Swisscom (SCMN) Q4 2024 earnings summary

Executive summary

• Achieved stable group revenue of CHF 11 billion in 2024, with Swiss revenue decline offset by Italian growth and the transformative Vodafone Italia acquisition, advancing to #2 in Italy.

• Maintained strong market positions: leading customer experience in Switzerland, mobile number portability leadership in Italy, and innovation in AI and sustainability.

• Robust cost execution, digitalization, and network investments supported results.

• Annual profit rose sharply to CHF 3,003 million in 2024, mainly due to higher income from participations and operating income.

• Proposed stable dividend of CHF 22 for 2024, with guidance to increase to CHF 26 in 2026.

Financial highlights

• Group EBITDA (adjusted) reached CHF 4.552 billion, with reported EBITDA at CHF 4.355 billion after exceptional costs; pro forma with Vodafone Italia, revenue CHF 15.3 billion.

• Net income was CHF 1.542 billion, down CHF 169 million due to integration costs; annual profit CHF 3,003 million driven by participations.

• CapEx stable at CHF 2.3 billion; operating free cash flow CHF 1.752 billion, down CHF 290 million mainly due to Swiss EBITDA and CapEx.

• Fastweb revenue grew 7% year-over-year, with EBITDA growth driven by B2B IT and Wholesale.

• Vodafone Italia 2024 EBITDA and operating free cash flow both stable at EUR 1 billion and EUR 300 million, respectively.

Outlook and guidance

• 2025 group revenue guidance: CHF 15.0–15.2 billion; EBITDA approx. CHF 5 billion; CapEx CHF 3.1–3.2 billion.

• Switzerland: revenue CHF 7.9–8.0 billion, EBITDA CHF 3.3–3.4 billion, CapEx CHF 1.7 billion, stable free cash flow.

• Italy: revenue approx. CHF 7.3 billion, EBITDA CHF 1.6–1.7 billion, CapEx CHF 1.5–1.6 billion, transition year with integration costs and minor synergies.

• Dividend guidance for 2026: CHF 26 per share, with ambition for further growth as synergies materialize.

• The Board of Directors recommends a dividend of CHF 22 per share, reflecting strong earnings and available retained earnings.