Swisscom sees telecoms revenue decline, income increase
Swisscom saw operating income increase 4.9% year over year in the most recent quarter, while net income jumped 42.1% year on year thanks to recent investment and divestment activity.
However, ongoing competition and price pressure continued to pressure revenues from telecommunications services, which decreased by 3.1%.
Elsewhere in the results, group revenue rose by 2.6% and in the Swiss core business, revenue increased by 0.5% as a result of the IT solutions business with business customers and a higher number of smartphones sold.
"Swisscom impressed in the first half of 2021 with a good market performance and a strong operating result," said CEO Urs Schaeppi (pictured).
"Our products are proving popular. As many as than 80% of our broadband customers use the attractive inOne bundled offering. I am particularly pleased that we won various mobile network tests as well as the test by PCtipp, which confirms that we provide a top service. We also made gains in the business customer market with our cloud and security solutions," he continued.
Schaeppi also cautioned on the runaway levels of data consumption (see graphic), calling on authorities and regulators to extend more support.
"The expansion of mobile communications remains a challenge. While usage by customers continues to rise sharply, expansion is still blocked in many places. There is a risk of data congestion. With the support of politicians and authorities, we must succeed in increasing the pace of expansion. Our Fastweb subsidiary performed well again, seeing growth in revenue, operating income and customer base," he said in a statement.
Swisscom's 42.1% year on year leap in net income saw values of $1.2 billion (CHF 2,317 million) reported.
This was driven by the Fastweb subsidiary and its FiberCop investment with KKR. In the more recent quarter, Fastweb reported year-on-year revenue growth of €76 million, up 6.9%.
In Belgium, Swisscom sold its 22.4% stake in Belgacom International Carrier Services (BICS) resulting in a gain of €110 million.