Financial Data and Key Metrics - Q2 revenue growth of 1.8% to CHF 2.75 billion, with H1 revenue stable at CHF 5.45 billion [7] - EBITDA slightly lower by 1.3% to CHF 1.12 billion, mainly due to softer cost savings in Switzerland [7] - Full-year guidance for 2024 confirmed, with revenue and EBITDA in line with expectations [7] - Fastweb in Italy achieved 7% revenue growth, contributing significantly to the overall top-line increase [3] Business Line Performance - Switzerland: Postpaid subscriber base increased by 22,000, while broadband saw a slight decline of 9,000, better than Q1 [5] - Italy: Mobile net adds of 113,000, achieving over 5% market share, with broadband and wholesale combined growth of 33,000 net adds [6] - IT service revenue growth in Switzerland driven by AI and cloud offerings, with a 7% increase [3] - Fastweb launched a new energy offering for B2C customers, contributing to ARPU uplift [4] Market Performance - Switzerland: Improved momentum in mobile and broadband, with measures showing positive results [5] - Italy: Strong mobile growth, with Fastweb being the second-best performer in the market behind Iliad [6] - FiberCop stake sale in Italy for €439 million, with proceeds used for deleveraging [4] Strategy and Industry Competition - Strategic priorities for 2024 remain unchanged, focusing on customer delight, innovation, cost efficiency, and skill development [8] - Fastweb's integration with Vodafone Italy is on track, with financing secured and regulatory approvals progressing [4][24] - Competitive dynamics in Switzerland remain intense, with promotional activity increasing in Q2 [45] Management Commentary on Operating Environment and Future Outlook - Management highlighted the success of Fastweb in Italy and the progress of the Vodafone Italia transaction [4][24] - Cost-saving measures remain a top priority, with a focus on achieving more with less, despite a weaker Q2 [17] - The energy business in Italy is expected to have a marginal impact on EBITDA and revenues in 2024, with potential for future growth [47] Other Important Information - Fiber rollout in Switzerland has achieved cruising speed, with FTTH coverage now at 49% [16] - Fastweb launched an AI sovereign infrastructure and an Italian LLM offering, enhancing its B2B services [22] - The company appointed a new CTIO, Mark Düsener, to continue the network modernization strategy [15] Q&A Session Summary Question: Swiss Competitive Dynamics and Fiber Rollout Impact - Competitive dynamics in Switzerland remain intense, with increased promotional activity in Q2 [45] - Fiber rollout in Switzerland offers upselling potential but also increases competition, balancing out the impact on B2C revenues [46] Question: Fastweb Energy Business and EBITDA Impact - The energy business in Italy is still in early stages, with marginal impact on 2024 EBITDA and revenues [47] - The economics of the energy offering involve reselling energy with fixed pricing, avoiding exposure to wholesale energy prices [53][55] Question: Swiss Retail Margins and Italian Competitive Dynamics - Swiss retail margins have improved year-over-year, with increased sales orientation but no significant increase in marketing spend [58][59] - Italian competitive dynamics remain intense, with mobile prices stabilizing but wireline slightly deteriorating [60] Question: Vodafone Italia Transaction and Energy Business Read-Across - The Vodafone Italia transaction is progressing, with regulatory approvals expected in Q1 2025 [63] - The energy business in Italy is seen as a growth opportunity, but a read-across to Switzerland is unlikely due to market differences [64][65] Question: Swiss Service Revenue and AI Initiatives - Measures to improve ARPU in Switzerland have shown results, particularly in the wireline segment [69][71] - AI initiatives in B2B are still in early stages, with potential for high margins but no significant revenue impact yet [72][73] Question: Insurance Opportunity in Switzerland and Italian Wireline Market - The insurance business in Switzerland is still in early stages, with potential for future growth but currently not meaningful [76] - The Italian wireline market is slightly deteriorating, but Fastweb's positioning remains stable with manageable churn [78] Question: Swiss Guidance and Free Cash Flow - The company expects significant cost savings in H2 to meet the full-year EBITDA guidance [81] - Free cash flow is expected to see a significant swing back in working capital by year-end [82] Question: FTTH Targets and Fastweb Guidance - FTTH targets remain on track, with 57% coverage expected by 2025 [85] - Fastweb's revenue growth for 2024 is expected to be above the original guidance of 2%-3%, with EBITDA growth likely in the 1%-2% range [86]

| --- | --- | --- | |----------------------------------------------------------------------------------|-------|-------| | | | | | Introduction | | | | Louis Schmid, Head of Investor Relations Swisscom | | | | 1. Achievements | | | | Christoph Aeschlimann, CEO Swisscom | | | | 2. Business update - Switzerland and Italy Christoph Aeschlimann, CEO Swisscom | | | | 3. Transaction update - Vodafone Italia Eugen Stermetz, CFO Swisscom | | | | 4. Financial results | | | | Eugen Stermetz, CFO Swisscom | | | | Ques ...

Chicago, IL – July 15, 2024 – Today, Zacks Equity Research discusses Swisscom AG (SCMWY) , Telefonica, S.A. (TEF) and Telenor ASA (TELNY) . Industry: Communication Services The Zacks Diversified Communication Services industry is likely to benefit from the diminishing supply chain adversities, increased fiber densification and accelerated 5G deployment across the globe. However, high capital expenditures for 5G infrastructure upgrades, unpredictable raw material prices, geopolitical conflicts and elevated i ...

Industry Description What's Shaping the Future of the Diversified Communication Services Industry? Diminishing ROI: Video and other bandwidth-intensive applications have witnessed exponential growth owing to the wide proliferation of smartphones and increased deployment of the superfast 5G technology. This has forced the industry participants to invest considerably in LTE, broadband and fiber to provide additional capacity and ramp up the Internet and wireless networks. These companies are rapidly transform ...

Financial Data and Key Metrics Changes - Group revenue decreased by CHF44 million, with a negative currency effect of CHF31 million, resulting in an underlying revenue decline of CHF13 million [74] - Reported EBITDA was CHF1.16 billion, slightly ahead of consensus, with a stable EBITDA compared to the previous year [92][109] - Net income increased by CHF13 million to CHF455 million, despite a slight decrease in EBITDA [27] Business Line Data and Key Metrics Changes - In Switzerland, revenue decreased by CHF52 million, primarily due to a decline in B2C revenues, which were down CHF59 million, largely from lower hardware sales [5][8] - B2B revenue was flat, with a slight increase of CHF4 million, driven by higher IT service revenues from acquisitions [7] - Fastweb in Italy reported a revenue increase of €35 million, or 5.6%, with strong growth in B2B and wholesale segments [20][21] Market Data and Key Metrics Changes - Swiss service revenue was down CHF30 million, with B2C service revenue down CHF17 million and B2B service revenue down €13 million [11] - Fastweb's mobile customer base grew by 12% year-on-year, reaching 3.6 million subscribers [63] - Wholesale revenues in Italy increased by 18%, driven by new connections [66] Company Strategy and Development Direction - The company continues to focus on value over volume, particularly in the B2C market, and is implementing measures to improve service revenue [32][112] - The acquisition of Vodafone Italia is expected to create significant value, with anticipated synergies of €600 million per year [69][80] - The company is investing in digital services and customer experience enhancements, including new offerings in energy and insurance [60][94] Management's Comments on Operating Environment and Future Outlook - Management indicated that the competitive environment in Switzerland remains aggressive, particularly from Salt, but emphasized a focus on value rather than increased promotional intensity [32][45] - The company maintains its guidance for service revenue decline in Switzerland, projecting a total decline of CHF70 million to CHF90 million for the year [15][31] - Management expressed confidence in achieving the fiber rollout targets and the necessary infrastructure upgrades by the end of 2025 [52][53] Other Important Information - Capital expenditures (CapEx) increased by CHF49 million, primarily due to the FTTH rollout in Switzerland [4][19] - Operating free cash flow decreased by CHF57 million, attributed to lower EBITDA and higher CapEx [4][26] Q&A Session Summary Question: Swiss service revenues trajectory - Management clarified that the CHF30 million decline is not the new normal and expects B2B service revenue to align with full-year guidance [29][31] Question: Swiss competitive dynamics - Management noted aggressive promotional activity from competitors and emphasized a focus on value rather than increasing promotional intensity [31][32] Question: Swiss cost savings and EBITDA phasing - Management expects higher cost savings in Q2 to Q4, with guidance for CHF50 million plus net savings for the year [33] Question: Wholesale margin in Italy - Management provided insights on the wholesale margin, indicating it is lower than 60% but still healthy [39] Question: Impact of Sunrise's customer loyalty initiatives - Management acknowledged the competitive pressure from Sunrise but emphasized a strong existing customer base and the need to attract new customers [43][45] Question: Integration of Vodafone Italy - Management expressed confidence in realizing the €600 million synergy target from the Vodafone acquisition, with plans already in place for integration [80][81] Question: Concerns regarding NetCo deal and competition - Management highlighted the importance of maintaining a healthy wholesale business and expressed concerns about potential impacts on competition from the NetCo carve-out [82][83]

Key takeawaysVodafone said it had agreed to sell its Italian unit to Swisscom for 8 billion euros ($8.7 billion) and would undertake a share buyback with EUR4 billion of the proceeds.The sale completes the British firm's European restructuring strategy under CEO Margherita Della Valle.Vodafone is looking into growing its B2B business, while focusing on key European markets. Vodafone Group Plc (VOD) on Friday said it had struck a deal to sell its Italian division to Swisscom AG for 8 billion euros ($8.7 bill ...

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: Vodafone plans to return four billion euros to shareholders following the sale of its Italian and Spanish units. British telecoms giant Vodafone said Friday it has agreed to sell its Italian unit to Swisscom for eight billion euros ($8.7 billion), completing efforts to overhaul the UK group's European operations. Vodafone, which ...

Vodafone Group PLC (LSE:VOD) has signed off on the €8 billion (£6.8 billion) sale of its Italian operations to Swisscom. The debt-ridden British telecoms multinational initially confirmed talks with Swisscom on a potential sale in February as part of a major overhaul of its European footprint. "Today, I am announcing the third and final step in the reshaping of our European operations,” remarked Vodafone boss Margherita Della Valle. “Going forward, our businesses will be operating in growing telco markets - ...

Investors interested in Diversified Communication Services stocks are likely familiar with PT Telekomunikasi (TLK) and Swisscom AG (SCMWY) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estim ...

Vodafone Group PLC (LSE:VOD) said it is in exclusive discussions with Swisscom about a cash sale of its Italian arm. The debt-laden telecoms group admitted in December that it was exploring options for Vodafone Italia and rumours have suggested Swisscom was the leading candidate, as it owns broadband provider Fastweb in the country.  Today, Vodafone confirmed the pair currently are talking about Swisscom potentially buying Vodafone Italy for a total enterprise value of €8 billion (£6.8bn) excluding debt and ...