Summary

Group revenue decreased by 2.3% year-on-year to CHF 7,446 million. Operating income before depreciation and amortisation after lease expense (EBITDAaL) fell by 5.5% to CHF 2,474 million. The revenue and EBITDAaL development were influenced by the performance of the EUR exchange rate as a result of the substantial share attributable to the segment Italy. The EUR average exchange rate fell by 1.9% in the first half of 2025 compared to the same period of the previous year. This resulted in negative exchange differences on revenue of CHF 66 million and on EBITDAaL of CHF 15 million. Based on a constant EUR exchange rate, revenue in the first half of 2025 decreased by 1.4% or CHF 107 million. Swisscom Switzerland’s revenue fell by 1.9% and Italy’s by 0.4% (in EUR).

EBITDAaL development in 2025 was negatively influenced not only by currency effects, but also by non-recurring items in connection with the integration of Vodafone Italia in the amount of CHF 19 million, restructuring cost of CHF 2 million and the reconciliation of pension costs of CHF 8 million. In prior year, non-recurring items related to legal proceedings in the amount of CHF 24 million and the reconciliation of pension costs of CHF 9 million had a positive impact on EBITDAaL while non-recurring costs in connection with the preparation of the acquisition of Vodafone Italia of CHF 13 million had a negative impact on EBITDAaL. Without these non-recurring items and with a constant EUR exchange rate, this resulted in a drop in EBITDAaL of CHF 80 million (–3.1%). CHF 65 million (–7.6%) of this drop is attributable to the Segment Italy. The EBITDAaL of Switzerland, on the other hand, remained fairly stable (–0.4%). Net income fell by CHF 211 million (–25.2%) compared to the prior year to CHF 625 million. The decrease in net income is mainly due to costs related to the acquisition of Vodafone Italia.

The Group’s capital expenditure decreased by 7.9% in a year-on-year comparison to CHF 1,485 million. Capital expenditure for Switzerland decreased by 3.7%, and by 10.0% in Italy (in EUR). In the first half year 2025, capital expenditure in Italy included EUR 14 million for the consolidation of mobile sites on the INWIT network (prior year EUR 52 million) and EUR 20 million integration cost capital expenditure. Without these non-recurring items and with a constant EUR exchange rate, the Group’s capital expenditure decreased by 6.2% and in Italy by 8.2%. Operating free cash flow decreased by CHF 17 million or 1.7% year-on-year to CHF 989 million. Without the non-recurring items as mentioned and with a constant EUR exchange rate, operating free cash flow increased by 1.6%. The decrease in capital expenditure overcompensated the decrease in EBITDAaL. Free cash flow of CHF 496 million was up year-over-year by CHF 143 million. In the first half year 2025 an increase in net working capital of CHF 233 million negatively impacted the free cash flow whereas in prior year the negative impact from an increase in net working capital was stronger (by CHF 386 million).

The number of Swisscom employees decreased year-on-year by 838 FTEs or 3.4% to 23,498 FTEs. The decrease in Italy amounts to 485 FTE (–6.3%) and is driven by Vodafone Italia throughout the year 2024. In Switzerland, headcount decreased by 203 FTEs or 1.5% to 13,158 FTEs as human resources in the areas of customer care, sales force and IT business has been reduced. In the first half year of 2025, the reduction of the number of Swisscom employees amounts to 1.4% or 341 FTE (compared to year end of 2024) of which 161 FTEs (–1.2%) result from Switzerland and 86 FTEs (–1.2%) from Italy.

The financial outlook for the 2025 financial year remains unchanged. Swisscom expects revenue of around CHF 15.0–15.2 bil­lion, EBITDAaL of around CHF 5.0 bil­lion, capital expenditures of CHF 3.1–3.2 bil­lion and an operating free cash flow of CHF 1.8–1.9 bil­lion. Subject to achieving its targets, Swisscom plans to propose the payment of an increased dividend of CHF 26 per share for the 2025 financial year at the 2026 Annual General Meeting.

Switzerland

Switzerland’s revenue decreased by 1.9% or CHF 77 million to CHF 3,897 million. Revenue from residential customers dropped by CHF 18 million to CHF 2,123 million (–0.8%). The decrease is mainly due to decline in telecommunications services (CHF 23 million or –1.2%). In the business customer area revenue dropped by CHF 68 million to CHF 1,475 million (–4.4%), the telecommunication services declined by CHF 34 million (–4.5%) and the hard- and software sales by CHF 40 million (–22.5%). In contrast, revenue from IT services increased by CHF 9 million (+1.5%) to CHF 610 million. In an intense market environment, there was a reduction in the number of connections for broadband (–1.8%) and TV (–2.4%), while the number of connections for mobile communication increased (+3.2%). In mobile communications, the customer structure changed due to an increase in postpaid lines (+174,000) and a decrease in prepaid lines (–51,000). The share of secondary and third-party brands in the residential customers area rose from 32% to 35%. The number of connections for fixed network telephony dropped (–8.0%) as a result of its substitution with mobile telephony. 

The operating expense decreased by 2.6% or CHF 58 million. Direct costs fell by CHF 44 million or 5.6%. There was a drop in both the cost of purchasing merchandise, and subscriber acquisition and subscriber retention costs. Indirect costs decreased by CHF 14 million (+0.9%) and by CHF 27 million on an adjusted basis. In telecommunications, cost savings of CHF 31 million were realised through efficiency improvement measures. Headcount decreased by 1,5% year-on-year to 13,158 FTEs as a result of increased efficiency. Operating income before depreciation and amortisation after lease expense (EBITDAaL) decreased by CHF 19 million to CHF 1,684 million. After adjustments by non-recurring items, EBITDAaL remained almost stable (–0.4%). Cost-cutting measures partly compensated for the decline in revenue from telecommunications services. Capital expenditure decreased by 3.7% or CHF 32 million to CHF 833 million despite higher investment in the area of the wireline access network to step up the expansion with optical fibre. The investments in the mobile network and in IT were lower as the prior year included non-recurring investments for Telco cloud assets and licenses. Swisscom plans to increase fibre-optic coverage (FTTH) to around 57% by the end of 2025, and to 75–80% by the end of 2030.

Italy

The revenue of the segment Italy decreased year-on-year slightly by 0.4% or EUR 13 million to EUR 3,593 million. Revenue from residential customers decreased by 2.6% or EUR 44 million to EUR 1,672 million. The lower revenue from telecommunications services of EUR 77 million (–4.8%) due to a declining customer base could not be compensated. Revenue from business customers increased by 1.5% or EUR 23 million to EUR 1,581 million, mainly driven by the higher revenue from IT services and hard- and software. Revenue from wholesale business increased by 2.4% or EUR 8 million to EUR 337 million. Higher revenue due to the increasing number of wholesale lines were partially offset by lower non-core revenue. Competition in the Italian markets remained fierce. The number of mobile access lines remained almost stable at 20.2 million (+0.5%). The decreasing wireless residential customer base (–377,000) was compensated by the increasing wireless business customer base (+468,000). The customer base in the wireline business dropped by 3.3% or 200,000 to 5.8 million. The challenging market environment led to a decrease of the residential customer base of 190,000, whereas the business customer base remained nearly stable (–0.9%). The number of Wholesale broadband lines provided to other operators rose by 30.8% or 240,000 to 1,018,000.

Operating expenses increased by EUR 75 million (+2.8%). Direct cost grew by EUR 64 million or 3.9% driven by higher revenue for IT services and hard- and software as well as higher cost for the use of networks of other operators. Indirect cost increased by EUR 11 million or 1.0%. In the first half-year 2025 operating expenses include integration cost in the amount of EUR 20 million. The operating result before depreciation and amortisation after lease expense (EBITDAaL) adjusted for this amount decreased by EUR 68 million (–7.6%) mainly driven by the declining telecommunications services revenue. Capital expenditure decreased by EUR 78 million or 10.0% to EUR 703 million. In the first half-year 2025 capital expenditure included EUR 14 million for the consolidation of mobile sites on the INWIT network (prior year EUR 52 million) and EUR 20 million integration cost capital expenditure. Adjusted by those items, capital expenditures decreased by EUR 60 million or 8.2% mainly because of higher investments in IT projects in the previous year.

Others

Revenue in the segment Others decreased by 1.5% or CHF 8 million year-on-year to CHF 529 million, primarily due to lower broadcasting and telehousing revenue. The operating result before depreciation and amortisation after lease expense (EBIDTAaL) decreased by 4.5% or CHF 3 million to CHF 63 million due to lower revenue. The profit margin decreased slightly to 11.9% (prior year: 12.3%).