1 Changes in accounting principles
Amendments to IFRS Accounting Standards and Interpretations which are to be applied for the first time in the financial year
As of 1 January 2025, Swisscom adopted various amendments to the existing International Accounting Standards (IFRS) and interpretations, none of which have a material impact on the results or the financial position of the Group.
Voluntary changes in accounting policies
Swisscom purchases various access services from other network operators and uses access lines to the end customer. Until 31 December 2024, Swisscom classified some of these access lines as leases in accordance with IFRS 16 and applied the exemption for low-value assets. Accordingly, no right-of-use assets or lease liabilities were recognised for these access lines. The costs of the access lines were recognised as indirect costs in operating expenses. Following the acquisition of Vodafone Italia, the accounting policies were harmonised across the Group as at 1 January 2025. As a result of the harmonisation, the accounting of network access lines will be adjusted. From 1 January 2025, access lines will be classified as leases in accordance with IFRS 16 and the exemption for low-value assets will no longer be applied. Right-of-use assets and lease liabilities will therefore be recognised for these access lines. The change results in reliable and more relevant information, as it increases comparability with the peer group from the telecommunications sector. The previous year was restated as follows:
In CHF million |
1.1.2024 reported |
1.1.2024 restated |
31.12.2024 reported |
31.12.2024 restated |
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|---|---|---|---|---|---|---|---|---|
| Balance sheet | ||||||||
| Right-of-use assets | 1,972 | 2,033 | 4,129 1 | 4,426 | ||||
| Trade payables | 1,611 | 1,567 | 2,698 1 | 2,647 | ||||
| Lease liabilities | 1,915 | 2,021 | 3,677 1 | 4,026 | ||||
| Equity | 11,622 | 11,621 | 12,155 | 12,154 | ||||
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1 Incl. updated provisional purchase price allocation of Vodafone Italia.
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In CHF million |
Full year 2024 reported |
Full year 2024 restated |
1.1.–31.3.2024 reported |
1.1.–31.3.2024 restated |
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|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||
| Direct costs | (2,972) 1 | (2,561) | (694) 1 | (594) | ||||
| Depreciation of right-of-use assets | (261) | (670) | (65) | (165) | ||||
| Interest expense on lease liabilities | (48) | (50) | (12) | (12) | ||||
| Net income | 1,541 | 1,541 | 455 | 455 | ||||
| Comprehensive income | 1,681 | 1,681 | 561 | 561 | ||||
| Basic and diluted earnings per share (in CHF) | 29.77 | 29.77 | 8.78 | 8.78 | ||||
| Cash flow statement | ||||||||
| Cash flow from operating activities | 3,977 | 4,388 | 881 | 981 | ||||
| Cash flow from financing activities | 6,819 | 6,408 | (105) | (205) | ||||
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1 Incl. changes in classification and presentation of direct and indirect costs as described below.
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On basis of recent changes in accounting standards, Swisscom has reviewed the revenue recognition for streaming services with a minimum purchase obligation. Until 31 December 2024, the minimum purchase obligation was considered as a factor in determining whether Swisscom acts as principal or agent. As a result, some contracts for streaming services were recognised gross. As a result of the review, all contracts for streaming services will be recognised on a net basis from 2025 on. The comparative figures for the prior year have been restated accordingly. The change decreases revenue and direct costs for the 2024 financial year by CHF 19 million in each case (Q1 2024: CHF 4 million).
Swisscom reviewed the classification and presentation of direct and indirect costs. The review resulted primarily in the introduction of changes to the way allowances for receivables and contract assets are classified. As of 2025, these will be reported as direct costs. In the past, these costs were included in indirect costs. The change will improve the presentation of the cost structure of Swisscom and thus facilitate the management and planning of direct and indirect costs. The comparative figures for prior year have been restated accordingly. The change increases direct costs, and reduces indirect costs, for the 2024 financial year by CHF 53 million in each case (Q1 2024: CHF 13 million).