Summary

Group revenue decreased by 4.1% to CHF 3,606 million. Operating income before depreciation and amortisation after lease expense (EBITDAaL) increased by 0.8% to CHF 1,288 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 2.7% in the first quarter of 2026 compared to the same period of the previous year. This resulted in negative exchange differences on revenue of CHF44 million and on EBITDAaL of CHF 12 million. Based on a constant EUR exchange rate, revenue in the first quarter of 2026 decreased by 2.9% or CHF 109 million. Switzerland’s revenue fell by 1.3% and Italy’s by 4.5% (in EUR).

EBITDAaL development was influenced not only by currency effects, but also by non-recurring items in connection with the integration of Vodafone Italia and the reconciliation of pension cost (IAS 19). Without these non-recurring items and with a constant EUR exchange rate, EBITDAaL increased by CHF 16 million (+1.3%). CHF 30 million (+7.4%) of this increase is attributable to the Italy segment. The EBITDAaL of Switzerland, on the other hand, remained fairly stable (–0.6%). Net income fell by CHF 35 million (–9.6%) to CHF 332 million. The decrease in net income is mainly due to non-cash effects within the financial result.

The Group’s capital expenditure decreased by 11.0% to CHF 693 million. Capital expenditure for Switzerland fell by 9.4%, and by 11.0% in Italy (in EUR). In the first quarter of 2026, capital expenditure in Italy included EUR 32 million integration cost capital expenditure (prior year: EUR 3 million). Without non-recurring items and with a constant EUR exchange rate, the Group’s capital expenditure decreased by 13.1% and in Italy by 17.9%. Operating free cash flow increased by CHF 96 million or 19.3% to CHF594 million. Without the non-recurring items as mentioned and with a constant EUR exchange rate, operating free cash flow rose by 22.6%, mostly driven by the lower capital expenditure. Free cash flow of CHF 586 million was up year-on-year by CHF 115 million driven by the increase in the operating free cash flow.

The number of Swisscom employees decreased year-on-year by 643 FTEs or 2.7% to 23,073 FTEs. In the Switzerland segment, FTEs fell by 502 or 3.8% to 12,761 FTEs, and in the Italy segment by 35FTEs or 0.5% to 7,185 FTEs. In the first quarter of 2026, the reduction of the number of Swisscom employees amounted to 0.8% or 192 FTEs (compared to year-end 2025), of which 158 FTEs (–1.2%) resulted from the Switzerland segment. In the Italy segment, the number of employees remained stable (+0.1%) during that period. The decline in the Switzerland segment ist due to a decrease in FTEs in the areas of customer care, IT business and support functions.

The financial outlook for the 2026 financial year remains unchanged. Swisscom expects revenue between CHF 14.7 billion and CHF 14.9 billion, EBITDA after lease expense (EBITDAaL) between CHF 5.0 billion and CHF 5.1 billion, capital expenditures between CHF 3.0 billion and CHF 3.1 billion and an operating free cash flow of around CHF 2.0 billion. Subject to achieving its targets, Swisscom plans to propose an increase in dividend from CHF 26 to CHF 27 per share for the financial year 2026 at the 2027 Annual General Meeting.

Switzerland

Switzerland’s revenue decreased by 1.3% or CHF 25 million to CHF1,937 million. Revenue from residential customers dropped by CHF12 million to CHF 1,052 million (–1.1%). The decrease is mainly due to a decline in telecommunications services (CHF –16 million or –1.7%). In the business customer area, revenue dropped by CHF 13 million to CHF 728 million (–1.7%), the telecommunication services declined by CHF 18 million (–5.1%) and the revenue from IT services by CHF 5 million (–1.5%) to CHF 300 million. In contrast, the hard- and software revenue increased by CHF 10 million (+14.7%) to CHF 82 million. In an intense market environment, there was a reduction in the number of connections for broadband (–1.8%) and TV (–2.4%). In contrast, the number of postpaid value connections increased (+0.4%). The share of secondary and third-party brands in the residential customers area rose from 35% to 37%. The number of connections for fixed network telephony dropped (–7.5%) as a result of its substitution with wireless telephony.

The operating expense decreased by 1.8% or CHF 20 million. Direct costs increased by CHF 12 million or 3.2%, driven by higher costs for goods and services purchased. Indirect costs dropped by CHF 31 million (–4.3%). In telecommunications, cost savings of CHF 25 million were realised through efficiency improvement measures. FTEs decreased by 3.8% year-on-year to 12,761 FTEs. In the first quarter of 2026, the reduction amounts to 1.2% or 158 FTEs as human resources in the areas of customer care, IT business and support functions have been reduced. Operating income before depreciation and amortisation after lease expense (EBITDAaL) remained nearly stable at CHF 861 million (–0.6%). Cost-efficiency measures partly compensated for the decline in revenue from telecommunications services. Capital expenditure decreased by 9.4% or CHF 40 million to CHF 382 million due to an expansion with optical fibre at a lower pace and in-year phasing effects in other areas. As at the end of March 2026, Swisscom covers around 56% of households and businesses in Switzerland with optical fibre and 89% of the population with 5G+.

Italy

The revenue of the Italy segment decreased year-on-year by 4.5% or EUR 81 million to EUR 1,737 million. Revenue from residential customers fell by 5.4% or EUR 45 million to EUR 787 million. The lower revenue from telecommunications services of EUR 35 million (–4.7%) due to a lower customer base was not fully offset. Revenue from business customers decreased by 6.9% or EUR 55 million to EUR 739 million, mainly driven by the lower revenue from telecommunications services and lower hard- and software revenue. Revenue from wholesale business increased by 10.9% or EUR 20 million to EUR 204 million. The higher wholesale revenue is caused by the increasing customer base in the wireless and wireline business. Competition in the Italian markets remained fierce. The number of wireless connections dropped to 19.9 million (–1.5%). The decreasing wireless residential customer base (–494 thousand) could not be compensated by the increasing wireless business customer base (+187 thousand). The customer base in the broadband business dropped by 2.0% or 112 thousand to 5.6 million. The challenging market environment led to a decrease in the residential customer base of 88 thousand and a decrease in the business customer base of 24 thousand. The wholesale wireless customer base from mobile virtual network operators (MVNO) hosted on the Fastweb + Vodafone network increased by 20.7% or 1.4 million to 8.2million. The number of wholesale wireline access lines provided to other operators rose by 23.3% or 226 thousand to 1.2 million.

Operating expenses decreased by EUR 117 million (–8.4%), mainly driven by cost savings from initial synergy effects. In the first quarter of 2026, operating expenses included integration cost for Vodafone Italia in the amount of EUR 2 million (prior year: EUR 6 million). Adjusted for this non-recurring item, operating result before depreciation and amortisation after lease expense (EBITDAaL) increased by EUR 32 million (+7.4%) due to the lower cost base. Capital expenditure decreased by EUR 42 million or 11.0% to EUR 339 million. In the first quarter of 2026, capital expenditure included EUR 3 million for the consolidation of mobile sites on the INWIT network (prior year: EUR 8 million) and EUR 32 million integration cost capital expenditure (prior year: EUR 3 million). Adjusted by those items, capital expenditures dropped by EUR 67 million or 17.9% mainly because of lower investments in the wireless and wireline access networks and a different phasing of IT projects.

Others

Revenue in the Others segment dropped by 12.8% or CHF 33 million year-on-year to CHF 225 million, primarily due to lower revenue for cablex construction services. The operating result before depreciation and ­amortisation after lease expense (EBITDAaL) decreased by 37.0% or CHF 11 million to CHF 19 million, driven by the fall in revenue.