Swisscom income stabilises despite struggling Fastweb

7 Feb 2013

Swisscom has announced its financial results for 2012, revealing a 0.7% drop in revenue compared to 2011 and a 4.4% fall in earnings before interest, tax, depreciation and amortisation. Group revenues for the year were CHF11.38 billion (USD12.5 billion) compared to CHF11.47 billion a year earlier. Swisscom Switzerland contributed the lion’s share of revenues, booking CHF8.46 billion, an improvement from 2011 but down slightly from its 2010 figure of CHF8.56 billion. Elsewhere, income from Swisscom’s Italian unit Fastweb continued to decline, albeit at a slower rate, falling by 2.6% to CHF1.7 billion compared to a 7.1% drop in 2011. Net profits recovered to CHF1.76 billion in 2012, after an impairment loss of around CHF1.2 billion on Fastweb knocked net income down to CHF694 million in 2011, from CHF1.79 billion twelve months earlier. CAPEX for 2012 was higher than the previous two years, rising to CHF2.53 billion after spending CHF360 million on spectrum purchases in February 2012 and buoyed further by increased spending on the instalment of fibre infrastructure – which passed 552,000 premises in Switzerland at end-2012 – and new wireless networks.

Swisscom’s change of tack to unlimited tariffs – its Natel Infinity packages, which allow users uncapped calls, texts and data usage with prices varying only on transmission speeds – combined with its multi-play bundles have led to subscriber growth across the board. Broadband access increased by 4.0% year-on-year to 1.73 million, whilst Swisscom TV usage increased by 30.1% to 791,000 subscribers over the same period. Fixed telephony dropped by 3.4% to 3.01 million lines, slowed somewhat by a 28.3% increase in the number of customers signing up to bundled packages, which grew to 788,000. In the fiercely contested wireless market, Swisscom ended the year with 6.22 million subscribers, increasing 2.8% y-o-y, including the addition of 64,000 net new users in the final three months of 2012.

Switzerland, Fastweb, Swisscom