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2nd Interim Report 2023
2nd Interim Report 2023
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Summary

Group revenue decreased by 0.3% year-on-year to CHF 5,450 million. Operating income before depreciation and amortisation (EBITDA) rose by 5.1% to CHF 2,303 million. The reported revenue and EBITDA development was influenced by the performance of the euro (EUR) as a result of the substantial share attributable to the Italian subsidiary Fastweb. The EUR average exchange rate fell by 3.7% in the first half of 2023 compared to the same period of the previous year. This resulted in negative exchange differences on Group revenue of CHF 47 million and on EBITDA of CHF 15 million. Based on a constant EUR exchange rate, revenue in the first half of 2023 rose by 0.5% or CHF 30 million. Swisscom Switzerland’s revenue fell slightly by 0.6%. Fastweb achieved an increase in revenue of 4.3% (in EUR).

EBITDA development was influenced not only by currency effects, but also primarily by the recognition of provisions for legal proceedings of CHF 82 million in prior year (2023: CHF 3 million). Without one-off items and with a constant EUR exchange rate, this resulted in an increase in EBITDA of CHF 48 million (+2.1%). Swisscom Switzerland and Fastweb both contributed to this, with CHF 16 million and CHF 8 million respectively. The other operating segments recorded a decrease of CHF 28 million. The largest effect on Group EBITDA resulted from the reconciliation of pension costs. As the interest rate relevant for IFRS measurement has increased, the IFRS pension costs for the full year 2023 will decrease by around CHF 90 million compared to the previous year. The positive reconciliation effect in the first half of 2023 was CHF 49 million. Consolidated net income rose by 8.0% year-on-year to total CHF 848 million. The increase in operating income was partly offset by a deterioration in the financial result.

The Group’s capital expenditure rose by 5.7% in a year-on-year comparison to CHF 1,113 million. Capital expenditure in the Swiss core business rose by 8.7%, while it fell by 0.7% at Fastweb (in EUR). The operating free cash flow proxy rose by 5.5% year-on-year to CHF 1,047 million. The higher EBITDA was compensated for in part by the increase in capital expenditure. Free cash flow increased by CHF 169 million to CHF 462 million mainly due to lower income tax payments. The decrease in income tax payments is due to the different timing of due dates. Net debt decreased by 5.0% to CHF 8,108 million year-on-year. The number of Swisscom employees increased by 2.3% to 19,497 FTEs. In Switzerland, headcount increased by 0.3% to 15,929 FTEs.

The financial outlook for the 2023 financial year remains unchanged. Swisscom expects revenue of CHF 11.1 to 11.2 bil­lion, EBITDA of CHF 4.6 to 4.7 bil­lion and capital expenditure of around CHF 2.3 bil­lion for 2023. Subject to achievement of its targets, Swisscom plans to propose payment of an unchanged dividend of CHF 22 per share for the 2023 financial year at the 2024 Annual General Meeting.