Summary
Group revenue decreased by 3.0% to CHF 7,221 million. Operating income before depreciation and amortisation after lease expense (EBITDAaL) increased by 3.3% to CHF 2,557 million. The revenue and EBITDAaL development were influenced by the change in the EUR exchange rate as a result of the substantial share attributable to the Italy segment. The EUR average exchange rate fell by 2.4% in the first half of 2026 compared to the same period of the previous year. This resulted in negative exchange differences on revenue of CHF 78 million and on EBITDAaL of CHF 21 million. Based on a constant EUR exchange rate, revenue in the first half of 2026 decreased by 2.0% or CHF 147 million. Switzerland’s revenue fell by 0.7% and Italy’s by 3.3% (in EUR).
EBITDAaL development was influenced not only by currency effects but also by non-recurring items. On an adjusted basis and at constant currency exchange rates, EBITDAaL increased by CHF 92 million (+3.7%), driven by the Italy segment. The adjusted EBITDAaL of the Italy segment increased by EUR 98 million (+11.8%); the adjusted EBITDAaL of Switzerland remained fairly stable (+0.6%). Net income increased by CHF 43 million (+6.9%) to CHF 668 million, mainly due to the increase in EBITDAaL.
The Group’s capital expenditure decreased by 8.8% to CHF 1,355 million. Capital expenditure for Switzerland fell by 8.4%, and by 7.3% in Italy (in EUR). In the first half of 2026, capital expenditure in Italy included EUR 6 million for the consolidation of mobile sites on the INWIT network (prior year: EUR 14 million) and EUR 47 million integration capital expenditure (prior year: EUR 20 million). On an adjusted basis and at constant currency exchange rates, the Group’s capital expenditure decreased by 9.2% and in Italy by 10.6%. Operating free cash flow increased by 21.6% to CHF 1,202 million. On an adjusted basis and at constant currency exchange rates, the increase of the operating free cash flow amounts to CHF 226 million or 21.6%. About one-third of the increase results from Switzerland (CHF +80 million) and two-thirds from Italy (CHF +159 million). Free cash flow of CHF 717 million was up year-on-year by CHF 221 million, driven by the increase in the operating free cash flow.
The number of Swisscom employees decreased year-on-year by 737 FTEs or 3.1% to 22,761 FTEs. In the Switzerland segment, FTEs fell by 599 or 4.6% to 12,542 FTEs, while in the Italy segment, FTEs slightly increased by 38 FTEs or 0.5% to 7,203 FTEs. The decline in the Switzerland segment is due to a decrease in FTEs in the areas of customer care, IT business and support functions.
The financial outlook for the 2026 financial year remains unchanged. 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, capital expenditure between CHF 3.0 billion and CHF 3.1 billion and an operating free cash flow of around CHF 2.0 billion. Subject to achieving its targets, Swisscom plans to propose an increase in dividend from CHF 26 to CHF 27 per share for the financial year 2026 at the 2027 Annual General Meeting.
Switzerland
| In CHF million, except where indicated | H1 2026 | H1 2025 | Change | in % | ||||
|---|---|---|---|---|---|---|---|---|
| Financial data | ||||||||
| Residential customers | 2,101 | 2,124 | (23) | –1.1% | ||||
| Business customers | 1,463 | 1,475 | (11) | –0.8% | ||||
| Wholesale customers | 265 | 268 | (3) | –1.0% | ||||
| Other | 7 | 8 | (0) | –2.9% | ||||
| External revenue | 3,837 | 3,874 | (37) | –1.0% | ||||
| Intersegment revenue | 33 | 23 | 10 | 42.0% | ||||
| Revenue | 3,870 | 3,897 | (27) | –0.7% | ||||
| Direct costs | (761) | (743) | (18) | 2.5% | ||||
| Indirect costs | (1,409) | (1,468) | 58 | –4.0% | ||||
| Operating expense | (2,170) | (2,210) | 40 | –1.8% | ||||
| EBITDA after lease expense (EBITDAaL) | 1,700 | 1,687 | 13 | 0.8% | ||||
| Capital expenditure | (761) | (831) | 70 | –8.4% | ||||
| Operating free cash flow | 938 | 856 | 83 | 9.7% | ||||
| Operational data in thousand and headcount in FTEs | ||||||||
| Postpaid value wireless connections | 4,418 | 4,412 | 6 | 0.1% | ||||
| Broadband connections | 1,907 | 1,947 | (40) | –2.1% | ||||
| TV connections | 1,435 | 1,475 | (40) | –2.7% | ||||
| Fixed telephony connections | 969 | 1,052 | (83) | –7.9% | ||||
| Wholesale wireline access lines | 796 | 749 | 47 | 6.3% | ||||
| Full-time equivalent employees | 12,542 | 13,141 | (599) | –4.6% | ||||
Switzerland’s revenue decreased year-on-year by 0.7% or CHF 27 million to CHF 3,870 million. Revenue from residential customers dropped by CHF 23 million to CHF 2,101 million (–1.1%). The decrease is mainly due to a decline in telecommunications services (CHF –18 million or –1.0%). In the business customer area, revenue dropped by CHF 11 million to CHF 1,463 million (–0.8%), the telecommunication services declined by CHF 35 million (–4.8%) and the revenue from IT services by CHF 12 million (–2.0%). In contrast, the hard- and software revenue increased by CHF 37 million (+26.7%). In an intense market environment, there was a reduction in the number of connections for broadband (–2.1%) and TV (–2.7%). In contrast, the number of postpaid value wireless connections remained fairly stable (+0.1%). The number of connections for fixed network telephony dropped (–7.9%) as a result of its substitution with wireless telephony.
The operating expense decreased by 1.8% or CHF 40 million. Direct costs increased by CHF 18 million or 2.5%, driven by higher costs for goods and services purchased. Indirect costs dropped by CHF 58 million (–4.0%). In telecommunications, cost savings of CHF 42 million were realised through efficiency improvement measures. Operating income before depreciation and amortisation after lease expense (EBITDAaL) remained nearly stable at CHF 1,700 million (+0.6% on an adjusted basis). Cost-efficiency measures compensated for the decline in revenue from telecommunications services. Capital expenditure decreased by 8.4% or CHF 70 million to CHF 761 million, mainly impacted by seasonal effects. As at the end of June 2026, Swisscom covered around 58% of households and businesses in Switzerland with optical fibre and 90% of the population with 5G+.
Italy
| In EUR million, except where indicated | H1 2026 | H1 2025 | Change | in % | ||||
|---|---|---|---|---|---|---|---|---|
| Financial data | ||||||||
| Residential customers | 1,571 | 1,627 | (56) | –3.5% | ||||
| Business customers | 1,490 | 1,571 | (82) | –5.2% | ||||
| Wholesale customers | 401 | 380 | 20 | 5.3% | ||||
| Other | 11 | 12 | (1) | –4.4% | ||||
| External revenue | 3,472 | 3,590 | (118) | –3.3% | ||||
| Intersegment revenue | 2 | 2 | (0) | –22.0% | ||||
| Revenue | 3,474 | 3,593 | (118) | –3.3% | ||||
| Direct costs | (1,510) | (1,676) | 166 | –9.9% | ||||
| Indirect costs | (1,051) | (1,108) | 57 | –5.1% | ||||
| Operating expense | (2,562) | (2,784) | 223 | –8.0% | ||||
| EBITDA after lease expense (EBITDAaL) | 913 | 808 | 104 | 12.9% | ||||
| Capital expenditure | (651) | (703) | 52 | –7.3% | ||||
| Operating free cash flow | 261 | 105 | 156 | 148.3% | ||||
| Operational data in thousand and headcount in FTEs | ||||||||
| Wireless connections | 19,803 | 20,207 | (404) | –2.0% | ||||
| Broadband connections | 5,500 | 5,619 | (119) | –2.1% | – | |||
| Wholesale wireless connections | 5,856 | 7,336 | (1,481) | –20.2% | – | |||
| Wholesale wireline access lines | 1,243 | 1,018 | 225 | 22.1% | – | |||
| Full-time equivalent employees | 7,203 | 7,165 | 38 | 0.5% | ||||
The revenue of the Italy segment decreased year-on-year by 3.3% or EUR 118 million to EUR 3,474 million. Revenue from residential customers fell by 3.5% or EUR 56 million to EUR 1,571 million. The lower revenue from telecommunications services of EUR 57 million (–3.9%), driven by the declining customer base, could not be fully offset. Revenue from business customers decreased by 5.2% or EUR 82 million to EUR 1,490 million, mainly driven by the lower revenue from telecommunications services and lower hard- and software revenue. Revenue from wholesale business increased by 5.3% or EUR 20 million to EUR 401 million. The higher wholesale revenue is mainly caused by the growing wholesale wireline business. Competition in the Italian markets remained fierce. The number of retail wireless connections dropped year-on-year to 19.8 million (–2.0%). The decreasing wireless residential customer base (–479 thousand) could not be compensated by the increasing wireless business customer base (+75 thousand). The customer base in the broadband business dropped by 2.1% or 119 thousand to 5.5 million. The challenging market environment led to a decrease in the residential customer base of 91 thousand and a decrease in the business customer base of 28 thousand. The wholesale wireless customer base from mobile virtual network operators (MVNO) hosted on the Fastweb + Vodafone network dropped by 20.2% or 1.5 million to 5.9 million due to the loss of a major MVNO customer (Poste Mobile). The number of wholesale wireline access lines provided to other operators rose by 22.1% or 225 thousand to 1.2 million.
Operating expenses decreased by EUR 223 million (–8.0%), mainly driven by cost savings from synergy realisation, which amounted to EUR 166 million. In the first half of 2026, operating expenses included integration costs for Vodafone Italia in the amount of EUR 4 million (prior year: EUR 20 million) and a provision for legal proceedings in the amount of EUR 10 million. On an adjusted basis, operating result before depreciation and amortisation after lease expense (EBITDAaL) increased by EUR 98 million (+11.8%) due to the lower cost base. Capital expenditure decreased by EUR 52 million or 7.3% to EUR 651 million. In the first half of 2026, capital expenditure included EUR 6 million for the consolidation of mobile sites on the INWIT network (prior year: EUR 14 million) and EUR 47 million integration capital expenditure (prior year: EUR 20 million). Adjusted by those items, capital expenditure dropped by EUR 71 million or 10.6%, mainly because of lower investments in the wireless and wireline access networks as well as lower customer driven capital expenditure. As at the end of June 2026, Fastweb + Vodafone covered 61% of households and businesses in Italy with optical fibre. The mobile network reached 90% of the population with 5G.
Others
| In CHF million, except where indicated | H1 2026 | H1 2025 | Change | in % | ||||
|---|---|---|---|---|---|---|---|---|
| Financial data | ||||||||
| External revenue | 195 | 194 | 1 | 0.6% | ||||
| Intersegment revenue | 269 | 333 | (64) | –19.3% | ||||
| Revenue | 464 | 527 | (63) | –12.0% | ||||
| Direct costs | (47) | (44) | (3) | 7.5% | ||||
| Indirect costs | (372) | (423) | 51 | –12.0% | ||||
| Operating expense | (419) | (467) | 48 | –10.2% | ||||
| EBITDA after lease expense (EBITDAaL) | 45 | 60 | (15) | –25.7% | ||||
| Capital expenditure | (16) | (18) | 3 | –14.8% | ||||
| Operating free cash flow | 29 | 42 | (13) | –30.5% | ||||
| Headcount in FTEs | ||||||||
| Full-time equivalent employees | 3,016 | 3,192 | (176) | –5.5% | ||||
Revenue in the Others segment dropped by 12.0% or CHF 63 million year-on-year to CHF 464 million, primarily due to lower intersegment revenue from cablex construction services. The operating result before depreciation and amortisation after lease expense (EBITDAaL) decreased by 25.7% or CHF 15 million to CHF 45 million, driven by the fall in revenue.