Quarterly review 2018 and 2019

In CHF million, except where indicated	1. quarter	2. quarter	3. quarter	4. quarter	2018	1. quarter	2019

Income statement
Net revenue	2,885	2,920	2,884	3,025	11,714	2,860	2,860
Direct costs	(704)	(692)	(723)	(835)	(2,954)	(683)	(683)
Personnel expense	(723)	(714)	(661)	(717)	(2,815)	(724)	(724)
Other operating expense	(503)	(540)	(519)	(631)	(2,193)	(448)	(448)
Capitalised self-constructed assets and other income	103	111	107	140	461	114	114
Operating income (EBITDA)	1,058	1,085	1,088	982	4,213	1,119	1,119
Depreciation and amortisation	(540)	(540)	(530)	(534)	(2,144)	(554)	(554)
Depreciation of right-of-use assets	–	–	–	–	–	(60)	(60)
Operating income (EBIT)	518	545	558	448	2,069	505	505
Net interest expense on financial assets and liabilities	(29)	(29)	(27)	(19)	(104)	(15)	(15)
Interest expenses lease liabilities	(6)	(6)	(6)	(6)	(24)	(8)	(8)
Other financial result	(6)	6	(3)	(27)	(30)	3	3
Equity-accounted investees	(2)	2	3	2	5	2	2
Income before income taxes	475	518	525	398	1,916	487	487
Income tax expense	(96)	(110)	(99)	(90)	(395)	(104)	(104)
Net income	379	408	426	308	1,521	383	383
Attributable to equity holders of Swisscom Ltd	381	409	427	310	1,527	385	385
Share attributable to non-controlling interests	(2)	(1)	(1)	(2)	(6)	(2)	(2)

Earnings per share (in CHF)	7.36	7.90	8.24	5.98	29.48	7.43	7.43


Net revenue
Swisscom Switzerland	2,204	2,191	2,188	2,223	8,806	2,163	2,163
Fastweb	574	606	577	669	2,426	581	581
Other Operating Segments	198	228	230	253	909	225	225
Group Headquarters	–	1	–	1	2	–	–
Intersegment elimination	(91)	(106)	(111)	(121)	(429)	(109)	(109)
Total net revenue	2,885	2,920	2,884	3,025	11,714	2,860	2,860


Operating income before depreciation and amortisation (EBITDA)
Swisscom Switzerland	935	933	919	789	3,576	929	929
Fastweb	172	199	204	228	803	177	177
Other Operating Segments	41	51	56	49	197	50	50
Group Headquarters	(21)	(31)	(19)	(5)	(76)	(18)	(18)
Reconciliation pension cost	(15)	(14)	(17)	(14)	(60)	(14)	(14)
Reconciliation lease expense (IAS 17)	(52)	(47)	(51)	(57)	(207)	–	–
Intersegment elimination	(2)	(6)	(4)	(8)	(20)	(5)	(5)
Total EBITDA	1,058	1,085	1,088	982	4,213	1,119	1,119


Capital expenditure in property, plant and equipment and intangible assets
Swisscom Switzerland	311	400	391	518	1,620	353	353
Fastweb	185	162	154	256	757	161	161
Other Operating Segments	8	11	12	15	46	8	8
Intersegment elimination	(3)	(5)	(5)	(6)	(19)	(4)	(4)
Total capital expenditure	501	568	552	783	2,404	518	518

	1. quarter	2. quarter	3. quarter	4. quarter	2018	1. quarter	2019


Operating free cash flow proxy
Operating income (EBITDA)	1,058	1,085	1,088	982	4,213	1,119	1,119
Capital expenditure	(501)	(568)	(552)	(783)	(2,404)	(518)	(518)
Lease expense (IFRS 16)	–	–	–	–	–	(68)	(68)
Operating free cash flow proxy	557	517	536	199	1,809	533	533

Net debt
Net debt excluding lease liabilities	6,835	7,696	7,187	7,009	7,009	6,736	6,736
Lease liabilities	459	450	455	384	384	1,719	1,719
Net debt	7,294	8,146	7,642	7,393	7,393	8,455	8,455

Full-time equivalent employees at end of year
Swisscom Switzerland	15,014	14,562	14,522	14,448	14,448	14,340	14,340
Fastweb	2,510	2,483	2,470	2,484	2,484	2,458	2,458
Other Operating Segments	2,540	2,588	2,615	2,679	2,679	2,699	2,699
Group Headquarters	262	262	243	234	234	222	222
Total full-time equivalent employees	20,326	19,895	19,850	19,845	19,845	19,719	19,719

Information by geographical region in CHF million or full-time equivalents
Net revenue in Switzerland	2,308	2,310	2,305	2,351	9,274	2,277	2,277
Net revenue in other countries	577	610	579	674	2,440	583	583
Total net revenue	2,885	2,920	2,884	3,025	11,714	2,860	2,860

EBITDA in Switzerland	889	891	887	752	3,419	939	939
EBITDA in other countries	169	194	201	230	794	180	180
Total EBITDA	1,058	1,085	1,088	982	4,213	1,119	1,119

Capital expenditure in Switzerland	315	406	398	526	1,645	357	357
Capital expenditure in other countries	186	162	154	257	759	161	161
Total capital expenditure	501	568	552	783	2,404	518	518

Full-time equivalent employees in Switzerland	17,611	17,203	17,165	17,147	17,147	17,035	17,035
Full-time equivalent employees in other countries	2,715	2,692	2,685	2,698	2,698	2,684	2,684
Total full-time equivalent employees	20,326	19,895	19,850	19,845	19,845	19,719	19,719

Fastweb, in EUR million
Retail Customers	257	264	264	265	1,050	269	269
Corporate Business	180	188	190	222	780	202	202
Wholesale	53	66	49	99	267	42	42
Revenue from external customers	490	518	503	586	2,097	513	513
Segment result (EBITDA)	148	170	178	200	696	157	157
Margin as % of net revenue	30.1	32.8	35.2	34.0	33.1	30.4	30.4

Capital expenditure	159	138	135	225	657	143	143
Broadband access lines in thousand	2,483	2,500	2,518	2,547	2,547	2,575	2,575
Mobile access lines in thousand	1,185	1,280	1,324	1,432	1,432	1,517	1,517

In CHF million, except where indicated	1. quarter	2. quarter	3. quarter	4. quarter	2018	1. quarter	2019

Swisscom Switzerland Revenue and results
Retail Customers	655	659	662	642	2,618	630	630
Enterprise Customers	113	118	114	106	451	102	102
Revenue mobile	768	777	776	748	3,069	732	732
Retail Customers	643	645	642	643	2,573	638	638
Enterprise Customers	131	134	128	127	520	120	120
Revenue fixed-line	774	779	770	770	3,093	758	758
Other revenue Enterprise Customers	16	15	14	15	60	16	16
Total revenue telecoms services	1,558	1,571	1,560	1,533	6,222	1,506	1,506
Solution business	264	259	255	281	1,069	251	251
Merchandise	174	166	173	207	719	196	196
Wholesale	141	145	148	132	566	158	158
Other revenue	49	32	35	52	163	32	32
Revenue from external customers	2,186	2,173	2,171	2,205	8,735	2,143	2,143

Retail Customers	1,456	1,448	1,457	1,482	5,843	1,413	1,413
Enterprise Customers	584	575	561	586	2,306	566	566
Wholesale	141	145	148	132	566	158	158
IT, Network & Infrastructure	5	5	5	5	20	6	6
Revenue from external customers	2,186	2,173	2,171	2,205	8,735	2,143	2,143


Segment result before depreciation and amortisation (EBITDA)
Retail Customers	902	882	874	805	3,463	884	884
Enterprise Customers	208	203	206	187	804	181	181
Wholesale	109	114	119	105	447	130	130
IT, Network & Infrastructure	(284)	(266)	(281)	(307)	(1,138)	(265)	(265)
Intersegment elimination	–	–	1	(1)	–	(1)	(1)
Segment result (EBITDA)	935	933	919	789	3,576	929	929
Margin as % of net revenue	42.4	42.6	42.0	35.5	40.6	42.9	42.9

Operational data in thousand
Access lines
Retail Customers	1,779	1,730	1,684	1,641	1,641	1,601	1,601
Enterprise Customers	198	176	162	147	147	136	136
Fixed telephony access lines	1,977	1,906	1,846	1,788	1,788	1,737	1,737

Retail Customers	1,988	1,991	1,993	1,998	1,998	1,995	1,995
Enterprise Customers	37	37	37	35	35	35	35
Broadband access lines retail	2,025	2,028	2,030	2,033	2,033	2,030	2,030

Retail Customers	1,492	1,501	1,510	1,519	1,519	1,523	1,523
Swisscom TV access lines	1,492	1,501	1,510	1,519	1,519	1,523	1,523

Postpaid Residential Customers	3,381	3,379	3,385	3,382	3,382	3,435	3,435
Postpaid Enterprise Customers	1,265	1,270	1,283	1,294	1,294	1,272	1,272
Mobile access lines Postpaid	4,646	4,649	4,668	4,676	4,676	4,707	4,707
Prepaid Residential Customers	1,805	1,785	1,741	1,694	1,694	1,671	1,671
Mobile access lines	6,451	6,434	6,409	6,370	6,370	6,378	6,378

RGU Residential Customers	10,445	10,386	10,313	10,234	10,234	10,225	10,225
RGU Enterprise Customers	1,500	1,483	1,482	1,476	1,476	1,443	1,443
Revenue generating units (RGU)	11,945	11,869	11,795	11,710	11,710	11,668	11,668

Broadband access lines wholesale	449	462	472	481	481	492	492
Unbundled fixed access lines	100	95	91	87	87	83	83