Swisscom (SCMN) Q2 2025 earnings summary

Executive summary

• Achieved recognition as Switzerland's strongest telco brand, launched new B2B services, and made significant integration progress with Fastweb and Vodafone Italia, with synergy ramp-up expected in H2 2025.

• Maintained stable operational performance in Q2 2025, with a strategic focus on value over volume, digitalisation, and cost transformation.

• Employee headcount declined by 3.4% year-over-year due to efficiency measures and integration effects.

Financial highlights

• H1 2025 revenue was CHF 7.44 billion, down 2.3% year-over-year on a pro forma basis; EBITDAaL was CHF 2.47 billion, down 5.5%, mainly due to integration costs in Italy.

• Net income declined CHF 211 million (-25.2%) to CHF 625 million, mainly due to amortization of purchase price allocation assets and higher interest expense from the Vodafone acquisition.

• CapEx for H1 2025 was CHF 1,485 million, down 7.9% year-over-year pro forma; operating free cash flow was CHF 989 million, nearly stable, while free cash flow improved year-over-year.

• Group EBITDAaL margin was impacted by integration and restructuring costs.

Outlook and guidance

• Full-year 2025 guidance confirmed: revenue CHF 15.0–15.2 billion (expected at lower end), EBITDAaL ~CHF 5.0 billion, CapEx CHF 3.1–3.2 billion, OpFCF CHF 1.8–1.9 billion; dividend proposal of CHF 26 per share.

• Service revenue decline in Switzerland expected to be CHF 100–110 million for the full year; in Italy, service revenue decline at the upper end of EUR 100–200 million.

• Leverage expected to remain around 2.4x.