Fastweb growth helps Swisscom offset slowdown in Switzerland

19 Aug 2016

Swiss full service provider Swisscom has registered a 0.2% year-on-year increase in net revenue for the first six months of 2016, as growth from its Italian ISP Fastweb helped offset declining service revenue in its domestic market. The group generated net revenue of CHF5.77 billion (USD6.02 billion) during H1 2016, including CHF4.68 billion from Swisscom Switzerland (down 0.3% y-o-y) and EUR881 million (USD997.25 million) from Fastweb. Service revenue in Switzerland was negatively impacted by increasing competitive pressure and falling roaming prices. EBITDA for the period increased by 4.4% compared to H1 2015 to CHF2.23 billion, with Swisscom also attributing the increase to Fastweb, where EBITDA grew by around EUR75 million, after the ISP received a EUR55 million out-of-court settlement in relation to a legal dispute with Telecom Italia. Swisscom’s net income for the six-month period was CHF788 million, up from CHF784 million a year earlier.

In operational terms, the group counted a total of 12.519 million revenue generating units (RGUs) in Switzerland – up from 12.449 million in June 2015 – including 6.623 million mobile subscribers (6.592 million at 30 June 2015), 2.518 million fixed voice lines (-6.6% y-o-y from 2.697 million), 1.978 million broadband access lines (up 2.9% annually) and 1.400 million Swisscom TV subscriptions. In Italy, meanwhile, its Fastweb division reported a 4.6% annual increase in broadband access lines to 2.257 million.

Switzerland, Fastweb, Swisscom