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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. 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
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
1 Including capitalised costs of self-constructed assets and other income.

Segment information Swisscom Switzerland 2019


2019, in CHF million
 
Residential
Customers
 
Enterprise
Customers
 

Wholesale
  IT,
Network &
Infrastructure
 

Elimination
  Total
Swisscom
Switzerland
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)
1 Including capitalised costs of self-constructed assets and other income.

Segment information 2018


2018, in CHF million, restated
 
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   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
1 Including capitalised costs of self-constructed assets and other income.

Segment information Swisscom Switzerland 2018


2018, in CHF million, restated
 
Residential
Customers
 
Enterprise
Customers
 

Wholesale
  IT,
Network &
Infrastructure
 

Elimination
  Total
Swisscom
Switzerland
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)
1 Including capitalised costs of self-constructed assets and other income.