News
Revenue inches down on lower prices; Fastweb customer base grows 5.5%.
Swisscom on Tuesday reported a rise in first-quarter EBITDA thanks to lower costs at its domestic business.
The telco also reported steady increases in fixed broadband and TV customers.
"We are well on track," said Swisscom CEO Urs Schaeppi, in a statement. "In view of the difficult market conditions, I am satisfied with our business performance."
The incumbent’s domestic operation ended March with 1.37 million TV subscribers, up 13.6% from 12 months ago, as net additions during the first quarter totalled 36,000. Fixed broadband customers rose to 1.97 million from 1.91 million, while its mobile base edged up 0.7% year-on-year to 6.62 million.
"The market is becoming increasingly saturated and growth in areas such as mobile telecommunications is becoming more difficult," Schaeppi said.
Fierce competition in Italy saw Swisscom’s Italian arm Fastweb record a 3% year-on-year decline in ARPU. However, Fastweb’s revenue grew 2.6% to €440 million, as shrinking ARPU was offset by customer growth; the company added 40,000 broadband users during the quarter, leaving it with 2.24 million in total.
Overall, Swisscom generated revenue of 2.89 billion francs (€2.64 billion) in the three months to 31 March, down slightly from CHF2.89 billion a year earlier, which the incumbent attributed to sliding prices driven by competition.
However, EBITDA increased 2.9% year-on-year to CHF1.05 billion due to lower subscriber acquisition and maintenance costs in Switzerland. Meanwhile, lower financial expenses resulted in net profit rising to CHF364 million from CHF351 million.
