Swisscom toasts “quite remarkable” 2016

Swisscom

Swisscom met its 2016 financial targets as the performance of its Fastweb business shone.

Group revenues dropped 0.3 percent year-on-year to CHF 11.6 billion in 2016, but the operator said this was “quite remarkable” given pressure on pricing and the general market environment.

Sales in Switzerland fell 1.1 percent to CHF 9.4 billion as the number of fixed and mobile telephony customers declined.

Growth in broadband subscriber numbers, up 1.7 percent to two million, and TV customers, up 10.9 percent to 1.5 million was welcome, as was a 2.9 percent increase in sales to enterprises.

The decline in Swisscom’s home market was offset by a 3.4 percent rise in revenues at Italian subsidiary Fastweb, to €1.8 billion, as the number of broadband customers rose seven percent to 2.35 million.

The company’s network now covers 30 percent of the Italian population, around 7.5 million premises.

Group EBITDA rose 4.8 percent to CHF 4.3 billion, although it fell 1.2 percent on an adjusted basis when factors such as roaming and the increased cost of winning new customers are included.

Net income was up 17.8 percent to CHF 1.6 billion thanks to non-recurring items.

CEO Urs Schaeppi said: “[2016] was certainly hard going and the pressure on prices and the reduction in roaming fees presented us with a real challenge.

“But we worked on cutting our costs and performed well on the market.

“I am especially pleased with innovations such as the G.fast data transmission standard, the further development of our TV offering and the progress we have made in the corporate business.”

Read more: Swisscom targets 100,000 G.Fast connections, CTIO says it’s not about the tech

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