Swisscom’s full-year 2025 results highlight a transformative year shaped by the acquisition of Vodafone Italia, the creation of the Fastweb + Vodafone entity, and a growing focus on artificial intelligence. The Swiss telecom giant delivered strong top-line growth while navigating competitive pressure in its home market and executing a major cross-border integration.
Swisscom revenue jumps after Vodafone Italia consolidation
Swisscom reported group revenue of CHF 15.05 billion for 2025, representing a 37 percent year-on-year increase on a reported basis. The surge was primarily driven by the full consolidation of Vodafone Italia following its merger with Fastweb.
Revenue performance varied across regions. Swisscom’s Switzerland segment remained stable at roughly CHF 7.9 billion to CHF 8.0 billion despite strong price competition in the retail telecom market. Meanwhile, the newly combined Italian business generated about EUR 7.3 billion in revenue, reflecting the scale of the Fastweb + Vodafone integration.
ARPU trends reflect pricing pressure and convergence strategy
Average revenue per user showed mixed trends across markets.
In Switzerland, ARPU declined by about 2.3 percent, or roughly CHF 1, as customers migrated toward more affordable secondary brands such as Wingo and took advantage of promotional offers. Postpaid ARPU settled at approximately CHF 47 to CHF 48.
In Italy, ARPU remained relatively stable in the business segment but faced pressure in the consumer mobile market. Swisscom is responding by pushing convergence bundles that combine fixed and mobile services to support long-term revenue stability.
Subscriber growth continues in mobile, fixed services decline
Swisscom’s Swiss mobile business continued to expand, reaching 6.42 million mobile lines, up 2.2 percent. Growth was supported by strong performance from secondary brands targeting price-sensitive customers.
However, fixed and TV services continued to decline in Switzerland as consumer viewing habits shift toward streaming-only services. Broadband lines fell to 1.94 million, down 1.6 percent, while TV subscriptions dropped to 1.47 million, down 2.1 percent.
In Italy, the combined Fastweb + Vodafone entity now serves more than 20 million mobile customers and 5.6 million fixed-line customers, positioning the company as a major converged challenger in the Italian telecom market.
Vodafone Italia integration becomes Swisscom’s main growth engine
The integration of Vodafone Italia and Fastweb represents Swisscom’s primary long-term growth driver. The company is targeting annual run-rate synergies of EUR 600 million by 2030 by migrating traffic onto its own infrastructure and optimizing operations.
Swisscom incurred up to EUR 200 million in one-off integration costs during 2025, including expenses related to exiting legacy roaming and network-sharing agreements.
Swisscom expands AI and enterprise IT services
Artificial intelligence emerged as a major strategic focus. Swisscom launched “myAI,” a generative AI assistant for consumers, and introduced a sovereign AI platform designed for Swiss enterprises that require data residency and strong security.
The company expanded its B2B IT services portfolio, including cloud, cybersecurity, and IoT offerings. These services continued to grow even as traditional voice revenues declined.
Cost savings and network investments continue
Swisscom achieved CHF 50 million in annual cost savings in Switzerland through automation and simplified product portfolios.
Capital expenditure remained high at roughly CHF 3.1 billion to CHF 3.2 billion as Swisscom continued investing in network infrastructure. Fiber-to-the-home coverage reached 55 percent of Swiss households by the end of 2025, with a target of 75 percent to 80 percent by 2030. Swisscom’s 5G+ network coverage expanded to around 88 percent to 90 percent of the population, supporting high-speed data and industrial use cases.
Outlook and dividend increase signal confidence
Swisscom expects revenue between CHF 14.7 billion and CHF 14.9 billion and EBITDAaL of CHF 5.0 billion to CHF 5.1 billion, reflecting stable cash flow and continued integration progress, in 2026.
BABURAJAN KIZHAKEDATH
