Content

Language

Close

No search results. Please enter a different search term.

2 Segment information

Changes in segment reporting

Swisscom has further increased the level of digitisation within its organisational structure in order to strengthen areas with close customer proximity and boost the company’s effectiveness in the highly competitive ICT market. Through these adjustments, Swisscom also wants to improve the customer experience from a single source, simplify processes and increase efficiency in order to create greater scope for innovation. As a result of the organisational changes, the Small and Medium-­Sized Enterprises division has been dissolved. The telecommunications and solutions business with small and medium-sized enterprises is now included in the Residential Customers segment as part of segment reporting. Swisscom Directories (localsearch) has been transferred to the new Digital Business division, which is reported under Other Operating Segments. In addition, all field service functions of Swisscom Switzerland are reported under the Residential Customers segment. Fleet management froom the Participations division (Other Operating Segments) has also been transferred to the IT, Network & Infrastructure segment. The prior year’s figures have been restated as follows:

In CHF million   Reported   Adjustment   Restated
             
Net revenue Financial year 2016
Residential Customers   5,160   1,105   6,265
Small and Medium-Sized Enterprises   1,367   (1,367)  
Enterprise Customers   2,611   (71)   2,540
Wholesale   989   (10)   979
IT, Network & Infrastructure (former IT, Network & Innovation)   129   44   173
Elimination   (816)   116   (700)
Swisscom Switzerland   9,440   (183)   9,257
Fastweb   1,957     1,957
Other Operating Segments   594   195   789
Group Headquarters   2     2
Elimination   (350)   (12)   (362)
Total net revenue   11,643     11,643
             
Segment result Financial year 2016
Residential Customers   2,748   753   3,501
Small and Medium-Sized Enterprises   847   (847)  
Enterprise Customers   722   32   754
Wholesale   388   (9)   379
IT, Network & Infrastructure (former IT, Network & Innovation)   (2,508)   17   (2,491)
Swisscom Switzerland   2,197   (54)   2,143
Fastweb   124     124
Other Operating Segments   27   54   81
Group Headquarters   (114)     (114)
Reconciliation pension cost   (72)     (72)
Elimination   (14)     (14)
Total segment result   2,148     2,148

General information

Operating segments requiring to be reported are determined on the basis of the management approach. Accordingly, external segment reporting reflects the Group’s internal financial reporting to the Chief Operating Decision Maker. Reporting is divided into the segments “Residential Customers”, “Enterprise Customers”, “Wholesale”, and “IT, Network & Infrastructure”, which are grouped under Swisscom Switzerland, as well as “Fastweb”, and “Other Operating Segments”. “Group Headquarters”, which includes non-allocated costs, is reported separately.

Group Headquarters does not charge any management fees to other segments for its financial management services, nor does the IT, Network & Infrastructure segment charge any network costs to other segments. Other services between the segments are recharged between the segments at market prices. The results of the Residential Customers, Enterprise Customers and Wholesale segments correspond to a contribution margin before network costs. The results of the IT, Network & Infrastructure segment consist of operating expenses and depreciation and amortisation less the revenue from the rental and administration of buildings and vehicles as well capitalised costs and other income. The segment results of Swisscom Switzerland correspond in aggregate to the operating results (EBIT) of Swisscom Switzerland. The segment results of Fastweb and Other Operating Segments correspond to the operating results (EBIT) of these units. This latter encompasses net revenues from external customers and other segments, less segment expenses, depreciation and amortisation and impairment losses on property, plant & equipment and intangible assets. Segment expense includes the costs of goods and services purchased, personnel expense and other operating costs less capitalised costs of self-constructed assets and other income.

Segment expense contains the ordinary employer contributions as pension costs. The difference between the ordinary employer contributions and the pension cost as provided for under IAS 19 is reported in the column “Eliminations”. For the first nine months of 2017, an expense of CHF 75 million is disclosed under “Elimination” as a pension cost reconciliation item in accordance with IAS 19 (CHF 55 million in the first nine months of 2016).

Services provided to or sales of assets recharged between the individual segments may include unrealised gains or losses. These are eliminated and are reported in the segment information in the column “Eliminations”.

Net revenue and the results of the individual segments for the first nine months of 2017 are as shown below:


1.1.–30.9.2017, in CHF million
 
Swisscom
Switzerland
 

Fastweb
  Other
Operating
Segments
  Group
Head-
quarters
 
Elimi-
nation
 

Total
Net revenue from external customers   6,676   1,544   383   1     8,604
Net revenue with other segments   61   7   229   1   (298)  
Net revenue   6,737   1,551   612   2   (298)   8,604
Segment result   1,646   201   80   (71)   (90)   1,766
Financial income and financial expense, net                       (118)
Share of results of associates                       (6)
Income before income taxes                       1,642
Income tax expense                       (373)
Net income                       1,269

1.1.–30.9.2017, in CHF million
 
Residential
Customers
 
Enterprise
Customers
 

Wholesale
  IT,
Netowork &
Infrastructure
 
Elimi-
nation
 
Swisscom
Switzerland
Net revenue from external customers   4,456   1,771   430   19     6,676
Net revenue with other segments   61   80   268   106   (454)   61
Net revenue   4,517   1,851   698   125   (454)   6,737
Segment result   2,616   568   330   (1,868)     1,646

Net revenue and the results of the individual segments for the first nine months of 2016 are as shown below:


1.1.–30.9.2016, in CHF million, restated
 
Swisscom
Switzerland
 

Fastweb
  Other
Operating
Segments
  Group
Head-
quarters
 
Elimi-
nation
 

Total
Net revenue from external customers   6,828   1,434   380   1     8,643
Net revenue with other segments   62   7   184     (253)  
Net revenue   6,890   1,441   564   1   (253)   8,643
Segment result   1,699   76   63   (84)   (63)   1,691
Financial income and financial expense, net                       (181)
Share of results of associates                       1
Income before income taxes                       1,511
Income tax expense                       (314)
Net income                       1,197

1.1.–30.9.2016, in CHF million, restated
 
Residential
Customers
 
Enterprise
Customers
 

Wholesale
  IT,
Netowork &
Infrastructure
 
Elimi-
nation
 
Swisscom
Switzerland
Net revenue from external customers   4,577   1,791   436   24     6,828
Net revenue with other segments   100   90   295   107   (530)   62
Net revenue   4,677   1,881   731   131   (530)   6,890
Segment result   2,665   568   290   (1,824)     1,699