Summary
Group revenue decreased by 2.1% year-on-year to CHF 11,175 million. Operating income before depreciation and amortisation after lease expense (EBITDAaL) fell by 4.8% to CHF 3,777 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 Italy segment. The EUR average exchange rate fell by 1.7% in the first nine months of 2025 compared to the same period of the previous year. This resulted in negative exchange differences on revenue of CHF 89 million and on EBITDAaL of CHF 21 million. Based on a constant EUR exchange rate, revenue in the first nine months of 2025 decreased by 1.3% or CHF 153 million. Switzerland’s revenue fell by 1.4% and Italy’s by 1.0% (in EUR).
EBITDAaL development was negatively influenced not only by currency effects, but also by non-recurring items in connection with the integration of Vodafone Italia, restructuring cost, legal and other provisions and the reconciliation of pension cost. Without these non-recurring items and with a constant EUR exchange rate, this resulted in a drop in EBITDAaL of CHF 118 million (–3.0%). CHF 95 million (–7.1%) of this drop is attributable to the Italy segment. The EBITDAaL of Switzerland, on the other hand, remained fairly stable (–0.4%). Net income fell by CHF 295 million (–23.0%) compared to the prior year to CHF 988 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 7.4% in a year-on-year comparison to CHF 2,171 million. Capital expenditure for Switzerland decreased by 5.5%, and by 7.6% in Italy (in EUR). In the first nine months of 2025, capital expenditure in Italy included EUR 22 million for the consolidation of mobile sites on the INWIT network (prior year EUR 61 million) and EUR 53 million integration cost capital expenditure. Without these non-recurring items and with a constant EUR exchange rate, the Group’s capital expenditure decreased by 7.5% and in Italy by 9.4%. Operating free cash flow decreased by CHF 17 million or 1.0% year-on-year to CHF 1,606 million. Without the non-recurring items as mentioned and with a constant EUR exchange rate, operating free cash flow increased by 3.2%. The decrease in capital expenditure overcompensated the decrease in EBITDAaL. Free cash flow of CHF 1,060 million was up year-on-year by CHF 23 million. In the first nine months of 2025, an increase in net working capital of CHF 215 million negatively impacted the free cash flow.
The number of Swisscom employees decreased year-on-year by 606 FTEs or 2.5% to 23,374 FTEs. The decrease in the Italy segment amounts to 114 FTE (–1.6%) and is driven by Vodafone Italia. In the segment Switzerland, headcount decreased by 341 FTEs or 2.5% to 13,059 FTEs as human resources in the areas of customer care and IT business have been reduced. In the first nine months of 2025, the reduction of the number of Swisscom employees amounts to 2.0% or 465 FTE (compared to year-end 2024), of which 260 FTEs (–2.0%) result from the segment Switzerland and 99 FTEs (–1.4%) from the segment 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.
Swisscom Switzerland
| In CHF million, except where indicated | 1.1.–30.9.2025 | 1.1.–30.9.2024 | Change | In % | ||||
|---|---|---|---|---|---|---|---|---|
| Financial data | ||||||||
| Residential customers | 3,193 | 3,222 | (29) | –0.9% | ||||
| Business customers | 2,225 | 2,285 | (60) | –2.6% | ||||
| Wholesale customers | 398 | 388 | 10 | 2.6% | ||||
| Other | 12 | 13 | (1) | –7.7% | ||||
| External revenue | 5,828 | 5,908 | (80) | –1.4% | ||||
| Intersegment revenue | 34 | 37 | (3) | –8.1% | ||||
| Revenue | 5,862 | 5,945 | (83) | –1.4% | ||||
| Direct costs | (1,165) | (1,186) | 21 | –1.8% | ||||
| Indirect costs | (2,138) | (2,209) | 71 | –3.2% | ||||
| Operating expense | (3,303) | (3,395) | 92 | –2.7% | ||||
| EBITDA after lease expense (EBITDAaL) | 2,559 | 2,550 | 9 | 0.4% | ||||
| Capital expenditure | (1,231) | (1,302) | 71 | –5.5% | ||||
| Operating free cash flow | 1,328 | 1,248 | 80 | 6.4% | ||||
| Operational data in thousand and headcount in FTEs | ||||||||
| Mobile postpaid access lines | 5,601 | 5,417 | 184 | 3.4% | ||||
| Broadband access lines retail | 1,942 | 1,973 | (31) | –1.6% | ||||
| TV access lines | 1,468 | 1,499 | (31) | –2.1% | ||||
| Fixed telephony access lines | 1,065 | 1,159 | (94) | –8.1% | ||||
| Access lines wholesale | 763 | 722 | 41 | 5.7% | ||||
| Full-time equivalent employees | 13,059 | 13,400 | (341) | –2.5% |
Switzerland’s revenue decreased by 1.4% or CHF 83 million to CHF 5,862 million. Revenue from residential customers dropped by CHF 29 million to CHF 3,193 million (–0.9%). The decrease is mainly due to a decline in telecommunications services (CHF –40 million or –1.4%). In the business customer area, revenue dropped by CHF 60 million to CHF 2,225 million (–2.6%), the telecommunication services declined by CHF 52 million (–4.6%) and the hard- and software sales by CHF 13 million (–5.3%). In contrast, revenue from IT services increased by CHF 9 million (+1.0%) to CHF 906 million. In an intense market environment, there was a reduction in the number of connections for broadband (–1.6%) and TV (–2.1%), while the number of connections for mobile communication increased (+2.2%). In mobile communications, the customer structure changed due to an increase in postpaid lines (+184,000) and a decrease in prepaid lines (–47,000). The share of secondary and third-party brands in the residential customers area rose from 33% to 36%. The number of connections for fixed network telephony dropped (–8.1%) as a result of its substitution with mobile telephony.
The operating expense decreased by 2.7% or CHF 92 million. Direct costs fell by CHF 21 million or 1.8%, driven by a drop in subscriber acquisition and subscriber retention costs. Indirect costs decreased by CHF 71 million (–3.2%) and by CHF 51 million on an adjusted basis. In telecommunications, cost savings of CHF 50 million were realised through efficiency improvement measures. Headcount decreased by 2.5% year-on-year to 13,059 FTEs as human resources in the areas of customer care and IT business have been reduced. Operating income before depreciation and amortisation after lease expense (EBITDAaL) remained nearly stable at CHF 2,559 million (+0.4%). Also 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 5.5% or CHF 71 million to CHF 1,231 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 licences. 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
| In EUR million, except where indicated | 1.1.–30.9.2025 | 1.1.–30.9.2024 1 | Change | In % | ||||
|---|---|---|---|---|---|---|---|---|
| Financial data | ||||||||
| Residential customers | 2,494 | 2,567 | (73) | –2.8% | ||||
| Business customers | 2,359 | 2,361 | (2) | –0.1% | ||||
| Wholesale customers | 526 | 508 | 18 | 3.5% | ||||
| External revenue | 5,379 | 5,436 | (57) | –1.0% | ||||
| Intersegment revenue | 4 | 4 | – | –% | ||||
| Revenue | 5,383 | 5,440 | (57) | –1.0% | ||||
| Direct costs | (2,494) | (2,457) | (37) | 1.5% | ||||
| Indirect costs | (1,645) | (1,591) | (54) | 3.4% | ||||
| Operating expense | (4,139) | (4,048) | (91) | 2.2% | ||||
| EBITDA after lease expense (EBITDAaL) | 1,244 | 1,392 | (148) | –10.6% | ||||
| Capital expenditure | (1,011) | (1,094) | 83 | –7.6% | ||||
| Operating free cash flow | 233 | 298 | (65) | –21.8% | ||||
| Operational data in thousand and headcount FTEs | ||||||||
| Mobile access lines | 20,168 | 20,110 | 58 | 0.3% | ||||
| Broadband access lines retail | 5,759 | 5,946 | (187) | –3.1% | ||||
| Broadband access lines wholesale | 1,063 | 832 | 231 | 27.8% | ||||
| Full-time equivalent employees | 7,152 | 7,266 | (114) | –1.6% | ||||
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1 Pro forma.
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The revenue of the Italy segment decreased slightly year-on-year by 1.0% or EUR 57 million to EUR 5,383 million. Revenue from residential customers decreased by 2.8% or EUR 73 million to EUR 2,494 million. The lower revenue from telecommunications services of EUR 116 million (–4.9%) due to a declining customer base could not be compensated. Revenue from business customers decreased by 0.1% or EUR 2 million to EUR 2,359 million, mainly driven by the lower revenue from telecommunications services. Revenue from wholesale business increased by 3.5% or EUR 18 million to EUR 526 million. Higher revenue due to the increasing number of wholesale lines was 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 (+0.3%). The decreasing wireless residential customer base (–346,000) was compensated by the increasing wireless business customer base (+404,000). The customer base in the wireline business dropped by 3.1% or 187,000 to 5.8 million. The challenging market environment led to a decrease in the residential customer base of 170,000, whereas the business customer base remained nearly stable (–1.5%). The number of wholesale broadband lines provided to other operators rose by 27.8% or 231,000 to 1,063,000.
Operating expenses increased by EUR 91 million (+2.2%). Direct cost grew by EUR 37 million or 1.5%, 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 54 million or 3.4%. In the first nine months of 2025, operating expenses included integration cost for Vodafone Italy in the amount of EUR 40 million. Adjusted for non-recurring items, operating result before depreciation and amortisation after lease expense (EBITDAaL) decreased by EUR 99 million (–7.1%), mainly driven by the declining telecommunications services revenue. Capital expenditure decreased by EUR 83 million or 7.6% to EUR 1,011 million. In the first nine months of 2025, capital expenditure included EUR 22 million for the consolidation of mobile sites on the INWIT network (prior year EUR 61 million) and EUR 53 million integration cost capital expenditure. Adjusted by those items, capital expenditures decreased by EUR 97 million or 9.4% mainly because of lower investments in the wireless network and higher investments in IT projects in the previous year.
Others
| In CHF million, except where indicated | 1.1.–30.9.2025 | 1.1.–30.9.2024 | Change | In % | ||||
|---|---|---|---|---|---|---|---|---|
| Financial data | ||||||||
| External revenue | 297 | 316 | (19) | –6.0% | ||||
| Intersegment revenue | 487 | 504 | (17) | –3.4% | ||||
| Revenue | 784 | 820 | (36) | –4.4% | ||||
| Direct costs | (66) | (63) | (3) | 4.8% | ||||
| Indirect costs | (621) | (653) | 32 | –4.9% | ||||
| Operating expense | (687) | (716) | 29 | –4.1% | ||||
| EBITDA after lease expense (EBITDAaL) | 97 | 104 | (7) | –6.7% | ||||
| Capital expenditure | (26) | (29) | 3 | –10.3% | ||||
| Operating free cash flow | 71 | 75 | (4) | –5.3% | ||||
| Headcount in FTEs | ||||||||
| Full-time equivalent employees | 3,163 | 3,314 | (151) | –4.6% |
Revenue in the Others segment decreased by 4.4% or CHF 36 million year-on-year to CHF 784 million, due to lower revenue for cablex construction services and lower broadcasting revenue. The operating result before depreciation and amortisation after lease expense (EBITDAaL) decreased by 6.7% or CHF 7 million to CHF 97 million due to lower revenue. The profit margin decreased slightly to 12.4% (prior year: 12.7%).