Swisscom (SCMN) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered stable underlying revenue and EBITDA, with cost savings offsetting service revenue declines and higher CapEx; full-year 2024 guidance is confirmed.

• Switzerland saw telco service revenue declines but B2B IT growth and over 50% FTTH coverage; Fastweb in Italy achieved growth across B2C, B2B, and wholesale, with mobile net adds and energy offer expansion.

• Vodafone Italia acquisition is progressing, with regulatory approvals on track for Q1 2025 closing.

• Net income decreased 2.1% to CHF 1,283 million, mainly due to lower EBITDA and higher depreciation, partially offset by lower interest and tax expenses.

• Capital expenditure increased, mainly for FTTH rollout in Switzerland and network expansion in Italy.

Financial highlights

• Q3 2024 group revenue was CHF 2.7 billion, down 1.2% year-over-year; 9M 2024 revenue CHF 8,173 million, down 0.4%.

• Q3 2024 EBITDA CHF 1,159 million, down 1.3% year-over-year; 9M 2024 EBITDA CHF 3,438 million, down 1.1%.

• Net income for 9M 2024 CHF 1,283 million, down 2.1% year-over-year.

• CapEx up 11% in Q3 2024 to CHF 574 million, mainly due to FTTH rollout; YTD CapEx CHF 1,731 million (+6.2%).

• Free cash flow stable at CHF 1,037 million for 9M 2024; operating free cash flow down 8.6% to CHF 1,490 million.

Outlook and guidance

• Full-year 2024 guidance confirmed: revenue ~CHF 11.0 billion, EBITDA CHF 4.5–4.6 billion, CapEx ~CHF 2.3 billion.

• Dividend of CHF 22 per share planned for 2024/2025, subject to targets being met.

• Cost savings target of CHF 50 million+ for 2024 reaffirmed, with continued savings expected through automation, AI, and fiber rollout.

• Vodafone Italia acquisition expected to close in Q1 2025; regulatory approvals progressing as planned.