Swisscom “solid Q1 in difficult environment”
May 2, 2018
Swisscom’s, the dominant Swiss telco, has reported that consolidated Q1 net revenue was up 1.9 per cent on the previous year at CHF 2.8 million (€2.4m), while at constant currencies revenue remained nearly stable (+0.2 per cent). By contrast, Swisscom’s revenue in the Swiss core business fell by 1.8 per cent to CHF 2,206 million, mainly as a result of the continuing decline in traditional fixed-line telephony and ongoing price pressure.
The consolidated operating result before depreciation and amortisation (EBITDA) is practically stable at CHF 1,058 million. In the Swiss core business, an adjusted decrease of 2.9 per cent results due to the effects mentioned above. Thanks to prudent planning, efficiency improvements and active cost management, Swisscom succeeded in compensating for part of the decline in revenue in the Swiss core business. At CHF 379 million (+ 1.6 per cent), net income remained virtually on a par with the previous year.
In the first three months, headcount in Switzerland fell by 77 full-time equivalents as a result of the declining core business. Swisscom expects that around half of the planned job reduction by the end of the year can be offset by natural fluctuation and vacancy management.
Swisscom TV continues to be the most popular digital television service in Switzerland with a market share of 34 per cent. Despite fierce competition from cable network operators, the number of Swisscom TV connections rose by 54,000 or 3.8 per cent to 1.49 million in the space of a year.
CEO Urs Schaeppi commnted: “We reported a solid result in the first quarter of 2018. Our industry is challenged in a persistently difficult environment: the demands of our customers are growing, as is the volume of data on the networks. Consequently, the need for investment remains high. At the same time, prices are falling and promotions are intensifying the competition.” Both price pressure and saturated markets require Swisscom to further reduce its cost base. In the market, it is important to consistently develop offers and services and thus to create added value for customers. Our customers have been benefiting from up to 50% lower roaming prices since March. And they can look forward to an exciting football summer. We are continuing to develop our TV offer into an integrated entertainment platform. The figures for inOne are also pleasing, as we again increased in the first quarter. Our subsidiary Fastweb also grew.”