Swisscom : stays on course for success with a higher operating result

Ad hoc announcement pursuant to Art. 53 LR / Results for Q1 2023

Swisscom stays on course for success with a higher operating result

+++ Good business development and strong market position for Swisscom +++ Growth in revenue (at constant exchange rates) and EBITDA, stable net income +++ High investment in infrastructure, access agreement with Salt +++ Business customers: growth in IT services +++ Fastweb sees growth in revenue, EBITDA and customer base +++

By Sepp Huber04. May 2023

• Facebook(opens in new tab)
• Twitter(opens in new tab)
• Linkedin(opens in new tab)
• Xing(opens in new tab)
• WhatsApp(opens in new tab)
• E-Mail
• Copy link

Key figures at a glance

'Customer satisfaction is high, and the numbers are good', CEO Christoph Aeschlimann says of the first quarter of 2023. 'I am particularly pleased that the CHIP test has rated our mobile network as the best in Switzerland for the eighth time in a row. The Federal Court's leading ruling on 5G is also encouraging: this states that the current legal basis does not violate the precautionary principle and that the measurement of mobile phone radiation recommended by the federal government is appropriate. This sends out a clear signal to the authorities to approve building applications, but also to the population. Fastweb is successfully underway in Italy. With Walter Renna, we have been able to attract a strong leader as the new CEO of Fastweb as of 1 October 2023, who will continue to keep the company on a growth course.'

Slightly lower revenue in Swiss core business, growth at Fastweb

Group revenue remained almost stable year-on-year at CHF 2,747 million (-0.3%), resulting in an increase of 0.6% at constant exchange rates. In the Swiss core business, sales fell slightly by CHF 12 million to CHF 2,044 million (-0.6%). Revenue from telecoms services decreased overall by 1.2% to CHF 1,348 million. In contrast, revenue from IT services with business customers increased slightly by 0.7% to CHF 291 million. Business in Italy continued to develop positively. Fastweb reported year-on-year revenue growth of EUR 28 million (+4.7%).

Consolidated operating income before depreciation and amortisation (EBITDA) rose by 2.4% to CHF 1,164 million. At constant exchange rates, the result was an increase of 3.0%. In the core Swiss market, EBITDA grew by 1.4%, while that of Fastweb increased by 1.6% (in EUR). Net income remained almost stable year-on-year at CHF 442 million (-1.1%).

Network infrastructure: FTTH roll-out continues

Swisscom continuously invests in the quality, coverage and performance of its network infrastructure and is consolidating its position at the cutting edge of technology. Group-wide capital expenditure increased by 4.4% to CHF 545 million.

Mobile network: Coverage of more than 75% with 5G+ - landmark decision by the Federal Court

For the eighth time in a row, CHIP has rated Swisscom's mobile network the best in Switzerland. To safeguard the high network quality and continue to offer customers a top mobile network, a rapid expansion is needed. By the end of March 2023, Swisscom covered more than 75% of the Swiss population with 5G+.

Broadband expansion: more fibre for the whole of Switzerland and access agreement with Salt

Swisscom plans to increase fibre-optic coverage (FTTH) to around 55% by the end of 2025, and to 70-80% by 2030. In March 2023, Swisscom concluded an access agreement with Salt. This includes Layer 1 access to Swisscom's fibre-optic network in the point-to-point architecture, on which Salt can offer and operate its own services.

Residential customers: successful blue subscriptions - multiple awards for customer service

At Swisscom, customers receive excellent service: after the shops and the app, connect has now also named the hotline the best in the DACH region in the respective tests. At the end of March 2023, 1.98 million customers in the residential customer segment were using blue subscriptions. blue accounts for 47% of all mobile subscriptions and 80% of fixed-network broadband connections in this segment. The number of Swisscom fixed broadband connections decreased by 0.6% year-on-year to 2.02 million connections and TV by 1.8% to 1.56 million connections.

The number of postpaid lines increased by 161,000 year-on-year, while the number of prepaid lines decreased by 135,000. Overall, the number of Swisscom mobile connections increased by 0.4% to 6.18 million. Revenue from telecoms services in the residential customer segment remained almost stable (-0.5%) at CHF 960 million.

Business customers: on course for growth in a highly competitive market environment

The market for business customers remains characterised by price pressure and technological changes. Revenue from telecoms services fell by 3.0% year on year to CHF 388 million, mainly due to price erosion. Swisscom has a strong position as a full-service provider, and customer satisfaction is high. Demand for cloud, security, IoT and SAP solutions as well as business applications continued to grow. Revenue from IT services increased by 0.7% in the first quarter of 2023 to CHF 291 million.

Fastweb increases customers, revenues and EBITDA

Fastweb increased revenue in local currency terms by 4,7%. In the mobile communications market, the number of connections increased by 22,0% year-on-year to 3,23 million. Wireline customer base (retail and wholesale) grew overall by 2,1% to 3,16 million. Following Fastweb's value strategy in the Consumer market, the retail customer base in the broadband business fell slightly by 2,5% to 2,66 million, while the number of lines provided by Fastweb to other operators now reaches 498,000 (+37%). Bundled retail offers continue to play an important role, with 41% of customers using a package combining fixed network and mobile services. Residential customers revenues increased by 1,4% to EUR  289 million, while revenues in the business customer segment grew by 5,7% to EUR  261 million. Wholesale revenues also increased, by 15,9% to EUR 73 million.

Fastweb's overall revenue rose year-on-year to EUR 623 million (+4.7%). Operating income before depreciation and amortisation (EBITDA) rose by 1.6% to EUR 188 million.

Financial outlook confirmed

For 2023, Swisscom expects net 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. Subject to achieving its targets, Swisscom will propose payment of an unchanged, attractive dividend of CHF 22 per share for the 2023 financial year at the 2024 Annual General Meeting.

Key figures at a glance

	1.1- 31.03.2023	1.1- 31.03.2022	Change (adjusted)*
Net revenue (in CHF million)	2,747	2,754	-0.3% (0.6%)
Operating income before depreciation and amortisation, EBITDA (in CHF million)	1,164	1,137	2.4% (3.0%)
Operating income, EBIT (in CHF million)	573	549	4.4%
Net income (in CHF million)	442	447	-1.1%
Retail broadband connections in Switzerland (as at 31 March in thousands)	2,017	2,030	-0.6%
blue TV connections in Switzerland (as at 31 March in thousands)	1,558	1,586	-1.8%
Mobile connections in Switzerland (as at 31 March in thousands)	6,177	6,151	0.4%
Fastweb broadband connections (as at 31 March in thousands)	2,662	2,731	-2.5%
Fastweb mobile lines (as at 31 March in thousands)	3,231	2,649	22.0%
Capital expenditure (in CHF million)	545	522	4.4%
Of which capital expenditure in Switzerland (in CHF million)	392	359	9.2%
Group employees (FTEs as at 31 March)	19,252	19,009	1.3%
Of which employees in Switzerland (FTEs as at 31 March)	15,755	15,987	-1.5%

	Net revenue (in CHF million)
1.1- 31.03.2023	2,747
1.1- 31.03.2022	2,754
Change (adjusted)*	-0.3% (0.6%)

	Operating income before depreciation and amortisation, EBITDA (in CHF million)
1.1- 31.03.2023	1,164
1.1- 31.03.2022	1,137
Change (adjusted)*	2.4% (3.0%)

	Operating income, EBIT (in CHF million)
1.1- 31.03.2023	573
1.1- 31.03.2022	549
Change (adjusted)*	4.4%

	Net income (in CHF million)
1.1- 31.03.2023	442
1.1- 31.03.2022	447
Change (adjusted)*	-1.1%

	Retail broadband connections in Switzerland (as at 31 March in thousands)
1.1- 31.03.2023	2,017
1.1- 31.03.2022	2,030
Change (adjusted)*	-0.6%

	blue TV connections in Switzerland (as at 31 March in thousands)
1.1- 31.03.2023	1,558
1.1- 31.03.2022	1,586
Change (adjusted)*	-1.8%

	Mobile connections in Switzerland (as at 31 March in thousands)
1.1- 31.03.2023	6,177
1.1- 31.03.2022	6,151
Change (adjusted)*	0.4%

	Fastweb broadband connections (as at 31 March in thousands)
1.1- 31.03.2023	2,662
1.1- 31.03.2022	2,731
Change (adjusted)*	-2.5%

	Fastweb mobile lines (as at 31 March in thousands)
1.1- 31.03.2023	3,231
1.1- 31.03.2022	2,649
Change (adjusted)*	22.0%

	Capital expenditure (in CHF million)
1.1- 31.03.2023	545
1.1- 31.03.2022	522
Change (adjusted)*	4.4%

	Of which capital expenditure in Switzerland (in CHF million)
1.1- 31.03.2023	392
1.1- 31.03.2022	359
Change (adjusted)*	9.2%

	Group employees (FTEs as at 31 March)
1.1- 31.03.2023	19,252
1.1- 31.03.2022	19,009
Change (adjusted)*	1.3%

	Of which employees in Switzerland (FTEs as at 31 March)
1.1- 31.03.2023	15,755
1.1- 31.03.2022	15,987
Change (adjusted)*	-1.5%

*On a like-for-like basis and at constant exchange rates

Swisscom uses various alternative performance indicators. The definition and reconciliation of values in accordance with IFRS are set out in the interim financial report as at 31 March 2023.

• Facebook(opens in new tab)
• Twitter(opens in new tab)
• Linkedin(opens in new tab)
• Xing(opens in new tab)
• WhatsApp(opens in new tab)
• E-Mail
• Copy link

Downloads

Christoph Aeschlimann, CEO Swisscom(opens in new tab)

Links

• The detailed interim report(opens in new tab)
  
• Related documents
  

Swisscom AG
SCMN / Valor 874251 / ISIN CH0008742519
Group Media Relations
CH-3050 Bern
Phone [phone]
Fax [phone]
E-Mail [e-mail]
www.swisscom.ch

Disclaimer

This announcement contains forward-looking statements. In this announcement, such forward-looking statements include, without limitation, statements relating to our financial condition, results of operations and business and certain of our strategic plans and objectives.

Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors which are beyond Swisscom's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behaviour of other market participants, the actions of governmental regulators and other risk factors detailed in Swisscom's and Fastweb's past and future filings and reports, including those filed with the U.S. Securities and Exchange Commission and in past and future filings, press releases, reports and other information posted on Swisscom Group Companies' websites.

Readers are cautioned not to put undue reliance on forward-looking statements, which speak only of the date of this communication.

Swisscom disclaims any intention or obligation to update and revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact us Media Relations

[e-mail]
Tel. [phone]

Latest news about Swisscom