Swisscom has revealed its financial performance and main achievements during the second-quarter of 2024.
REVENUE
Swisscom, a telecom service provider in Switzerland, has achieved 0.8 percent growth in revenue to CHF 5,454 million during Q2. Net income fell 1.4 percent to CHF 836 million.
In Switzerland, revenue fell by 1.4 percent to CHF 3.988 billion.
Revenue from telecommunications services decreased 2 percent to CHF 2.648 billion.
Revenue from IT services with business customers rose 6 percent to CHF 601 million.
CAPEX
Swisscom’s Capex reached CHF 1.157 billion (up 4 percent) as it made investment for bolstering quality, coverage and performance of its network infrastructure.
Swisscom provided more than 83 percent of the Swiss population with 5G+ at the end of June 2024.
Swisscom will submit the applications to the authorities for the efficient operation of adaptive antennas in line with the Federal Court directive. This will result in the over 2,500 pending building applications for mobile communications systems doubling in number by the end of the year.
Swisscom is aiming to increase fibre-optic coverage from 49 percent to 57 percent by the end of 2025 and 75–80 percent by the end of 2030. By then, optical fibre and 5G mobile will be available in almost all municipalities. Swisscom will decommission the 150-years-old copper access network, wherever optical fibre is available.
Swisscom intends to complete the optical fibre network in all municipalities after 2030. This will enable the complete decommissioning of the copper access network and related electricity savings in the order of the annual consumption of a city with around 20,000 inhabitants (100 GWh).
CUSTOMERS
At the end of June 2024, 2.08 million customers in the residential customer segment were using blue subscriptions. In this segment, blue accounts for 50 percent of all mobile subscriptions and 81 percent of fixed-line broadband connections.
The number of Swisscom fixed-line broadband connections fell by 1.5 percent to 1.98 million lines, with the number of TV lines dropping by 2.5 percent to 1.51 million. In mobile communications, the number of lines rose by 0.2 percent to 6.27 million, with the customer structure changing due to an increase in postpaid lines (+102,000) and a decrease in prepaid lines (–91,000).
Revenue from telecom services in the residential customer segment fell by 1.6 percent year-on-year to CHF 1,895 million. Among other things, the decline in revenue was due to the increase in VAT not being passed on to customers.
Revenue from telecom services fell 3 percent to CHF 753 million. Swisscom has a strong position as a full-service provider and customer satisfaction is high. Demand for cloud, security, IoT and SAP solutions and business applications grew. Revenue from IT services rose 6 percent in the first half of 2024 to CHF 601 million.
Fastweb
Fastweb has increased its revenue by 7.1 percent to EUR 1.34 billion. The number of mobile connections rose 11.4 percent to 3.72 million. The number of fixed-network business customers grew 5.4 percent to 3.34 million. The number of ultra-fast broadband connections that Fastweb provided to other operators rose to 778,000 (up 46.2 percent).
Fastweb sold its 4.5 percent stake in fibre-optic network provider FiberCop for EUR 439 million to Optics Bidco, a subsidiary of US investment company KKR.
Swisscom Group says Gerd Niehage will leave Swisscom. Mark Dusener will take over as CTIO of the IT, Network & Infrastructure Group division.
Mark Dusener is the head of the Mobile Network, Mobile Services & B2B Telco unit in the IT, Network & Infrastructure (INI) division of Swisscom since November 2020. There will be no changes to the strategic direction of INI or planned investments under the new leadership.
TARGET
Swisscom expects revenue of around CHF 11 billion, EBITDA of CHF 4.5–4.6 billion and capital expenditure of around CHF 2.3 billion for 2024.
On 15 March 2024, Swisscom announced its deal to buy Vodafone Italia for EUR 8 billion and the merger of this acquisition with Fastweb. The acquisition is on schedule. Walter Renna, CEO of Fastweb, will be the CEO of the new company.
