Swisscom has reported mixed financial performance for the first half of 2026, with Group revenue declining 3.0 percent year over year to CHF 7.221 billion, while profitability and cash generation improved significantly.
EBITDA after lease expense (EBITDAaL) of Swisscom rose 3.3 percent to CHF 2.557 billion, and net income grew 6.9 percent to CHF 668 million.
Capital expenditure declined 8.8 percent to CHF 1.355 billion as Swisscom continued investing in fiber and 5G infrastructure while benefiting from integration synergies in Italy.
Revenue performance reflected continued pressure in both Switzerland and Italy. Switzerland generated CHF 3.87 billion in revenue, down 0.7 percent, while Italy contributed CHF 3.19 billion, down 5.6 percent in Swiss franc terms due partly to currency movements. The Switzerland business maintained stable profitability with EBITDAaL rising 0.8 percent to CHF 1.70 billion, while Italy delivered a strong 10.2 percent increase in EBITDAaL to CHF 838 million, supported by cost savings and Vodafone Italia integration synergies.
Swisscom’s subscriber base remained resilient despite competitive markets. In Switzerland, postpaid wireless connections increased slightly to 4.418 million, while broadband connections declined 2.1 percent to 1.907 million and TV subscriptions fell 2.7 percent to 1.435 million. Fixed telephony connections declined 7.9 percent to 969,000, reflecting continued migration to mobile services, while wholesale wireline access lines increased 6.3 percent to 796,000.
Italy continued to face subscriber pressure. Wireless connections declined 2.0 percent to 19.803 million and broadband connections fell 2.1 percent to 5.5 million. Wholesale wireless connections dropped 20.2 percent to 5.856 million following the loss of a major MVNO customer, while wholesale wireline access lines increased 22.1 percent to 1.243 million, supported by growth in wholesale fiber services.
Swisscom also continued expanding its fixed and mobile broadband infrastructure. By the end of June 2026, optical fiber covered around 58 percent of households and businesses in Switzerland, while 5G+ reached 90 percent of the country’s population.
In Italy, Fastweb + Vodafone extended optical fiber coverage to 61 percent of households and businesses, with its 5G network reaching 90 percent of the population. These investments support Swisscom’s long-term broadband and digital connectivity strategy.
Capex
Swisscom Cuts H1 2026 Capex 8.8%
Swisscom has reduced capital expenditure during the first half of 2026 while continuing to invest in fiber broadband, 5G infrastructure and the integration of Vodafone Italia. Group capital expenditure declined 8.8 percent to CHF 1.355 billion from CHF 1.486 billion, supporting a 21.6 percent increase in operating free cash flow to CHF 1.202 billion. The lower spending was primarily driven by reduced FTTH construction volumes in Switzerland, lower customer-driven investments in Italy, and lower integration-related capital expenditure.
In Switzerland, capital expenditure fell 8.4 percent to CHF 761 million from CHF 831 million. The decline reflected lower fiber construction activity compared with the high investment levels in the first half of 2025. Despite the reduction, Swisscom reaffirmed its target to reach around 60 percent FTTH coverage by the end of 2026 while continuing investments in wireless networks, broadband access infrastructure, backbone systems and IT.
In Italy, capital expenditure decreased 7.3 percent to EUR 651 million from EUR 703 million. The company attributed the lower spending to reduced customer-driven capital expenditure, as well as lower Vodafone Italia integration CAPEX and INWIT consolidation CAPEX during the second quarter. Swisscom said investments remain focused on expanding 5G coverage, accelerating FTTH deployment and supporting digital infrastructure integration.
Swisscom continued to invest in next-generation broadband infrastructure despite lower overall capital expenditure. In Switzerland, 5G+ population coverage reached 90 percent and FTTH coverage expanded to 58 percent. In Italy, 5G coverage also reached 90 percent of the population, while FTTH household coverage increased to 61 percent, supported by sustained network investments and long-term rollout plans.
For the full year 2026, Swisscom reaffirmed its capital expenditure guidance of CHF 3.0 billion to CHF 3.1 billion, alongside revenue guidance of CHF 14.7 billion to CHF 14.9 billion and EBITDAaL guidance of CHF 5.0 billion to CHF 5.1 billion.
Swisscom maintained its full-year 2026 guidance, forecasting Group revenue of CHF 14.7 billion to CHF 14.9 billion, EBITDAaL of CHF 5.0 billion to CHF 5.1 billion, capital expenditure of CHF 3.0 billion to CHF 3.1 billion and operating free cash flow of around CHF 2.0 billion. The company also plans to propose increasing its annual dividend from CHF 26 to CHF 27 per share.
BABURAJAN KIZHAKEDATH
