Innovation and trust are the key to tomorrow’s success

From left: Christoph Aeschlimann, Group CEO, Michael Rechsteiner, Chair of the Board of Directors.

Dear shareholders,

The Swisscom Group can look back on an exciting year that has set the course for the future. It started with the successful acquisition of Vodafone Italia, which not only makes Swisscom larger as a Group, but stronger as well. The transaction was an important step towards achieving the strategic goal of further profitable growth in Italy. Fastweb + Vodafone is now the second-largest telecommunications provider in Italy with excellent market opportunities based on the complementary high-quality mobile and fixed infrastructures. Effective 1 January 2026, the merger of Fastweb and Vodafone Italia was also completed legally.

The challenging integration process is progressing according to plan, allowing us to realise the first expected synergy effects. As a result of this development, Swisscom will propose an increase in the dividend from the current CHF 22 to CHF 26 per share for the 2025 financial year at the Annual General Meeting in March 2026.

Strong corporate culture

Several initiatives in 2025 reflect the new understanding of the Group. That includes the Group-wide values we defined for the first time: ‘Spark Passion’, ‘Aim High’ and ‘Stand True’ serve as guiding principles that shape Swisscom’s identity, culture and conduct. They set out what we all stand for and what makes us and our culture strong. Another example is our first Group-wide sustainability strategy that covers both Switzerland and Italy. It reaffirms the entire Group’s commitment to be one of the most sustainable telecommunications companies in the world.

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The Swisscom Group is an innovative and reliable partner shaping the digital future.

Christoph Aeschlimann, Group CEO

Innovators of Trust

The Swisscom Group is an innovative and reliable partner shaping the digital future in Switzerland and Italy. As ‘Innovators of Trust’, we focus on secure, transparent solutions that empower individuals, businesses and society to leverage the opportunities of new technology.

That includes ‘beem’, our innovative new offering for business customers in Switzerland, which is ushering in a new era of cybersecurity. Protection is no longer primarily provided on devices or at company sites, but via the network. By directly integrating cybersecurity into its network, Swisscom is setting a new standard.

In the field of artificial intelligence (AI), we place great emphasis on solutions that clients can trust. ‘myAI’, Swisscom’s new AI assistant, was developed in Switzerland, for Switzerland. It offers features ranging from text and image generation to data analysis. ‘myAI’ meets rigorous data protection and transparency requirements, setting it apart from comparable international platforms.

Sovereign cloud solutions and AI infrastructures are key in times of geopolitical tensions. Swisscom’s ‘Swiss AI Platform’ offers companies a powerful infrastructure for trusted AI applications. Developed by Swisscom, the platform ensures that data is stored and processed in Switzerland, so companies can retain complete control of their data across the entire processing chain.

Fastweb + Vodafone, for its part, underlined its leading role in Italy’s digital transformation by launching ‘FastwebAI Suite’, a platform of generative AI-based services and tools for businesses and public authorities. The ‘FastwebAI Suite’ offers end-to-end solutions based on sovereign infrastructures located in Italy.

For the Swisscom Group, innovation and trust are the key to tomorrow’s success.

Commitment to Switzerland unchanged

Despite our stronger foothold in Italy, our commitment to Switzerland and its people remains unchanged. We are pressing ahead with the expansion of the network. The country will continue to have one of the world's best network infrastructures. Swisscom aims to increase fibre-optic coverage to between 75% and 80% by 2030, and by 2035, we aim to offer gigabit connectivity to everyone through fibre optics, mobile and satellite. In mobile communications, Swisscom currently covers around 99% of the Swiss population with 5G and around 89% with 5G+ technology.

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Despite our stronger foothold in Italy, our commitment to Switzerland remains unchanged.

Michael Rechsteiner, Chair of the Board of Directors

Increase in revenue

Consistent, long-term value creation is a central component of our Group targets. The Swisscom Group achieved solid financial results in 2025, with the acquisition of Vodafone Italia leading to a significant increase in revenue. With revenue of CHF 15,048 million and an operating result (EBITDA after lease expense) of CHF 4,984 million, net income totalled CHF 1,270 million.

The Swisscom share price increased to CHF 575.50 (+14.1%) in the year under review. The total shareholder return (TSR) from share price appreciation and distribution was +18.4%.

Looking ahead to 2026, Swisscom expects revenue between CHF 14.7 billion and CHF 14.9 billion, EBITDA after lease expense (EBITDAaL) between CHF 5.0 billion and CHF 5.1 billion, and capital expenditure between CHF 3.0 billion and CHF 3.1 billion, of which between CHF 1.6 billion and CHF 1.7 billion in Switzerland. Subject to achieving its targets, Swisscom plans to propose another increase in the dividend to CHF 27 per share for the 2026 financial year at the 2027 Annual General Meeting.

Many thanks

With tireless commitment, we have succeeded in consolidating our course for a successful Swisscom Group in 2025. We would like to thank all our colleagues – in Switzerland and Italy as well as Rotterdam and Riga – who work for our customers day in, day out, with great passion and expertise. Many thanks also to you, our shareholders, for your trust, loyalty and support.

Kind regards,