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 leadership in customer experience, innovation (notably in AI), and network quality in both markets.

• 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 dividend increase to CHF 26 per share for 2026, reflecting confidence in future cash flow growth.

Financial highlights

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

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

• CapEx stable at CHF 2.3 billion; operating free cash flow at CHF 1.752 billion, down mainly due to integration costs and higher CapEx in Switzerland.

• Fastweb revenue grew 7% and EBITDA increased, driven by B2B IT and Wholesale segments.

• 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: ~CHF 5 billion; CapEx: CHF 3.1–3.2 billion; OpFCF CHF 1.8–1.9 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 ~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 set at CHF 26 per share, with ambition for further growth as synergies materialize.

• The Board of Directors recommends a dividend of CHF 22 per share for 2024, reflecting strong earnings.