2 Segment information
General disclosures
Reporting is divided into the segments Switzerland, Italy and Others. The Switzerland and Italy segments are engaged in largely identical business activities, differing only in their regional scope. Residential customers are offered telecommunications services such as mobile communication, fixed-line telephony, broadband and TV. Business customers receive IT solutions in addition to telecommunications services, covering the entire spectrum of business ICT infrastructure from individual products to end-to-end solutions. In addition, the network infrastructure is made available to other telecommunications providers as wholesale services. Each segment includes its respective national telecommunications network and IT infrastructure. Group-wide functions are reported within the Switzerland segment.
Segment expense encompasses the direct costs, personnel expense and other indirect costs. In the segment reporting, lease expenses of CHF 398 million (prior year: CHF 409 million) are allocated to direct costs (current year: CHF 215 million; prior year CHF 220 million) and other indirect costs (current year: CHF 194 million; prior year: CHF 189 million). 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 elimination column. The elimination column in the segment result, which totals CHF –12 million (prior year: CHF –16 million), includes expense of CHF 2 million (prior year: expense CHF 4 million) as a pension cost reconciliation item in accordance with IAS 19.
Capital expenditure consists of the purchase of property, plant and equipment and intangible assets and the acquisition of indefeasible rights of use (IRU). In general, IRUs are paid in full at the beginning of their use and are classified as leases under IFRS 16. From an economic point of view, IRU acquisitions will be considered as capital expenditure in the segment information. Capital expenditure in the first three months of 2026 includes IRU acquisitions of CHF6 million (prior year: CHF 19 million).
Segment information 2026
| 1.1.–31.3.2026, in CHF million | Switzerland | Italy | Others | Elimination | Total | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Residential customers | 1,052 | 723 | – | – | 1,774 | |||||
| Business customers | 728 | 680 | 94 | – | 1,501 | |||||
| Wholesale customers | 133 | 187 | – | – | 320 | |||||
| Other | 4 | 6 | – | – | 10 | |||||
| External revenue | 1,916 | 1,596 | 94 | – | 3,606 | |||||
| Intersegment revenue | 20 | 1 | 131 | (152) | – | |||||
| Revenue | 1,937 | 1,596 | 225 | (152) | 3,606 | |||||
| Direct costs | (380) | (695) | (26) | 18 | (1,083) | |||||
| Personnel expense | (530) | (129) | (103) | (1) | (762) | |||||
| Other indirect costs | (166) | (352) | (78) | 123 | (473) | |||||
| EBITDA after lease expense (EBITDAaL) | 861 | 420 | 19 | (12) | 1,288 | |||||
| Lease expense | 398 | |||||||||
| Operating income before depreciation and amortisation (EBITDA) | 1,686 | |||||||||
| Depreciation and amortisation of property, plant and equipment and intangible assets | (784) | |||||||||
| Depreciation of right-of-use assets | (385) | |||||||||
| Operating income (EBIT) | 517 | |||||||||
| Financial income | 9 | |||||||||
| Financial expense | (122) | |||||||||
| Result of equity-accounted investees | – | |||||||||
| Income before income taxes | 404 | |||||||||
| Income tax expense | (72) | |||||||||
| Net income | 332 | |||||||||
| EBITDA after lease expense (EBITDAaL) | 861 | 420 | 19 | (12) | 1,288 | |||||
| Capital expenditure | (382) | (312) | (9) | 10 | (693) | |||||
| Operating free cash flow | 478 | 108 | 10 | (2) | 594 | |||||
Segment information 2025
| 1.1.–31.3.2025, in CHF million | Switzerland | Italy | Others | Elimination | Total | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Residential customers | 1,064 | 785 | – | – | 1,849 | |||||
| Business customers | 740 | 750 | 94 | – | 1,584 | |||||
| Wholesale customers | 141 | 174 | – | – | 315 | |||||
| Other | 4 | 7 | – | – | 11 | |||||
| External revenue | 1,949 | 1,716 | 94 | – | 3,759 | |||||
| Intersegment revenue | 12 | 1 | 164 | (178) | – | |||||
| Revenue | 1,962 | 1,717 | 258 | (178) | 3,759 | |||||
| Direct costs | (368) | (807) | (22) | 15 | (1,182) | |||||
| Personnel expense | (545) | (128) | (104) | (4) | (781) | |||||
| Other indirect costs | (183) | (384) | (102) | 150 | (519) | |||||
| EBITDA after lease expense (EBITDAaL) | 866 | 398 | 29 | (16) | 1,277 | |||||
| Lease expense | 409 | |||||||||
| Operating income before depreciation and amortisation (EBITDA) | 1,686 | |||||||||
| Depreciation and amortisation of property, plant and equipment and intangible assets | (773) | |||||||||
| Depreciation of right-of-use assets | (394) | |||||||||
| Operating income (EBIT) | 519 | |||||||||
| Financial income | 18 | |||||||||
| Financial expense | (95) | |||||||||
| Result of equity-accounted investees | – | |||||||||
| Income before income taxes | 442 | |||||||||
| Income tax expense | (75) | |||||||||
| Net income | 367 | |||||||||
| EBITDA after lease expense (EBITDAaL) | 866 | 398 | 29 | (16) | 1,277 | |||||
| Capital expenditure | (422) | (360) | (10) | 12 | (780) | |||||
| Operating free cash flow | 444 | 38 | 20 | (4) | 498 | |||||