreciation, amortisation and impairment losses   (746)   (281)   (34)     4   (1,057)
Segment result   1,106   153   46   (47)   (55)   1,203
Financial income and financial expense, net                       (98)
Result of equity-accounted investees                       (3)
Income before income taxes                       1,102
Income tax expense                       (263)
Net income                       839
                         
Segment result before depreciation and amortisation   1,852   434   80   (47)   (59)   2,260
Capital expenditure in property, plant and equipment and intangible assets   (719)   (326)   (24)     12   (1,057)
Change in provisions   (20)   (2)   3   (3)     (22)
Change in defined benefit obligations   (19)   (1)     (51)   47   (24)
Change in operating net working capital   (168)   25   (7)   19   (6)   (137)
Other 2   (8)           (8)
Operating free cash flow   918   130   52   (82)   (6)   1,012
1 Including capitalised costs of self-constructed assets and other income.
2 Proceeds from the sale of property, plant and equipment, non-cash change in net working capital from operating activities, change in deferred gain from the sale and leaseback of real estate, and dividend payments to owners of non-controlling interests.

Segment information Swisscom Switzerland 2017


1st half-year 2017, in CHF million, adjusted
 
Residential
Customers
 
Enterprise
Customers
 

Wholesale
  IT,
Network &
Infrastructure
 

Elimination
  Total
Swisscom
Switzerland
Telecom services   2,697   556         3,253
Solution business     532         532
Merchandise   203   89         292
Wholesale       273       273
Other revenue   78   8     13     99
Net revenue from external customers   2,978   1,185   273   13     4,449
Intersegment revenue   40   54   148   71   (275)   38
Net revenue   3,018   1,239   421   84   (275)   4,487
Direct costs   (618)   (361)   (206)   (6)   315   (876)
Indirect costs 1   (574)   (467)   (8)   (670)   (40)   (1,759)
Segment result before depreciation and amortisation   1,826   411   207   (592)     1,852
Depreciation, amortisation and impairment losses   (65)   (39)     (641)   (1)   (746)
Segment result   1,761   372   207   (1,233)   (1)   1,106
                         
Capital expenditure in property, plant and equipment and intangible assets   (86)   (36)     (597)     (719)
1 Including capitalised costs of self-constructed assets and other income.