Swisscom books stable revenue for 2018

7 Feb 2019

Swiss state-owned full-service provider Swisscom has registered total revenue of CHF11.7 billion (USD11.7 billion) for the twelve months ended 31 December 2018, up 0.4% year-on-year. The telco noted that pricing pressures and the declining demand for fixed telephony services continued to drive down turnover from its domestic division by 2.7% (falling to CHF8.8 billion), whilst its Italian arm Fastweb reported a positive revenue growth of 8.2% y-o-y. EBITDA for the twelve-month period was down 1.9% to CHF4.2 billion, whilst net profit dipped by 3.0% to CHF1.5 billion.

Swisscom continued to observe a shift towards contract plans in its mobile customer base, recording a net loss of 120,000 pre-paid lines and an increase of 34,000 post-paid lines, leading to an overall 1.3% y-o-y decline in mobile subscriptions to 6.55 million. The cellco also reported a 28% increase in mobile data traffic for the period, whilst roaming data traffic grew by 54% as a result of changes to the company’s tariffs to bring them closer in line with the EU’s ‘roam like home’ policy: Swisscom notes ‘a large number of customers phone, surf and send SMS messages throughout Europe without incurring any additional costs’. In other mobile developments, the operator added that it had continued to develop its nationwide 4G LTE network and now offered download speeds of 700Mbps to 27% of the population, whilst 500Mbps speeds were available to 72% and 95% could utilise downlink rates of up to 300Mbps. The operator has also rolled out 5G test networks in Burgdorf, Lausanne, Geneva, Zurich, Berne, Davos and Lucerne and plans to expand the system to 60 cities by the end of the year.

In the fixed segment Swisscom counted a total of 2.03 million retail lines, up 0.9% y-o-y and TV subscriptions grew by 3.5% to 1.52 million, whilst fixed telephony accounts dropped by 199,000 to 1.64 million. Swisscom noted that take-up of its ‘inOne’ bundled plans continued to grow, reaching 2.33 million by end-December 2018, accounting for 54% of all mobile subscriptions and 57% of fixed broadband lines.

Switzerland, Swisscom