Saturated domestic market continues to impact Swisscom top line

30 Apr 2021

Swiss state-owned full-service provider Swisscom has registered group revenue of CHF2.80 billion (USD3.08 billion) for the first three months of 2021, an increase of 2.4% year-on-year. That figure includes a 0.7% improvement in turnover to CHF2.08 billion from its ‘saturated’ domestic market, driven primarily from the sale of IT solutions to large businesses and an increase in smartphone sales. Swisscom notes that the ongoing price pressure in the Swiss telecom markets resulted in a 3.5% decrease in service revenue, to CHF1.39 billion whilst, by contrast, its Italian division recorded y-o-y revenue growth of 7.0%, to EUR38 million. Group EBITDA for the three-month period rose by 1.3% to CHF1.05 billion, whilst net profit surged by more than 60% y-o-y from CHF394 million to CHF638 million. Explaining the jump in net earnings, the company stated that the profits were associated with its Italian unit’s fibre partnership: ‘[The increase in net profit] is mainly attributable to a shareholding that Fastweb transferred as a capital contribution to the newly-founded fibre optic network company FiberCop as part of the strategic partnership with TIM. This resulted in an upward revaluation of the investment of CHF169 million, which was recognised in the income statement. In addition, Swisscom realised a gain of CHF38 million on the sale of its participation in Belgacom International Carrier Services.’

Swisscom Switzerland reported a decline in its subscriber bases across the board: mobile access lines declined by 1.9% y-o-y to 6.177 million, fixed retail broadband lines fell by 1.2% to 2.028 million, fixed telephony lines dropped by 5.8% to 1.491 million and TV subscriptions slipped to 1.581 million from 1.586 million at end-March 2020.

Switzerland, Fastweb, Swisscom