Swisscom ended 2014 on a high as demand for bundled services drove growth in sales, profits and customers, but the good times could end next year.
The Swiss operator labelled 2014 a “successful year” after revenues rose 2.4 percent to CHF 11.7 billion (€11 billion).
EBITDA rose 2.6 percent to CHF 4.4 billion (€4.2 billion) nudging net profits up 0.6 percent to CHF 1.7 billion (€1.6 billion).
Swisscom reported sales of CHF 1.92 billion (€1.82 billion) from bundles last year, a rise of 23.7 percent, as the number of customers signing up to such contracts grew by a fifth to 1.2 million.
TV and mobile where the main drivers for this growth.
Swisscom TV saw customer numbers rise by 16.5 percent to 1.2 million after adding 165,000 subscribers.
The number of mobile lines in its home market grew 2.1 percent to 6.5 million, credited largely to the operator’s NATEL infinity tariff.
Sixty-three percent of Swisscom’s subscribers are now using the service, which offers unlimited texts, calls and data to Swiss numbers. As a result, mobile data traffic was 96 percent.
Following the merger of Swisscom’s Telecoms and IT corporate business at the start of the year, enterprise revenues rose 16 percent to CHF 2.3 billion (€2.2 billion).
In Italy, the operator’s Fastweb broadband services pulled in revenues of €1.7 billion, an increase of 2.8 percent, after it customer base rose by 130,000 to over two million.
Capex was up 1.7 percent top CHF 2.4 billion (€2.3), largely due to expansion of fixed and mobile network infrastructure in Switzerland and investment in FTTx and vectoring technologies.
Commenting on the results, CEO Urs Schaeppi said: “Our high investment in the future is paying off. We were able to gain many new customers, especially for Swisscom TV, bundled contracts and Fastweb. The trend towards bundled offerings with flat-rate tariffs continues unabated.”
However, Swisscom warned that 2015 revenues will be lower on currency fears.
There is also due to further pressure from rivals. Sunrise is raising substantial funds via an IPO, while Orange Switzerland is set to be relaunched by the owner of low-cost French operator Free Mobile.