In the interim report for the first-half of 2016, Switzerland’s telecommunications company Swisscom reported a net revenue of CHF 5,769 million. EBITDA increased by 4.4% or CHF 94 million to CHF 2,227 million primarily due to Fastweb. The company’s net income rose by 0.5% or CHF 4 million to CHF 788 million.
Commenting on the half-yearly result, CEO Urs Schaeppi said, “Swisscom achieved good figures in the first half of 2016. Despite strong competition, we were able to maintain our revenue and income and even saw growth for bundled offerings and TV access lines. Our solutions business with corporate customers is also performing very well, as is Fastweb, which made a significant contribution to our EBITDA growth over the past six months.”
“The strong price pressure in mobile telecommunications and the increasingly cut-throat competition in the core business make it necessary to deal with costs in a prudent manner and to further increase efficiency within the company. Doing so will enable us to maintain the high levels of capital expenditure in future-oriented networks and IT infrastructure and continue to keep our customers happy in future,” he added.
Besides the revenue, Swisscom also received compensation from Telecom Italia to the tune of EUR 55 million as a result of an out-of-court settlement following a legal dispute.
Swisscom also claimed to have connected 3.3 million homes and offices with ultra-fast broadband (with speeds of more than 50 Mbps) in the first-half of 2016. According to the company, 98% of all Swisscom customers are already enjoying the advantages of the latest-generation mobile network.
For the other half of the year, Swisscom predicts a net revenue of more than CHF 11.6 billion. It anticipates EBITDA of around CHF 4.25 billion and capital expenditure of around CHF 2.4 billion.