Swisscom’s net revenue was up by 2.6% or CHF 140 million at CHF 5,583 million, while operating income before depreciation and amortisation (EBITDA) increased by 4.9% or CHF 109 million to CHF 2,317 million. Adjustments to pension liabilities and provisions as well as currency fluctuations affected revenue and EBITDA. On a like-for-like basis and at constant exchange rates, revenue increased by 2.0% and EBITDA by 2.7%. The consolidated net income of CHF 1,046 million is significantly higher than the previous year (+42.1% or CHF 310 million) primarily due to non-recurring items in EBITDA and in the financial result. This is mainly attributable to a shareholding that Fastweb transferred as a capital contribution to the newly-founded fibre optic network company FiberCop as part of the strategic partnership with TIM. In the first quarter of 2021, this resulted in an upward revaluation recognised in the income statement of CHF 169 million. In addition, the sale of the stake in Belgacom Inter­national Carrier Services resulted in a gain of CHF 38 million. EBITDA for the second quarter of 2021 also includes one-off income of CHF 60 million from the adjustment of pension liabilities and the additions to provisions for legal proceedings of CHF 22 million.

In the Swiss core business activity, net revenue increased by 0.5% or CHF 19 million to CHF 4,103 million. The increase was due to growth in sales of smartphones and an increase in solutions business with business customers. However, ongoing competitive and price pressure continued to cause a decline in revenue of 3.1% or CHF 89 million in telecom services. EBITDA in the Swiss core business activity increased by 0.9% or CHF 16 million to CHF 1,797 million. On a like-for-like basis, the increase is 2.1%. The decline in revenue from telecom services and the higher costs of subscriber acquisition and retention were offset thanks to ongoing efficiency improvements. Revenue at Italian subsidiary Fastweb increased by 6.9% or EUR 76 million to EUR 1,181 million, with all customer segments reporting revenue growth. In the broadband business, Fastweb’s customer base grew by 3.0% to 2.8 million over the course of the year, and in mobile communications by 19.6% to 2.2 million. EBITDA at Fastweb rose in local currency by 5.2% or EUR 19 million to EUR 384 million, as a result of the growth in revenue.

Swisscom’s capital expenditure increased by 0.7% or CHF 8 million to CHF 1,083 million. Capital expenditure in the Swiss core business activity declined by 3.0% or CHF 23 million to CHF 753 million. Capital expenditure in broadband and mobile communications networks increased, while capital expenditure in other infrastructure declined. Fastweb posted an increase in capital expenditure, up 9.1% or EUR 25 million to EUR 301 million, as a result of higher customer-driven investments and higher capital expenditure in network infrastructure.

The operating free cash flow proxy increased by 10.2% or CHF 100 million to CHF 1,083 million, which was attributable to a better operating income before depreciation and amortisation (EBITDA). Net debt fell by 7.6% or CHF 545 million compared to the end of June 2020 and stood at CHF 6,626 million. The number of employees at Swisscom increased by 0.7% or 126 FTEs to 19,110 FTEs. In Switzerland, headcount decreased by 1.0% or 155 FTEs to 15,964 FTEs.

The financial outlook for fiscal 2021 remains unchanged in terms of net revenue and capital expenditure. Swisscom expects net revenue of around CHF 11.3 bil­lion and capital expenditure of CHF 2.2 bil­lion to CHF 2.3 bil­lion. For EBITDA, the forecast is increased from between CHF 4.3 bil­lion and 4.4 bil­lion to CHF 4.4 bil­lion and CHF 4.5 bil­lion and takes into account the ongoing business performance as well as the non-recurring items on pension liabilities and on provisions recognised in the second quarter of 2021. If business develops as planned, Swisscom will propose to the 2022 Annual General Meeting that the dividend for the 2021 financial year remain unchanged at CHF 22 per share.