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Swisscom Announces H1 Results

Financial results News - Published on Fri, 16 Aug 2019

Image Source: Swisscom
CEO Urs Schaeppi said “Despite the difficult market environment, we can report attractive results for the first half of the year. Many market areas are saturated and all providers are using promotions to try and gain customers and market share. We are responding with new offerings and the expansion of our networks. We have achieved some major successes in the market: after just over four months, around 570,000 customers have already signed up for our new inOne mobile offering. The new customers can enjoy unlimited calls, text messages and data with no roaming charges in 39 countries in Europe. Lower prices and additional inclusive services have virtually doubled roaming data volume over the prior year. This is affirmation that our new offerings meet the needs of our customers. Investments in our networks remain high due to the continued increase in data volumes. Our 5G mobile network has been live since mid-April. Despite resistance from some sections of the population, we are sticking to our goal of covering 90% of Switzerland by the end of the year. If further delays occur, we run the risk of no longer being able to cope with the enormous growth in data, which could cause Switzerland to lose its leading position in the mobile communications business. Our subsidiary Fastweb is performing well and continues to grow its residential and business customer base.”

At CHF 5,663 million, group revenue was down year-on-year (–2.4%). At constant exchange rates, this represents a decline of 1.7%. In its largely saturated Swiss core business, Swisscom generated revenue of CHF 4,256 million (–3.2%). The CHF 134 million decline in revenue from telecom services was mainly the result of falling prices in various segments and the decline in fixed-line telephony connections. Business in Italy continued to develop positively: Fastweb reported revenue growth of EUR 38 million (+3.8%) year-on-year.

Consolidated operating income before depreciation and amortisation (EBITDA) totalled CHF 2,240 million, which was 4.5% above the previous year. The year-on-year development was impacted by new requirements governing the financial reporting of leases (IFRS 16). On a like-for-like basis, this amounted to an increase of 0.5%. In Swiss core business EBITDA fell by 1.6%. The decline, resulting from lower revenue, was largely offset by ongoing cost-cutting measures. Fastweb’s EBITDA in local currency increased by 6.6%. On balance, Swisscom’s net income was practically unchanged at CHF 780 million (–0.9%).

Investments in broadband networks are being stepped up. Swisscom connects 68% of all Swiss homes and offices with ultra-fast broadband speeds of more than 80 Mbps. Over 40% of all homes and offices benefit from connections with bandwidths of more than 200 Mbps. By the end of 2021, Swisscom will provide ultra-fast broadband to all Swiss municipalities and to 90% of homes and offices in Switzerland.

The switch to IP technology is proceeding according to plan and has been largely completed in the residential and SME market. All remaining customers have been informed of the switchover date. The switch to IP is to be completed by the end of 2019.

The expansion of the mobile network also continues: at the end of June 2019, Swisscom covered 99% of the Swiss population with its 4G/LTE network. Over 96% of the Swiss population surf at speeds of up to 300 Mbps, over 72% at speeds of up to 500 Mbps and around 27% at 700 Mbps. Swisscom also put its 5G network into operation on 17 April 2019 and is one of the first providers worldwide to offer fully standardised 5G networks. Swisscom plans to cover 90% of the population with 5G by the end of the year.

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Posted By : TelecomGuru on Fri, 16 Aug 2019
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