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 ...

Investors interested in stocks from the Diversified Communication Services sector have probably already heard of PT Telekomunikasi (TLK) and Swisscom AG (SCMWY) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with ...

Financial Data and Key Metrics Changes - Swisscom reported stable group revenue of CHF 11 billion, representing a 0.2% change year-over-year [12] - EBITDA grew to CHF 4.6 billion, up 4.9%, while net income increased to CHF 7.1 billion [12] - Operating free cash flow rose to CHF 1.48 billion, reflecting a 9.7% increase [12] Business Line Data and Key Metrics Changes - In the Swiss residential market, mobile services attracted 129,000 new postpaid customers, achieving a market share of 53% [9] - Broadband connections remained stable with a slight decline, while wholesale connections grew by 13,000 [9] - In Italy, mobile subscriptions increased by 422,000, reaching a total of 3.5 million customers, representing nearly 5% market share [11] - The broadband customer base in Italy saw a decline, but this was offset by a significant growth in wholesale business, with 69,000 new lines added in Q4 [11] Market Data and Key Metrics Changes - The Swiss mobile market is growing due to a population increase of approximately 100,000 annually, leading to about 40,000 new households [27] - The B2B segment in Switzerland is experiencing a decline due to price pressure and technology conversion, while the Swiss IT market is growing at a CAGR of 6% [54] Company Strategy and Development Direction - Swisscom aims to be a trusted digital technology innovator, focusing on customer value and digital technology adoption [14] - The company has established four strategic pillars: delighting customers, innovating for growth, achieving more with less, and enhancing employee skills [19] - The focus for 2024 includes expanding the enterprise mobile portfolio and enhancing IT service offerings [62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving operational and financial targets, highlighting strong brand recognition and customer satisfaction [6][8] - The company is committed to sustainability and has set a target for net-zero emissions by 2035 [8] - The impact of AI is expected to grow, with plans to implement AI technologies across all divisions [84] Other Important Information - Swisscom has made significant investments in FTTH and 5G infrastructure, aiming for 90% 5G coverage by 2025 [89] - The company plans to phase out its copper network as fiber becomes available, potentially saving over CHF 100 million in annual operational expenses [92] Q&A Session Summary Question: What are the key achievements in the B2B segment? - Management highlighted the launch of new mobile products and a significant improvement in customer satisfaction scores in the corporate and SME segments [50] Question: How is Swisscom addressing the competitive landscape in Italy? - The company noted strong growth in the mobile market and a focus on enhancing its network capabilities to maintain its competitive edge [103]

n 11 / / 1 / 2 | --- | --- | |-------|----------------------------------------------------| | | | | | | | | | | | | | | Analyst and investor presentation FY 2023 results | | | 08 February 2024 | | --- | --- | --- | --- | --- | --- | |-------|---------------------------------------------|--------|-------|-------|-------| | | | | | | | | | Agenda | | | | | | | Welcome and introduction | | | | | | 1. | Successful 2023 | p3-6 | | | | | 2. | Empowering the digital future | | | | | | | as Innovators of Trust | p7 ...