Swisscom Group reported a 36.7 percent increase in revenue to CHF 7,446 million for the first half of 2025, driven by the acquisition of Vodafone Italia.
EBITDA after lease expense (EBITDAaL) rose by 15.9 percent to CHF 2,474 million, while operating free cash flow increased by 1.2 percent to CHF 989 million. However, on a pro forma basis — assuming Vodafone Italia had been consolidated since January 1, 2024 — group revenue declined by 2.3 percent year-on-year and EBITDAaL fell by 5.5 percent, with a like-for-like decrease of 3.1 percent. Net income dropped 25.2 percent to CHF 625 million, largely due to acquisition-related costs.
In Switzerland, revenue declined by 1.9 percent year-on-year to CHF 3,897 million. Telecom services revenue fell by 2.2 percent to CHF 2,582 million, while IT services for business customers offset some of the decline with a 1.5 percent increase to CHF 610 million. EBITDAaL remained nearly flat at CHF 1,684 million, and operating free cash flow rose by 1.6 percent to CHF 851 million. Despite revenue pressure, Swisscom continued its network expansion, reaching 54 percent of Swiss households and businesses with fiber and 87 percent of the population with 5G+.
In Italy, pro forma revenue held relatively steady at EUR 3,593 million, with a 2.6 percent decline in residential customer revenue to EUR 1,672 million and a 1.5 percent increase in business customer revenue to EUR 1,581 million, driven by growth in IT services and merchandise. EBITDAaL declined by 7.6 percent to EUR 828 million, and operating free cash flow dropped by 4.8 percent to EUR 159 million. The integration of Vodafone Italia is progressing as planned, with the migration of Fastweb’s mobile customers to the Vodafone network underway and expected to complete by the end of the year. As of June 2025, the combined Fastweb-Vodafone network covered 53 percent of Italian households and businesses with FTTH and 87 percent with 5G—both marking 14 percent year-on-year growth.
“The outlook for the year remains unchanged. We have launched further innovations for our business customers: in Italy, we are offering additional AI services, and in Switzerland, we have even ushered in a new era in cybersecurity – with protection directly in the network instead of on your device,” Swisscom CEO Christoph Aeschlimann said.
Subscribers
Swisscom also reported strong subscriber-related developments. In Switzerland, network expansion supported stable customer performance despite revenue pressures. In Italy, infrastructure improvements and integration milestones are expected to support subscriber growth going forward. The enhanced reach of fiber and 5G networks in both markets underlines Swisscom’s commitment to long-term service availability and customer acquisition.
ARPU
ARPU trends across the Group reflect shifting revenue composition and market dynamics. In Switzerland, the 2.2 percent decline in telecom service revenue suggests modest downward pressure on average revenue per user, though this was partially offset by a 1.5 percent increase in IT services revenue. In Italy, the 2.6 percent drop in residential revenue points to weakness in consumer ARPU, while a 1.5 percent rise in business revenue indicates resilience in higher-value segments. These figures highlight a pivot toward enterprise services and bundled offerings, with ongoing infrastructure upgrades expected to support ARPU stabilization once integration synergies are fully realized.
Capex
Capital expenditure trends reflect Swisscom’s sustained investment in digital infrastructure. While specific Capex figures were not disclosed, the company’s aggressive expansion of fiber-optic and 5G networks in both markets signals a strong strategic focus. In Switzerland, systematic modernization of the fixed and mobile network continues across all municipalities. In Italy, FTTH and 5G coverage each grew by 14 percent year-on-year, now reaching over half the population. These developments point to capital expenditure remaining a key enabler for future growth, integration benefits, and digital competitiveness in both markets.
Baburajan Kizhakedath
