Value-oriented business management

Key per­for­mance indicators for planning and managing business op­er­a­tions are revenue, operating income before de­pre­ci­a­tion and amor­ti­sa­tion (EBITDA) and capital ex­pen­di­ture. The enterprise value/EBITDA ratio permits comparison with the value of comparable com­pa­nies (European telecom­mu­ni­ca­tions com­pa­nies) and with its own figure for the prior year. The members of the Board of Directors and Group Executive Board are paid a portion of their re­mu­ner­a­tion in the form of Swisscom shares. They are also subject to a minimum share­hold­ing requirement. Variable re­mu­ner­a­tion based on financial and non-financial targets, the partial settlement of re­mu­ner­a­tion in shares and the minimum share­hold­ing requirement ensure that the financial interests of management are aligned with the interests of shareholders.

Swisscom’s enterprise value fell by CHF 0.3 bil­lion (–9.7%) to CHF 33.7 bil­lion in 2023. Market capitalisation remained unchanged year-on-year and net debt fell by CHF 0.3 bil­lion. The enterprise value/EBITDA ratio of 7.3x is lower than the prior-year figure of 7.7x. This is due to the increase in EBITDA. Measured against this ratio, Swisscom’s relative valuation is well above the average for comparable com­pa­nies in Europe’s telecoms sector. This high relative valuation is supported by Swisscom’s solid market position and attractive dividend. In addition, the lower interest rates and lower corporate income tax rates in Switzer­land compared with other European countries have a positive effect on its enterprise value.