2 Segment information
Changes in segment reporting
With effect from 1 January 2024, Swisscom reallocated various divisions and central costs to the segments within Swisscom Switzerland. In addition, the TV-related Swisscom Broadcast operating division (Other Operating Segments) was shifted to the Residential Customers segment within Swisscom Switzerland. The prior year’s figures have been restated as follows:
| In CHF million | Reported | Adjustment | Restated | |||
|---|---|---|---|---|---|---|
| Revenue Financial year 2023 | ||||||
| Residential Customers | 4,502 | 3 | 4,505 | |||
| Business Customers | 3,098 | (15) | 3,083 | |||
| Wholesale | 542 | (1) | 541 | |||
| Infrastructure & Support Functions | 73 | – | 73 | |||
| Intersegment elimination | (69) | 14 | (55) | |||
| Swisscom Switzerland | 8,146 | 1 | 8,147 | |||
| Fastweb | 2,561 | – | 2,561 | |||
| Other Operating Segments | 1,075 | (12) | 1,063 | |||
| Intersegment elimination | (710) | 11 | (699) | |||
| Total revenue | 11,072 | – | 11,072 | |||
| Operating income before depreciation and amortisation (EBITDA) Financial year 2023 | ||||||
| Residential Customers | 2,979 | 28 | 3,007 | |||
| Business Customers | 1,358 | (13) | 1,345 | |||
| Wholesale | 326 | (1) | 325 | |||
| Infrastructure & Support Functions | (963) | (6) | (969) | |||
| Intersegment elimination | 1 | – | 1 | |||
| Swisscom Switzerland | 3,701 | 8 | 3,709 | |||
| Fastweb | 776 | – | 776 | |||
| Other Operating Segments | 153 | (8) | 145 | |||
| Reconciliation pension cost | 37 | – | 37 | |||
| Intersegment elimination | (45) | – | (45) | |||
| Total EBITDA | 4,622 | – | 4,622 | |||
General disclosures
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.
For its services, the Infrastructure & Support Functions segment does not charge any network costs or management fees to other segments. The remaining 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 three months of 2024, the Eliminations column includes income of CHF 4 million (prior year: income of CHF 9 million) as a pension cost reconciliation item in accordance with IAS 19.
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 leases excluding depreciation of indefeasible rights of use (IRU) of CHF 5 million (prior year: CHF 5 million) and 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 three months of 2024 includes IRU payments of CHF 4 million (prior year: CHF 4 million).
Segment information 2024
1.01.–31.03.2024, in CHF million |
Swisscom Switzerland |
Fastweb |
Other Operating Segments |
Elimination |
Total |
|||||
|---|---|---|---|---|---|---|---|---|---|---|
| Residential customers | 1,074 | 273 | – | – | 1,347 | |||||
| Business customers | 769 | 269 | 104 | – | 1,142 | |||||
| Wholesale customers | 134 | 80 | – | – | 214 | |||||
| External revenue | 1,977 | 622 | 104 | – | 2,703 | |||||
| Intersegment revenue | 16 | 1 | 148 | (165) | – | |||||
| Revenue | 1,993 | 623 | 252 | (165) | 2,703 | |||||
| Direct costs | (380) | (304) | (18) | 17 | (685) | |||||
| Indirect costs | (669) | (137) | (201) | 144 | (863) | |||||
| Operating income before depreciation and amortisation (EBITDA) | 944 | 182 | 33 | (4) | 1,155 | |||||
| Depreciation and amortisation of property, plant and equipment and intangible assets | (522) | |||||||||
| Depreciation of right-of-use assets | (65) | |||||||||
| Operating income (EBIT) | 568 | |||||||||
| Financial income | 23 | |||||||||
| Financial expense | (37) | |||||||||
| Result of equity-accounted investees | – | |||||||||
| Income before income taxes | 554 | |||||||||
| Income tax expense | (99) | |||||||||
| Net income | 455 | |||||||||
| EBITDA | 944 | 182 | 33 | (4) | 1,155 | |||||
| Lease expense | (58) | (12) | (3) | 1 | (72) | |||||
| EBITDA after lease expense (EBITDAaL) | 886 | 170 | 30 | (3) | 1,083 | |||||
| Capital expenditure | (445) | (149) | (8) | 8 | (594) | |||||
| Operating free cash flow | 441 | 21 | 22 | 5 | 489 |
Segment information Swisscom Switzerland 2024
1.01.–31.03.2024, in CHF million |
Residential Customers |
Business Customers |
Wholesale |
Infrastructure & Support Functions |
Elimination |
Total Swisscom Switzerland |
||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed-line | 489 | 200 | – | – | – | 689 | ||||||
| Mobile | 457 | 178 | – | – | – | 635 | ||||||
| Telecom services | 946 | 378 | – | – | – | 1,324 | ||||||
| IT services | – | 297 | – | – | – | 297 | ||||||
| Merchandise | 103 | 84 | – | – | – | 187 | ||||||
| Wholesale | – | – | 134 | – | – | 134 | ||||||
| Revenue other | 25 | 6 | – | 4 | – | 35 | ||||||
| External revenue | 1,074 | 765 | 134 | 4 | – | 1,977 | ||||||
| Intersegment revenue | 4 | 8 | 2 | 15 | (13) | 16 | ||||||
| Revenue | 1,078 | 773 | 136 | 19 | (13) | 1,993 | ||||||
| Direct costs | (188) | (178) | (44) | – | 30 | (380) | ||||||
| Indirect costs | (142) | (270) | 1 | (240) | (18) | (669) | ||||||
| Operating income before depreciation and amortisation (EBITDA) | 748 | 325 | 93 | (221) | (1) | 944 | ||||||
| Capital expenditure | (6) | (13) | – | (426) | – | (445) |
Segment information 2023
1.01.–31.03.2023, in CHF million, restated |
Swisscom Switzerland |
Fastweb |
Other Operating Segments |
Elimination |
Total |
|||||
|---|---|---|---|---|---|---|---|---|---|---|
| Residential customers | 1,133 | 288 | – | – | 1,421 | |||||
| Business customers | 766 | 260 | 99 | – | 1,125 | |||||
| Wholesale customers | 131 | 70 | – | – | 201 | |||||
| External revenue | 2,030 | 618 | 99 | – | 2,747 | |||||
| Intersegment revenue | 15 | 1 | 141 | (157) | – | |||||
| Revenue | 2,045 | 619 | 240 | (157) | 2,747 | |||||
| Direct costs | (423) | (288) | (19) | 20 | (710) | |||||
| Indirect costs | (677) | (144) | (189) | 137 | (873) | |||||
| Operating income before depreciation and amortisation (EBITDA) | 945 | 187 | 32 | – | 1,164 | |||||
| Depreciation and amortisation of property, plant and equipment and intangible assets | (525) | |||||||||
| Depreciation of right-of-use assets | (66) | |||||||||
| Operating income (EBIT) | 573 | |||||||||
| Financial income | 8 | |||||||||
| Financial expense | (38) | |||||||||
| Result of equity-accounted investees | – | |||||||||
| Income before income taxes | 543 | |||||||||
| Income tax expense | (101) | |||||||||
| Net income | 442 | |||||||||
| EBITDA | 945 | 187 | 32 | – | 1,164 | |||||
| Lease expense | (56) | (14) | (2) | (1) | (73) | |||||
| EBITDA after lease expense (EBITDAaL) § | 889 | 173 | 30 | (1) | 1,091 | |||||
| Capital expenditure | (394) | (152) | (8) | 9 | (545) | |||||
| Operating free cash flow | 495 | 21 | 22 | 8 | 546 |
Segment information Swisscom Switzerland 2023
1.01.–31.03.2023, in CHF million, restated |
Residential Customers |
Business Customers |
Wholesale |
Infrastructure & Support Functions |
Elimination |
Total Swisscom Switzerland |
||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed-line | 502 | 209 | – | – | – | 711 | ||||||
| Mobile | 461 | 182 | – | – | – | 643 | ||||||
| Telecom services | 963 | 391 | – | – | – | 1,354 | ||||||
| IT services | – | 283 | – | – | – | 283 | ||||||
| Merchandise | 135 | 82 | – | – | – | 217 | ||||||
| Wholesale | – | – | 131 | – | – | 131 | ||||||
| Revenue other | 35 | 5 | – | 5 | – | 45 | ||||||
| External revenue | 1,133 | 761 | 131 | 5 | – | 2,030 | ||||||
| Intersegment revenue | 4 | 7 | 3 | 14 | (13) | 15 | ||||||
| Revenue | 1,137 | 768 | 134 | 19 | (13) | 2,045 | ||||||
| Direct costs | (230) | (172) | (49) | – | 28 | (423) | ||||||
| Indirect costs | (153) | (254) | (5) | (251) | (14) | (677) | ||||||
| Operating income before depreciation and amortisation (EBITDA) | 754 | 342 | 80 | (232) | 1 | 945 | ||||||
| Capital expenditure | (7) | (13) | – | (374) | – | (394) |