Swisscom revenues struggle despite subscriber growth

9 Aug 2013

Swiss fixed line incumbent and the largest telco in the country by subscribers, Swisscom has booked a 0.4% decline in revenues for the first six months of 2013, down to CHF5.596 billion from CHF5.621 billion (USD6.07 billion from USD6.10 billion) a year earlier. The decline was attributed to price erosion of around CHF200 million in the company’s core Swiss business, and a CHF90 million reduction in revenues from roaming fees, although subscriber and volume growth offset the majority of the decline. EBITDA meanwhile dropped by 5.5% year-on-year to CHF2.10 billion. Swisscom attributed the slump to higher subscriber acquisition costs, and greater network maintenance and IT expenses. Consequently, the telco’s net profits dropped to CHF819 million, a 9.7% decline y-o-y.

Swisscom’s bundled offers continue to gain traction, however, with revenues from multi-play packages expanding from CHF525 million to CHF725 million. There were 889,000 multi-play bundle users (264,000 double-play, 451,000 triple-play and 174,000 quad-play), compared to 699,000 (237,000 double-play, 374,000 triple-play and 88,000 quad-play) a year earlier. Subscriber growth was strong across the board, with the telco claiming 6.307 million wireless users (3.2% y-o-y), 1.767 million broadband customers (4.3%) and 902,000 TV subscribers (+30.0%).

Switzerland, Swisscom