Summary

The main contributors to Group revenue for 2023 of CHF 11.1 bil­lion are the Swisscom Switzer­land (73%) and Fastweb (23%) segments. Swisscom Switzer­land accounts for 80% of the operating income before de­pre­ci­a­tion and amor­ti­sa­tion (EBITDA) of CHF 4.6 bil­lion, with Fastweb accounting for a share of 17%.

Compared with the previous year, group revenue rose by 0.2% to CHF 11,072 million and operating income before de­pre­ci­a­tion and amor­ti­sa­tion (EBITDA) by 4.9% to CHF 4,622 million. The reported revenue and EBITDA devel­opment was influenced by the per­for­mance of the euro (EUR) as a result of Fastweb’s substantial share. The average EUR exchange rate decreased by 3.1% year-on-year in 2023. This resulted in negative exchange differ­ences on Group revenue of CHF 83 million and on EBITDA of CHF 27 million. Based on a constant EUR exchange rate, revenue in 2023 rose by 0.9% or CHF 104 million. Swisscom Switzer­land’s revenue fell by 0.8% and Fastweb achieved growth in revenue of 6.1% (in EUR). In Other Operating Segments, revenue increased by 3.6%.

EBITDA de­vel­op­ment is influenced not only by currency effects, but also primarily by non-recurring items of CHF 16 million net (prior year: CHF –152 million). The non-recurring items include the reversal of provisions for legal proceedings in the net amount of CHF 51 million (prior year: recognition of provisions of CHF 157 million), termination benefits of CHF 7 million (prior year: income of CHF 5 million) and costs of CHF 60 million at Fastweb as a result of an adjustment to the fixed wireless access (FWA) strategy. Without these non-recurring items and with a constant EUR exchange rate, this resulted in an increase in EBITDA of CHF 107 million (+2.3%). Fastweb contributes CHF 18 million (+2.1%) to this figure. The EBITDA reported by Swisscom Switzer­land remained virtually stable (CHF +8 million or +0.2%). The largest effect on Group EBITDA results from the rec­on­cil­i­a­tion of pension costs. Because the interest rate relevant for IFRS measurement increased, the IFRS pension costs for the full year 2023 decreased by CHF 90 million compared to the previous year.

Net income increased by 6.7% year-on-year to CHF 1,711 million. The higher operating income before de­pre­ci­a­tion and amor­ti­sa­tion (EBITDA) is offset by higher depre­cia­tion and amor­ti­sa­tion and a deterioration in the financial result.

Capital ex­pen­di­ture was again substantial at CHF 2,292 million. This is 0.7% lower than in the previous year and relates primarily to network in­fra­struc­ture in the Swiss core business and at the Italian subsidiary Fastweb. The generated free cash flow of CHF 1,480 million finances the total dividend of CHF 1,140 million and further reduced net debt. Net debt improved in relation to EBITDA to 1.5x (previous year: 1.7x). The single-A credit rating confirmed by both rating agencies (Moody’s and Standard & Poor’s A) and the further increase in the equity ratio to 47% underline Swisscom’s solid financial position.

Swisscom expects revenue of around CHF 11.0 bil­lion, EBITDA of CHF 4.5–4.6 bil­lion and capital ex­pen­di­ture of around CHF 2.3 bil­lion for 2024. Subject to achieving its targets, Swisscom plans to propose payment of an unchanged attractive dividend of CHF 22 per share for the 2024 financial year at the 2025 Annual General Meeting.