Swisscom AG (ADR) ( (SCMWY) ) has released its Q2 earnings. Here is a breakdown of the information Swisscom AG (ADR) presented to its investors.
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Swisscom AG, a leading telecommunications provider operating primarily in Switzerland and Italy, has released its interim earnings report for the first half of 2025, showcasing its financial performance and strategic developments.
In the first half of 2025, Swisscom reported a decrease in group revenue by 2.3% to CHF 7,446 million, while EBITDA after lease expense (EBITDAaL) fell by 5.5% to CHF 2,474 million. The decline in revenue and EBITDAaL was influenced by currency fluctuations and non-recurring costs related to the integration of Vodafone Italia, acquired at the end of 2024. Despite these challenges, the company’s reported revenue increased by 36.7% due to the consolidation of Vodafone Italia.
Key performance metrics revealed a mixed picture: while net income dropped by 25.2% to CHF 625 million, free cash flow saw a significant increase of 40.5% to CHF 496 million. The company also reduced its capital expenditure by 7.9% to CHF 1,485 million, reflecting strategic cost management. Operationally, Swisscom saw growth in mobile postpaid access lines in Switzerland and wholesale broadband lines in Italy, despite declines in other segments.
Looking ahead, Swisscom maintains its financial outlook for 2025, expecting revenue between CHF 15.0-15.2 billion and EBITDAaL around CHF 5.0 billion. The company plans to propose an increased dividend of CHF 26 per share for the 2025 financial year, contingent on achieving its targets. Swisscom continues to focus on expanding its fiber-optic network and optimizing its operations in a competitive market environment.