Swisscom blames saturated core business for dip in revenues

29 Oct 2020

State-owned full-service provider Swisscom has booked consolidated net revenues of CHF8.20 billion (USD9.01 billion) for the first three quarters of 2020, a decrease of 3.0% compared to the previous year. The company attributed the drop primarily to the saturation of its core markets and pricing pressure within those segments. Swisscom noted that although the COVID-19 pandemic did negatively impact its roaming revenues, the overall impact on its financial results was ‘minor’. Efforts to reduce costs led to a decrease in EBITDA of just 0.1% year-on-year to CHF3.36 billion, with Swisscom’s EBITDA margin improving from 39.7% to 40.9%. Net profit for the nine-month period fell by 1.3% to CHF1.17 billion, due mainly to higher tax expenses.

In operational terms, Swisscom recorded contractions in its user bases in several segments. In its domestic market, fixed telephony access lines continued their long-term decline and fell by 5.9% y-o-y to 1.55 million, but retail broadband access lines also dipped slightly, with subscriber numbers contracting by 0.4% compared to last year, to 2.05 million. Similarly, fixed RGUs fell by 1.7% y-o-y to 11.40 million, despite a 0.7% increase in TV subscription, which brought the total to 1.55 million.

Switzerland, Swisscom