ADSL and overseas operations keep Swisscom ahead in 1H

20 Aug 2003

Swisscom [NYSE: SCM] today reported revenues of CHF7.15 billion for the first half of 2003, a rise of just 0.35% on the corresponding period of 2002, despite a surge in subscribers to its Bluewin broadband data offering. The operator said falling revenues from its Swiss operations were offset by improved performances at several of its overseas units, including German reseller debitel [Munich: DBLG]. Swisscom’s EBITDA rose by more than 7% to CHF2.43 billion, with net income increasing by 22% to CHF952 million. At the end of June 2003 the operator had total debts of CHF125 million.

Swisscom said the hardest hit of its domestic units were its residential fixed line subsidiary Fixnet and Enterprise Solutions, which offers fixed line voice and data solutions to the business community. Turnover at the two divisions fell by 7% and 8.5% respectively. The balance was in part redressed by its ADSL division, which saw subscribers rise from 101,000 to 317,000 over the year; 177,000 of these were directly connected to Swisscom’s Bluewin retail ADSL offering, with the remainder comprising customers for other ADSL operators. The number of mobile customers to Swisscom’s GSM-900/GSM-1800 network rose by 5.4% to 3.68 million in the year to 30 June 2003; Swisscom Mobile has a domestic market share of around 60%.