Swisscom meets FY outlook with stable EBITDA on lower revenues

News General Switzerland 4 FEB 2021
Swisscom meets FY outlook with stable EBITDA on lower revenues

Swisscom said net revenues fell by 3.1 percent in 2020 to CHF 11.10 billion due to price pressure, the impact of Covid-19 and lower roaming revenue. On a like-for-like basis and at constant exchange rates, revenue declined by 2.3 percent while EBITDA remained stable.

EBITDA grew by 0.6 percent to CHF 4.38 billion on a reported basis, for a margin of 39.5 percent. Operating income was up 1.9 percent to CHF 1.95 billion, while net income decreased by 8.4 percent to CHF1.52 billion, after one-off tax benefits in the previous year.

The company met all its targets for 2020, including exceeding the cost target with a reduction of CHF 129 million. It aims to cut costs by another CHF 100 million in 2021 and 2022, by simplifying work processes, using more efficient systems and reducing the number of jobs advertised. 

For 2021, Swisscom expects net revenue of around CHF 11.1 bil­lion, and EBITDA of around CHF 4.3 bil­lion. Capital ex­pen­di­ture is estimated at around CHF 2.3 bil­lion, including CHF 1.6 bil­lion in Switzer­land, up slightly from CHF 2.2 billion in 2020. Subject to achieving its targets, Swisscom will propose an unchanged dividend of CHF 22 per share for the 2021 financial year.

The number of fixed telephony access lines in Switzerland fell by 4.5 percent in 2020 to 1.52 million. Broadband access lines decreased by 0.7 percent to 2.04 million, despite second and third brands growing by 14,000 connections. TV subscribers saw a slight reduction of 0.1 percent to 1.55 million, and Swisscom launched a new TV product called blue last year. 

Mobile access lines fell by 1.7 percent to 6.22 million. The number of postpaid mobile connections rose by 81,000 compared with the previous year, including 62,000 contracts of second and third brands such as Wingo and M-Budget Mobile. The number of prepaid lines fell by 190,000.

The operator covered 99 percent of the population in Switzerland with LTE and 96 percent with a basic version of 5G. At the end of 2020, Swisscom had 1,239 antennas in 522 locations providing full 5G+. 

Swisscom reached 82 percent of Swiss premises with 'ultra-fast broadband' at year-end (at least 80 Mbps) and said it expects to reach nationwide coverage by the end of 2021. Around a third of premises could receive FTTP service with 10 Gbps and the goal is to take this to 39 percent in 2021 and 60 percent by 2025. 

Categories:

General

Companies:

Swisscom,  M-budget Mobile,  Wingo

Countries:

Switzerland

Tags:

Voice services, Sales figures, Financial figures, Wireline, Wireless, Internet Access

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