Swisscom books 3.5% dip in net revenue

17 Aug 2020

Swiss state-owned full-service provider Swisscom has booked consolidated net revenue of CHF2.71 billion (USD3.0 billion) in Q2 2020, down by 3.5% year-on-year, with the company citing continuing competitive pressures for the fall, along with lower roaming revenues. Swisscom noted that the COVID-19 pandemic led to a sharp reduction in customer travel, leading to a reduction in roaming revenues of CHF41 million. EBITDA for the period was CHF1.1 billion, a decrease of 2.1% y-o-y, whilst net profit was CHF342 million, down 13.9% from CHF397 million in Q2 2019. In operational terms the company noted that its domestic market is beginning to show signs of saturation in the mobile and fixed network segments, citing a 1.6% decline in mobile access lines y-o-y to 6.264 million whilst broadband access lines remained stable at 2.048 million (down 0.1% from 2.050 million in June 2019).

Regarding its network expansion programmes, Swisscom reported that it connected 4.1 million homes and businesses to its ultra-fast broadband service (capable of download speeds of 80Mbps and above), whilst 2.8 million homes and businesses could receive speeds of 200Mbps, including 1.6 million connected via fibre-to-the-home (FTTH) technology. In terms of its 5G rollout, Swisscom’s CEO Urs Schaeppi noted that the company had achieved 90% coverage via dynamic spectrum sharing but the densification of the network is being held back by moratoria on network construction in some cantons.

Switzerland, Swisscom