Summary

Group revenue decreased by 1.6% year-on-year to CHF 2,703 million. Operating income before depreciation and amortisation (EBITDA) fell by 0.8% to CHF 1,155 million. The reported revenue and EBITDA development was influenced by the performance of the euro (EUR) as a result of the substantial share attributable to the Italian subsidiary Fastweb. The EUR average exchange rate fell by 4.7% in the first quarter of 2024 compared to the same quarter in the previous year. This resulted in negative exchange differences on Group revenue of CHF 31 million and on EBITDA of CHF 9 million. Based on a constant EUR exchange rate, revenue in the first quarter of 2024 fell by 0.5% or CHF 13 million. Swisscom Switzerland’s revenue fell by 2.5%. Fastweb achieved an increase in revenue of 5.6% (in EUR).

EBITDA development was influenced not only by currency effects, but also by non-recurring items related to litigation in the amount of CHF 24 million. On the other hand, non-recurring costs of CHF 6 million, which had an impact on EBITDA, were incurred in connection with preparations for the takeover of Vodafone Italia. Without these non-recurring items and with a constant EUR exchange rate, this resulted in a drop in EBITDA of CHF 18 million (–1.5%). CHF 19 million (–2.0%) of this drop is attributable to Swisscom Switzerland. Fastweb, on the other hand, reported an increase of EUR 4 million (+2.1%). Consolidated net income rose by 2.9% year-on-year to total CHF 455 million. The lower operating income was offset by an improvement in the financial result.

The Group’s capital expenditure rose by 9.0% in a year-on-year comparison to CHF 594 million. Capital expenditure in the Swiss core business rose by 12.9%, and by 2.6% at Fastweb (in EUR). Operating free cash flow fell by CHF 57 million or 10.4% year-on-year to CHF 489 million due to lower EBITDA and increased capital expenditure. Free cash flow was down only slightly on the previous year to CHF 198 million (CHF –11 million). The improved development in net working capital and lower income taxes paid largely offset the drop in operating free cash flow. The CHF 35 million drop in income taxes paid to CHF 30 million was attributable to different payment due dates. Net debt decreased by 3.2% to CHF 6,941 million year-on-year. The number of Swisscom employees increased by 3.6% to 19,947 FTEs. In Switzerland, headcount increased by 2.2% to 16,105 FTEs as a result of company acquisitions.

The financial outlook for the 2024 financial year remains unchanged. 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. 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.