Swisscom (SCMN) Q3 2024 earnings summary

Executive summary

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

• Fastweb in Italy showed strong growth across B2C, B2B, and wholesale, with mobile net adds and a successful energy offering; B2C revenue stabilized and B2B/wholesale outperformed.

• The Vodafone Italia acquisition is progressing as planned, with regulatory approvals underway and closing expected in Q1 2025.

• Net income decreased 2.1% to CHF 1,283 million, as lower operating income was partially offset by improved financial results and lower tax expense.

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

Financial highlights

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

• Q3 2024 EBITDA CHF 1,159 million, down 1.3%; 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 increased to CHF 1,731 million for 9M 2024, mainly due to FTTH rollout; Q3 2024 CapEx CHF 574 million, up 11% year-over-year.

• Free cash flow stable at CHF 1,037 million for 9M 2024, supported by improved working capital and lower interest/tax payments.

Outlook and guidance

• Full-year 2024 guidance for revenue (~CHF 11.0 billion), EBITDA (CHF 4.5–4.6 billion), CapEx (~CHF 2.3 billion), and dividend (CHF 22/share) is confirmed.

• Cost savings target of CHF 50 million+ for 2024 is reiterated, with expectations for a stronger Q4.

• Fastweb is on track for about 5% revenue growth for the full year.