Ad hoc announcement pursuant to Art. 53 LR/annual financial statement 2024

Strong today – even stronger tomorrow

+++ Financial result in line with expectations – EBITDA and net income down year-on-year due to Italy integration and transaction costs +++ Switzerland: efficiency gains continued – IT services growth +++ Italy: Fastweb increases in revenue and customers – acquisition of Vodafone Italia completed +++ Best customer experience with network test wins in Switzerland and Italy +++ New member of Board of Directors and governance update +++ Dividend of CHF 22 per share for the 2024 financial year +++ Preliminary outlook for 2025: revenue of CHF 15.0–15.2 bn, EBITDAaL of roughly CHF 5.0 bn, investments of CHF 3.1–3.2 bn, dividend of CHF 26 per share for the financial year 2025 +++

By Sepp Huber
Portrait of Christoph Aeschlimann, CEO Swisscom

To key figures at a glance

‘Swisscom is on track and posted solid financial results in 2024,’ says CEO Christoph Aeschlimann, commenting on the annual financial statement. ‘We have taken an important step forward in terms of innovation with artificial intelligence and launched an AI platform in 2024 for both our Swiss and Italian business customers. Another highlight is our victories in all the relevant network and service tests. In Switzerland, we have reached a milestone in optical fibre expansion and now cover more than half of households and businesses with FTTH. Fastweb has continued to develop very well in Italy. With the acquisition of Vodafone Italia, we are now further strengthening our position in Italy and laying the groundwork for future success.’

Swiss core business posts revenue decline as Fastweb continues to grow

Group revenue decreased marginally by 0.3% year-on-year to CHF 11,036 million, which, however, amounts to an increase of 0.2% at constant exchange rates. Revenue in the Swiss core business fell by CHF 141 million to CHF 8,006 million (–1.7%). Business in Italy continues to develop positively. The year-on-year revenue growth at Fastweb comes in at EUR 176 million (+6.7%).

Consolidated operating income before depreciation and amortisation (EBITDA) fell by 5.8% to CHF 4,355 million. Due to the acquisition of Vodafone Italia on 31 December 2024, integration and transaction costs of CHF 227 million were recognised in the 2024 financial year. Without these costs and other non-recurring items and at constant exchange rates, the decrease was 1.0%. On like-for-like basis, EBITDA in the Swiss core business declined by 1.1%, while Fastweb showed a gain of 1.1% (in EUR). Net income decreased by 9.9% year-on-year to CHF 1,541 million due to the aforementioned costs in connection with the acquisition of Vodafone Italia.

Switzerland: more mobile connections – higher demand for IT services

Revenue from telecoms services in Switzerland fell overall by 2.1% to CHF 5,289 million. The decline was due to ongoing price erosion and the lower number of broadband and fixed line telephony connections. In addition, revenue from merchandise declined by 4.1%. In contrast, revenue from IT services with business customers rose by CHF 37 million (+3.2%). In the Swiss core business, EBITDA declined by CHF 41 million (–1.1%) on a like-for-like basis. The decline in revenue from telecoms services was more than offset by cost savings.

In the private customer segment, the number of mobile connections rose by 0.3% to 4.32 million. The number of fixed broadband connections fell by 1.5% year-on-year to 1.70 million connections; for TV, connections decreased by 2.8% to 1.43 million. Revenue from telecoms services fell by 1.6% in the private customer segment to CHF 3,795 million.

The market for business customers remains characterised by strong competition. Revenue from telecoms services was down by 3.3% year-on-year to CHF 1,494 million. However, Swisscom continues to have a strong position as a full-service provider and customer satisfaction is high. Demand for cloud, security and IoT solutions as well as business applications continued to grow. Revenue from IT services increased by 3.2% to CHF 1,191 million in 2024.

Swisscom continuously invests in the quality, coverage and performance of its network infrastructure. Investments in Switzerland remained high at CHF 1,712 million (+1.6%). As of the end of December 2024, Swisscom covered more than half of Swiss households and businesses with optical fibre and is systematically continuing the modernisation of its existing fixed network and mobile communications infrastructure in all Swiss municipalities. The entire population should have Internet access with bandwidths in the gigabit range by 2035.

In the area of sustainability, Swisscom was able to reduce the CO2 emissions directly resulting from its operations by 12% in 2024. This was thanks to the introduction of more than 1,000 electric vehicles, as well as heating renovations and electricity efficiency measures. This puts Swisscom on track to achieve its goal of reducing direct emissions by 90% by 2025.

Italy: Fastweb increases customers, revenue and EBITDA – acquisition of Vodafone Italia successfully completed

In the mobile communications sector, the number of connections was up by 12.0% on the previous year to 3.93 million. The customer base in the fixed-network business (retail and wholesale) grew overall by 6.2% to 3.45 million. Although this fell by 2.2% to 2.54 million in the retail business, the number of ultra-fast broadband connections that Fastweb provided to other operators rose by 39.7% to 0.91 million. Revenue from residential customers remained virtually stable at EUR 1,170 million (+0.6%), while the decline in revenue in the fixed-network segment was offset by growth in the mobile segment. Revenue in the business customer segment grew by 10.1% to EUR 1,249 million, driven by growth in IT services. Wholesale also reporting revenue growth of 16.1% to EUR 390 million, due to the increase in broadband connections. Fastweb entered the energy market in April with the sale of electricity subscriptions and, after just nine months, already has some 60,000 customers.

Fastweb’s overall revenue rose year-on-year to EUR 2,809 million (+6.7%). Operating income before depreciation and amortisation (EBITDA) fell by 11.5% to EUR 706 million. Due to the acquisition of Vodafone Italia on 31 December 2024, integration costs in Italy of EUR 176 million were recognised in the 2024 financial year. Excluding these integration costs and non-recurring items in the previous year, the result is an increase of 1.1%.

Swisscom successfully completed the acquisition of Vodafone Italia on 31 December 2024, after receiving all the necessary regulatory approvals. The Italian mobile operator has been part of the Swisscom Group since the beginning of January. The transaction is an important step towards achieving the strategic objective of further profitable growth in Italy. Fastweb + Vodafone is now the leading infrastructure operator in the Italian telecommunications market leveraging on state-of-the-art fixed and mobile networks and second-largest telco provider of the country.

Expansion of the Board of Directors

In the course of the acquisition of Vodafone Italia, the Swisscom Board of Directors will add one member. Laura Cioli will be nominated for election as a new member of the Board of Directors at the Annual General Meeting on 26 March 2025. Laura Cioli holds a master’s in business administration from SDA Bocconi School of Management in Milan and a degree in electronic engineering from the University of Bologna. After her time with the consulting firm Bain, she served on the Executive Committee of Vodafone Italia for several years. After that, Cioli was the CEO of various companies in Italy – most recently the SIRTI Group, the leading Italian company for the development and implementation of telecommunications networks and systems for the telecommunications, transport and energy sectors. Cioli’s portfolio is supplemented by a number of directorships, which also add to her expertise in the finance, industry and retail sectors.

The one-year office term of all members of the Board of Directors will expire at the Annual General Meeting. The Chairman of the Board of Directors and the other Board of Directors members shall stand for re-election.

Changes to the organisational structure

From 1 April 2025, a lean and efficient Group Executive Committee consisting of Christoph Aeschlimann (CEO), Eugen Stermetz (CFO), Isa Müller-Wegner (Chief Strategy and Business Development Officer) and Klementina Pejic (Chief People Officer) will manage the company on a group-wide basis and jointly define the group strategy with the national companies for the attention of the Board of Directors. Business in Switzerland and Italy is directed by an Executive Committee. The Executive Committee for Swisscom Switzerland will be made up of the nine people who will form the Swisscom Group Executive Board by the end of March and whose work already primarily focuses on the Swiss business. This will ensure stability and continuity in the Swiss business going forward.

Preliminary outlook for 2025: EBITDAaL of roughly CHF 5.0 bn – dividend increase with a strong balance sheet

For the financial year 2025, Swisscom expects revenue of around CHF 15.0 billion to CHF 15.2 billion, EBITDA after lease expense (EBITDAaL) of around CHF 5.0 billion and capital expenditure between CHF 3.1 billion and CHF 3.2 billion (around CHF 1.7 billion of which will be in Switzerland). For the 2024 financial year, the payment of an unchanged dividend of CHF 22 per share will be proposed to the Annual General Meeting on 26 March 2025. If targets are achieved, Swisscom plans to increase the dividend to CHF 26 per share, to be paid out in 2026 for financial year 2025.

With a pro forma debt ratio (net debt/EBITDA) of 2.4x, Swisscom continues to have a single A credit rating, one of the highest ratings among European telecommunications companies. Swisscom expects an unchanged net debt ratio of 2.4x by the end of 2025.

The key figures at a glance

  1.1. –
31.12.2024		 1.1. –
31.12.2023		 Change
Revenue (in CHF million) 11,036 11,072 −0.3%
0.2%*
Operating income before depreciation and amortisation, EBITDA (in CHF million) 4,355 4,622 −5.8%
–1.0%*
Operating income EBIT (in CHF million) 1,951 2,205 −11.5%
Net income (in CHF million) 1,541 1,711 −9.9%
Retail broadband access lines in Switzerland (as at 31.12 in thousands) 1,967 2,006 −1.9%
blue TV connections in Switzerland (as at 31.12 in thousands) 1,493 1,537 −2.9%
Mobile access lines in Switzerland (as at 31.12 in thousands) 6,331 6,277 0.9%
Fastweb broadband access lines (as at 31.12 in thousands) 2,544 2,601 −2.2%
Fastweb mobile access lines (as at 31.12 in thousands) 3,930 3,509 12.0%
Capital expenditure (in CHF million) 2,312 2,292 0.9%
Of which capital expenditure in Switzerland (in CHF million) 1,712 1,685 1.6%
Group employees (FTEs as at 31.12) 19,887 19,729 0.8%
Of which employees in Switzerland (FTEs as at 31.12) 15,905 16,050 −0.9%
  Revenue (in CHF million)
1.1. –
31.12.2024		 11,036
1.1. –
31.12.2023		 11,072
Change −0.3%
0.2%*
  Operating income before depreciation and amortisation, EBITDA (in CHF million)
1.1. –
31.12.2024		 4,355
1.1. –
31.12.2023		 4,622
Change −5.8%
–1.0%*
  Operating income EBIT (in CHF million)
1.1. –
31.12.2024		 1,951
1.1. –
31.12.2023		 2,205
Change −11.5%
  Net income (in CHF million)
1.1. –
31.12.2024		 1,541
1.1. –
31.12.2023		 1,711
Change −9.9%
  Retail broadband access lines in Switzerland (as at 31.12 in thousands)
1.1. –
31.12.2024		 1,967
1.1. –
31.12.2023		 2,006
Change −1.9%
  blue TV connections in Switzerland (as at 31.12 in thousands)
1.1. –
31.12.2024		 1,493
1.1. –
31.12.2023		 1,537
Change −2.9%
  Mobile access lines in Switzerland (as at 31.12 in thousands)
1.1. –
31.12.2024		 6,331
1.1. –
31.12.2023		 6,277
Change 0.9%
  Fastweb broadband access lines (as at 31.12 in thousands)
1.1. –
31.12.2024		 2,544
1.1. –
31.12.2023		 2,601
Change −2.2%
  Fastweb mobile access lines (as at 31.12 in thousands)
1.1. –
31.12.2024		 3,930
1.1. –
31.12.2023		 3,509
Change 12.0%
  Capital expenditure (in CHF million)
1.1. –
31.12.2024		 2,312
1.1. –
31.12.2023		 2,292
Change 0.9%
  Of which capital expenditure in Switzerland (in CHF million)
1.1. –
31.12.2024		 1,712
1.1. –
31.12.2023		 1,685
Change 1.6%
  Group employees (FTEs as at 31.12)
1.1. –
31.12.2024		 19,887
1.1. –
31.12.2023		 19,729
Change 0.8%
  Of which employees in Switzerland (FTEs as at 31.12)
1.1. –
31.12.2024		 15,905
1.1. –
31.12.2023		 16,050
Change −0.9%

*on a like-for-like basis and at constant exchange rates

Swisscom uses various alternative performance measures. The definition and reconciliation of values in accordance with IFRS are set out in the Annual Report as at 31 December 2024.

The Swisscom Annual Report 2024 was published today.

Swisscom AG
SCMN / Valor 874251 / ISIN CH0008742519
Group Media Relations
CH-3050 Bern
Phone +41 58 221 98 04
E-Mail media@swisscom.com
www.swisscom.ch

Disclaimer

This notification contains forward-looking statements. In this notification, such forward-looking statements include, without limitation, statements relating to our financial condition, results of operations and business and certain of our strategic plans and objectives.

Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors that are beyond Swisscom’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behaviour of other market participants, the actions of governmental regulators and other risk factors detailed in the past and future filings and reports of Swisscom, Fastweb and Vodafone Italia (Fastweb + Vodafone Italia), including those filed with the U.S. Securities and Exchange Commission and in past and future filings, press releases, reports and other information posted on Swisscom Group Companies’ websites.

Readers are cautioned not to put undue reliance on forward-looking statements, which speak only of the date of this communication.

Swisscom disclaims any intention or obligation to update and revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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Tel. +41 58 221 98 04

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