Swisscom books stable 9M 2015, plans 2G switch-off by 2020

5 Nov 2015

Swiss incumbent Swisscom has registered a 0.3% annual increase in turnover for the nine months ended 30 September 2015 although non-recurring items and, to a lesser extent, currency fluctuations led to a decline in EBITDA of 8.1% compared to 9M 2014. The operator booked net revenue of CHF8.65 billion (USD8.72 billion) for the nine month period, up slightly from CHF8.63 billion twelve months earlier, whilst EBITDA slumped to CHF3.10 billion from CHF3.37 billion, due in part to a CHF186 million fine from the Swiss Competition Commission (Wettbewerbskommission, Weko) in relation to alleged improper pricing of broadband services in the period to end-2007. Consequently, net income dipped to CHF1.06 billion, down 21.6% from CHF1.35 billion in 9M 2014.

In operational terms, Swisscom Switzerland reported 6.618 million mobile users (up 1.8% year-on-year), 1.937 million retail broadband lines (+3.5% y-o-y) and 1.275 million Swisscom TV subscriptions (up 13.3%), although its fixed line telephony base continued to decline, falling by 5.4% y-o-y to 2.659 million. Overall, Swisscom Switzerland counted a total of 12.489 million revenue generating units (RGUs). Swisscom’s Italian ISP arm Fastweb, meanwhile, booked a total of 2.172 million broadband subscriptions, up from 2.016 million at end-September 2014.

Swisscom noted that around 70% of its mobile data traffic is now carried over its LTE network, which covers 98% of the Swiss population, announcing plans to discontinue its 2G network by 2020 in order to free up the frequencies for 5G technology.

Switzerland, Fastweb, Swisscom