About this report

General information

The Swisscom Group (hereinafter referred to as “Swisscom”) provides telecommunication services and is active primarily in Switzerland and Italy. The unaudited consolidated financial statements as of 30 June 2020 comprise Swisscom Ltd, as parent company, and its subsidiaries. Swisscom Ltd is a limited-liability company incorporated in accordance with Swiss law, under a private statute, and has its registered office in Ittigen (Berne). Its address is: Swisscom Ltd, Alte Tiefenaustrasse 6, 3048 Worblaufen. Swisscom is listed on the SIX Swiss Exchange. The number of issued shares is unchanged from the prior year and totals 51,801,943. The shares have a nominal value of CHF 1 and are fully paid-up. Each share entitles the holder to one vote. The majority shareholder of Swisscom Ltd is the Swiss Confederation (“Confederation”). The Confederation is obligated by current law to hold the majority of the capital and voting rights. The Board of Directors of Swisscom approved the issuance of these consolidated interim financial statements on 12 August 2020. As of this date, no material events after the balance sheet date had occurred.

Basis of preparation

The consolidated interim financial statements for the six months to 30 June 2020 have been prepared in accordance with International Accounting Standard “IAS 34 Interim Financial Reporting” and should be read in conjunction with the consolidated annual financial statements for the financial year ended 31 December 2019. The consolidated interim financial statements were prepared in accordance with the accounting policies described in the 2019 consolidated financial statements and the revised accounting principles adopted on 1 January 2020.

In preparing the consolidated interim financial statements, management is required to make accounting estimates and assumptions. Adjustments are made for changes in accounting estimates and assumptions during the reporting period in which the original estimates and assumptions changed.

Swisscom operates in business areas where the provision of services is not subject to any major seasonal or cyclical fluctuations during the financial year. Income taxes are calculated on the basis of an estimate of the expected income tax rate for the full year. For the consolidated interim financial statements, a CHF/EUR exchange rate of 1.065 was used as the end-of-period rate (31 December 2019: CHF/EUR 1.085) and 1.067 as the average rate for the period (prior year: CHF/EUR 1.128).

Impact of the Covid-19 pandemic

In March 2020, government measures against the spread of Covid-19 restricted economic activities in Switzerland and Italy. With the exception of the roaming business, the impact on Swisscom’s core business or telecommunications business is minimal. The roaming business recorded a decline as a result of reduced travel activity. Furthermore, Covid-19 resulted in a negative business trend in the cinema and event business. Based on Covid-19, Swisscom has reassessed key estimates and assumptions as at 30 June 2020. The key estimates and assumptions reported in the consolidated financial statements as of 31 December 2019 remained essentially unchanged as of 30 June 2020. At present, it is not finally possible to quantify the potential financial impact of Covid-19 as it depends on various factors (such as the extent and duration of the pandemic, government support measures to benefit the economy, customer behaviour in Switzerland and Italy, etc.), and there is a high degree of uncertainty regarding these factors.