Swisscom AG

Swisscom reported Q2 revenue of CHF 3.6 billion, down 2% year over year, EBITDAaL of CHF 1.269 billion, up 6.1%, and operating free cash flow of CHF 608 million, up 23.9%. Group revenue was down CHF 225 million year over year, with Switzerland down CHF 27 million and Italy down CHF 111 million; group EBITDAaL was up CHF 83 million, or CHF 92 million adjusted. CapEx was down 6.3% in the quarter, and free cash flow increased CHF 221 million in the first half. In Switzerland, first-half Telco cost savings were CHF 42 million, with full-year savings expected to be at least CHF 50 million; in Italy, Q2 synergy realization was EUR 89 million and first-half synergy realization was EUR 166 million, with full-year synergies expected at EUR 300 million. Management confirmed full-year guidance, including Swiss Telco service revenue decline of roughly CHF 120 million and Italy service revenue decline of roughly CHF 150 million, with Italy service revenue expected to gradually ease over time.

Christoph Aeschlimann described the quarter as solid and said Swisscom is operationally and financially on track. He emphasized that the strategy is unchanged, while pointing to management changes in Switzerland that add dedicated leadership and more focus on the Swiss market and AI transformation. In Italy, he said Vodafone Italia integration into Fastweb is ahead of plan, synergy realization is running faster than planned, and the company is pushing innovation through products like the ROSS AI app, energy, and infrastructure initiatives.

Eugen Stermetz focused on the quarter-to-quarter improvements in the numbers and reinforced guidance. He cited group revenue down CHF 225 million year over year, EBITDAaL up CHF 83 million, CapEx down CHF 131 million, and operating free cash flow up CHF 214 million in the group. He also highlighted CHF 42 million of Swiss cost savings in the first half, expected to be more than CHF 50 million for the full year, and in Italy he pointed to EUR 89 million of Q2 synergies, EUR 166 million in the first half, and up to EUR 250 million of integration costs in total, including up to EUR 200 million in CapEx. He confirmed the CHF 75 million Vodafone compensation related to Poste MVNO loss will be booked in Q3 or Q4 as an adjustment, and said there is no compensation for the Lyca MVNO loss.

Analysts focused on Swiss price increases, the persistence of Swiss Telco revenue decline, the impact of satellite on broadband and mobile, and the Italian regulatory/tower situation. Management said customer reaction to Swiss price increases was as expected: churn rose temporarily, downtrading to Wingo increased, and the market remains highly promotional, limiting room for repeated price hikes. On the Swiss revenue guide, management said the first half is in line with the full-year outlook and that Q3 is affected by roaming and international call dynamics, plus still-weak gross adds. In Italy, management said AGCOM’s new proposals are still being assessed, but ongoing network investment and the INWIT migration plan can progress in parallel; they also confirmed the EUR 150 million Italy service revenue decline outlook and said it should gradually ease over time.