In This Article:
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Swisscom AG (SCMWY) confirmed its full-year guidance for 2025, with revenue expected between CHF 15 and 15.2 billion and EBITDA around CHF 5 billion.
-
The integration of Vodafone Italia is progressing well, with successful execution of planned integration actions.
-
Swisscom AG (SCMWY) was awarded the strongest telco brand worldwide by Brand Finance, highlighting its strong market position.
-
The company launched a new multi-mobile offering called 'We Are Family' to enhance convergence and increase household penetration.
-
Swisscom AG (SCMWY) continues to invest in its network, achieving 86% 5G+ coverage and 53% FTTH coverage, maintaining a quality lead in network performance.
Negative Points
-
Swisscom AG (SCMWY) reported a 1% decline in group revenue, primarily due to a decline in Switzerland and currency effects.
-
EBITDA declined by 6.6%, driven by a decrease in Switzerland and integration costs in Italy.
-
The company faces high price pressure in the Swiss SME segment, impacting B2B service revenue.
-
In Italy, B2C service revenue erosion was higher than expected, driven by mobile service revenue declines.
-
The company anticipates continued service revenue erosion in Italy, with stabilization efforts expected to show results mainly in 2026.
Q & A Highlights
Q: Can you provide an update on the Italian business, particularly regarding the B2C service revenues and the MVNO contract with TIM? A: The MVNO contract with TIM will move to their network in 2026, with no impact this year. The B2C mobile service revenue is at the upper end of our expectations, and we are working on a new B2C strategy to focus on value. The recovery in service revenue will mainly happen next year, with improving trends expected over this year. (Christoph Eshleman, CEO)
Q: What are the competitive dynamics in Switzerland for mobile and broadband, and how have customers reacted to the Wingo price increase? A: In mobile, there is a slight relaxation with discounts around 50-60%, but the market remains aggressive. The Wingo price increase of CHF1 has been positively received, with more value offered to customers. In broadband, competition remains aggressive, especially with low-price offers from competitors. (Christoph Eshleman, CEO)
Q: Can you elaborate on the potential for renegotiating tower fees with Inwit and the shift from volume to value in Italy? A: We are in contact with Inwit regarding tower fees but cannot comment further. The shift from volume to value in Italy is challenging, but we believe it is beneficial for the market. We aim to focus on our strengths, such as network quality and service, to reduce churn and improve ARPU. (Christoph Eshleman, CEO)