Swisscom reports fall in revenues and profits

2 May 2013

Switzerland’s incumbent and leading telco by subscribers Swisscom has posted a 2.4% year-on-year fall in revenues for the first quarter of 2013, down to CHF2.734 billion (USD2.945 billion). Earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 6.1% to CHF1.031 billion, whilst net profits slipped by 12.4% to CHF390 million. Subscriber growth has remained steady however, with Swisscom claiming 1.751 million broadband (4.1% y-o-y), 860,000 TV (31.3%) and 6.270 million mobile (+3.1%) customers at end-March 2013. Fixed line telephony continued to see a decline in use, however, with Swisscom registering 2.970 million lines in service compared to 3.093 million a year earlier. Swisscom’s Italian broadband arm, Fastweb, meanwhile reported a 12.5% increase in subscriptions to 1.861 million.

Swisscom attributed the decline in performance to seasonal effects and price erosion, although the impact of the provider’s ‘Infinity’ wireless packages on ARPU has also hindered revenue growth. Swisscom’s Infinity offerings provide unlimited data, calls and messages for a set monthly fee, with transmission speeds separating the tiers of service. Since the introduction of Infinity in June 2012, wireless blended ARPU has slipped by CHF5, to CHF38 in Q1 2013.

Switzerland, Fastweb, Swisscom