Swisscom(US:SCMWY)2023-05-07 18:28Financial Data and Key Metrics Changes - Swisscom reported stable revenue of CHF2,747 million and a growing EBITDA of CHF1.164 billion in Q1 2023, with a notable increase of CHF13 million in EBITDA from Swisscom Switzerland and CHF3 million from Fastweb [7][18][23] - Net income remained flat at CHF442 million, reflecting a decrease of CHF5 million compared to the previous year, primarily due to a lower financial result [39] Business Line Data and Key Metrics Changes - In the B2C segment, Swisscom experienced a slight decline in service revenue by CHF5 million, while B2B revenue decreased by CHF12 million, aligning with previous guidance [26][29] - Fastweb achieved a 22% growth in mobile RGUs, reaching over 3 million subscribers, while the enterprise segment grew by 6%, contributing to overall revenue growth of CHF28 million [19][21][23] Market Data and Key Metrics Changes - Swisscom's mobile segment added 30,000 net RGUs, while broadband and TV segments saw a slight decline, partially offset by growth in wholesale [5][6] - Fastweb's mobile market share increased to 4%, with a total of 3.2 million mobile subscribers [6] Company Strategy and Development Direction - The company continues to focus on maintaining market position and maximizing value creation, particularly in the B2C market, while also investing in IT services to offset revenue losses in the B2B segment [9][10] - Swisscom is committed to high investment in network reliability and innovation, aiming to enhance coverage and quality [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the competitive dynamics in the Swiss market, noting aggressive promotional activities from competitors, which have impacted subscriber growth [44][45] - The management remains cautious about future pricing strategies, considering inflationary pressures and the need for cost reductions [12][47] Other Important Information - The company confirmed its full-year guidance for revenue, EBITDA, and CapEx, indicating confidence in achieving financial targets despite current challenges [40] Q&A Session Summary Question: Impact of Sunrise's price increase on the market - Management expressed surprise at Sunrise's price increase and noted it could signal a potential trend change in the market after years of declining prices [43] Question: Competitive dynamics in the Swiss market - Management highlighted ongoing aggressive promotional activities from competitors, which have led to softer subscriber numbers for Swisscom [44][45] Question: Consolidation potential in the Italian market - Management indicated a willingness to explore consolidation opportunities but emphasized a focus on Fastweb's standalone growth for now [46] Question: Indicators for potential price increases - Management mentioned rising energy costs and wages as key factors influencing pricing decisions, but no immediate decisions have been made [47] Question: Trends in retail and wholesale markets - Management noted a decline in retail but growth in wholesale, attributing changes to market dynamics and competitor actions [48][68] Question: Cost savings and guidance - Management confirmed a full-year guidance of CHF100 million in gross savings, with a portion being seasonal [67]