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Summary

Swisscom’s net revenue for the first nine months of 2020 fell slightly short of the previous year. While the Covid-19 pandemic has had a particularly negative impact on roaming revenues, the overall impact on financial results is minor. Swisscom’s net revenue fell by CHF 255 million or 3.0% to CHF 8,201 million; EBITDA remained nearly stable at CHF 3,356 million (–0.1%). On a like-for-like basis and at constant exchange rates EBITDA increased by CHF 7 million or 0,2%. The drop in revenue continued in Switzerland’s saturated core business. The CHF 226 million decline (–3.5%) in revenue is mainly driven by ongoing price pressure and the impact of Covid-19; roaming accounts for around a third of this (CHF 73 million). By contrast, revenue at Italian subsidiary Fastweb increased in local currency by EUR 90 million (+5.7%), with all customer segments reporting revenue growth. The number of customers with Fastweb increased year on year by 3.6% to 2.70 million in the broadband business and by 13.6% to 1.89 million in mobile telephony. In the Swiss core business, EBITDA declined by 0.5% or CHF 14 million. The decline in revenue could be largely offset thanks to lower costs. At Fastweb, EBITDA in local currency increased by 4.6% or EUR 25 million as a result of the growth in revenue. Consolidated net income of CHF 1,166 million was 1.3% or CHF 15 million lower than in the previous year, mainly as a result of higher income tax expense.

Swisscom’s capital expenditure of CHF 1,632 million are 11.0% or CHF 201 million lower than in the previous year. In the previous year, capital expenditure included expenditures for mobile radio frequencies in Switzerland of CHF 196 million. Excluding expenditures for mobile radio frequencies, capital expenditure in Switzerland increased by 4.3% or CHF 49 million to CHF 1,191 million. The increase stands in connection with the further expansion of network infrastructure. At Fastweb, capital expenditure fell by 7.4% to EUR 410 million; in the previous year, customer-driven investments were above average.

The operating free cash flow proxy increased by CHF 177 million to CHF 1,498 million. Excluding the previous year’s expenses for mobile radio frequencies, the operating free cash flow proxy declined by CHF 19 million or 1.3%. Compared to the end of 2019, net debt fell by 2.0% or CHF 133 million to CHF 6,625 million. The number of employees at Swisscom declined 2.4% year on year to 19,026 FTEs. In Switzerland, headcount decreased by 669 FTEs to 16,119 FTEs.

For 2020, Swisscom still expects net revenue of around CHF 11.0 bil­lion, EBITDA of around CHF 4.3 bil­lion and capital expenditure of around CHF 2.3 bil­lion. If business performs as planned, Swisscom intends to propose payment of an unchanged dividend of CHF 22 per share for the 2020 financial year at the 2021 Annual General Meeting.