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Summary

Swisscom’s net revenue was up by 1.7% or CHF 142 million at CHF 8,343 million, while operating income before depreciation and amortisation (EBITDA) increased by 3.2% or CHF 109 million to CHF 3,465 million. Adjustments to pension liabilities and provisions affected EBITDA. On a like-for-like basis and at constant exchange rates, revenue increased by 1.3% and EBITDA by 2.7%. The consolidated net income of CHF 1,536 million is significantly higher than the previous year (+31.7% or CHF 370 million) primarily due to non-recurring items in EBITDA and in the financial result. This is mainly attributable to a shareholding that Fastweb transferred as a capital contribution to the newly-­founded fibre optic network company FiberCop as part of the strategic partnership with TIM. This resulted in an upward revaluation recognised in the income statement of CHF 169 million. In addition, the sale of the stake in Belgacom International Carrier Services resulted in a gain of CHF 38 million. EBITDA also includes one-off income of CHF 60 million from the adjustment of pension liabilities and the additions to provisions for legal proceedings of CHF 52 million.

In the Swiss core business activity, net revenue increased by 0.3% or CHF 20 million to CHF 6,150 million. Revenue from the solutions business with corporate customers increased by 4.5% or CHF 35 million. By contrast, ongoing competitive and price pressure caused revenue from telecom services to decline 3.3% to CHF 4,122 million. EBITDA in the Swiss core business activity remained stable (–0.1%) at CHF 2,676 million. On a like-for-like basis, the increase is 1.8%. The decline in revenue from telecom services and the higher costs of subscriber acquisition and retention were offset thanks to ongoing efficiency improvements. Revenue at Italian subsidiary Fastweb increased by 4.8% or EUR 81 million to EUR 1,755 million, with all customer segments reporting revenue growth. In the broadband business, Fastweb’s customer base grew by 2.4% to 2.8 million over the course of the year, and in mobile communications by 22.6% to 2.3 million. EBITDA at Fastweb rose in local currency by 6.0% or EUR 34 million to EUR 602 million, as a result of the growth in revenue.

Swisscom’s capital expenditure decreased by 1.7% or CHF 27 million to CHF 1,605 million. Capital expenditure in the Swiss core business activity declined by 5.1% or CHF 61 million to CHF 1,125 million. Capital expenditure in broadband and mobile communications networks remained stable overall, while capital expenditure in other infrastructure declined. Fastweb posted an increase in capital expenditure, up 7.1% or EUR 29 million to EUR 439 million, as a result of higher customer-driven investments and higher capital expenditure in network infrastructure.

The operating free cash flow proxy increased by 9.1% or CHF 136 million to CHF 1,634 million, which was mainly attributable to better operating income before depreciation and amortisation (EBITDA). Net debt fell by 8.8% or CHF 585 million compared to the previous year and stood at CHF 6,040 million. The number of employees at Swisscom increased by 0.8% or 146 FTEs to 19,172 FTEs. In Switzerland, headcount decreased by 0.7% or 113 FTEs to 16,006 FTEs.

The Swiss Competition Commission (COMCO) opened an investigation into Swisscom’s optical fibre network in December 2020 and ordered precautionary measures against Swisscom. At the end of September 2021, the Federal Administrative Court confirmed the precautionary measures of December 2020, which partly question the network architecture of Swisscom. Until the situation has been cleared up, Swisscom is only building network elements that comply with the P2P (point-to-point) network architecture (e.g. feeder into the house). In addition, the impact of the decision on Swisscom’s fibre-optic roll-out strategy and on the fibre-optic partnership with Salt will be reviewed.

The financial outlook for fiscal 2021 will be adjusted in terms of net revenue and capital expenditure. The adjustment takes into account the current status of the review of the fibre-optic partnership with Salt as well as the exchange rate development. Swisscom now expects net revenue of around CHF 11.2 bil­lion (previously around CHF 11.3 bil­lion) and capital expenditure of around CHF 2.3 bil­lion (previously CHF 2.2 bil­lion to CHF 2.3 bil­lion). The expectation for EBITDA remains unchanged at between CHF 4.4 bil­lion and CHF 4.5 bil­lion. If business develops as planned, Swisscom will propose to the 2022 Annual General Meeting that the dividend for the 2021 financial year remain unchanged at CHF 22 per share.