Swisscom: revenues down but profits up

13th May 2024
-IAM, News

Daniel Pfund, Senior Financial Analyst

Swisscom has published its results for the first quarter of the year. Net revenues came to CHF 2.7 billion, down -1.6% on the same quarter last year. Analysts were expecting sales to be a few tens of millions higher. As in previous quarters, it was the Swiss division that was down (-2.5%), while Italy posted growth (+5.6%). Swisscom understood that there would be no further growth in Switzerland, which is why it bought Vodafone Italy’s mobile assets.

Swisscom’s strength remains its cost management. Reported EBITDA profit of CHF 1.155 billion was down by just -0.8%, this time exceeding expectations. The guidance for the full year was confirmed, i.e. EBITDA in the range of CHF 4.5 – 4.6 billion.

Swisscom also issued three new tranches of debt with maturities of 6, 10 and 15.5 years, for a total of CHF 850 million, with a view to financing its purchase of Vodafone Italy.