In CHF million, except where indicated
  1st half-year
  1st half-year
Net revenue   5,769   5,758   0.2%
Operating income before depreciation and amortisation (EBITDA)   2,227   2,133   4.4%
EBITDA as % of net revenue   38.6   37.0    
Operating income (EBIT)   1,135   1,105   2.7%
Net income   788   784   0.5%
Earnings per share (in CHF)   15.23   15.13   0.6%
Capital expenditure   1,193   1,142   4.5%
Operating free cash flow   788   745   5.8%
Net debt at end of period   8,856   8,760   1.1%
Full-time equivalent employees at end of period   21,443   21,486   –0.2%

In the first half of 2016, Swisscom’s net revenue rose by CHF 11 million or 0.2% to CHF 5,769 million. Revenue in the Swiss core business decreased by CHF 11 million or 0.2% to CHF 4,650 million. While revenue from telecommunications services fell by CHF 46 million or 1.4% as a result of increasing competitive pressure and falling roaming prices, revenue in the solutions business with corporate customers increased by CHF 29 million or 5.6%. The number of revenue-generating units (RGUs) in the Swiss core business increased year-on-year by 70,000 or 0.6% to 12.5 million. However, this figure fell by 24,000 in the first half of 2016 as a result of market saturation. As a result of customer growth and its strong position in the market for business customers, Italian subsidiary Fastweb’s revenue was EUR 19 million or 2.2% higher at EUR 881 million. The number of subscribers to Fastweb’s broadband business grew year-on-year by 100,000 or 4.6% to 2.26 million (+56,000 in the first half of 2016).

Swisscom’s operating income before depreciation and amortisation (EBITDA) increased by CHF 94 million or 4.4% to CHF 2,227 million. This increase is primarily attributable to higher EBITDA at Fastweb, which rose by EUR 75 million or 28.8% to EUR 335 million. In addition to good operating income, Fastweb received compensation from Telecom Italia in the amount of EUR 55 million as a result of an out-of-court settlement following a legal dispute. EBITDA in the Swiss core business decreased by CHF 12 million or 0.6% to CHF 1,912 million. Net income increased year-on-year by CHF 4 million or 0.5% to CHF 788 million. The increase in EBITDA was largely offset by higher depreciation and amortisation and higher net financial expense.

Swisscom capital expenditure increased by CHF 51 million or 4.5% to CHF 1,193 million year-on-year. In Switzerland, capital expenditure rose by CHF 34 million or 4.0% to CHF 876 million due to broadband network expansion. At the end of June 2016, around 2.3 million lines in Switzerland featured the latest fibre-optic technology. In total, Swisscom has connected around 3.3 million homes and offices with ultra-fast broadband (with speeds of more than 50 Mbps). In addition, more than half (1.3 million) of fixed network connections have been converted to IP technology to date. At Fastweb, capital expenditure increased by EUR 7 million or 2.5% to EUR 286 million due to the continuing expansion of the broadband network.

Operating free cash flow rose by CHF 43 million or 5.8% to CHF 788 million. This increase is mainly due to higher EBITDA. Net debt rose year-on-year by CHF 96 million or 1.1% to CHF 8,856 million.

Swisscom headcount decreased year-on-year by 43 FTEs or 0.2% to 21,443 FTEs. Adjusted for company acquisitions, headcount fell by 198 FTEs or 0.7% as a result of efficiency measures. In the Swiss core business, the number of FTEs fell by 214 or 1.3% (–294 or –1.4% in the first half of 2016) year-on-year.

In view of the compensation from Telecom Italia and higher capital expenditure in the broadband network in Switzerland, Swisscom is adjusting the financial outlook for the 2016 financial year. Swisscom continues to expect net revenue of more than CHF 11.6 bil­lion and now anticipates EBITDA of around CHF 4.25 bil­lion (previously, about CHF 4.2 bil­lion) and capital expenditure of around CHF 2.4 bil­lion (previously, more than CHF 2.3 bil­lion). If the targets are met, Swisscom will propose to the Annual General Meeting of Shareholders payment of an unchanged dividend of CHF 22 per share for the 2016 financial year.