Swisscom reports 2010 results

17 Feb 2011

Swisscom closed 2010 with a 0.1% fall in net revenue to CHF11.99 billion (USD12.42 billion) and a 1.9% decline in EBITDA to CHF4.6 billion. The group’s Italian subsidiary Fastweb reported a 1.5% rise in net revenue in local currency to EUR1.88 billion (USD2.54 billion). Excluding Fastweb, Swisscom increased net revenue by 2.3% to CHF9.4 billion last year; the increase was largely attributable to the Swiss economic recovery, the acquisition of subsidiaries by Swisscom IT Services and growth in mobile communications and bundled products. Net income fell by 7.1% to CHF1.79 billion, primarily as a result of a provision for Fastweb’s VAT bill. Capital expenditure for the year was in excess of CHF1.9 billion, down 4.2% year-on-year. Net debt was reduced during the reporting period by CHF293 million to CHF8.85 billion.

Operationally, Swisscom TV customers increased by 81.5% to 421,000 at the end of December. The trend in Switzerland towards bundled products and new pricing models such as flat-rate tariffs continued in the year; by the end of 2010 the number of customers signed up for bundled offerings such as Vivo Casa, which combines fixed line telephony, internet and TV, totalled 327,000. The number of unbundled fixed lines rose by 102,000 year-on-year to 255,000. As a consequence though, wholesale broadband access lines fell by 105,000 to 226,000. Retail broadband users grew by 106,000, or 7.2%, to nearly 1.6 million. Mobile customers increased by 226,000 in the year, or 4%, to 5.8 million; in 2010 Swisscom sold 1.38 million mobile devices, of which around half were smartphones. Revenue from mobile data traffic rose year-on-year by 33% to CHF435 million.

Switzerland, Swisscom