Swisscom Switzerland
| In CHF million, except where indicated | 2019 | 2018 | Change | |||
|---|---|---|---|---|---|---|
| Net revenue and results | ||||||
| Telecom services | 5,932 | 6,222 | –4.7% | |||
| Solution business | 1,021 | 1,027 | –0.6% | |||
| Merchandise | 808 | 718 | 12.5% | |||
| Wholesale | 643 | 566 | 13.6% | |||
| Revenue other | 80 | 202 | –60.4% | |||
| Revenue from external customers | 8,484 | 8,735 | –2.9% | |||
| Intersegment revenue | 79 | 71 | 11.3% | |||
| Net revenue | 8,563 | 8,806 | –2.8% | |||
| Direct costs | (1,897) | (1,971) | –3.8% | |||
| Indirect costs | (3,175) | (3,259) | –2.6% | |||
| Segment expenses | (5,072) | (5,230) | –3.0% | |||
| Segment result before depreciation and amortisation (EBITDA) | 3,491 | 3,576 | –2.4% | |||
| Margin as % of net revenue | 40.8 | 40.6 | ||||
| Lease expense | (226) | (221) 1 | 2.3% | |||
| Depreciation | (1,515) | (1,471) | 3.0% | |||
| Segment result | 1,750 | 1,884 | –7.1% | |||
| Operational data at end of period in thousand | ||||||
| Fixed telephony access lines | 1,594 | 1,788 | –10.9% | |||
| Broadband access lines retail | 2,033 | 2,033 | 0.0% | |||
| Swisscom TV access lines | 1,555 | 1,519 | 2.4% | |||
| Mobile access lines | 6,333 | 6,370 | –0.6% | |||
| Revenue generating units (RGU) | 11,515 | 11,710 | –1.7% | |||
| Broadband access lines wholesale | 515 | 481 | 7.1% | |||
| Capital expenditure and headcount | ||||||
| Capital expenditure | 1,761 | 1,620 | 8.7% | |||
| Full-time equivalent employees at end of year (number) | 13,979 | 14,448 | –3.2% | |||
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1 Includes expenses for operating and finance leases in accordance with IAS 17.
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Net revenue for Swisscom Switzerland fell by CHF 243 million or 2.8% to CHF 8,563 million as a result of continuing price pressure and the decline in the number of connections in fixed-line telephony. Revenue from telecommunications services decreased by CHF 290 million or 4.7% to CHF 5,932 million. Of this decline, CHF 178 million (–3.4%) was attributable to the Residential Customers segment and CHF 112 million (–10.9%) to the Enterprise Customers segment. In Enterprise Customers, revenue from the solutions business remained relatively stable (–0.6%). The decline as a result of price pressure and lower volumes in the workplace and banking areas was nearly offset by growth in the areas of security and the cloud. Incoming orders in 2019 amounted to around CHF 3.1 billion. In Wholesale, revenues increased due to higher demand for broadband connections, additional mobile network customers and higher inbound roaming volumes.
The number of revenue-generating units decreased by 1.7% or 0.2 million to 11.5 million, chiefly as a result of the downward trend in fixed-line telephony. The number of fixed-line telephony connections fell by 194,000 or 10.9% to 1.6 million. In the saturated mobile telephony market, the subscriber base remained almost stable at 6.33 million (–0.6%). The number of prepaid lines declined by 7.8% to 1.56 million, while postpaid lines increased by 2.0% to a total of 4.77 million. The broadband and TV markets are also saturated. Nevertheless, the number of TV customers rose by 2.4% to 1.56 million, while the number of broadband connections remained stable at 2.03 million. The number of inOne customers is continuing to increase. In 2019, the inOne customer base grew by 0.4 million to 2.8 million. These customers are using a total of 5.4 million products, which represents an increase of 0.9 million within the space of a year. inOne mobile, which was launched in February 2019 and integrates roaming (voice and data) in Europe into the basic charge, had 1.15 million customers at the end of 2019.
Segment expense fell by CHF 158 million or 3.0% to CHF 5,072 million. Direct costs decreased by CHF 74 million or 3.8% to CHF 1,897 million. Lower costs for acquiring and retaining customers were offset by higher costs for the purchase of services and goods. Indirect costs were CHF 84 million or 2.6% lower at CHF 3,175 million. Adjusted for provisions of CHF 62 million recognised for headcount reduction, the decrease was CHF 146 million or 4.5%. This was mainly driven by the declining headcount and lower costs for external staff and the operation of IT systems. Headcount fell as a result of efficiency measures by 469 FTEs or 3.2% to 13,979. The segment result before depreciation and amortisation was CHF 85 million or 2.4% lower at CHF 3,491 million. This decrease, which is attributable to lower revenue, was largely offset by ongoing cost-cutting measures. Capital expenditure climbed by CHF 141 million or 8.7% to CHF 1,761 million as a result of the expenditure on the mobile radio frequencies acquired. Capital expenditure for the expansion of the broadband networks remained at a high level. As at the end of 2019, 74% of all households and businesses were connected with ultra-fast broadband exceeding 80 Mbps. 47% of all homes and offices benefit from fast connections with bandwidths of more than 200 Mbps.