Capital ex­pen­di­ture

Capital ex­pen­di­ture rose year-on-year by CHF 34 million or 1.4% to CHF 2,438 million, cor­re­spond­ing to 21.3% of net revenue (prior year: 20.5%). Swisscom Switzer­land accounted for 72% of 2019 capital ex­pen­di­ture, while Fastweb accounted for 27% and Other Operating Segments for 1%.

Capital ex­pen­di­ture incurred by Swisscom Switzer­land increased year-on-year by CHF 141 million or 8.7% to CHF 1,761 million, cor­re­spond­ing to 20.6% of net revenue (prior year: 18.4%) and included ex­pen­di­ture of CHF 196 million in connection with the mobile radio fre­quen­cies acquired auction in the first half of 2019. Capital ex­pen­di­ture on broad­band expansion with fibre optics remained stable at a high level, while capital ex­pen­di­ture on mobile com­mu­ni­ca­tions and other fixed network and in­fra­struc­ture declined.

Fastweb decreased its capital ex­pen­di­ture by CHF 90 million or 11.9% to CHF 667 million. In local currency, capital ex­pen­di­ture decreased by EUR 58 million or 8.8% to EUR 599 million. The decrease is mainly due to the expenses for the acquisition and extension of mobile radio fre­quen­cies in the amount of EUR 64 million in the previous year. The investment volume remains at a high level overall, driven by the further expansion of the broad­band networks. The ratio of capital ex­pen­di­ture to net revenue fell as a result to 27.0% (prior year: 31.2%).