Swisscom’s first-quarter results for 2025 met expectations, with a significant increase in revenue, primarily due to the successful acquisition of Vodafone Italia.
The company posted a 39.3 percent revenue growth, reaching CHF 3,759 million, while the number of mobile and broadband lines across Switzerland and Italy exceeded 30 million. EBITDA after lease expenses (EBITDAaL) rose by 17.9 percent to CHF 1,277 million, and operating free cash flow increased by 1.8 percent to CHF 498 million.
However, compared to pro forma figures for Q1 2024, Swisscom’s group revenues declined by 1.2 percent, with EBITDAaL falling by 6.6 percent. Adjusted for constant exchange rates, EBITDAaL decreased by 4.2 percent, attributed to challenges in Italy.
Operating free cash flow improved by 6 percent, but net income decreased by 19.3 percent, dropping to CHF 367 million due to lower revenues in Switzerland and increased acquisition-related expenses, which have yet to yield synergies.
In Switzerland, revenue slightly declined by CHF 24 million to CHF 1,962 million, with a 2.0 percent drop in telecom services revenue, although cost savings mitigated part of the loss. IT services for business customers grew by 2.4 percent.
Despite a decrease in fixed-line broadband and TV connections, Swisscom’s mobile business remained strong, with a 2.8 percent increase in postpaid mobile lines. The company expanded its infrastructure, covering 53 percent of Swiss households with fiber optics and 86 percent of the population with 5G+.
In Italy, revenue stayed nearly flat at EUR 1,818 million. While residential revenues fell, business customer revenues increased, driven by IT services and merchandise. However, EBITDAaL dropped by 10.8 percent on an adjusted basis, and the number of mobile and broadband connections saw a slight decrease. The mobile network, however, remains the best-rated in Italy.
Looking ahead, Swisscom expects 2025 revenue between CHF 15.0 and CHF 15.2 billion, with EBITDAaL around CHF 5.0 billion and capital expenditures between CHF 3.1 and CHF 3.2 billion. The company is also focused on improving global supply chain working conditions, auditing 32,000 jobs in the first quarter of 2025.
TelecomLead.com News Desk
