Swisscom performs terribly in the 2nd quarter!

<img data-attachment-id="52404" data-permalink="https://www.xavierstuder.com/2022/08/resultats-swisscom-assure-terriblement-au-2e-trimestre/ceo_swisscom_ch_aeschlimann/" data-orig-file="https://i0.wp.com/www.xavierstuder.com/wp-content/uploads/2022/08/CEO_Swisscom_CH_Aeschlimann.jpg?fit=1600%2C1067&ssl=1" data-orig-size="1600,1067" data-comments-opened="1" data-image-meta="{"aperture":"0","credit":"","camera":"","caption":"","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"","orientation":"0"}" data-image-title="Christoph Aeschlimann, CEO de Swisscom." data-image-description="

Christoph Aeschlimann, CEO of Swisscom.

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Christoph Aeschlimann, CEO of Swisscom.

” data-medium-file=”https://i0.wp.com/www.xavierstuder.com/wp-content/uploads/2022/08/CEO_Swisscom_CH_Aeschlimann.jpg?fit=300%2C200&ssl=1″ data-large-file=”https://i0.wp.com/www.xavierstuder.com/wp-content/uploads/2022/08/CEO_Swisscom_CH_Aeschlimann.jpg?fit=1200%2C800&ssl=1″ class=”wp-image-52404 size-large” title=”Christoph Aeschlimann, CEO de Swisscom.” src=”https://i0.wp.com/www.xavierstuder.com/wp-content/uploads/2022/08/CEO_Swisscom_CH_Aeschlimann.jpg?resize=1200%2C800&ssl=1″ alt=”Christoph Aeschlimann, CEO de Swisscom.” width=”1200″ height=”800″ srcset=”https://i0.wp.com/www.xavierstuder.com/wp-content/uploads/2022/08/CEO_Swisscom_CH_Aeschlimann.jpg?resize=1200%2C800&ssl=1 1200w, https://i0.wp.com/www.xavierstuder.com/wp-content/uploads/2022/08/CEO_Swisscom_CH_Aeschlimann.jpg?resize=300%2C200&ssl=1 300w, https://i0.wp.com/www.xavierstuder.com/wp-content/uploads/2022/08/CEO_Swisscom_CH_Aeschlimann.jpg?resize=768%2C512&ssl=1 768w, https://i0.wp.com/www.xavierstuder.com/wp-content/uploads/2022/08/CEO_Swisscom_CH_Aeschlimann.jpg?resize=1536%2C1024&ssl=1 1536w, https://i0.wp.com/www.xavierstuder.com/wp-content/uploads/2022/08/CEO_Swisscom_CH_Aeschlimann.jpg?w=1600&ssl=1 1600w” sizes=”(max-width: 1200px) 100vw, 1200px” data-recalc-dims=”1″/>

Christoph Aeschlimann, CEO of Swisscom.

It’s hard to navigate the financial markets and the world of fake news when Swisscom publishes its results for 2e trimester. According to the stock market, where the title remained almost stable (-0.6% over the day) with an SMI which barely progressed, we can say that investors were satisfied!

Overall, Swisscom’s results show great stability in a relatively competitive market. The Swiss Stock Exchange has therefore taken note, without more, of the performance of the incumbent operator, which always seems to be more than resistant to its competitors, who are sometimes very aggressive….

Stable turnover

According to the press release from the operator, “the group’s turnover fell by 1.6% to reach 5.494 billion francs. At constant exchange rates, it remained almost stable (-0.1%)”. That said, on the Swiss market, the turnover of the main activity fell slightly by 0.2%, to 4.094 million, specifies the blue giant.

If we take a closer look at the operator’s core business, we see that the turnover of telecommunications services fell by 1.6% to 2.722 billion francs. On the other hand, sales in the IT solutions sector for business customers increased by 7.7% to 589 million francs. Finally, in Italy, Fastweb’s turnover increased by 18 million euros (+1.5%) over one year.

A half-hearted reality

On the ground, we see that Swisscom is at best at a standstill, or even retreating. For example, in the market for fixed Internet access or television, there is stability, despite the invasive campaigns for the new “Blue” offers, i.e. sometimes the ultimate form mowing from the Swisscom customer.

On the mobile side, we see that the competition still does not really work. Despite very aggressive offers from Swisscom’s competitors, who can often claim quality networks, the operator only lost 0.2% to 6.157 million mobile connections. We would have expected a loss of several percent. No doubt, customers and investors blindly trust the former monopolist.

Xavier Studer

The main figures in brief

01.01.-30.06.2022 01.01.-30.06.2021 Variation
adjusted*
Net turnover (in millions of CHF) 5494 5583 -1,6%

(-0,1%)

Operating result before depreciation and amortization, EBITDA (in millions of CHF)

2191 2317 -5,4%

(1,0%)

Operating result, EBIT (in millions of CHF) 999 1089 -8,3%
Net profit (in CHF million) 785 1046 -25,0%
Broadband connections, retail segment, in Switzerland (as of June 30, in thousands) 2026 2027 -0,0%
blue TV connections in Switzerland (as of June 30, in thousands) 1582 1582 0,0%
Mobile communication connections in Switzerland (as of June 30, in thousands) 6157 6169 -0,2%
Fastweb broadband connections (as of June 30, in thousands) 2712 2774 -2,2%
Fastweb mobile communication connections (as of June 30, in thousands) 2805 2 188 28,2%
Investments (in millions of CHF) 1053 1083 -2,8%
Of which investments in Switzerland (in millions of CHF) 746 752 -0,8%
Group workforce (full-time equivalents as of June 30) 19 067 19 110 -0,2%
Of which employees in Switzerland (full-time equivalents as of June 30) 15 874 15 964 -0,6%
  • On a comparable basis and at constant exchange rates

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