Outlook

The financial outlook for 2019 remains unchanged. Swisscom expects net revenue of around CHF 11.4 bil­lion, EBITDA of more than CHF 4.3 bil­lion and capital expenditure of around CHF 2.5 bil­lion (including expenditure of CHF 196 million for mobile radio frequencies in Switzerland) for 2019. Due to strong competition and price pressure and the ongoing decline in the number of fixed-line telephone connections, Swisscom expects revenue to be slightly lower without Fastweb. Fastweb’s revenue is expected to increase slightly from 2018. The outlook for EBITDA in 2019 reflects the effect of the new accounting standard for leasing (IFRS 16) applicable from 2019 onwards. The application of IFRS 16 has increased reported EBITDA by around CHF 200 million. For Swisscom, excluding Fastweb, the decline in revenue cannot be fully compensated by cost savings. In contrast, an increase in EBITDA is anticipated for Fastweb on a like-for-like basis. Capital expenditure in Switzerland, excluding costs for acquiring additional mobile radio frequencies at auction, will be slightly less than in the previous year. Fastweb’s capital expenditure is expected to be lower, because it will exclude the EUR 64 million spent on mobile radio frequencies in 2018. Subject to achieving its targets, Swisscom will propose payment of an unchanged, attractive dividend of CHF 22 per share for the 2019 financial year at the 2020 Annual General Meeting.