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”. In addition, “Group Headquarters”, which includes non-allocated costs, is disclosed separately in segment reporting. Various areas were transferred between the segments of Swisscom Switzerland as at 1 January 2019. The prior year’s 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 expense 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 half of 2019, an expense of CHF 29 million is disclosed under “Eliminations” as a pension cost reconciliation item in accordance with IAS 19 (prior year: CHF 29 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 on the right-of-use asset 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 six months of 2018, an expense of CHF 99 million is disclosed under “Eliminations” as an indirect cost reconciliation item.
Swisscom Switzerland sells some mobile handsets on a subsidised basis in a bundled offering with a mobile communications contract. As a result of the reallocation of revenue over the pre-delivered components (mobile handset), revenue is recognised earlier than the date of invoicing. This results in the recognition of contract assets deriving from this business. In segment reporting of Swisscom Switzerland, the recognition and dissolution of these contract assets is reported as other revenue. The amounts invoiced are reported under revenue from telecommunications services or merchandise.
Segment information 2019
1st half-year 2019, in CHF million |
Swisscom Switzerland |
Fastweb |
Other Operating Segments |
Group Headquarters |
Elimination |
Total |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Residential Customers | 2,777 | 611 | – | – | – | 3,388 | ||||||
| Enterprise Customers | 1,121 | 469 | 266 | – | – | 1,856 | ||||||
| Wholesale customers | 320 | 99 | – | – | – | 419 | ||||||
| Net revenue from external customers | 4,218 | 1,179 | 266 | – | – | 5,663 | ||||||
| Net revenue from other segments | 38 | 4 | 196 | – | (238) | – | ||||||
| Net revenue | 4,256 | 1,183 | 462 | – | (238) | 5,663 | ||||||
| Direct costs | (885) | (440) | (28) | – | 14 | (1,339) | ||||||
| Indirect costs 1 | (1,533) | (360) | (336) | (39) | 184 | (2,084) | ||||||
| Segment result before depreciation and amortisation | 1,838 | 383 | 98 | (39) | (40) | 2,240 | ||||||
| Lease expense | (113) | (18) | (6) | (1) | 1 | (137) | ||||||
| Depreciation and amortisation of property, plant and equipment and intangible assets | (770) | (309) | (35) | – | 3 | (1,111) | ||||||
| Segment result | 955 | 56 | 57 | (40) | (36) | 992 | ||||||
| Interest expense on lease liabilities | 15 | |||||||||||
| Operating income | 1,007 | |||||||||||
| Financial income and financial expense, net | (71) | |||||||||||
| Result of equity-accounted investees | 2 | |||||||||||
| Income before income taxes | 938 | |||||||||||
| Income tax expense | (158) | |||||||||||
| Net income | 780 | |||||||||||
| Segment result before depreciation and amortisation | 1,838 | 383 | 98 | (39) | (40) | 2,240 | ||||||
| Lease expense | (113) | (18) | (6) | (1) | 1 | (137) | ||||||
| Capital expenditure in property, plant and equipment and intangible assets | (954) | (335) | (19) | – | 11 | (1,297) | ||||||
| Operating free cash flow proxy | 771 | 30 | 73 | (40) | (28) | 806 | ||||||
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1 Including capitalised costs of self-constructed assets and other income.
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Segment information Swisscom Switzerland 2019
1st half-year 2019, in CHF million |
Residential Customers |
Enterprise Customers |
Wholesale |
IT, Network & Infrastructure |
Elimination |
Total Swisscom Switzerland |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Telecom services | 2,524 | 471 | – | – | – | 2,995 | ||||||
| Solution business | – | 499 | – | – | – | 499 | ||||||
| Merchandise | 237 | 128 | – | – | – | 365 | ||||||
| Wholesale | – | – | 320 | – | – | 320 | ||||||
| Revenue other | 16 | 11 | – | 12 | – | 39 | ||||||
| Net revenue from external customers | 2,777 | 1,109 | 320 | 12 | – | 4,218 | ||||||
| Net revenue from other segments | 41 | 54 | 144 | 32 | (233) | 38 | ||||||
| Net revenue | 2,818 | 1,163 | 464 | 44 | (233) | 4,256 | ||||||
| Direct costs | (583) | (397) | (194) | (6) | 295 | (885) | ||||||
| Indirect costs 1 | (485) | (411) | (8) | (566) | (63) | (1,533) | ||||||
| Segment result before depreciation and amortisation | 1,750 | 355 | 262 | (528) | (1) | 1,838 | ||||||
| Lease expense | (26) | (14) | – | (73) | – | (113) | ||||||
| Depreciation and amortisation of property, plant and equipment and intangible assets | (56) | (35) | – | (680) | 1 | (770) | ||||||
| Segment result | 1,668 | 306 | 262 | (1,281) | – | 955 | ||||||
| Capital expenditure in property, plant and equipment and intangible assets | (10) | (19) | – | (925) | – | (954) | ||||||
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1 Including capitalised costs of self-constructed assets and other income.
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Segment information 2018
1st half-year 2018, in CHF million, adjusted |
Swisscom Switzerland |
Fastweb |
Other Operating Segments |
Group Headquarters |
Elimination |
Total |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Residential Customers | 2,904 | 608 | – | – | – | 3,512 | ||||||
| Enterprise Customers | 1,169 | 430 | 270 | – | – | 1,869 | ||||||
| Wholesale customers | 286 | 138 | – | – | – | 424 | ||||||
| Net revenue from external customers | 4,359 | 1,176 | 270 | – | – | 5,805 | ||||||
| Net revenue from other segments | 36 | 4 | 156 | 1 | (197) | – | ||||||
| Net revenue | 4,395 | 1,180 | 426 | 1 | (197) | 5,805 | ||||||
| Direct costs | (914) | (463) | (28) | – | 9 | (1,396) | ||||||
| Indirect costs 1 | (1,613) | (346) | (306) | (53) | 52 | (2,266) | ||||||
| Segment result before depreciation and amortisation | 1,868 | 371 | 92 | (52) | (136) | 2,143 | ||||||
| Lease expense | (109) | (10) | (7) | (1) | 127 | – | ||||||
| Depreciation and amortisation of property, plant and equipment and intangible assets | (746) | (291) | (30) | – | (13) | (1,080) | ||||||
| Segment result | 1,013 | 70 | 55 | (53) | (22) | 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 | 1,868 | 371 | 92 | (52) | (136) | 2,143 | ||||||
| Lease expense | (109) | (10) | (7) | (1) | 127 | – | ||||||
| Capital expenditure in property, plant and equipment and intangible assets | (711) | (347) | (19) | – | 8 | (1,069) | ||||||
| Operating free cash flow proxy | 1,048 | 14 | 66 | (53) | (1) | 1,074 | ||||||
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1 Including capitalised costs of self-constructed assets and other income.
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Segment information Swisscom Switzerland 2018
1st half-year 2018, in CHF million, adjusted |
Residential Customers |
Enterprise Customers |
Wholesale |
IT, Network & Infrastructure |
Elimination |
Total Swisscom Switzerland |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Telecom services | 2,602 | 527 | – | – | – | 3,129 | ||||||
| Solution business | – | 513 | – | – | – | 513 | ||||||
| Merchandise | 232 | 107 | – | – | – | 339 | ||||||
| Wholesale | – | – | 286 | – | – | 286 | ||||||
| Revenue other | 70 | 12 | – | 10 | – | 92 | ||||||
| Net revenue from external customers | 2,904 | 1,159 | 286 | 10 | – | 4,359 | ||||||
| Net revenue from other segments | 41 | 53 | 140 | 30 | (228) | 36 | ||||||
| Net revenue | 2,945 | 1,212 | 426 | 40 | (228) | 4,395 | ||||||
| Direct costs | (651) | (367) | (194) | (6) | 304 | (914) | ||||||
| Indirect costs 1 | (510) | (434) | (9) | (584) | (76) | (1,613) | ||||||
| Segment result before depreciation and amortisation | 1,784 | 411 | 223 | (550) | – | 1,868 | ||||||
| Lease expense | (25) | (17) | – | (67) | – | (109) | ||||||
| Depreciation and amortisation of property, plant and equipment and intangible assets | (77) | (36) | – | (634) | 1 | (746) | ||||||
| Segment result | 1,682 | 358 | 223 | (1,251) | 1 | 1,013 | ||||||
| Capital expenditure in property, plant and equipment and intangible assets | (21) | (20) | – | (670) | – | (711) | ||||||
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1 Including capitalised costs of self-constructed assets and other income.
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