2 Segment information
Changes in segment reporting
Swisscom has simplified its internal settlement as of 1 January 2022. The costs for roaming calls and for termination on networks of other telecommunications providers are no longer charged to the Residential Customers and Business Customers segments, but remain in the Wholesale segment. In turn, proceeds from termination on Swisscom’s network are no longer credited to the Residential Customers and Business Customers segments, but likewise remain in the Wholesale segment. In addition, Swisscom has reassigned various areas within Swisscom Switzerland among the segments as of 1 January 2022. The prior year’s figures were restated as follows:
In CHF million | Reported | Adjustment | Restated | |||
---|---|---|---|---|---|---|
Net revenue 2021 financial year | ||||||
Residential Customers | 4,592 | (47) | 4,545 | |||
Business Customers | 3,058 | (27) | 3,031 | |||
Wholesale | 971 | (317) | 654 | |||
Infrastructure & Support Functions | 76 | – | 76 | |||
Elimination | (464) | 391 | (73) | |||
Swisscom Switzerland | 8,233 | – | 8,233 | |||
Fastweb | 2,583 | – | 2,583 | |||
Other Operating Segments | 1,033 | – | 1,033 | |||
Elimination | (666) | – | (666) | |||
Total net revenue | 11,183 | – | 11,183 | |||
Segment result 2021 financial year | ||||||
Residential Customers | 2,676 | 145 | 2,821 | |||
Business Customers | 1,189 | 88 | 1,277 | |||
Wholesale | 524 | (227) | 297 | |||
Infrastructure & Support Functions | (2,644) | (6) | (2,650) | |||
Elimination | 1 | – | 1 | |||
Swisscom Switzerland | 1,746 | – | 1,746 | |||
Fastweb | 197 | – | 197 | |||
Other Operating Segments | 99 | – | 99 | |||
Elimination | (20) | – | (20) | |||
Total segment result | 2,022 | – | 2,022 |
General information
Reporting is divided into the segments ‘Residential Customers’, ‘Business Customers’, ‘Wholesale’, and ‘Infrastructure & Support Functions’, which are grouped under Swisscom Switzerland, as well as ‘Fastweb’ and ‘Other Operating Segments’.
The Infrastructure & Support Functions segment does not charge any network costs or management fees for its services to other segments. Any other services between the segments are charged at market prices. The results of the Residential Customers, Business Customers and Wholesale segments thus correspond to a contribution margin before network costs.
Segment expense encompasses the direct and indirect costs, which include personnel expense, other operating costs less capitalised costs of self-constructed assets and other income. Pension cost includes ordinary employer contributions. The difference between the ordinary employer contributions and the pension cost as provided for under IAS 19 is reported in the column ‘Eliminations’. In the first six months of 2022, expenses of CHF 30 million were disclosed under ‘Eliminations’ as a pension cost reconciliation item in accordance with IAS 19 (prior year: income of CHF 36 million).
Leases between the segments are not recognised in the balance sheet in accordance with IFRS 16. The reported lease expense of the segments comprises depreciation and interest on right-of-use assets excluding depreciation on indefeasible rights of use (IRU) of CHF 10 million (prior year: CHF 12 million) as well as the accounting for the rental of buildings between segments. The lease expense of assets of low value is presented as direct costs.
Capital expenditure consists of the purchase of property, plant and equipment and intangible assets and payments for indefeasible rights of use (IRU). In general, IRUs are paid in full at the beginning of the use and are classified as leases under IFRS 16. From an economic point of view, IRU payments will be considered as capital expenditure in the segment information. Capital expenditure in the first six months of 2022 includes IRU payments of CHF 6 million (prior year: CHF 5 million).
Swisscom Switzerland sometimes sells mobile handsets at a subsidised rate as part of a bundled offering with a mobile contract. As a result of the reallocation of revenue over the pre-delivered components (mobile handset), revenue is recognised earlier than the date of invoicing. This results in contract assets deriving from this business being recognised. In the segment reporting of Swisscom Switzerland, the recognition and dissolution of these contract assets is reported as other revenue. The amounts invoiced are reported under revenue from telecommunications services or merchandise.
Segment information 2022
1.1.–30.6.2022, in CHF million |
Swisscom Switzerland |
Fastweb |
Other Operating Segments |
Elimination |
Total |
|||||
---|---|---|---|---|---|---|---|---|---|---|
Residential customers | 2,231 | 587 | – | – | 2,818 | |||||
Corporate customers | 1,541 | 510 | 206 | – | 2,257 | |||||
Wholesale customers | 290 | 129 | – | – | 419 | |||||
Net revenue from external customers | 4,062 | 1,226 | 206 | – | 5,494 | |||||
Net revenue from other segments | 32 | 4 | 294 | (330) | – | |||||
Net revenue | 4,094 | 1,230 | 500 | (330) | 5,494 | |||||
Direct costs | (847) | (426) | (34) | 35 | (1,272) | |||||
Indirect costs | (1,499) | (391) | (383) | 242 | (2,031) | |||||
Segment result before depreciation and amortisation | 1,748 | 413 | 83 | (53) | 2,191 | |||||
Lease expense | (111) | (30) | (5) | – | (146) | |||||
Depreciation and amortisation | (747) | (306) | (23) | 8 | (1,068) | |||||
Segment result | 890 | 77 | 55 | (45) | 977 | |||||
Interest expense on lease liabilities | 22 | |||||||||
Operating income | 999 | |||||||||
Financial income and financial expense, net | (13) | |||||||||
Result of equity-accounted investees | (1) | |||||||||
Income before income taxes | 985 | |||||||||
Income tax expense | (200) | |||||||||
Net income | 785 | |||||||||
Segment result before depreciation and amortisation | 1,748 | 413 | 83 | (53) | 2,191 | |||||
Lease expense | (111) | (30) | (5) | – | (146) | |||||
Capital expenditure | (755) | (306) | (14) | 22 | (1,053) | |||||
Operating free cash flow proxy | 882 | 77 | 64 | (31) | 992 |
Segment information Swisscom Switzerland 2022
1.1.–30.6.2022, in CHF million |
Residential Customers |
Business Customers |
Wholesale |
Infrastructure & Support Functions |
Elimination |
Total Swisscom Switzerland |
||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Fixed-line | 1,005 | 421 | – | – | – | 1,426 | ||||||
Mobile | 922 | 374 | – | – | – | 1,296 | ||||||
Telecom services | 1,927 | 795 | – | – | – | 2,722 | ||||||
Solutions business | – | 589 | – | – | – | 589 | ||||||
Merchandise | 244 | 148 | – | – | – | 392 | ||||||
Wholesale | – | – | 290 | – | – | 290 | ||||||
Revenue other | 60 | – | – | 9 | – | 69 | ||||||
Net revenue from external customers | 2,231 | 1,532 | 290 | 9 | – | 4,062 | ||||||
Net revenue from other segments | 8 | 25 | 6 | 27 | (34) | 32 | ||||||
Net revenue | 2,239 | 1,557 | 296 | 36 | (34) | 4,094 | ||||||
Direct costs | (423) | (371) | (131) | (4) | 82 | (847) | ||||||
Indirect costs | (342) | (493) | (9) | (608) | (47) | (1,499) | ||||||
Segment result before depreciation and amortisation | 1,474 | 693 | 156 | (576) | 1 | 1,748 | ||||||
Lease expense | (19) | (15) | – | (77) | – | (111) | ||||||
Depreciation | (30) | (36) | – | (681) | – | (747) | ||||||
Segment result | 1,425 | 642 | 156 | (1,334) | 1 | 890 | ||||||
Capital expenditure | (17) | (22) | – | (717) | 1 | (755) |
Segment information 2021
1.1.–30.6.2021, in CHF million, restated |
Swisscom Switzerland |
Fastweb |
Other Operating Segments |
Elimination |
Total |
|||||
---|---|---|---|---|---|---|---|---|---|---|
Residential customers | 2,242 | 629 | – | – | 2,871 | |||||
Corporate customers | 1,511 | 526 | 216 | – | 2,253 | |||||
Wholesale customers | 325 | 134 | – | – | 459 | |||||
Net revenue from external customers | 4,078 | 1,289 | 216 | – | 5,583 | |||||
Net revenue from other segments | 25 | 4 | 289 | (318) | – | |||||
Net revenue | 4,103 | 1,293 | 505 | (318) | 5,583 | |||||
Direct costs | (867) | (476) | (36) | 29 | (1,350) | |||||
Indirect costs | (1,439) | (397) | (386) | 306 | (1,916) | |||||
Segment result before depreciation and amortisation | 1,797 | 420 | 83 | 17 | 2,317 | |||||
Lease expense | (117) | (29) | (6) | 1 | (151) | |||||
Depreciation and amortisation | (757) | (320) | (27) | 5 | (1,099) | |||||
Segment result | 923 | 71 | 50 | 23 | 1,067 | |||||
Interest expense on lease liabilities | 22 | |||||||||
Operating income | 1,089 | |||||||||
Financial income and financial expense, net | 162 | |||||||||
Result of equity-accounted investees | (4) | |||||||||
Income before income taxes | 1,247 | |||||||||
Income tax expense | (201) | |||||||||
Net income | 1,046 | |||||||||
Segment result before depreciation and amortisation | 1,797 | 420 | 83 | 17 | 2,317 | |||||
Lease expense | (117) | (29) | (6) | 1 | (151) | |||||
Capital expenditure | (753) | (330) | (19) | 19 | (1,083) | |||||
Operating free cash flow proxy | 927 | 61 | 58 | 37 | 1,083 |
Segment information Swisscom Switzerland 2021
1.1.–30.6.2021, in CHF million, restated |
Residential Customers |
Business Customers |
Wholesale |
Infrastructure & Support Functions |
Elimination |
Total Swisscom Switzerland |
||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Fixed-line | 1,004 | 439 | – | – | – | 1,443 | ||||||
Mobile | 929 | 394 | – | – | – | 1,323 | ||||||
Telecom services | 1,933 | 833 | – | – | – | 2,766 | ||||||
Solutions business | – | 547 | – | – | – | 547 | ||||||
Merchandise | 266 | 119 | – | – | – | 385 | ||||||
Wholesale | – | – | 325 | – | – | 325 | ||||||
Revenue other | 43 | 1 | – | 11 | – | 55 | ||||||
Net revenue from external customers | 2,242 | 1,500 | 325 | 11 | – | 4,078 | ||||||
Net revenue from other segments | 7 | 23 | 4 | 28 | (37) | 25 | ||||||
Net revenue | 2,249 | 1,523 | 329 | 39 | (37) | 4,103 | ||||||
Direct costs | (450) | (346) | (156) | (3) | 88 | (867) | ||||||
Indirect costs | (335) | (469) | (9) | (575) | (51) | (1,439) | ||||||
Segment result before depreciation and amortisation | 1,464 | 708 | 164 | (539) | – | 1,797 | ||||||
Lease expense | (20) | (16) | – | (80) | (1) | (117) | ||||||
Depreciation and amortisation | (27) | (34) | – | (697) | 1 | (757) | ||||||
Segment result | 1,417 | 658 | 164 | (1,316) | – | 923 | ||||||
Capital expenditure | (9) | (21) | – | (723) | – | (753) |