Source : EuropeanMarkets
CEO Urs Schaeppi comments: "Our business this third quarter is marked by a heavy fall in roaming tariffs, currency effects and the strength of competition. In view of the adverse circumstances, I'm satisfied with the result. Our sales and operating income are both higher taken year-on-year. Fastweb reported a very encouraging customer growth of 7.7% in the Italian market."
Financial highlights of the first nine months of 2015
In the first nine months of 2015, Swisscom’s net revenue increased by CHF 22 million or 0.3% year-on-year to CHF 8,651 million. Adjusted for company acquisitions and disposals and on the basis of constant exchange rates, revenue increased by CHF 103 million or 1.2%.
Swisscom increased its adjusted operating income (EBITDA), but the recognised EBITDA fell as a result of non-recurring items by CHF 273 million or 8.1% to CHF 3,099 million. The main reason for this decline is the provision for ongoing proceedings: At the beginning of October 2015, the Federal Administrative Court confirmed in principle the provision issued by the Competition Commission for the alleged improper pricing of broadband services in the period up until the end of 2007; however, it reduced the penalty to CHF 186 million. Swisscom therefore recognised this amount as a provision in its income statement for the third quarter. Swisscom does not consider the sanction justified and has lodged an appeal with the Federal Court. Adjusted for this sanction and other non- recurring items such as company acquisitions and disposals, gains from the sale of real estate (CHF 51 million), pension costs not affecting cash flow (CHF 50 million) and on the basis of constant exchange rates (CHF 58 million), EBITDA increased by CHF 72 million or 2.2%. Net income declined by 21.6% to CHF 1,058 million, largely due to one-off effects.
Outlook for 2015: EBITDA of more than CHF 4.0 billion
As communicated on 6 October, as a result of the provision for the Competition Commission investigation into broadband services, Swisscom expects an EBITDA in excess of CHF 4.0 billion. As before, Swisscom also expects net revenue of more than CHF 11.5 billion and capital expenditure of over CHF 2.3 billion. If the targets are met, Swisscom will propose to the Annual General Meeting of Shareholders payment of an unchanged dividend of CHF 22 per share for the 2015 financial year.
Source : Press Release Swisscom AG, (Switzerland) November 05, 2015
