Swisscom heralded a solid 2013 financial performance as it recorded customer and volume growth.
Group revenues were up 0.4 percent year-on-year to €9.4 billion. Revenues in its principal Switzerland business unit were stable at €6.9 billion as sales from bundled offerings rose by a third to €960 million and one million subscribers signed up to its TV service.
Over 750,000 households and businesses are now connected to the company’s fibre-optic network, while more than 85 percent of the population have access to 4G LTE.
Swisscom said its original expansion target has been “greatly exceeded” and around one million customers now own a 4G LTE-enabled device.
Meanwhile, the volume of mobile data traffic jumped by 116 percent compared to 2012, which Swisscom put down to “massive reductions” it made to data-roaming charges in July.
As a result, it said it had transmitted six times the volume of data in the second half of 2013 compared to the same period in 2012.
Further, 450,000 users have downloaded Swisscom’s iO app – its free OTT service launched in June.
However, the operator’s profit took a 6.6 percent hit – to €1.4 billion – due in part to a 10.5 percent rise in capex. Swisscom spent €2 billion, mainly on broadband infrastructure. The figure excludes mobile frequencies.
The company’s headcount rose three percent to break the 20,000 barrier, meanwhile.
Fastweb, Swisscom’s Italy-based broadband unit, saw sales fall six percent to €1.3 billion, despite gaining 175,000 new broadband customers. However, the operator said the business is growing at a faster pace than the market.
Other revenues, including its IT services division, rose six percent to €1.5 billion
CEO Urs Schaeppi commented: “Our business performed solidly in 2013. Despite strong competition, we consolidated our market position… [and] we continued to gain many new customers in the fourth quarter.”
He said he expects “moderate growth” in revenue and EBITDA in 2014.