Swisscom (SCMN) Q1 2025 earnings summary

Executive summary

• Q1 2025 results are compared to pro forma 2024 figures, reflecting the consolidation of Vodafone Italia from January 2024, with a new Group organization effective from April 2025.

• Group revenue reached CHF 3,759 million, down 1.2% year-over-year pro forma, mainly due to declines in Switzerland and currency effects; Italy's revenue remained stable.

• EBITDA/EBITDAAL declined 6.6% to CHF 1,277 million, impacted by integration and pension costs, and weaker telecom service revenue, especially in Italy.

• Net income dropped 19.3% year-over-year to CHF 367 million, mainly due to purchase price allocation depreciations and higher interest from the Vodafone Italia acquisition.

• Integration of Fastweb and Vodafone in Italy is progressing well, with synergy realization on track and a new executive committee in place.

Financial highlights

• Group revenue decreased by CHF 47 million year-over-year pro forma, with Switzerland down CHF 24 million and Italy down CHF 8 million.

• EBITDA/EBITDAAL fell by CHF 90 million reported, or CHF 57 million adjusted; Switzerland was stable, Italy saw a CHF 50 million decline.

• CapEx was CHF 779 million, down 13.2% pro forma, positively impacting operating free cash flow, which rose by CHF 28 million to CHF 498 million.

• Net debt decreased by CHF 447 million to CHF 15,634 million; equity rose by CHF 444 million to CHF 12,598 million.

• Earnings per share fell 19.4% to CHF 7.08.

Outlook and guidance

• 2025 guidance confirmed: Group revenue CHF 15.0–15.2 billion, EBITDA/EBITDAAL around CHF 5.0 billion, CapEx CHF 3.1–3.2 billion, OpFCF CHF 1.8–1.9 billion.

• Dividend proposal of CHF 26/share for 2025, subject to meeting guidance.

• Italy revenue guidance of EUR 7.3 billion is reiterated, with service revenue decline expected at the upper end of EUR 100–200 million, offset by compensating revenues.

• CapEx guidance for the year is CHF 1.4 billion, with Q1 seasonally high and not indicative of the full year.

• Full-year synergy and integration cost targets for Vodafone Italia remain on track.