2 Segment information
General information
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. Various areas have been transferred between the segments of Swisscom Switzerland as at 1 January 2019. The prior-year figures have been restated accordingly.
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. The results of the Residential Customers, Enterprise Customers and Wholesale segments thus correspond to a contribution margin before network costs.
Indirect costs include personnel expense, other operating costs less capitalised costs of self-constructed assets and other income. Pension cost 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 2019, an expense of CHF 14 million is disclosed under “Eliminations” as a pension cost reconciliation item in accordance with IAS 19 (prior year: CHF 15 million).
Leases between the segments are not recognised in the balance sheet in accordance with IFRS 16. The reported lease expense of the segments in 2019 comprises depreciation and interest of leases and the accounting for the rental of buildings between segments. The lease expense of assets of low value is reported as direct costs. The lease expense of the segments in 2018 comprises the expense for operating and finance leases in accordance with IAS 17 and the accounting for the rental of buildings between segments. The reconciliation of the indirect costs of the segments to the consolidated values is reported in the column “Eliminations”. For the first three months of 2018, an expense of CHF 52 million is disclosed under “Eliminations” as an indirect costs reconciliation item.
Segment information 2019
2019, in CHF million |
Swisscom Switzerland |
Fastweb |
Other operating segments |
Group Head- quarters |
Elimination |
Total |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Residential Customers | 1,413 | 304 | – | – | – | 1,717 | ||||||
| Corporate Business | 572 | 228 | 138 | – | – | 938 | ||||||
| Wholesale customers | 158 | 47 | – | – | – | 205 | ||||||
| Net revenue from external customers | 2,143 | 579 | 138 | – | – | 2,860 | ||||||
| Net revenue with other segments | 20 | 2 | 87 | – | (109) | – | ||||||
| Net revenue | 2,163 | 581 | 225 | – | (109) | 2,860 | ||||||
| Direct costs | (461) | (215) | (14) | – | 7 | (683) | ||||||
| Indirect costs 1 | (773) | (189) | (161) | (18) | 83 | (1,058) | ||||||
| Segment result before depreciation and amortisation | 929 | 177 | 50 | (18) | (19) | 1,119 | ||||||
| Lease expense | (56) | (8) | (3) | (1) | – | (68) | ||||||
| Depreciation and amortisation of property, plant and equipment and intangible assets | (381) | (156) | (18) | – | 1 | (554) | ||||||
| Segment result | 492 | 13 | 29 | (19) | (18) | 497 | ||||||
| Interest expense on lease liabilities | 8 | |||||||||||
| Operating income | 505 | |||||||||||
| Financial income and financial expense, net | (20) | |||||||||||
| Result of equity-accounted investees | 2 | |||||||||||
| Income before income taxes | 487 | |||||||||||
| Income tax expense | (104) | |||||||||||
| Net income | 383 | |||||||||||
| Segment result before depreciation and amortisation | 929 | 177 | 50 | (18) | (19) | 1,119 | ||||||
| Lease expense | (56) | (8) | (3) | (1) | – | (68) | ||||||
| Capital expenditure in property, plant and equipment and intangible assets | (353) | (161) | (8) | – | 4 | (518) | ||||||
| Operating free cash flow proxy | 520 | 8 | 39 | (19) | (15) | 533 | ||||||
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1 Including capitalised costs of self-constructed assets and other income.
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Segment information Swisscom Switzerland 2019
2019, in CHF million |
Residential Customers |
Enterprise Customers |
Wholesale |
IT, Network & Infrastructure |
Elimination |
Total Swisscom Switzerland |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Telecom services | 1,268 | 238 | – | – | – | 1,506 | ||||||
| Solution business | – | 251 | – | – | – | 251 | ||||||
| Merchandise | 125 | 71 | – | – | – | 196 | ||||||
| Wholesale | – | – | 158 | – | – | 158 | ||||||
| Other revenue | 20 | 6 | – | 6 | – | 32 | ||||||
| Net revenue from external customers | 1,413 | 566 | 158 | 6 | – | 2,143 | ||||||
| Intersegment revenue | 21 | 27 | 63 | 17 | (108) | 20 | ||||||
| Net revenue | 1,434 | 593 | 221 | 23 | (108) | 2,163 | ||||||
| Direct costs | (307) | (203) | (87) | (3) | 139 | (461) | ||||||
| Indirect costs 1 | (243) | (209) | (4) | (285) | (32) | (773) | ||||||
| Segment result before depreciation and amortisation | 884 | 181 | 130 | (265) | (1) | 929 | ||||||
| Lease expense | (13) | (7) | – | (36) | – | (56) | ||||||
| Depreciation and amortisation of property, plant and equipment and intangible assets | (28) | (17) | – | (336) | – | (381) | ||||||
| Segment result | 843 | 157 | 130 | (637) | (1) | 492 | ||||||
| Capital expenditure in property, plant and equipment and intangible assets | (5) | (9) | – | (339) | – | (353) | ||||||
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1 Including capitalised costs of self-constructed assets and other income.
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Segment information 2018
2018, in CHF million, restated |
Swisscom Switzerland |
Fastweb |
Other operating segments |
Group Head- quarters |
Elimination |
Total |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 18 | 2 | 71 | – | (91) | – | ||||||
| Net revenue | 2,204 | 574 | 198 | – | (91) | 2,885 | ||||||
| Direct costs | (460) | (235) | (15) | – | 6 | (704) | ||||||
| Indirect costs 1 | (809) | (167) | (142) | (21) | 16 | (1,123) | ||||||
| Segment result before depreciation and amortisation | 935 | 172 | 41 | (21) | (69) | 1,058 | ||||||
| Lease expense | (56) | (5) | (3) | (1) | 65 | – | ||||||
| Depreciation and amortisation of property, plant and equipment and intangible assets | (370) | (149) | (15) | – | (6) | (540) | ||||||
| Segment result | 509 | 18 | 23 | (22) | (10) | 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 | 935 | 172 | 41 | (21) | (69) | 1,058 | ||||||
| Lease expense | (56) | (5) | (3) | (1) | 65 | – | ||||||
| Capital expenditure in property, plant and equipment and intangible assets | (311) | (185) | (8) | – | 3 | (501) | ||||||
| Operating free cash flow proxy | 568 | (18) | 30 | (22) | (1) | 557 | ||||||
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1 Including capitalised costs of self-constructed assets and other income.
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Segment information Swisscom Switzerland 2018
2018, in CHF million, restated |
Residential Customers |
Enterprise Customers |
Wholesale |
IT, Network & Infrastructure |
Elimination |
Total Swisscom Switzerland |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Telecom services | 1,298 | 260 | – | – | – | 1,558 | ||||||
| Solution business | – | 264 | – | – | – | 264 | ||||||
| Merchandise | 120 | 54 | – | – | – | 174 | ||||||
| Wholesale | – | – | 141 | – | – | 141 | ||||||
| Other revenue | 38 | 6 | – | 5 | – | 49 | ||||||
| Net revenue from external customers | 1,456 | 584 | 141 | 5 | – | 2,186 | ||||||
| Intersegment revenue | 20 | 26 | 62 | 15 | (105) | 18 | ||||||
| Net revenue | 1,476 | 610 | 203 | 20 | (105) | 2,204 | ||||||
| Direct costs | (322) | (187) | (90) | (3) | 142 | (460) | ||||||
| Indirect costs 1 | (252) | (215) | (4) | (301) | (37) | (809) | ||||||
| Segment result before depreciation and amortisation | 902 | 208 | 109 | (284) | – | 935 | ||||||
| Lease expense | (14) | (8) | – | (34) | – | (56) | ||||||
| Depreciation and amortisation of property, plant and equipment and intangible assets | (38) | (18) | – | (313) | (1) | (370) | ||||||
| Segment result | 850 | 182 | 109 | (631) | (1) | 509 | ||||||
| Capital expenditure in property, plant and equipment and intangible assets | (9) | (8) | – | (294) | – | (311) | ||||||
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1 Including capitalised costs of self-constructed assets and other income.
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