Swisscom’s net revenue decreased by 1.6% or CHF 89 million to CHF 5,494 million and operating income before depreciation and amortisation (EBITDA) fell by 5.4% or CHF 126 million to CHF 2,191 million. The recognition of provisions for legal proceedings and adjustments to employee benefits (in the previous year) as well as foreign currency translation had an impact on revenue and EBITDA. On a like-for-like basis and at constant exchange rates, net revenue remained almost stable (–0.1%), while EBITDA increased by 1.0%. The consolidated net income of CHF 785 million is significantly lower than in the prior year (–25.0% or CHF –261 million). Non-recurring items in the current year and in the previous year impacted EBITDA and the financial result. If it were not for these non-recurring items, net income would have been higher. The financial outlook for 2022 remains unchanged.
In the Swiss core business (Swisscom Switzerland), net revenue shrank by 0.2% or CHF 9 million to CHF 4,094 million. Ongoing competitive and price pressure caused a continued decline in revenue from telecoms services. This fell by 1.6% or CHF 44 million to CHF 2,722 million. By contrast, revenue in the solutions business with business customers increased by 7.7% or CHF 42 million to CHF 589 million. The net revenue of the Italian subsidiary Fastweb rose by 1.5% or EUR 18 million in local currency to EUR 1,199 million. In the Swiss core business, EBITDA declined by 2.7% or CHF 49 million to CHF 1,748 million. On an adjusted basis, it was up 0.6%. The decline in revenue from telecoms services was more than offset by growth in the solutions business and ongoing efficiency improvement measures. At Fastweb, EBITDA rose in local currency by 4.9% or EUR 19 million to EUR 403 million.
Swisscom’s capital expenditure decreased by 2.8% or CHF 30 million to CHF 1,053 million. In the Swiss core business, capital expenditure remained almost stable at CHF 755 million (+0.3%). Capital expenditure in broadband and mobile communications networks fell, while capital expenditure in other infrastructure increased. At Fastweb too, capital expenditure in local currency remained virtually stable at EUR 299 million (–0.7%).
Operating free cash flow proxy declined by 8.4% or CHF 91 million to CHF 992 million, mainly due to lower EBITDA. Net debt remained at the same level year-on-year at CHF 8,538 million (–0.4%). The number of Swisscom employees remained virtually unchanged at 19,067 full-time equivalents (–0.2%). In Switzerland, headcount decreased year-on-year by 0.6% or 90 FTEs to 15,874 FTEs.
The financial outlook for 2022 remains unchanged. Swisscom expects net revenue of around CHF 11.1 to 11.2 billion, EBITDA of around CHF 4.4 billion and capital expenditure of around CHF 2.3 billion. Subject to achieving its targets, Swisscom will propose to pay an unchanged dividend of CHF 22 per share for the 2022 financial year at the 2023 Annual General Meeting.