Swisscom Q1 “sound, given the circumstances”
April 30, 2020
Swisscom has reported group revenue in line with expectations, with operating income (EBITDA) stable at CHF 1,111 million, and minimal impact from Covid-19 on financial results in the first quarter.
Bundled offers are still in demand, with 68 per cent of private customers using inOne mobile communications services. Corporate business segment grew in solutions business and Fastweb grew in all customer segments.
Swisscom said outlook for full-year 2020 remains unchanged but there are uncertainties regarding the financial impact of Covid-19.
CEO Urs Schaeppi commented: “The market environment is challenging. But Swisscom’s results are sound, given the circumstances. The demand for our bundled offerings continues. Our network is the foundation of our success. This is evident in the current Covid-19 crisis. Meetings via video conference in the home office, distance learning in the children’s room and contact with friends via telephone and FaceTime are now part of everyday life – with corresponding effects on the infrastructure. We recorded 70 per cent more mobile phone calls in March than in the previous month. And in the fixed network, we reach peak levels every evening at prime time with TV and streaming services. Before the crisis, this only happened on Sunday evenings. Swisscom’s networks are continuing to hold their own, even at this time.
“Given the ongoing rise in data volumes, however, the need for investment remains high. That is why we are investing in further expanding mobile telephony with 5G and in doubling fibre-optic coverage (FTTH) by the end of 2025. Our subsidiary Fastweb continued to grow in the residential and business customers segments. COVID-19 is creating many uncertainties and will continue to shape our financial year. I am grateful and proud of what Swisscom employees are achieving in difficult conditions,” concluded Schaeppi.